More than 10,000 European hotels seek billions in claims against Booking.com

More than 10,000 hotels in Europe have filed claims against Booking.com as part of a landmark class action seeking billions of euros in compensation for unfair price parity clauses and “excessive” commissions.

 

The collective claim, brought by the Amsterdam-based non-profit Stichting Hotel Claims Alliance (SHCA), is expected to represent up to 18,000 hotels by the time registration closes on September 11.

 

The SHCA launched proceedings seeking damages for Booking.com’s use of price parity clauses at the end of January, initially on behalf of just over 3,000 hotels.

 

It reported last week that the number of hotels involved in the action has reached 10,783, with the claims for compensation extending from 2004 to September 2024 when the European Court of Justice (ECJ) ruled on the use of “parity clauses” on pricing in Booking’s contracts with hoteliers.

 

These clauses required hotels to offer their best rates on Booking.com and not undercut these on their own or rival distribution channels.

 

Claimants are seeking “a significant portion of commissions paid to Booking.com between 2004 and 2024, plus interest”, according to Hotrec which estimated Booking’s share of Europe’s OTA hotel bookings in 2024 at 70%.

 

Booking disputes the claim, arguing the ECJ ruling “does not open the door to damage claims”.

 

The action is supported by European hotel association Hotrec and backed by UKhospitality, one of more than 30 national hotel associations involved and encouraging members to join the claim.

 

Hotrec claims Booking’s price parity clauses “harmed price competition, inflated commission rates and restricted the autonomy of thousands of European hotels for two decades”.

 

In a statement, the association said: “Booking.com has used anti-competitive price parity clauses in its terms and conditions with hotels for decades.

 

“These clauses were found to have restricted the hotels’ freedom to set prices, which contributed to Booking’s dominant market position and distorted competition to the detriment of hotels, resulting in significant financial losses to them.”

 

Hotrec president Alexandros Vassilikos said: “Hospitality businesses across Europe have recognised the detrimental effects of Booking.com’s anti-competitive practices and are now seeking redress. 

 

“The scale of this collective action reflects the determination of European hoteliers to defend fair competition and seek compensation for the harm they have suffered.”

 

The claim, which is fully funded, will be heard by the Amsterdam District Court as Booking.com’s contract terms stipulate jurisdiction by the Dutch courts in disputes between the platform and hotels.

 

A Booking.com spokesperson said: "We continue to believe these claims are without merit.

 

"In fact, the Amsterdam Court has recently confirmed in parallel proceedings that the hotels involved with a similar claim have still not provided evidence proving that Booking.com’s past parity clauses restricted competition or provided plausible proof of any damages. 

 

"We will continue to defend our position and do what we do best: bringing incremental business to our more than 2.3 million accommodation partners across Europe, enabling them to reach a global audience in a transparent, cost-efficient way.

 

"The claims raised in these proceedings only relate to a very small proportion of our 2.3 million European accommodation partners – equal to 0.4%."

 

Hotrec has also accused Booking of failing to comply with the Digital Markets Act which prohibits platforms from imposing exclusive pricing arrangements. 

 

The European Commission declared Booking a ‘gatekeeper’ under the Digital Markets Act in May 2024, requiring Booking.com to demonstrate full compliance with the act from November last year.

 

Hotrec has described changes introduced by Booking.com since November as “cosmetic” and urged the EC to “launch a non-compliance investigation” against the platform.