Hotels across Europe are being invited to join a major class action against Booking.com, aiming to recover billions in allegedly overpaid commissions.
The case is being filed in the Netherlands—home of Booking.com’s headquarters—and builds on a major legal victory from September 2024, when the European Court of Justice ruled against the platform and in favor of 63 German hotels.
At the center of the dispute: the legality of “parity clauses” that Booking.com used to prevent hotels from offering cheaper prices elsewhere.
What Are Parity Clauses, and Why They Matter
When Booking.com entered Germany in 2006, its contracts with hotels included a “wide parity” clause: hotels couldn’t offer lower rates on their own websites or on any other platform. In 2013, Germany’s Federal Cartel Office ruled that these clauses violated both German and EU antitrust laws.
In response, Booking.com shifted to a “narrow parity” clause in 2015, which still restricted hotels from offering cheaper rates on their own websites. That too was found to be unlawful.
Regulators across Europe have since grown increasingly concerned that such clauses reduce consumer choice and inflate prices for travelers.
HOTREC and Legal Experts Rally Behind Hotels
HOTREC, a European association representing 47 national hospitality organizations, is backing the class action. In a public statement, HOTREC president Alexandros Vassilikos said: “European hoteliers have long endured unfair conditions and inflated costs. Now is the time to stand together and seek redress.”
Roughly 2,000 German hotels have already joined the case, with total claims reaching €750 million—not including interest—according to Volker Soyez, a partner at Schneider Geiwitz & Partner (SGP), a Brussels-based firm involved in the legal case.
Hotels from across the EU, as well as the UK and Switzerland, have until July 31 to join the lawsuit. To participate, hotels need to have been listed on Booking.com at any time between 2004 and 2024, and will need to provide all invoices from Booking.com.
Booking.com’s Response
Booking.com has pushed back on the ruling, emphasizing that the European court’s decision is limited in scope. A spokesperson said:
“The ECJ judgement relates specifically to questions asked by the Amsterdam District Court in relation to litigation between Booking.com and some German hotels disputing the legality of price parity clauses in Germany between 2006 and 2016. The court did not conclude that Booking.com's German parity price clauses were anti-competitive or had an effect on competition.”
Booking.com also acknowledged the scrutiny in its Q4 2024 financial filing, noting:
“The company is involved in investigations related to whether Booking.com's contractual parity arrangements with accommodation providers are anticompetitive because they require partners to provide Booking.com with rates, conditions and availability at least as favorable as those offered to other [OTAs] or by the partner itself.”
Our Take:
This class action could result in massive payouts—or it could just be a massive distraction. But the deeper issue it highlights is the risk of overreliance on OTAs like Booking.com, Airbnb, or VRBO for your bookings.
The same lesson applies to STR hosts: When a single distribution channel is the main source of your bookings, it gains the power to dictate terms, raise commissions, and restrict pricing freedom.
Driving more direct bookings isn’t just about saving on commissions—it can help hosts retain control over their pricing, positioning, and guest relationships.
