HOTREC Takes Stock of Booking.com Changes Following DMA Regulatory Dialogue

HOTREC takes note of the additional measures by Booking.com following its regulatory dialogue with the European Commission on compliance with the Digital Markets Act (DMA), particularly the prohibition of parity requirements under Article 5(3).

The changes announced today by the European Commission include the removal of external prices as a factor in determining eligibility for Booking Sponsored Benefit (BSB), as well as additional transparency for accommodation providers regarding Booking.com’s commercial programmes, ranking systems and the use of external price information.

HOTREC particularly notes that Booking.com will no longer consider prices offered outside its platform when assessing whether a property is potentially eligible for BSB. Accommodation providers will also receive more detailed information on BSB performance, including reservation-level data.

The measures are expected to provide greater transparency around the Genius, Preferred and Preferred Plus programmes, including their eligibility criteria, performance scores and geographical benchmarking. Booking.com has also clarified that external prices are not used for its default ranking or for eligibility for these programmes.

In addition, the “competitive” and “non-competitive” labels previously displayed alongside external price information in the Booking.com Extranet have been removed. According to the European Commission, this is intended to avoid the perception that accommodation providers are expected to align their prices across different sales channels.

The hospitality sector will now need time to examine their implementation in practice and assess their impact on hotels and other accommodation businesses across Europe. In particular, HOTREC will continue to look at whether accommodation providers can effectively exercise their freedom to determine their own pricing and distribution strategies across different sales channels.

Under Article 5(3) of the DMA, Booking.com must allow accommodation providers to offer different prices and commercial conditions through other channels, including their own direct websites, without facing measures that restrict this freedom.

HOTREC also takes note that the latest measures follow continued regulatory dialogue between Booking.com and the European Commission, as well as feedback from the travel sector.

A constructive dialogue between the European Commission, designated gatekeepers and affected business users remains important to ensure that the DMA’s requirements are effectively implemented and deliver meaningful changes in the marketplace.

HOTREC will continue to monitor developments closely, gather feedback from the European hospitality sector and engage with the European Commission as the practical implications of these measures become clearer.

More information: European Commission – How the DMA ensures businesses using Booking.com are free to set their prices on and off Booking.com