2 The paper will have a look at whether and how the new online platform rules currently discussed in the European Parliament will address the often-mentioned misgivings against online accommodation booking services. 2 The disruptive effect of online booking services 2.1 Online travel agents Online travel agents such as Booking.com differ from traditional travel agents not so much by the content of their service but mostly due to the fact that they are much more concentrated as a single online platform can cover the entire world. HOTREC’s hotel distribution study shows that between 2013 and 2019, the market shares of online travel agents have steadily increased in the European hotel sector from 19.7% in 2013 to 29.9% in 2019. At the same time, the share of direct bookings has decreased across Europe by over 10 percentage points from 57.6% in 2013 to 45.5% in 2019. The three main online travel agents are Booking Holding, Expedia Group and HRS Group, out of which Booking.com is by far the most influential player, with a share of 68.4% in the online travel agent market.5 The majority of tourist accommodation providers offer their inventory via online travel agents, although the share of providers listed on specific platforms varies between countries. Most hotels engage in multi-homing, meaning that they are listed on more than one online travel agent’s platform.6 From the consumers’ perspective, one of the main benefits of online travel agents is that a single platform gives them the possibility to compare the offers of different hotels and thus increases their choice. Consumer feedback and reviews concerning each accommodation are also helpful in making the choice. Finally, the platform makes it easy to make a reservation as it stores the user’s address, payment information and preferences. Nevertheless, competition authorities have been concerned, that the dominant platforms might misuse these features to mislead the consumers, e.g., by giving a false impression of a room’s popularity or not displaying the full cost of a room upfront. Recommended search results might not be in the interest of the consumer but may result from a hotel’s payment to receive a higher ranking. Since online platforms can collect all sorts of data on consumers and their online behaviour, the possible exploitation of the consumers’ behavioural biases is also a concern.7 Hotels and other tourist accommodation providers listed on online travel agents’ platforms benefit from increased visibility which brings in increased demand and new customers due to the platform’s wide customer base and their advertising. When consumers see a hotel on a platform and then book it via the hotel’s own website, this is referred to as billboard effect. The platforms can also provide accommodation providers with analytics concerning their user base, thus helping them to make their offers more competitive and adjusted to potential guests’ requirements.8 On the other hand, the use 5 HOTREC, 2022. 6 VVA and LE Europe, 2022, p. 15. 7 Ibid., p. 17-18. 8 Ibid., 2022, pp. 19-20.
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