A storm is brewing in Europe’s hospitality sector as over 10,000 hotel owners have joined a class action lawsuit against online travel platform Booking.com, accusing it of years of unfair pricing practices.
The suit, spearheaded by the Hotel Claims Alliance and supported by HOTREC — the European trade association representing hotels, restaurants, and cafés — seeks damages for losses incurred from 2004 to 2024 due to Booking.com’s now-abolished “best price” clauses.
These controversial clauses allegedly barred hotels from offering lower prices on their own websites or through other platforms than those listed on Booking.com.
What Are “Best Price” Clauses?‘
The clauses in question, also known as “rate parity” agreements, effectively restricted hotels from undercutting Booking.com’s listed prices — even on their own channels.
Booking.com, based in the Netherlands, introduced these clauses to combat so-called “free-rider” behaviour, in which customers discover a hotel via Booking.com but book directly to avoid fees.
But critics argue the practice stifled competition, limited hotels’ autonomy, and kept room prices artificially high for years.
Legal Ground: ECJ Ruling 2024
The foundation of the legal challenge is a pivotal ruling by the European Court of Justice (ECJ) on 19 September 2024, which found such best-price clauses to be in violation of EU competition law.
The court ruled that digital platforms must not impose pricing restrictions on business partners, essentially outlawing the practice within the European Union.
Following this ruling and the implementation of the EU Digital Markets Act, Booking.com dropped the clause in 2024 — but the damage, according to thousands of hoteliers, was already done.
The Scope of the Lawsuit
According to HOTREC, the lawsuit aims to recover significant financial losses suffered by hoteliers over a 20-year period. The class action is being brought before an Amsterdam court, with support from 30 national hotel associations, including Germany’s influential IHA (German Hotel Association).
“European hoteliers have long suffered from unfair conditions and excessive costs,” said HOTREC President Alexandros Vassilikos.
“This joint initiative sends a clear message: abusive practices in the digital market will not be tolerated by the hospitality industry in Europe.”
HOTREC has extended the deadline to join the legal action until August 29, 2025, following what it described as “overwhelming support” for the initiative.
Booking.com’s Response
As of now, Booking.com denies receiving any official legal notice related to the claims.
“This is a statement from HOTREC, not a filed class action,” the company said in a response to Germany’s DPA news agency.
The company pushed back on the allegations, stating:
“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 has yet to issue a detailed rebuttal of the European Court of Justice ruling, or the scale of the damages being sought.
What This Means for the Travel Industry
If successful, the lawsuit could reshape the power dynamics between online travel agents and hospitality providers.
It could also encourage more transparency and pricing freedom for hotels, and potentially lower prices for consumers booking directly.
Legal observers say this could be one of the most significant digital market disputes in recent years — testing how far global platforms can go in dictating business terms in the EU.
Want to Join the Suit?
Hotel owners interested in joining the class action have until 29 August 2025. Visit HOTREC’s website or contact your national hotel association for more details.
