Booking.com Under Scrutiny: What Foreign Tourists Should Know Before Booking Stays in Budapest
When planning a visit to the vibrant city of Budapest, many travelers instinctively turn to Booking.com, one of the world’s leading accommodation platforms. Its reputation for user-friendliness and variety makes it a top choice among international tourists. However, recent developments in Europe and Hungary reveal some critical behind-the-scenes changes that travelers should know about—changes that not only affect the booking process but also offer new insights into hotel pricing, loyalty programs, and the legal landscape for online travel platforms.
Understanding the Investigation: Booking.com on the Radar
Throughout 2025, Booking.com has been the subject of a high-profile investigation by Hungary’s Competition Authority (GVH). The core of the inquiry revolves around concerns that the platform provided misleading information about its service fees and the discounts offered through its Genius loyalty program. Notably, these issues have come to light after users observed that prices for identical services differed depending on whether they booked via mobile or desktop, despite the same room being offered. This discrepancy, along with concerns about transparency in the Genius discount levels, prompted regulators to act.
This isn’t Booking.com’s first time under the spotlight. The GVH previously imposed significant fines on the company—first in 2020 for its aggressive sales techniques, and once again in 2024 after the platform failed to fully comply with earlier commitments.
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The “Best Price” Clause: Shaping Hotel Prices Across Europe
One of the most significant controversies involves Booking.com’s long-standing “best price” or price parity clause. For years, hotels listing on the platform were restricted from offering rooms at lower prices through their own websites or other platforms. This clause had real consequences: it often raised commission fees, impacted hotel autonomy, and limited the options available to travelers seeking the best deals.
The practice faced a landmark legal challenge across Europe, sparked by growing frustration among hotels and industry bodies. In September 2024, the European Court of Justice ruled such price parity agreements illegal, opening the door to major reforms. In response, Booking.com removed the clause in July 2024, meaning hotels can now set their own prices more freely—and savvy travelers may find improved pricing by booking directly.
Collective Legal Action: Hotels Seek Compensation
The aftermath of the price parity ruling has stirred up collective action among European hotels. Over 10,000 hotels have united in a lawsuit against Booking.com, seeking compensation for alleged financial losses from years of restricted pricing. National hotel associations, including Hungary’s Hotel and Restaurant Association, have encouraged local hotels to join the effort, and registration for claims remains open through August 2025.
For travelers, this means greater transparency, competition, and potentially better deals as hotels regain control over their pricing strategies.
Insight into the Genius Program: Loyalty Comes at a Cost
Booking.com’s Genius program is widely promoted to loyal guests for its exclusive discounts and perks. However, recent investigations cast a spotlight on how these benefits are presented. Critics argue that the program’s discounts may not always be as genuine or advantageous as advertised, occasionally guiding consumers toward choices driven more by marketing than clear value. The Genius program also favors Booking.com over individual hotel loyalty schemes, reducing the incentive for travelers to book directly with hotel brands.
As the regulatory landscape evolves—and with stricter oversight in place—future Genius discounts may become more transparent, helping visitors make more informed decisions.
Booking.com in Hungary: Local Practices Meet Global Changes
Though Booking.com is headquartered in the Netherlands, it operates through a local subsidiary in Budapest, maintaining Hungarian staff and offices. Its official role as a “market intermediary” comes with added legal and tax implications in Hungary. For tourists, this simply means that Booking.com remains fully integrated into the local hospitality industry, supporting Hungarian hotels and handling bookings with a familiar local touch.
What Tourists Can Expect
If you’re traveling to Budapest this season, the landscape of hotel bookings is shifting in your favor. Growing legal scrutiny means platforms like Booking.com are under pressure to improve transparency, fairness, and compliance in communicating prices and discounts. Hotels, newly liberated from restrictive price policies, can compete more openly—offering you a better chance to find great deals either through the platform or directly.
For the best experience, use Booking.com as one of several tools when searching for accommodation. Don’t hesitate to check hotel websites or compare offers beyond just the flashy Genius program. As always, read the fine print, keep an eye out for pricing quirks, and take advantage of the competitive environment to land your ideal Budapest stay.
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