Hotels to seek compensation from Booking.com
The Irish Hotels Federation (IHF) is one of 25 European hotel associations taking part in a collective legal action against the website Booking.com.
The case, which will be taken in the Dutch courts, is being supported by HOTREC, the umbrella association representing the European hospitality sector.
The move follows last year’s finding by the Court of Justice of the European Union that restrictions imposed by Booking.com on hotels could affect competition in the market.
Commission
Hotels pay a commission to Booking.com for any reservation made by travellers through the platform. The clauses at issue prevent hotels from offering overnight stays at prices lower than those offered on Booking.com.
The EU court was giving its judgment on questions referred to it by a Dutch court after proceedings taken by Booking.com.
The platform had challenged a finding by the German courts that ‘price-parity' clauses used by hotel-booking platforms were contrary to EU competition law.
‘Financial harm’
HOTREC said that such ‘parity’ clauses had placed European hotels at a significant competitive disadvantage over the past 20 years and had caused “substantial financial harm”.
“They suppressed price competition between Booking.com and other online platforms, leading to inflated commissions paid by hotels. In addition, the clauses restricted hotels from offering better prices or availability on their own websites, limiting direct sales and autonomy,” the group stated.
HOTREC said that, under the general principles of European competition law, hotels across Europe were entitled to claim compensation from Booking.com for the financial losses suffered.
It added that affected hotels might be eligible to recover a significant portion of commissions paid to Booking.com in any period from 2004 to 2024, plus interest.