Booking.com best-price clause challenged

More than 10,000 European hotels have said they will join legal action against the online travel site Booking.com over its alleged past insistence that they refrain from offering rooms at cheaper rates than it does.

The class action suit being organized by the Association of Hotels, Restaurants and Cafes in Europe, or HOTREC, claims Booking.com's so-called best-price clause prevented hotels from selling rooms on their own websites at discounted prices.

HOTREC, which represents hotels operating within the European Union, said operators are seeking compensation for losses they claim they incurred between 2004 and 2024 because of the clause.

Netherlands' public broadcaster the Dutch Broadcasting Foundation said hoteliers believe the practice, which Booking.com ended in 2024, was unfair and led to a lack of competition and significant missed opportunities and financial losses.

The German broadcaster Deutsche Welle quoted HOTREC President Alexandros Vassilikos as saying: "European hoteliers have long suffered from unfair conditions and excessive costs. This joint initiative sends a clear message: abusive practices in the digital market will not be tolerated by the hospitality industry in Europe."

The claimants allege Netherlands-based Booking.com used best-price clauses in their contracts with hotels to ensure people did not use the website to discover a suitable hotel before booking directly with the operator at a cheaper rate.

The class action suit is being supported by 30 national hotel associations, including the German Hotel Association, or IHA, and cites a European Court of Justice ruling from Sept 19, 2024 that criticized best-price clauses and that said they can, in principle, violate EU competition law.

Markus Luthe, the IHA's managing director, told Germany's DPA news agency: "The class action is receiving overwhelming support."

Luthe said hotel operators can still join the legal action up until the deadline of Aug 29.

Booking.com told DPA it has not yet been served notice of the lawsuit but insisted it has not contravened EU laws and that HOTREC may have misinterpreted the ECJ ruling.

"This is a statement from HOTREC, not a filed class action," the company said in a statement. "Each of our accommodation partners is free to set their own distribution and pricing strategies and can offer their rooms wherever they choose."

Booking.com also noted that its platform is a voluntary distribution channel for hotels and that it has helped them with marketing, technology, and global visibility.

A similar legal action to the one led by HOTREC was launched in June by Netherlands-based consumer advocacy group Consumentenbond on behalf of Booking.com customers. And a Spanish court fined Booking.com 413 million euros ($478 million) in July 2024 after the conclusion of another similar case.

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