English Corner
Ban on parity clauses leaves Booking cold
Two years have passed since the introduction of Lex Booking, the ban on parity clauses. In order to evaluate its effectiveness and to identify both existing and new challenges in dealing with online travel agencies (OTAs) such as Booking or Expedia, the Swiss Hotel Association commissioned the HES-SO Valais-Wallis to conduct a study.
The results show that direct bookings remain the most important distribution channel, but OTAs continue to exert strong pressure on accommodation providers. In addition, there are still numerous problem areas in online distribution.
The ongoing study analyses changes in booking behaviour and highlights challenges in working with online booking platforms. With a share of 60 per cent, direct bookings remain the most important source of bookings for the Swiss accommodation industry. Smaller, independent businesses in rural or tourist regions benefit particularly from direct bookings, as they often have a loyal customer base.
At the same time, the study shows that the share of bookings made through OTAs has increased from 27 per cent to 36 per cent compared to the previous year. In particular, larger hotels with a higher classification and an international guest structure report an above-average share of OTA bookings. However, they have to pay commissions of 12 to 20 per cent per booking.
Technological deficits
Despite the introduction of Lex Booking, there are still some challenges in working with OTAs. In particular, limited access to customer data is problematic. Around two-thirds of businesses report being unable to access key information like email addresses, making it much harder to communicate directly with guests and build customer relationships. Further difficulties arise from the lack of transparency in the loyalty and discount campaigns of the OTAs. In addition, undercutting often occurs, which has a negative impact on revenue. It is precisely through undercutting that OTAs try to circumvent the Lex Booking.
The study was commissioned to identify key problem areas and those most affected, with the goal of enabling targeted measures to support accommodation providers. HotellerieSuisse continues to rely on a mix of training and actionable recommendations, developed in collaboration with partners. The association also offers legal support to its members to identify potential breaches of contract by OTAs and pursue legal action if necessary.