Hoteliers in Greece are considering collective legal action against the online booking platform Booking.com, aiming to challenge its pricing-policy restrictions, which they allege are costing the industry millions of euros.
The Hellenic Chamber of Hotels is leading a compensation effort following a European Court of Justice ruling last year that determined pricing policies imposed by the online booking platform are detrimental to the interests of hoteliers.
The issue centers on the platform’s requirement for hoteliers to maintain rate parity, prohibiting them from offering room prices lower than those displayed on the platform’s listings.
For example, if a hotel room is listed on Booking.com for €100 per night, the hotelier is prohibited from offering it at a lower price through other sales channels or the hotel’s own website, even if rooms remain vacant.
Hoteliers pay Booking.com commission fees ranging from 15% to 27%. Higher commissions are usually charged when hoteliers participate in advertising programs and other promotions on the platform.
An agreement has been reached with a specialized law firm to take on the case, according to Alexandros Vassilikos, President of the Hellenic Chamber of Hotels and HOTREC, the Association of Hotels, Restaurants & Cafes in Europe.
It is not yet clear how many Greek hoteliers could join the class action.
Industry experts estimate that online hotel bookings in Greece are worth approximately 2 billion euros annually, with Booking.com’s earnings from these transactions estimated at 200 million euros.
Booking.com ranks as its field’s dominant player with a market share of approximately 70%.
