Thousands of European hotels have launched a landmark legal action against Booking.com, escalating a years-long fight over what industry groups call unfair contract terms and dominant platform practices. The suit, coordinated by the Hotel Claims Alliance and supported by dozens of national trade associations, takes aim at a decade of “best price” or parity clauses that required hotels to offer Booking.com the lowest available rates. For many hotel owners and managers, these terms represented more than just a financial irritant. The clauses, they argue, fundamentally constrained their ability to compete, undermined direct bookings, and shifted market power away from independent operators towards global platforms.
The claim, filed in Amsterdam — where Booking.com is headquartered — marks the most significant collective legal challenge the European hotel sector has yet mounted against an online travel agent. Legal filings allege that, between 2004 and 2024, parity clauses forced hotels to guarantee the lowest prices to Booking.com, effectively prohibiting them from undercutting the platform on their own websites or through rival distributors.
Many participating hotels are small and mid-sized independents, who describe an “inescapable dependency” on the platform to reach international customers. With Booking.com handling more than 70 percent of online hotel bookings in parts of Europe, the power imbalance has become a defining issue for the sector.
For hotels, the cost is not limited to lost direct bookings. Industry associations point to commission rates that commonly range from 12 percent to 25 percent, meaning that for every €100 room sold via Booking.com, a hotel might retain as little as €83 after fees. Margin pressures have been felt acutely since the pandemic, as inflation, labour shortages, and competition from short-term rental platforms have squeezed profitability. Industry leaders argue that parity clauses made it impossible to offset these costs through direct sales or loyalty incentives.
The European Commission and national regulators have scrutinised these practices for years, with courts in Germany, France, Italy, and Austria already restricting or banning certain types of parity agreements. Yet, according to hotel associations, Booking.com’s revised terms have often preserved the effect of parity by other means — whether through “narrow” parity requirements or by ranking and visibility practices that reward hotels for higher commission payments.
It was only in September 2024 that the European Court of Justice handed down a decisive ruling, finding that parity clauses as implemented by Booking.com violated EU competition law. Shortly after, Spain’s competition authority imposed a record €413 million fine on the company for abusing its dominant position, citing restrictive terms that, it said, left Spanish hotels little room to negotiate.
Booking.com has stated that it is fully compliant with European law and argues that its platform delivers significant value to independent hotels, providing access to global demand that would otherwise be difficult and costly to achieve. The company notes that, following the implementation of the EU’s Digital Markets Act in 2024, all parity clauses have been removed for European properties. Industry groups, however, maintain that the effect lingers, especially for hotels in markets without strong national enforcement.
The legal claim in Amsterdam seeks damages for hotels affected by these policies, calculated as a share of commissions paid over the relevant period. Estimates suggest potential compensation of at least 30 percent of total commissions between 2004 and 2024, with some cases likely to be higher if additional losses are proven. To lower the risk for individual hotels, the claims are consolidated using a Dutch legal structure that allows collective action without exposing participants to direct legal costs.
For many in the industry, this case represents more than just a dispute over commission or contract terms. The outcome could shape the future relationship between hotels and online platforms, especially as digital gatekeepers continue to play a central role in global travel distribution. Hotel operators are watching closely for signals that platforms will face more rigorous limits on how they manage supply partners and set contractual boundaries.
With many national associations voicing support for the action, HOTREC, the umbrella association representing European hotels, restaurants, and cafés, has called the suit a clear sign that “abusive practices in the digital market will not be tolerated by the hospitality industry in Europe.”
For Booking.com, the case brings both reputational and regulatory challenges. The platform remains the leading route to market for many independent hotels, but its influence has prompted calls for more transparent business practices and a level playing field. Legal analysts note that, even if Booking.com prevails in court, the broader impact of sustained regulatory and legal scrutiny may prompt further changes in how platforms interact with their partners.
Beyond the legal battle, the industry’s attention is shifting to the future of direct booking and platform economics. Hotels are weighing how to attract guests directly, invest in loyalty, and take greater control over customer relationships. There is also increased scrutiny of the mechanics of collective redress, as trade associations and legal foundations look to consolidate claims and lower participation barriers for smaller businesses. The case may serve as a blueprint for other sectors grappling with the realities of digital platform dominance.
As the deadline for hotels to join the action approaches, the outcome remains uncertain. What is clear is that the struggle over pricing freedom, platform power, and the economics of digital distribution will continue to shape the European hospitality sector for years to come.
