The Battle Of Booking.com And Airbnb Reshaping The Future Of European Hospitality

Booking.com and Airbnb are driving a profound yet silent transformation in the European hospitality landscape, as their fierce competition blurs the lines of their traditional business models and creates a new, complex ecosystem. This strategic realignment is forcing hoteliers and property owners to adapt their distribution strategies and fight for their independence.

Booking.com, the long-standing leader in hotel bookings, is aggressively expanding its presence in the short-term rental market. Meanwhile, Airbnb, known for its peer-to-peer home rentals, is making significant inroads into the traditional hotel sector, actively seeking professional hospitality partners. This parallel expansion reflects a common goal: to become the single, comprehensive platform for all travel needs. For hospitality professionals across Europe, the challenge is clear—remain visible on these dominant channels while simultaneously strengthening their own direct booking strategies.

International Markets: Shares and Trends

Online Travel Agencies (OTAs) are a dominant force, representing approximately 40% of the global travel market. In 2024, Europe set a new record with 854 million overnight stays booked through OTA platforms, a substantial 19% increase from the previous year. Airbnb saw a remarkable 13.7% increase in “nights and experiences” in 2023, with gross bookings reaching $73.25 billion. Booking.com managed 400.4 million short-term rental nights, a figure equivalent to about 80% of Airbnb’s total in that sector.

Both companies are experiencing double-digit growth in their gross bookings, solidifying their market dominance and highlighting their deep penetration into various segments of the hospitality industry.

Technological Evolution and Innovation Strategies

Technology and innovation are at the core of this rivalry. Booking.com is making massive investments in Artificial Intelligence (AI), developing tools like the “AI Trip Planner” and the travel assistant Penny. These innovations are designed to enhance the traveler experience and support its “Connected Trip” strategy, which aims to provide a seamless journey from start to finish. However, Booking.com faces institutional challenges from the European Union, particularly concerning rate parity clauses and the Digital Markets Act (DMA), which seeks to regulate the power of digital gatekeepers.

The European Hotelier’s Legal Battle Against Booking.com

In a landmark move, HOTREC—the umbrella association of hotels, restaurants, and cafés in Europe—has taken legal action exclusively against Booking.com. This collective effort is a direct response to the platform’s “rate parity” clauses, which the European hotel industry views as anti-competitive.

HOTREC is coordinating a class-action lawsuit in partnership with the Hotel Claims Alliance, with participation from over 30 national hotel associations. The legal challenge is grounded in a September 2024 ruling by the Court of Justice of the European Union (CJEU), which classified “best price” clauses as anti-competitive.

Over 15,000 hotels across Europe—including Italy, Germany, the Netherlands, and Austria—have already registered for the lawsuit. The case is expected to be filed in the Amsterdam district court in 2025.

HOTREC President, Mr. Alexandros Vassilikos, stated that the initiative aims to correct a market imbalance and demand fair compensation for the financial burdens hoteliers have faced.

It’s important to note that all documented legal actions by HOTREC to date are focused solely on Booking.com, with no similar actions reported against Airbnb. This targeted approach indicates that the hotel industry’s concerns are centered on specific issues of transparency and fair practice rather than a broad opposition to all online platforms.

Implications for Hospitality Professionals

The evolving landscape demands a strategic response from hospitality professionals. The expansion of Airbnb into the hotel market and Booking.com into short-term rentals means hospitality providers must navigate a dual distribution channel.

HOTREC’s legal action highlights the European hotel industry’s collective will to push back against practices that weaken competitiveness and reduce profitability. The lawsuit against Booking.com sets a crucial precedent for digital distribution and the boundaries of partnerships between OTAs and hospitality businesses.

The key to success lies in maintaining strategic independence. While leveraging the immense reach of OTAs for visibility and demand generation is essential, hoteliers must also invest in their own channels, such as direct bookings and loyalty programs. The ability to strike a balance between platform reliance and operational autonomy will be critical for future success in the dynamic European travel market.

The article The battle of Booking.com and Airbnb reshaping the future of European hospitality first appeared in TravelDailyNews International.