Booking.com to be sued by hotels for overpaid commission and lost revenue

[jimny1]

I saw this article in an online newspaper but was restricted from reading it because of the paywall, as is happening regularly now
So i found the facts from an AI overview
The courts found booking.com guilty of unfair pricing practices in september 2024 and now they can sue them
My question is why only the hotels, surely it also affected individuals making bookings , thinking they were getting the cheapest prices using them
We have used booking.com for years so surely there should be a class action for people like us ?
Any way here are the facts

AI Overview More than 750 hotels in Spain have launched a €200 million joint lawsuit against Booking.com, targeting damages caused by illegal 'parity clauses'. Legal firms are now actively seeking new claimants in Andalucia to recover overpaid commissions and lost revenue.Key Details of the Legal Action The Core Issue: Lawsuits center on Booking.com’s historical 'best price' (parity) clauses. Hotels were contractually prohibited from offering lower prices on other platforms or their own websites, which the European Court of Justice and national authorities have ruled anti-competitive.The Spanish Fine: This legal momentum is built on the historic €413.2 million fine handed down to Booking.com by Spain's National Commission for Markets and Competition (CNMC) in July 2024 for abusing its dominant market position.Damages Claimed: Participating hotels are seeking compensation for financial losses and inflated commissions spanning the period from 2019 up to 2024, when the clauses were dropped to comply with the EU Digital Markets Act.Andalucia Focus: Legal firms like Eskariam are coordinating these efforts and actively seeking additional claimants across Andalucia (including the Costa del Sol and surrounding regions) to join the multi-million euro compensatory drive.What Eligible Hotels Need to Know If you own or manage a hotel in Spain that operated with Booking.com during the contested period, you could be entitled to compensation. The process of building a case generally requires the following:Invoices & Records: Gathering Booking.com commission invoices and historical pricing data.Contract Status: Confirming dates of operation under Booking.com's standard 'adhesion contracts'.

[Carl]

My question is why only the hotels, surely it also affected individuals making bookings , thinking they were getting the cheapest prices using them

I guess the argument would be that consumers should have, or would have, checked the price of a hotel on various websites including the hotel's own and booking.com, and then booked on the cheapest ?

In theory the 'parity clause' should mean that the booking.com price should have been the same as booking direct with the hotel. The hotel price direct could be whatever the hotel wants it to be as long as it was not lower than the price on booking.com.

If the hotel price direct was ever lower than the price on booking.com, then the hotel would be undercutting the same platform (booking.com) that they themselves use to sell accomodation on, and booking.com would lose out on business. Maybe some hotels like listing on booking.com as a platform to be noticed on, rather than to be booked through ?

The only thing that comes to mind at the moment that a consumer may have been disadvantaged relates to commission and potential over inflated hotel prices on booking.com, but I think that would be difficult to prove unless there is transparency on pricing from both the hotel and booking.com.

A theorised example (think it makes sense):

Booked direct: Hotel room £50 = hotel get £50
Booking via booking.com: Hotel room £50 - £15 commission to booking.com = hotel gets £35

If the hotel needs to get £50 out of a room booking, then they would need to advertise on booking.com at £65 (£65 - £15 commission = £50). Because of the 'parity clause', the hotel would have to advertise the room at £65 on their website, although the reality is it is a £50 room. The issue for the hotel then I guess is does that extra £15 they added to the room price make them less competitive, but then the same theory would perhaps apply to the other hotels advertising on booking.com

I suppose it is like most things, going straight to the source should always be cheaper than going via a middle-man or broker.

[jimny1]

My question is why only the hotels, surely it also affected individuals making bookings , thinking they were getting the cheapest prices using them

I guess the argument would be that consumers should have, or would have, checked the price of a hotel on various websites including the hotel's own and booking.com, and then booked on the cheapest ?

In theory the 'parity clause' should mean that the booking.com price should have been the same as booking direct with the hotel. The hotel price direct could be whatever the hotel wants it to be as long as it was not lower than the price on booking.com.

If the hotel price direct was ever lower than the price on booking.com, then the hotel would be undercutting the same platform (booking.com) that they themselves use to sell accomodation on, and booking.com would lose out on business. Maybe some hotels like listing on booking.com as a platform to be noticed on, rather than to be booked through ?

The only thing that comes to mind at the moment that a consumer may have been disadvantaged relates to commission and potential over inflated hotel prices on booking.com, but I think that would be difficult to prove unless there is transparency on pricing from both the hotel and booking.com.

A theorised example (think it makes sense):

Booked direct: Hotel room £50 = hotel get £50
Booking via booking.com: Hotel room £50 - £15 commission to booking.com = hotel gets £35

If the hotel needs to get £50 out of a room booking, then they would need to advertise on booking.com at £65 (£65 - £15 commission = £50). Because of the 'parity clause', the hotel would have to advertise the room at £65 on their website, although the reality is it is a £50 room. The issue for the hotel then I guess is does that extra £15 they added to the room price make them less competitive, but then the same theory would prehaps apply to the other hotels advertising on booking.com

I suppose it is like most things, going straight to the source should always be cheaper than going via a middle-man or broker.

Yes that does make sense carl, we do book with booking but always check the prices direct to the hotel first
Sometimes they are cheaper, sometimes not, and booking dangle the carrot by giving discount as a genius user , sometimes 10% off, so we look at all options
Another plus with booking is that you can book without paying , providing they offer free cancellation, usually if you book direct to the hotel they take the money that same day
So swings and roundabouts sometimes