Booking Stock: Swiss Regulator Demands Lower Hotel Commissions

Swiss competition authorities have ordered Booking.com to reduce its hotel commissions by nearly 25% after failed negotiations, sending ripples through the travel portal's business model and impacting investor sentiment. The Swiss price supervisory body accused the online giant of exploiting its dominant market position by charging "abusively high" commission rates. In response, Booking.com announced it would appeal the decision, maintaining that no changes to commission rates would occur during the appeals process and arguing that its service remains "completely optional" for hotels. The news affected the parent company Booking Holdings, whose shares declined by 0.71% to $5,273.00 in pre-market NASDAQ trading.

Potential Pan-European Implications

This Swiss decision could have broader implications across Europe, coming just months after Booking suffered a defeat at the European Court of Justice regarding best price clauses. The German Hotel Association celebrated the Swiss move as a "welcome signal for all of Europe," noting ongoing legal proceedings against Booking's commission practices in Berlin, Karlsruhe, and Amsterdam courts. Industry watchers are now questioning whether other countries might follow Switzerland's lead in scrutinizing the travel platform's commission structure, potentially threatening a core revenue stream for the company.

Ad

Fresh Booking information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Source StockWorld