Booking.com can no longer offer the lowest price

Hotel reservations: Booking.com can no longer offer the lowest price

To book accommodation in Europe or elsewhere, it is common to compare accommodation offers and prices on online platforms like Booking.com. But the latter previously prohibited hoteliers from displaying prices lower than those offered on its platform. In a ruling dated September 19, the Court of Justice of the European Union (CJEU) declared that these pricing clauses were contrary to European Union competition law. While the European Consumer Center (CEC) France welcomes this judgment, it warns of an ever-increasing number of requests from consumers regarding problems with online accommodation reservations.

Court of Justice of the European Union restricts Booking.com

Booking.com, Airbnb, Expedia, Abritel…. Reservation platforms allow travelers to compare hundreds of offers and rent accommodation at preferential rates. And often even at the best price because certain intermediaries prohibit hotels from offering, on their own site, rates lower than those displayed on the online platform. Seized on the question of the legality of the so-called “price parity” clauses imposed by Booking.com, with regard to competition law in the EU, the CJEU ruled on September 19.

According to the Court, such clauses are not necessary to ensure the economic viability of the Dutch booking platform. As this practice is no longer authorized, hoteliers present on Booking.com can once again offer, on their own sales channels, prices lower than those on the platform. “This is very good news for consumers,” declares Bianca Schulz, head of CEC France. “After having identified accommodation, consumers will be able to freely compare the prices displayed on the platform and those charged by the hotelier,” she explains.

Accommodation booking platforms: recurring problems

Price isn't the only source of confusion for consumers. This is evidenced by the 250 requests received by CEC France in 2024 relating to booking accommodation on an online platform.

One of the recurring questions from French travelers who book accommodation online is whether the intermediary is required to provide them with assistance. Very often, the platforms disclaim all responsibility when the accommodation is not compliant. Nothing illegal since they are not part of the contract concluded between the traveler and the host, contrary to what vacationers sometimes believe. Worse still, some do not always have access to the identity and contact details of the rental company even though “consumers have the right to know who they are engaging with” explains Bianca Schulz. “We also regret that the European regulation of April 11, 2024 on the rental of short-term accommodation does not require platforms to provide a list of precise information to publish on offers,” she adds.

Other travelers face difficulties in the event of cancellation. If the host cancels the reservation, few platforms offer support. On the other hand, many of them charge 100% of the reservation amount when the cancellation comes from the consumer!

Better protect consumers from online platforms

In order to stem the multiple problems linked to reservation platforms, CEC France has published its recommendations for short-term accommodation rental. Measures which should better protect consumers while guaranteeing healthy competition between hosts and stable growth in this sector:

1. The simplification and harmonization of registration procedures on online platforms;

2. Publication of the housing registration number, accessible to consumers;

3. Control of housing offered for rental;

4. Strengthening the obligations of online platforms and hosts;

5. Clarification of reimbursement rules.