Over 10,000 Hotels Sue Booking.com! The Cost of the 'Best Price Guarantee': The Hospitality Industry Resists Monopoly

1. Unprecedented Mass Lawsuit

On August 4 (local time), the hotline connecting Rome, Berlin, and Brussels was abuzz. The European hotel industry association Hotrec and national hotel associations simultaneously announced that **"a total of 10,437 establishments have filed a class-action lawsuit seeking damages from Booking.com."** The claim covers a 20-year period from 2004 to 2024, with estimated damages reaching several billion euros.Build

2. The Issue: "Best Price Guarantee"

At the core is the "best price clause" imposed by online travel agencies (OTAs) on hotels. The hotels claim they were unable to display lower rates on their own websites or other OTAs, losing control over pricing. **"There was a fear that the moment we lowered prices, our search ranking would drop, and rooms wouldn't sell,"** says Lute, Secretary General of Germany's IHA.

3. EU Court of Justice Changes the Tide

In September 2024, the EuGH ruled that "the broad interpretation of the best price clause could unfairly restrict competition," rejecting Booking.com's argument. In Germany, the Bundeskartellamt had already issued a corrective order to the company in 2015, and the Federal Supreme Court recognized its illegality in 2021. This lawsuit is an extension of those actions.The Economic Times

4. Damages and Estimates

According to a Hotrec survey, Booking Holdings holds a 71% share of the European OTA market, with hotels being charged an average commission of 12-18%. For example, out of a 100-euro room rate, only 83-87 euros remain for the hotel. There is strong criticism that this is more of a "market dominance tax" than a marketing cost.Build

5. Booking.com's Rebuttal

Booking.com stated that "Hotrec's announcement is 'litigation preparation,' and no formal lawsuit has been filed yet," while asserting, **"Our company has provided hotels with unprecedented visibility and technical solutions."** They emphasized their freedom in pricing and are prepared to contest the legal validity.

6. #RateParity Spreads on Social Media

Immediately after the lawsuit announcement, "'the spring of price competition' has arrived" was posted by the Greek Hotel Association (@grhotels) on X (formerly Twitter), and travel blogger @EuRover spread the word, "the era of benefiting from direct bookings might return." The search trend also featured **"Booking Fee Too High."**X (formerly Twitter)X (formerly Twitter)

7. The Honest Opinion of Hotel Owners

For small independent hotels, OTAs are a lifeline, but the commission burden squeezes profits. A family-run hotel in Seville, Spain, noted, "The commission alone wipes out the salary of one staff member annually." Participation in the lawsuit is free and risk-free, prompting a three-star hotel owner in Florence, Italy, to decide, "Staying silent only leads to loss."

8. Impact on Travelers?

If the hotels win and the best price clause is completely abolished, price advantages may emerge for direct booking sites and phone reservations, potentially lowering accommodation costs for travelers. On the other hand, Booking.com argues that "if investment capacity is diminished and marketing functions are reduced, user convenience will decrease." Experts analyze that "short-term price competition and long-term distribution structure reorganization are key."

9. Future Schedule

The lawsuit is scheduled to be heard at the District Court of Amsterdam in the Netherlands. The registration deadline for participation has been extended to August 29, 2025, with additional hotels continuing to join. The first hearing is expected in early 2026 at the earliest, and attention is focused on the outcome of settlement negotiations.Build

10. Conclusion: The Prelude to the "Post-OTA Era"

OTAs have revolutionized consumer experiences, but the grievances of suppliers have erupted all at once. This mass lawsuit symbolizes a reevaluation of the power balance between giant platforms and small to medium-sized businesses. Although it may take years for a verdict, the industry is already moving towards **"commission transparency," "strengthening direct sales," and "multi-channel strategies."** The future where travel booking methods change again may not be far off.

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