The Swiss market authority for pricing (Preisüberwacher) has accused Booking.com of abusing its dominant position and is demanding that commissions on hotel bookings be reduced by almost a quarter. Booking.com responds by saying that hoteliers are not obliged to run their marketing via its platform and will appeal the ruling.
The Swiss Price Watch has given Booking.com three months to comply with the price reduction requirements (and one month to appeal the ruling). The measure follows intensive discussions between the authority and Booking.com, which ultimately did not lead to a desired outcome. According to the Price Watch, Booking.com is abusing its highly influential position in the market and is therefore charging excessively high commissions.
More information: www.preisueberwacher.admin.ch/pue/de/home.html
Booking.com basically works with a fixed base rate for commissions on bookings. In addition, there are programs to boost visibility (for a fee). During quiet periods, hoteliers are willing to pay a little more to appear higher in the search results and to maintain occupancy.
by editors
Booking.com has told us that the standard commission rate in Switzerland is 12%. (And that only applies when a booking is actually made.) A spokesperson adds: “Booking.com’s commission rates in Switzerland have been stable for years and lower than competitors in the market.”
Booking.com disagrees with the decision of the Preisüberwacher and issues the following statement:
We are disappointed with the decision of the Swiss Price Surveillance Office and we will appeal. Our partners have numerous ways to market their accommodations to customers, so it is their choice whether to offer this through our platform or elsewhere. We do not agree with the forced reduction of the costs of a product that is entirely optional.
response booking.com
More information: 'Insight into our commission' on Booking.com