In short: As of November 14, 2024, Booking.com must comply with the European Digital Markets Act (DMA), which prohibits it from enforcing any price parity clauses. A hotel can therefore offer more favorable prices or terms on its own website than on Booking.com. Furthermore, on September 19, 2024, the Court of Justice of the European Union ruled that both broad and narrow price parity clauses are not justified ancillary restrictions.
What does European law say about rate parity?
Two pieces of legislation were game-changers:
The September 19, 2024, ruling of the Court of Justice of the European Union (Case C-264/23): parity clauses, whether broad (all channels) or narrow (the hotel’s website), cannot be considered ancillary restrictions necessary for the platform’s operation.
The Digital Markets Act: Booking.com has been designated as a gatekeeper and must comply with the Act as of November 14, 2024. Article 5(3) prohibits it from preventing a hotel from offering different prices or terms elsewhere. The European Commission specifies that this covers prices, availability, inventory, and commercial terms.
At the national level, Belgium had already banned parity clauses since 2018, and in Switzerland, the Price Ombudsman ordered Booking.com in 2025 to reduce its commissions by just under a quarter on average (a decision contested by Booking.com).
Why is this topic still relevant today?
Because OTAs often continue to list prices lower than those of the hotel. According to the HOTREC European study published in 2026, 51% of hotels frequently or occasionally find that OTAs are selling their rooms below their own prices, compared to about 40% two years earlier. The causes are well known: OTA loyalty programs, platform-funded discounts, and third-party resellers.
The 7 Mistakes That Cost You Direct Bookings
Showing the same price everywhere: there’s no incentive for customers to book directly. A small perk (price, breakfast, flexible cancellation) is often enough.
Failing to monitor posted prices: Without a tracking tool, discrepancies aren't discovered until a customer points them out at the front desk.
Leaking non-public rates: wholesale or B2B rates resold publicly by third parties.
Forget about OTA loyalty programs: the discounts offered to their members are in addition to your own promotions.
A slow or confusing booking engine: The best price is useless if making a direct reservation is a hassle.
Do not emphasize the direct benefits on the website or in interactions with customers.
Manage prices on extranets rather than from a single source, which creates inconsistencies. Determine how to organize price feeds.
Should you offer lower prices on your website than on Booking.com?
Not necessarily cheaper, but better. The goal is for the guest to have a clear reason to book directly, without compromising the hotel’s visibility on OTAs, which remain an important acquisition channel. This is a balance that needs to be struck in the distribution strategy.
Frequently Asked Questions
Can Booking.com penalize a hotel that offers lower rates directly?
The DMA prohibits any measure aimed at restricting this freedom. The European Commission states that, since September 2026, Booking.com has no longer used external prices to determine eligibility for certain visibility benefits.
Do these rules apply in Switzerland?
The DMA is a European Union regulation. Switzerland has its own rules, which also prohibit strict price parity clauses.
How can we monitor the exchange rate?
Using a price-tracking tool (often included in RMS or market intelligence solutions) and regularly monitoring key channels.
Sources
Court of Justice of the EU, Press Release No. 145/24, Case C-264/23, September 19, 2024
European Commission, DMA fact sheet and Booking.com, September 28, 2026
Blue News, Decision by the Swiss Price Commissioner, May 2025
Where should I start?
Our revenue management and distribution solution includes analysis of price parity and channel mix. To get an initial assessment of your site, launch GROOM Compass.