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An unprecedented legal battle is underway in Europe, potentially reshaping how users book accommodations in the future. More than 10,000 hotels across the continent have filed lawsuits against Booking.com – the world's largest online booking platform – alleging that the giant abused its dominant market position over the past two decades.
By imposing "best price," Booking.com is accused of stifling competition.
The lawsuit stems from a controversial clause that Booking.com has applied for years: the "best price guarantee" clause. Under this clause, partner hotels were forced to maintain identical room rates across all platforms, including their own websites, matching the rates listed on Booking.com. This prevented hotels from competing on price and forced them to rely on the intermediary platform with its high commission fees.
Europe is witnessing an unprecedented wave of legal action in the tourism industry as more than 10,000 hotels are suing the online platform Booking.com, accusing it of imposing unreasonable terms and conditions.
This class-action lawsuit was coordinated by the Hotel Complaints Alliance, with the participation of more than 30 national hotel associations. The case was heard in the Netherlands, where Booking.com is headquartered. The legal basis for the lawsuit stems from a ruling by the European Court of Justice (ECJ) in September 2024. In a separate case, the ECJ stated that Booking.com's "best price" clause reduced competition among room booking channels.
The dispute primarily revolves around the "best price" clause that Booking.com has applied for many years.
Although Booking.com denied the allegations and maintained it had not violated any laws, under pressure from the EU's Digital Markets Act (DMA), which came into effect that same year, the platform was forced to remove the price cap clause in July 2024. However, hotels argue that the financial losses over the past two decades are undeniable, as they only received approximately 83-87% of the room rate after deducting Booking.com's commission fees.
Signs that are reshaping online booking trends.
The lawsuit, although not yet finalized, has had far-reaching consequences. According to experts, this is not just a legal dispute, but also the beginning of a transformation in the tourism industry.
Under these terms, hotels are not permitted to offer prices lower on any other channel, including their own website, than the prices listed on Booking.com.
If the "best price" clause is completely and definitively abolished, hotels will have the freedom to set prices across different channels. This will open up opportunities for them to launch exclusive offers on their own websites, such as direct discounts, gifts, or add-ons to attract customers, thereby reducing their reliance on intermediary platforms like Booking.com. This trend is particularly beneficial for smaller hotels, which lack marketing resources and now have a more level playing field.
Despite facing legal pressure, Booking.com remains an indispensable platform for many small and medium-sized hotels in Europe.
On the other hand, the pressure from the lawsuit is also forcing large OTAs like Booking.com, Agoda, and Expedia to adjust their business models. They may have to reduce commissions or offer more flexible terms to retain hotel partners. In this context, smaller OTAs with lower costs could become an attractive option, making the booking market more diverse and competitive.
This shift could greatly benefit consumers. Instead of relying on a few large platforms, customers will have more choices and can benefit from price competition among hotels and various booking channels. The era of "price monopolies" by large OTAs may soon come to an end.
