Hotels losing pricing control: You set the rate. Booking.com sets the price.

Half of Europe's hotels say an OTA sells their rooms below their own rate. Their own reservations teams now quote against that price.

by Markus Busch

Tuesday morning, and a guest emails the hotel. Two nights in October, a double, best rate? Before the reservations agent answers, she opens Booking.com on her second screen. Whatever the guest would pay there, the agent can't quote above it. The guest has probably looked already.

The revenue manager loaded $200 for those nights. On the hotel's website, $200 is the price. On Booking.com it isn't.

The hotel runs on Payments by Booking.com, the merchant model, as Booking.com's parent company calls it. Booking.com takes the guest's money and later pays the hotel its $200, minus commission and a payment fee. What the guest pays is up to Booking.com. This morning it shows $180. Booking.com calls this Booking Sponsored Benefit. It covers the gap itself, and tells hotels that "your rates appear lower on our platform than the rate you set."

For twenty years it ran the other way. Booking.com watched the hotel's website. Now the hotel watches Booking.com, even for a guest who wrote to the hotel directly.

The hotel still sets the rate. Booking.com sets the price everyone else checks against.

Who used to watch whom

The old arrangement was in the contract. Rate parity clauses said a hotel could not sell cheaper on its own website than on the OTA. National bans started chipping at them in 2015. Since late 2024 the EU's Digital Markets Act has barred Booking.com from using them at all, which we have covered before.

On paper, a European hotel has never had more freedom over its price.

Below your rate

HOTREC, the European hotel association, asked 1,882 hotels for its distribution study, published September 15. Half of them, 51%, said an OTA sells their rooms below their own rate, often or now and then. Two years ago it was four in ten. Eight in ten of those said they never agreed to it. Yet 65% of the hotels use Booking.com's payment service, the contract that lets Booking.com sell below the hotel's rate.

The discounts stay about the same size. They come more often.

Those are the hotels' own answers, gathered by an association lobbying Brussels on this very point. They also show who sits at the center: Booking.com alone took 66.1% of their OTA bookings. Two of every three.

Now the hotel watches

In July, Radisson made its best-rate guarantee automatic across more than 1,600 hotels. Its system watches Booking.com, Expedia, Agoda and five other sites. When it finds a price lower than Radisson's own, it drops the direct rate to match.

That is the parity machine, turned around. The OTA used to scan the hotel's site for a lower price. Now a hotel company scans the OTAs and cuts its own. Radisson has good reasons: the booking stays on its website, with no commission. But at 1,600 hotels, the direct rate now follows the cheapest OTA.

Independent hotels do it by hand. The rate-shopping tool. The morning check before the revenue meeting. The second screen in reservations.

The price travels

The rate you give Booking.com doesn't stay on Booking.com. Its parent company, Booking Holdings, sells the same rooms to banks, airlines and loyalty programs, which sell them in their own apps and rewards sites. Skift names Citi, American Airlines, Southwest and U.S. Bank among the buyers. In August, Skift reported that the group is moving all of it onto one system, run by its Agoda team.

Revolut, the banking app, sells Booking.com rooms with its own reward points on top. And the group is taking its Kayak brand into business travel.

Each of those buyers can move the price again. The system offers them "pricing and margin controls," in its own words: their own markup on your rate for each tier of member, shown only to people who have logged in. Your rate-shopping tool reads public pages. It never sees these prices.

HOTREC asked whether OTAs pass hotels' rates on to other platforms. 44% said yes. Another 26% said they didn't know. Your room, at a price you didn't set, now turns up in places a quarter of Europe's hotels can't even name.

The new parity, only worse

The payment contract is spreading fast. In its annual report, Booking Holdings says 70% of everything booked across the group in 2025 ran through its payment business, up from 63% a year earlier. The reason it gives: more Booking.com bookings moving from hotel-collect to its own payments. By early 2026 the share was 72%.

Rate parity at least left the hotel holding the pen. The hotel set the price on its website and on Booking.com. The rule only said the two had to match. The guest paid, and the hotel got paid.

The payment contract takes more. It hands Booking.com the price, and it hands Booking.com the guest's money. A hotel paid by bank transfer gets its payout only after she checks out. A week in August that she paid for in March reaches the hotel in August at the earliest.

And it takes away her reason to book direct. Booking.com's Genius program gives members a discount and, at hotels that sign up, free breakfast or an upgrade. The hotel pays for all of it. On Booking.com she gets the lower price, and maybe breakfast on the house. On the hotel's website she gets the full rate.

Revenue management, outsourced

A chain can live with this. It negotiates with Booking.com for thousands of hotels at once, runs its own loyalty program, and sells enough through Expedia to play one against the other. At the chain hotels in HOTREC's study, Expedia brings a third of the OTA bookings. At independents, Booking.com alone brings seven in ten.

Think about what your revenue manager does all day. She decides which nights get cheaper, which guests get a better price, and where the rooms are sold. Under the payment contract, Booking.com makes those calls for the rooms it sells. It picks the nights it discounts. Genius picks the guests who pay less. The banks and airlines resell the room at their own markup.

She still loads a rate every morning. On HOTREC's figures, Booking.com sells roughly one in five of an independent's room nights. Its price sets the bar for the other four. Before a guest emails you, books on your website or calls, she has likely seen it.

Booking.com is no longer just a channel. For your guests, its price is what a room at your hotel costs.

Read also: Booking Holdings is merging the pipes that resell your rooms · Two chains rewrote their price guarantee, and only one made it easier to collect

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