New complaint against Booking: Association denounces abusive clauses in its contracts.
According to different hospitality news platforms, Booking has been sued by an Spanish Hotel Association, it’s not the first time but in this opportunity the hotel sector is really worried about Booking current practices. On this occasion, the Madrid Business Association through its legal advisors has filed a complaint with the National Commission of Markets and Competition (CNMC) in which it requests that the activities and actions of the indicated OTA should be investigated, to be considered “Abusive and contrary to competition law.”
Among the aspects that support this complaint and concern the hotel sector we can find: the inclusion of a price parity clause, one-sidedness of the conditions, sudden modifications without prior announcement, and the collection of commissions.
Regarding the Parity Clause (Prices and Availability) whose direct consequence is the provision on the OTA rate to the detriment of the hotel establishment, which they consider abusive, and, therefore, constituting an infringement according to the regulation of the right from the competition.
The Commissions are other of the points that stand out in the complaint, they allege that they are very high and abusive amounts. They indicate that Booking establishes commissions of up to 40% on the cost of the rate. In addition to the constant control that the company has over the guests, since, with it, the obligations derived from the management of the reservation, including the payment of the service, Booking.com also obtains control of the client to the detriment of the hotel establishment, which It is who provides this service.
Another of the clauses denounced is the one that expresses the possibility of unilateral termination and unilateral suspension of the contract, which contains up to twenty cases in which Booking can terminate the relationship, without this being reflected in a similar option for the hotel establishment, which leaves full authority to Booking.com to terminate the collaboration relationship, to the detriment of the hotel establishment.
Among the aspects that have generated the most concern in the hotel sector, in addition to the issue of commissions, has been the transfer of the responsibility that the OTA makes to the hotel in those cases of problems with reservations, this aspect, which they consider disproportionate and illogical since it is the company that provides the service.
For its part, the Association has indicated that although it is true that the hotel establishment has the option of not collaborating with Booking.com and ending their relationship, the dependence on this sales channel is so great that in the end there is no other option. option to accept these sudden modifications in their contracting conditions.
Following the presentation of the complaint, AEHM became the first Spanish hotel business association to initiate an administrative proceeding against Booking.com before the CNMC, in order for this body to open a file and, where appropriate, impose the corresponding sanction for the abuse committed to hotel establishments.
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