New EU Rules Allow Hotels to Offer Better Deals Outside Booking Platforms

Travelers booking accommodations in Europe may soon find better deals by checking hotel websites directly, following a recent update by the European Commission regarding the Digital Markets Act (DMA). The new regulations, effective since November 2024 for designated "gatekeeper" platforms like Booking.com, permit hotels and other accommodation providers to offer lower prices or more favorable terms outside of these large booking sites. For instance, a hotel could offer a room for €190 on its own website compared to €200 on Booking.com, or maintain the €200 price but include added benefits like free breakfast or flexible cancellation policies.

This change stems from the EU's efforts to curb anti-competitive practices by major online platforms. Specifically, the DMA prohibits "parity clauses" that previously restricted hotels from offering better rates elsewhere. By removing these clauses, the EU aims to foster greater competition and allow hotels more freedom to attract customers directly, thereby reducing commission fees paid to booking platforms. This benefits hotels by increasing their profit margins and potentially allowing them to pass savings onto consumers.

The new rules apply to the European Economic Area (EEA), which includes EU member states, Norway, Iceland, and Liechtenstein, covering most popular European travel destinations for Israelis. While Booking.com is still a valuable tool for comparing options and reading reviews, its listed prices should no longer be the final word for consumers. Travelers are advised to compare prices on hotel websites before finalizing their bookings to potentially secure discounts or added amenities.

Booking.com has stated that prices found off-platform will not negatively impact a hotel's search ranking or eligibility for its loyalty programs within the EEA. The company has also removed internal labels that compared hotel prices on its platform to those elsewhere, and has increased transparency regarding its partner programs and search result rankings. However, factors like room availability, reviews, and participation in loyalty programs still influence a hotel's visibility on the platform.