European hoteliers applaud Booking.com/Etraveli decision

The European hotel industry applauds the landmark decision which recognizes the negative impact of the merger on various parts of the tourism ecosystem

In the event of the merger’s approval, Booking could cross-sell its different services and further strengthen its dominance in the hotel market. According to Hotrec distribution study, Booking’s market share on the hotel accommodation market has increased considerably from 60% in 2013 to 71% in 2021.

Key takeaways

• "Hotrec has long been raising alarms about Booking’s market power and its impact on European hoteliers. Today’s decision of the European Commission takes into account those concerns and can only be welcomed," says Hotrec Director General Marie Audren;
• European hoteliers are faced daily with the unfair behaviour of powerful Online Travel Agents (OTAs). For example, the Hotrec distribution study shows that more than half of hoteliers (55%) “feel pressured by OTAs to accept platforms terms and conditions (e.g., regarding cancellation policy, special discounts) that hotels would otherwise voluntarily not offer;”
• While today’s decision is important from a competition enforcement point of view, Hotrecalso recalls important strides forward on a legislative front with the implementation of the Digital Markets Act (DMA). The law represents an important milestone for the hotel industry since it will also introduce a ban on all price parity clauses, which prevent hoteliers from offering a better price on their own channels than the platform.

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