Booking.com Ordered to Cut Swiss Hotel Commissions by 25%

Booking.com has been ordered by Switzerland’s Price Supervisor to reduce commission rates charged to Swiss hotels by around 25%, citing the current rates as “excessive” and harmful to fair competition. The ruling, which is enforceable for three years once finalized, must be implemented within three months.

The independent federal authority, operating under the Swiss Federal Department of Economic Affairs, Education and Research, concluded that the mandated reduction would enhance the global competitiveness of Swiss hotels and potentially lower costs for travelers. The decision was made after extensive negotiations between the authority and Booking.com failed to result in a voluntary agreement. The Swiss Price Supervisor based the ruling on the Price Supervision Act, which authorizes intervention when pricing is deemed uncompetitive.

In response, Booking.com said it plans to appeal the decision. The company defended its position, emphasizing that participation on its platform is voluntary for hotels. A spokesperson stated that “reducing the cost of a product that is entirely optional” was unjustified and that hoteliers can choose among many marketing channels.

The decision adds to growing regulatory pressure on the online travel agency. In May 2024, the European Commission designated Booking.com as a gatekeeper under the Digital Markets Act, compelling the company to remove parity clauses and modify platform practices to foster fairer competition. Additionally, in July 2023, Spain’s competition watchdog fined Booking.com over €413 million, alleging the company imposed restrictive and unfair terms on Spanish hotels while limiting competition from rival OTAs.

Booking.com now faces scrutiny from multiple jurisdictions over its pricing power and dominance in the travel booking market.

Tags: phocuswire, SyndicEx250629B

Booking.com Ordered to Cut Swiss Hotel Commissions by 25%

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