Greek Hoteliers Take on Booking.com in Landmark Legal Battle

Greek hoteliers are gearing up for a major legal confrontation with Booking.com and similar online travel platforms. Following the European Court of Justice ruling granting hoteliers control over their pricing strategies, industry players are moving to claim compensation for what they describe as financial harm caused by unfair practices. These actions include group lawsuits in collaboration with other European hospitality organizations.

At the 12th General Assembly of the Hellenic Chamber of Hotels (HCH), President Alexandros Vassilikos announced plans to explore the best methods for filing legal claims. He said, “The HCH board, alongside specialized legal counsel, is assessing the optimum approach to file collective lawsuits with other European associations. Nothing is impossible when there’s determination.”

Vassilikos criticized dominant players like Booking.com, alleging their tactics prevent hoteliers from managing their pricing strategies freely. He described these practices as “illegal” and suggested they distort the market. The European Court decision backs this stance, ruling that parity clauses—which prevent hotels from offering lower prices on their own websites compared to booking platforms—are not required to maintain the platforms’ economic viability.

“Hoteliers now have more room to set their own pricing strategies,” Vassilikos explained. “This ruling changes the online distribution landscape for hotels, giving providers more autonomy and fostering competition that benefits customers.” He called the decision a critical victory, adding that it proves European hotels have faced financial setbacks from these platforms’ actions.

The HCH move follows recent criticisms from HOTREC, the European Association of Hotels, Restaurants, and Cafés, which accused Booking.com of failing to comply with the Digital Markets Act, despite being legally obligated as of November 14. Currently dominating 70% of the European hotel booking market, Booking.com’s position has long been a concern for smaller operators.

Key Concerns:

• Tourism Successes: Vassilikos praised Greek hoteliers for elevating the nation on the global tourism map.
• Disrupting Distribution Channels: He accused digital giants of monopolizing product distribution avenues.
• Climate Challenges: The industry faces environmental issues that are shifting global and local dynamics.
• Rising Costs: Spiraling energy costs and taxation are cutting into competitiveness.
• Investment Roadblocks: 81% of hotel sector applications are denied entry into development programs.
• Over-Tourism Talk: He warned against narratives linking over-tourism to anti-tourism sentiment, potentially harming the industry.
• Public System Failures: Issues like waste and water mismanagement add to hoteliers’ burdens, compounded by fees without adequate returns.

He strongly criticized over-taxation, which, as he put it, “chips away at the competitiveness of our offerings.” He argued this ongoing trend makes hotels bear the brunt of disproportionate burdens. “We hear discussions about tourism like it’s a problem. Over-tourism complaints turn into anti-tourism narratives, and the sector serves as an easy scapegoat,” he said.

Adding to the strain, Vassilikos noted how a large percentage of hotel development projects are rejected under the national development law. He declared this as unacceptable, especially in an industry that significantly contributes to the economy.

“The situation feels like we’re going in circles. We bring up the same issues repeatedly without much progress,” he lamented. He also called out utility inefficiencies, such as unreturned water and waste services fees, due to authorities’ mismanagement. “Everyone in this country can start calling themselves a hotelier, without the actual obligations that come with it,” he remarked.

Despite his concerns, Vassilikos stressed the role of Greek tourism in recent national successes, urging hoteliers to continue striving forward amidst challenges. “The Greek hotelier is the main driver of our national achievements. We’ve proven our resilience and need to maintain our leadership,” he said.

The debate now focuses on how platforms like Booking.com will respond to legal and regulatory pressures while hoteliers push for a fair playing field. With lawsuits underway, the days of hotels adjusting to restricted pricing models may soon be over.