EU Designates Booking.com As a ‘Gatekeeper’; Signaling a New Era for European Hoteliers – By Kevin Duncan
On May 2, 2023, the European Commission made a landmark move to regulate online marketing by implementing the Digital Markets Act (DMA). This regulatory framework aims to ensure fairness among digital players, protect internet users, and combat potential anti-trust concerns by major technology platforms (a.k.a. 'gatekeepers'). These playersÊ- regardless of their base of operationsÊ- play a significant role in the European internal market; each serving as primary access points for companies seeking to reach their customers. By targeting these powerful entities, the DMA seeks to level the playing field, foster innovation, and provide consumers greater freedom of choice. You can read more about the DMA here.
Booking.com designated as a gatekeeper
On May 13, 2024, the European Commission (EC) designated Booking.com as a “gatekeeper” under the DMA. This designation applies to the company's intermediation service and gives them six months to comply with DMA obligations. The goal is to ensure more freedom and choice for end users and fair access to gatekeeper services for business users. For further details, read the European Commission's announcement here.
The future landscape for European hoteliers
The EC's decision to label Booking.com as a gatekeeper carries significant implications, particularly for the hospitality industry. This move is expected to lead to more competitive and transparent pricing, benefiting both travelers and hoteliers alike.
For travelers, this change heralds increased access to competitive pricing and exclusive offers. With enhanced competition, consumers can expect better deals and a wider range of choices when booking accommodations.
EU-based hoteliers are also poised to reap significant benefits from this ruling. Hotel operators who have invested in technology systems and marketing strategies stand to gain the most. These investments include optimized branding websites, customizable booking engines, and adequate investments in digital marketing tools to attract travelers. By enabling hotels to be more competitive on their sales channels and offer unique offers and promotions, the EC's decision empowers hoteliers to connect with the right guests, drive guests to book direct, and grow loyalty and revenue with each guest. Overall, it will enable hoteliers to have fairer access to consumers without incurring additional charges through high online travel agency (OTA) commission fees, thereby improving overall profitability.
It is unknown how Booking.com will respond to leverage this ruling in their favor. Some OTAs have typically penalized hotels that do not have parity by listing properties lower in the search results. Therefore, to truly benefit, hotels must continue investing in their direct booking channels and marketing strategies to avoid losing bookings to third-party platforms.
The ultimate question remains: Will hotels benefit from this change? The answer depends largely on their preparedness. Hotels equipped with forward-looking technology and marketing tactics will undoubtedly maximize the benefits of the DMA.
Need a hand adapting to these new regulations? To navigate these changes and capitalize on the opportunities presented by the DMA, hoteliers are invited to connect with the experts at Cendyn. Our professional team can guide you through optimizing your digital presence and enhancing your booking strategies.
The future of competitive and transparent digital markets is hereÊ- make sure your business is ready to thrive.
Kevin DuncanÊ– Vice President, Product Management. Connect withÊKevin on LinkedIn.
About Cendyn
Cendyn is a global hospitality cloud-based technology company that enables hotels to Find, Book, GrowÊ- driving revenue, maximizing profitability, and creating deeper connections with guests through its integrated solutions.
Serving hoteliers for nearly 30 years, Cendyn has over 32,000 customers in more than 150 countries including brands Outrigger Hospitality, Hyatt, IHG, Aman Resorts & Hotels, Relais & Châteaux, Banyan Tree Hotels & Resorts, Coraltree Hospitality, and Onyx Hospitality GroupÊ- generating more than $20 billion in annual hotel revenue. The company supports its growing customer base with offices across the globe.
To find out more, visit cendyn.com.
Categories: Technology