Baku — Across Europe, thousands of hotels are escalating their fight with online giant Booking.com, accusing the platform of distorting fair competition and abusing its market dominance. The dispute has already landed in court, with hotel associations demanding compensation for damages they claim were caused by the company’s “best price” policy between 2004 and 2024.
The stakes are high: in 2023, Booking Holdings controlled 71% of the European market, while direct bookings fell sharply. For hotels, this is not just a contractual disagreement — it’s about survival in a market where one platform dictates terms.
Azerbaijan Hotels in the Shadow of the Dispute
While the lawsuits are being fought in Europe, the issue resonates in Azerbaijan, where most hotels — from international chains to small guesthouses — rely heavily on Booking.com for reservations. Industry experts warn that the platform’s dominance leaves local businesses vulnerable.
Ceyhun Ashurov, a lecturer at the Azerbaijan Tourism and Management University, says to Kaspi, that company’s power stems from its global reach:
“In Azerbaijan, Booking.com already holds a much stronger position compared to other platforms. Its commission fees — around 20% — are significant. For a room sold at 100 manats, 20 manats go directly to the platform. This dependency puts hotels under pressure.”
He adds that Booking’s “best price” rule, which obliges hotels not to undercut its listed rates on their own websites, effectively locks them into the system:
“Hotels agree because sales volumes are higher through the platform. But the price of visibility is high — it reduces flexibility and erodes profitability.”
No Local Representation, No Taxes Paid
Another sore point is Booking.com’s status in Azerbaijan. As tourism consultant Afsun Ahmadov notes:
“The platform has no official representation here, doesn’t pay local taxes, and yet dominates the market. Hotels can’t offer better deals on their own websites because Booking’s contracts prohibit it. This hurts both entrepreneurs and the state.”
The Missing Link: Hotel Unity
In Europe, hotels are challenging Booking through collective lawsuits. In Azerbaijan, however, the lack of strong hotel associations makes such resistance unlikely. According to tourism expert Aytaj Naziri:
“Most small hotels try to bypass the commissions by offering discounts via WhatsApp or phone bookings. But if Booking finds out, it can restrict their profiles. What we need is a unified Hotel Association to negotiate fairer terms. Without unity, individual hotels remain too weak.”
Industry insiders say the outcome of the European lawsuits could eventually ripple into Azerbaijan. If European courts strike down Booking’s “price parity” clause, the company may be forced to drop the same requirement here. Until then, hotels remain caught in a system that boosts visibility — but at a heavy cost.
