A broad alliance of national hotel associations from over 25 European countries has joined forces in a Europe-wide collective action against the online travel agency Booking.com. This joint initiative is strongly supported by HOTREC, the European umbrella organization for the hospitality industry.
The background to this unprecedented action is a landmark ruling by the European Court of Justice (ECJ) of September 19, 2024, which classified the platform's so-called parity clauses as a violation of EU competition law. This ruling now opens up the possibility for hotels across Europe to claim compensation for the financial losses they have suffered in recent years, which the class action lawsuit supported by HOTREC is now intended to do on a large scale.
ECJ ruling as basis for claims for damages
The European Court of Justice's ruling of September 19, 2024, marks a turning point in the relationship between online booking platforms and accommodation providers. The ECJ clarified that operators of online platforms for booking accommodation services may no longer oblige hotels to offer their services on their platform at a lower price than those offered to guests who book directly with the hotel.
These so-called parity clauses, which Booking.com has frequently used in the past, have thus been deemed anti-competitive. This ruling now gives hotels across Europe a potential claim for damages for the financial losses they have suffered as a result of the use of these illegal clauses.
Austrian hoteliers could also be affected
In Austria, the Hotel Industry Association of the Austrian Federal Economic Chamber (WKÖ) also strongly supports this European initiative. Johann Spreitzhofer, Chairman of the Hotel Industry Association of the WKÖ, points out that the association successfully campaigned for a legal ban on these "best price clauses" in Austria ten years ago. Nevertheless, Spreitzhofer points out that Austrian hoteliers may also have suffered significant financial losses over the past two decades due to the use of anti-competitive parity clauses. Therefore, the association calls on the affected Austrian hoteliers to consider the possibility of participating in the class action lawsuit.
HOTREC President Alexandros Vassilikos emphasizes the importance of this joint action for the European hospitality industry: "European hoteliers have long suffered from unfair conditions and excessive costs. Now is the time to stand together and send a clear message with this joint action: abusive practices in the digital market will not go unchallenged." The class action lawsuit is thus seen as a historic moment for the European hotel industry to take action against the market power of large online platforms and advocate for fairer competitive conditions.
Registration for class action lawsuit for affected hotels possible
Hotels wishing to claim compensation for the financial losses suffered by Booking.com can apply on the dedicated website www.mybookingclaim.com and access further detailed information about the class action lawsuit. This central contact point is intended to make it easier for affected accommodation providers across Europe to join the initiative and pool their claims for damages.
The Europe-wide support of the action by numerous national hotel associations and the umbrella organization HOTREC underscores the industry's determination to take action against what it perceives as unfair business practices by Booking.com. It remains to be seen what concrete impact this large-scale class action lawsuit will have on future business relationships between hotels and online booking platforms.
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