Home 2024 Year in Review Greek Hoteliers to File Lawsuits Against Booking.com

Greek Hoteliers to File Lawsuits Against Booking.com

by Nikos Krinis
2 comments

Hellenic Chamber of Hotels President Alexandros Vassilikos. Photo © Greek Travel Pages (GTP)

Greek hoteliers, with the support of the Hellenic Chamber of Hotels (HCH), are taking legal action against Booking.com, preparing to file class action lawsuits aimed at challenging the platform’s use of rate parity clauses. These clauses have historically prevented hotels from offering lower prices on their own websites compared to those listed on online travel agency (OTA) platforms.

Inspired by German hoteliers’ success

The announcement was made by HCH President Alexandros Vassilikos during the chamber’s 12th General Assembly in Athens. He emphasized that this action aligns with the momentum created by a recent European Court of Justice (ECJ) ruling (Case C-264/23) for German hoteliers, which declared rate parity clauses unnecessary for the economic viability of OTA platforms. The ruling has already bolstered claims by hoteliers in Europe, reinforcing their stance against such practices.

Vassilikos highlighted that the ECJ ruling substantiates the damage caused by Booking.com’s pricing restrictions, labeling them illegal and a distortion of fair market competition. “This decision confirms the harm inflicted on European hotels by Booking.com’s practices,” he said.

German Hotel Association: “Let’s end this rate parity saga”

German Hotel Association (IHA) CEO Markus Luthe. Photo © Greek Travel Pages (GTP)

Markus Luthe, CEO of the German Hotel Association (IHA), also addressed the assembly, providing insights into Germany’s decade-long legal battle against Booking.com. He explained that German courts had already ruled against the use of rate parity clauses, with the ECJ’s decision strengthening these outcomes.

“This is a game-changer,” Luthe said, emphasizing that the next phase of the German legal process, focused on damage compensation claims, will proceed in spring 2025 at the Amsterdam Regional Court.

Luthe invited Greek hoteliers to join a collective European effort. “We encourage you, along with your association and chamber, to take action against Booking.com. The German case serves as a robust blueprint. By bundling claims across Europe, we can present a unified case in court.”

Greek hoteliers’ strategy

The Hellenic Chamber of Hotels is working closely with a specialized law firm to consolidate claims and coordinate with other European hotel organizations. The ultimate goal is to file a unified lawsuit in the Netherlands, where Booking.com is headquartered.

“This proves that when there’s a will, nothing is impossible,” said Vassilikos.

Hellenic Chamber of Hotels President Alexandros Vassilikos. Photo © Greek Travel Pages (GTP)

The initiative will involve experienced competition law specialists and leading economists to build a strong legal argument. Importantly, participating hotels and associations will bear no costs or risks, as the process is backed by litigation funders. In the event of a successful outcome, 70% of any awarded compensation will be distributed directly to the affected hotels.

For Greek hoteliers, preliminary investigations are underway in partnership with the law firm SGP Schneider – Geiwitz.

“We are addressing the challenges posed by digital giants head-on. The time has come for collective action to restore fairness in the hospitality sector,” Vassilikos stated.

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2 comments

Noelle Greenaway 25 November 2024 - 18:41

As a committed repeat visitor to beloved Greece, I am very glad to see this important move to quell Booking.com In any case, trying to use their awful search engine is particularly poor for new visitors. One might search for a hotel on Syros and get details for Mikonos. I have found hoteliers usually very helpful and professional & I know of problems they have with Booking.com in a wide variety of ways. Perhaps the answer might be to have a Greek owned, Greek tech selection site and do away with compabies like Booking.com

Reply
Chris 25 November 2024 - 16:09

In this case, what is the objective? To force booking into an agreement where’s they abolish exclusive agency?

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