Swiss regulator enforces reduction in hotel fees amid broader OTA scrutiny, following a wider European trend
May 22, 2025
Switzerland’s price watchdog has taken decisive action against Booking.com, ruling that the platform’s hotel commission fees are excessive under national pricing laws. The regulator has ordered the company to reduce these rates by nearly 25%, a decision Booking.com plans to appeal. This move is part of a broader European shift toward increasing fairness and transparency in online travel agency (OTA) practices, especially regarding pricing structures and hotel contract terms.
Key takeaways
- Commission cut mandated: Switzerland’s price watchdog has ordered Booking.com to reduce hotel commission rates by nearly 25% due to excessive pricing.
- Temporary measure: The ruling will apply for three years once enacted, but Booking.com has three months to comply.
- Pending appeal: Booking.com disagrees with the decision and will appeal to the Federal Administrative Court. Commission rates will remain unchanged during the appeal process.
- Past regulatory pushback: Swiss law already prohibits OTAs from enforcing price parity clauses, allowing hotels to offer lower rates on their own websites.
- European context: The move follows a growing European trend of regulating OTA practices, as supported by a European Court of Justice ruling favoring price flexibility for hotels.
Get the full story at SwissInfo
