Booking pitfalls lie concealed within popular reservation sites
In the digital age, booking platforms like Booking.com, Trivago, and Expedia have revolutionised travel arrangements, offering worldwide hotel and vacation rental bookings with high visibility and reach. However, these platforms are not without their pitfalls.
Fraudsters have been known to use booking platforms to advertise non-existent accommodations, leaving unsuspecting travellers with the unpleasant experience of paying in advance but ending up in front of closed doors. This issue, along with others, has led to a growing number of complaints to the European Consumer Centre (EVZ) Germany and ECC-Net.
One of the key concerns is the lack of clear contractual partners. In case of disputes, consumers may find themselves powerless. To address this, booking platforms should be subject to stricter regulations, particularly regarding cancellation conditions, transparency of provider information, and protection against fraudulent ads.
Refunds for bookings on these platforms can also be delayed, leaving consumers waiting in vain for their money. Additionally, consumers who have to cancel themselves often face disproportionately high fees, with many platforms charging a flat rate of 100% of the booking amount. Platforms provide little support in cases of unjustified cancellations.
Problems on booking platforms often arise after booking, with unclear responsibilities between the platform and the accommodation provider. Last-minute cancellations by hosts can leave travellers without alternatives, and important promises between guests and hosts can be lost due to communication taking place exclusively through the platforms. If messages are deleted or access is blocked, there is no evidence available to resolve disputes.
The European Court of Justice (ECJ) has taken a step towards addressing these issues with its ruling on the best price clause. This ruling gives hoteliers greater pricing freedom and stimulates competition. Moreover, the best price guarantee, once a central part of Booking.com's business model, has been banned in countries like Germany, France, and Austria, and is now prohibited for platforms with more than 30% market share across the EU.
Germany and France are among the national governments that have banned the best-price guarantee clauses of booking platforms; several other European countries are expected to follow this regulation in the future as part of growing antitrust measures to increase market competition and consumer protection.
To protect themselves, consumers are advised to take screenshots of important messages. Such fraudulent listings are usually removed but often reappear in slightly modified form, making vigilance essential.
A uniform legal framework could provide consumers with more security and hold booking platforms more accountable. This would not only protect consumers but also enhance the reputation of the platforms, fostering trust and encouraging more business. As the digital landscape continues to evolve, it is crucial that regulations do the same, ensuring that booking platforms remain a reliable tool for travellers without pitfalls.
