Introduction: A Game-Changer for Hoteliers

The Italian Competition Authority’s (AGCM) recent acceptance of Booking.com’s changes to its “Preferred Partner” and “Preferred Plus” programs is another landmark moment for hoteliers. These programs, designed to enhance visibility on Booking.com, required participating properties to maintain “competitive pricing” on the platform, effectively tying their hands when setting rates on other sales channels. However, AGCM’s intervention has changed the game, granting hotels more autonomy and ensuring greater transparency.

In this blog, we’ll explore the changes, their implications, and what they mean for the future of hospitality in Europe.

Key Changes in Booking.com’s Preferred Programs

#1 Enhanced Pricing Autonomy

Previously, hotels in the “Preferred Partner” and “Preferred Plus” programs were required to maintain “competitive pricing” on Booking.com, limiting their ability to offer differentiated rates across other platforms. With AGCM’s decision:

• Hotels are no longer restricted. Booking.com can no longer penalize hotels for setting different rates on alternative channels.

• Freedom for dynamic pricing. Hotels can now tailor their pricing strategies to maximize revenue on each sales channel.

#2 Increased Transparency

Another major change is improved communication from Booking.com regarding these programs. Hotels will now receive:

• Clearer explanations of program rules and benefits.

• Regular updates on performance metrics to evaluate the cost-benefit of participation.

These updates ensure hoteliers can make informed decisions about whether the visibility boost from these programs is worth the added costs.

The Cost of Visibility on Booking.com

Programs like “Preferred Partner” and “Preferred Plus” promise increased visibility but come at a steep price—commissions can rise to 25–30% of a property’s revenue. While this may lead to more bookings, hoteliers must carefully evaluate whether the visibility boost outweighs the substantial costs.

What Does This Mean for Hotels?

Greater Pricing Freedom

Hotels now have the flexibility to craft unique pricing strategies for different channels, enabling optimized revenue management.

Smarter Decision-Making

With clearer insights into program costs and benefits, hoteliers can better determine if the added commissions justify participation.

Direct Booking Opportunities

By removing implicit rate parity requirements, these changes allow hotels to prioritize direct booking strategies without fearing a loss in OTA visibility.

Implications for Europe’s Hospitality Industry

The AGCM’s decision reflects a broader trend across Europe, where regulators are challenging the dominance of OTAs. Combined with initiatives like the EU’s Digital Markets Act, these developments pave the way for:

• More hotel autonomy. Hoteliers gain control over pricing and sales strategies.

• Greater competition. OTAs face increased pressure to offer fair terms and transparent practices.

This shift signals a brighter future for hoteliers, with more opportunities to regain control over revenue and guest relationships.

Conclusion: A New Era for Hospitality

The changes to Booking.com’s programs are not just a win for Italian hotels—they represent a significant step toward fairer practices across Europe. Hoteliers now have the freedom to rethink their reliance on OTAs, develop dynamic pricing strategies, and focus on building stronger direct booking channels.

The recent developments in Italy regarding Booking.com’s preferred partnership programs are part of a broader European trend toward increased scrutiny and regulation of such practices. The European Court of Justice (ECJ) has ruled that Booking.com’s price parity clauses, which prevent hotels from offering lower rates on their own or rival sites, are unnecessary and could hinder competition. Additionally, the European Union’s Digital Markets Act (DMA) prohibits so-called ‘parity’ clauses. This means that hotels, car rental companies, and other providers of travel services using platforms like Booking.com are now free to offer different (including better) prices and conditions on their own websites or other channels than on Booking.com.

BookBetterDirect’s Perspective

Given these regulatory changes, we anticipate that the DMA will compel Booking.com to adjust its contractual agreements regarding the Preferred Partner Program and Preferred Plus Program with hotels across Europe to comply with the new Italian legal landscape. This shift is expected to enhance pricing autonomy for hotels, allowing them to implement diverse pricing strategies across different sales channels, thereby fostering a more competitive environment in the online travel market.

Revolutionizing Travel Booking with BookBetterDirect

At Book Better Direct, we make finding direct deals seamless and effortless. With our cutting-edge browser extension, travelers can instantly uncover the best offers directly from hosts while browsing online travel agencies like Booking.com. Say goodbye to costly middlemen and hello to a smarter, fairer, and more transparent way to book. Together, we’re transforming the future of the hospitality industry.