More than 10,000 European hotels are suing Booking.com, claiming the site owes compensation for “inflated costs” over 20 years.
Hotels in the Association of Hotels, Restaurants and Cafes in Europe (Hotrec) claimed that the booking sites parity clause stopped them from offering lower prices and better availability on other platforms or their own website.
The lawsuit is set ot be one of the largest filed in the European hospitality sector and has been backed by 30 national hotel associations, including Britain.
“Over 10,000 hotels have already joined the pan-European initiative to claim compensation for financial losses caused by Booking.com’s use of illegal ‘best price’ (parity) clauses,” Hotrec said in a statement.
In September of 2024, the European Court of Justice found that the rental platform’s parity clauses had “breached EU competition law”.
According to Hotrec, these clauses led to inflation in commission rates, suppressed direct booking and distorted online market competition.
The association added that hotels may be eligible for commission from Booking.com from 2004 to 2024.
In response to the overwhelming support, Hotrec has extended the deadline for venues to join the lawsuit until 29 August.
“The collective action has received overwhelming support. Extending the registration deadline will ensure that all interested hotels have a fair chance to participate, despite it being peak season,” Marie Audren, Director General of Hotrec, said.
While 74% of hoteliers said the hotel booking site has made their business more profitable, other industry representatives have criticised the business's practices as extractive.
“As they gained control of the market, Booking was able to increase its commission rates and exert much greater pressure on hoteliers’ margins,” Véronique Siegel, president of the hotels division of French hospitality sector association Umih, told public broadcaster France Inter.
“For a room that the customer pays €100 (£87) for, if you take away Booking’s commission, the hotelier receives €75 at best, with which they have to pay their employees and invest.”
According to a study by Hotrec and the University of Applied Sciences and Arts Western Switzerland, Booking.com’s parent company, Booking Holding, controlled 71% of the European market in 2024, compared to 68.4% in 2019 and the corporation is valued at US$170 billion.
