As Australian tourism authorities recommend travellers call hotels directly for better rates, their advice has gained unexpected relevance in the UK, where the hospitality industry is embroiled in a massive legal battle that could fundamentally change how online booking platforms operate.
Australia’s Direct Booking Push
Australian consumer advocates have been urging travellers for several years to bypass third-party booking sites and contact hotels directly, citing potential savings and better customer service. The advice centres on a simple premise: hotels often offer identical or better rates when booked directly, while providing superior support when issues arise.
While the guidance is not new, it has taken on new significance considering the mounting legal challenge against major booking platform, Booking.com, which faces unprecedented scrutiny across Europe.
The landscape for online travel agencies shifted dramatically when the European Court of Justice (ECJ) ruled in September 2024, that Booking.com’s price parity clauses violated EU competition law by restricting price competition on other platforms or hotels own websites. This landmark decision has opened the floodgates for legal action, with more than 10,000 hotels across Europe filing lawsuits against Booking.com seeking compensation for what they claim are years of anti-competitive practices.
The Core Issue: Price Parity Clauses
At the heart of these legal battles are “best price” or price parity clauses that effectively prevented hotels from offering cheaper rates on their own websites or through direct bookings. These clauses had prevented hotels from offering their rooms more cheaply outside of the platform.
For consumers, this meant that calling a hotel directly often yielded no financial advantage, as hotels were contractually bound to match or exceed the platform’s prices. The clause was removed by Booking.com last year in response to the EU’s Digital Markets Act, but the damage from two decades of restrictive practices has prompted the current wave of litigation.
A New Era for UK Hotel Bookings?
With these legal constraints now lifted, the Australian advice to call directly becomes increasingly relevant for UK travellers. Hotels are now free to offer competitive rates for direct bookings, potentially passing on the savings to avoid commission fees.
Affected hotels may be eligible to recover a sizeable portion of commissions paid to Booking.com at any time over the 20-year period plus interest, suggesting the financial burden these platforms imposed was substantial. For consumers, this creates an opportunity: hotels with reduced platform dependency may be more inclined to offer attractive direct booking incentives.
The legal challenges facing Booking.com extend beyond pricing practices. The UK regulatory crackdown in 2019 found Booking.com continued using misleading scarcity claims despite rules, highlighting concerns about transparency in online booking practices.
The Digital Markets, Competition and Consumers Act, which came into effect in 2024, has fundamentally altered how major tech platforms can operate within European markets. This regulatory shift, combined with the ongoing litigation, suggests a permanent change in the relationship between hotels and booking platforms.
Practical Advice for UK Travellers
Following Australia’s lead makes increasing sense in this new environment. UK travellers should consider:
- Calling hotels directly after researching rates online, as properties may now offer price matching or better deals for direct bookings.
- Asking about direct booking benefits such as room upgrades, flexible cancellation policies, or loyalty program benefits that third-party sites cannot provide.
- Comparing total costs, including potential hidden fees that booking platforms sometimes add at checkout.
- Considering customer service advantages, as hotels can provide direct support for issues like cancellations, modifications, or problems during stays.
- The action seeks financial redress for the years 2004 to 2024, indicating the scale and duration of the practices being challenged. While the full legal resolution may take time, the immediate effect is clear: hotels now have the freedom to compete on price through direct channels.
For UK consumers, this legal upheaval transforms the Australian advice from helpful suggestion to strategic necessity. As the hotel industry adapts to a post-platform-dominance landscape, savvy travellers who embrace direct booking may find themselves benefiting from both better prices and superior service – exactly what Australia has been advocating all along.
The question is no longer whether UK travellers should follow Australia’s advice, but whether they can afford not to in this rapidly changing booking landscape.
