Looking for the right balance of power                                                  

Online booking platforms, such as Booking.com, have brought hoteliers a lot in recent years. For instance, it has become easier to increase your online visibility and reach a wide audience. But this positive development also has a downside. The balance of power is out of balance and it is difficult for entrepreneurs to compete with these platforms. Branchevereniging Koninklijke Horeca Nederland also sees this struggle among some of its members.

It is an important but tricky choice: do I join an Online Travel Agency (OTA) or not? High visibility is an advantage, but the price you have to pay is high. Literally, in the form of high commission fees, but also in terms of choice about how you interact with guests. For example, research by HOTREC, the European hospitality industry umbrella organisation, shows that a majority of hoteliers feel under pressure to accept general terms and conditions that they would voluntarily not apply to reservations.

Besides the high commission costs and limited freedom, you have to take into account that it is harder to build a direct relationship with your guests. But also that you have little control over how your accommodation is presented on the platform. And changes in policy or the platform's algorithm can directly affect your hotel's performance. So many downsides, but Rob Hemmes, General Manager of Eden Hotel Amsterdam, stresses the importance of nuance in this discussion: "Sometimes we conveniently forget what benefits a balanced collaboration with a booking platform has to offer. Yet there should always be and remain a healthy partnership and the balance of power should not tip over to either party."

And that is the reason why KHN has been working for years to ensure a level playing field between entrepreneurs and platforms. KHN president Marijke Vuik: "The emergence and rise of new providers and intermediaries in hospitality is of all times. However, we see that hospitality entrepreneurs have to deal with globally operating players, who are claiming more and more power. That is why we are committed to healthier power relations between platforms and entrepreneurs, including through partners such as VNO-NCW/MKB-Nederland and HOTREC." 

And these efforts are not in vain. Vuik: "Fortunately, we are seeing a number of regulatory initiatives at both Dutch and European level that aim to bring more balance of power between platform and consumer, but also the business user." Rob Hemmes also looks positively to the future: "KHN monitors the market and ensures a level playing field, where the interests of the accommodation provider are represented. It can also act as a "referee" when certain rules need to be interpreted. The recently introduced European Digital Markets Act legislation is a good example of this. This legislation is going to determine further cooperation from accommodation providers with by far the largest booking platform in Europe."

Dennis Lageweg of The Social Hub also stresses the importance of good (European) regulation: "Booking is an important partner for us. Partners like this allow us to diversify our distribution channels and this familiarity helps us attract a diverse customer base from different parts of the world. However, it is crucial for us as hoteliers to have the freedom and space to control our own business. Hence, European regulation is essential. This is how we ensure that we continue to strengthen each other."

Some of the measures taken in recent years: since 2020, platforms must be more transparent about their terms and conditions. In 2022 came a disclosure requirement on determining the order of search results and showing personalised offers. And so the Digital Markets Act came into force. This included a ban on parity clauses, which require hotels to always offer their lowest room rates on the platform, for gatekeepers. This ban is expected to take effect by the end of 2024. 

Fortunately, there are alternatives. You can consider investing in other ways to increase your online visibility. For example, by optimising your own website, collaborating with local businesses and using other online platforms that operate without commission.