Hoteliers, brace yourselves. There’s been a buzz in the industry about the European Union’s Digital Markets Act (DMA) and how it might level the playing field with Booking.com. Some voices, like Triptease, suggest that monumental changes were on the horizon—changes that could significantly benefit direct bookings for hotels.

As the founder of BookBetterDirect.com, a startup dedicated to empowering hotels with direct booking solutions, I, like many in the hospitality industry, was eagerly anticipating Booking.com’s compliance report on the DMA.

Our platform provides the hotel’s official website and phone number on all major OTA. We also showcase the hotel’s direct booking advantages, and ensures a frictionless direct booking experience for travellers all around the world.

Understanding the DMA: A Quick Primer

For those unfamiliar, the DMA is a new EU regulation aimed at curbing the dominance of “gatekeeper” platforms—large digital companies like Google, Amazon and Facebook that control access to markets. The goal is to promote fair competition and give smaller businesses a fighting chance. Booking.com has been designated as such a gatekeeper and is now subject to stricter rules.

More information about the DMA rules and how this applies to Booking.com in our Blog.

The Buzz: Booking.com Gatekeeper

The buzz was suggesting that the DMA could compel Booking.com as Gatekeeper to include direct booking links to hotels’ own websites on their platform. On the surface, this sounds like a dream come true for hotels. However, a closer examination reveals that this expectations may have been overly optimistic.

Triptease’s Optimism

Triptease published an article and reasoned that due to the DMA’s anti-self-preferencing rules, Booking.com might have to offer alternative booking avenues onsite—perhaps even direct booking links to hotels’ websites. They envisioned a scenario where guests could choose on Booking.com’s website between booking through Booking.com or directly via the hotel’s website.

If something sounds too good to be true, it usually is.

Booking.com’s intrepetation

While the above idea is enticing, the reality is more complex. According to Booking-com’s complience report, the DMA doesn’t explicitly require gatekeepers to provide direct links to third-party sites. The primary obligation is to ensure fair and non-discriminatory ranking of listings—not to promote competitors or redirect customers away from their platforms.

Reality Check: BookBetterDirect.com’s view

In my opinion as CEO and Founder of BookBetterdirect.com: expecting Booking.com to include direct booking links on their website, is akin to Google displaying a message suggesting users try Bing search engine instead. It’s simply not in their business interest.

Including direct booking links would significantly jeopardize Booking.com‘s revenue model, which relies on commissions from bookings made through their site. It’s unrealistic to expect Booking.com to implement changes that could significantly harm their business model. Or as one of our members put it:

“That’s like shooting themselves in the foot.”

Moreover, according to Booking.com, such a drastic change isn’t mandated by the Digital Market Act (DMA). Gatekeeper Booking.com argues that their obligations are about preventing unfair practices, not undermining their own platform. That they are required to avoid favouring their own services over those of competitors in terms of ranking, but they aren’t obliged to actively promote competitors.

The Stakeholder Challenge: Can Hoteliers Push for More?

Booking.com’s compliance report will be discussed in a European Commission workshop on November 25th. Industry groups like the Hotelverband Deutschland (IHA) and HOTREC – Hotels, Restaurants & Cafés in Europe are poised to challenge Booking.com’s interpretations, pushing for more stringent compliance that favours hoteliers.

However, history shows that Booking.com have substantial legal resources to defend their positions and are adept at navigating regulatory landscapes and dragging legal actions for years if not decades. While stakeholder pressure can lead to some concessions, it’s unlikely to force drastic changes like mandatory direct booking links on Booking.com’s site.

But we should not underestimate the IHA and HOTREC. They have been very successful into their endeavours to curb Booking.com‘s. History shows that over and over again. We can only hope that they succeed again. We keep our fingers crossed for the IHA and HOTREC and wish them the best of luck to push back.

Conclusion: Cautious Optimism Over Wishful Thinking

The DMA represents a significant regulatory effort to promote fairness in digital markets, and it’s understandable that hoteliers might hope for substantial benefits. However, it’s important to approach these developments with cautious optimism. The likelihood of Booking.com making changes that would undermine its own business is slim, especially when not explicitly required by law.

Hoteliers should view the DMA as one piece of a larger strategy to improve their market position. By staying proactive and focusing on factors within their control, they can better navigate the evolving landscape without relying on unlikely regulatory windfalls.

Don’t Wait—Take Action Now

Alright, time for a little self-promotion (we couldn’t resist)! Before the winter season truly starts, consider joining our start-up initiative BookBetterDirect.com. Our solutions empower hotels to promote direct booking prices and advantages directly on Booking.com, Expedia, and all other major booking platforms.

BookBetterDirect extension in action: popups apear on all major OTAs

With the DMA explicitly forbidding hindrance to direct booking promotions, we offer a unique opportunity for hotels to enhance their visibility and boost direct bookings. And the best part? Due to the DMA rules, Booking.com is in no position to prevent BookBetterDirect.com from helping you take control of your bookings.

Thank you for taking the time to read my thoughts on this important issue. I’d love to hear your perspective—please feel free to leave a comment below.

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