Booking.com
Booking.com logo.svg
Booking.com screenshot.jpg
Type of businessSubsidiary
Type of site
Travel and accommodation services
Available in43 languages
Founded1996; 27 years ago (1996)
Enschede, Netherlands
HeadquartersAmsterdam, Netherlands
Area servedGlobal
OwnerBooking Holdings
CEOGlenn Fogel
Key peopleGlenn Fogel (CEO)
ParentBooking Holdings
SubsidiariesBooking.com Consulting Services Pte. Ltd.
URLwww.booking.com
CommercialYes
RegistrationOptional
Launched1996; 27 years ago (1996)
Current statusOnline
Booking.com screenshot.jpg
Booking.com's head office in Amsterdam

Booking.com, headquartered in Amsterdam, is one of the largest online travel agencies. It is a subsidiary of Booking Holdings.[1]

History[edit]

In 1996, Geert-Jan Bruinsma, a student at Universiteit Twente, founded Bookings.nl.[2][3][4]

In 2000, Booking.com was formed when Bookings.nl, merged with Bookings Online, founded by Sicco and Alec Behrens, Marijn Muyser and Bas Lemmens, which operated as Bookings.org. The name and URL were changed to Booking.com and Stef Noorden was appointed as its CEO.

In July 2005, the company was acquired by Priceline Group (now called Booking Holdings) for $133 million, and was merged with ActiveHotels.com, a European online hotel reservation company, purchased by Priceline Group for $161 million in September 2004.[5]

In 2006, Active Hotels Limited changed its name to Booking.com Limited.[6] The integrations of Booking.com and Active Hotels helped its parent company improve its financial position from a loss of $19 million in 2002 to $1.1 billion in profit in 2011. The acquisition of Booking.com was praised by some social media as “the best acquisition in Internet history” since no other acquisition in the digital travel market had been shown to be as profitable.[7]

In November 2010, the company launched a mobile app for the iPad and in February 2011, it launched a mobile app for Android .[8]

In April 2012, the company launched the first global last-minute hotel app, ‘Booking.com Tonight’, designed for iPhone and iPod Touch.[9] The app became available for Windows 8 in October 2012.[10] The iPhone app was updated with a new function called Passbook that same month.[11] The Kindle Fire app became available for download in December 2012.[12]

Management history[edit]

Darren Huston was appointed chief executive officer of Booking.com in September 2011,[13] and also served as president and chief executive officer of Booking Holdings from 1 January 2014[14] until his resignation on 28 April 2016 after his extramarital affair with another employee was revealed.[15][16] Gillian Tans was then appointed CEO.[17] Tans resigned in 2019, after which Glenn Fogel became CEO.[18]

Advertising history[edit]

In January 2013, Booking.com's first brand campaign, ‘Booking.yeah’, created by Wieden+Kennedy, an advertising agency, was launched online and aired on television networks in the U.S. market.[19] In 2014, the company launched its first advertising campaigns in Canada, the U.K., and Germany. [20][21][22][23]

In 2016, Booking.com and its affiliates spent $3.5 billion in pay-per-click advertising and were the largest spenders on advertising in the Travel & Tourism category.[24]

Controversies and criticism[edit]

Anti-competitive allegations by OFT[edit]

In September 2012, the United Kingdom's competition authority, the Office of Fair Trading (OFT), issued a statement of objections against Booking.com, Expedia, and IHG Army Hotels alleging that Booking.com and Expedia had entered into separate arrangements with IHG which restricted the online travel agent's ability to discount the price of room only hotel accommodation. Booking.com, Expedia and IHG proposed the OFT to change their restrictions. The OFT accepted the proposal, but it was later rejected by higher authority at a tribunal.[25][26]

Leaks of customer data[edit]

In November 2014, it was revealed that criminals were able to obtain customer details from the website. Booking.com said it was countering the fraudsters and refunding customers from the UK, US, France, Italy, the UAE, and Portugal, all of which had been affected. Since the fraud, Booking.com has made changes so data can only be accessed from a computer linked to the hotel's server. Its teams have also worked to "takedown" dozens of phishing sites, as well as working with some banks to freeze the money mule bank accounts.[27]

The website was again targeted by hackers in June 2018.[28]

Brand hijacking accusations by German hotelier[edit]

In February 2015, an open letter published by German hotelier Marco Nussbaum, co-founder and CEO of the "prizeotel" budget-design hotel brand, was highly critical of Booking.com's "brand hijacking" activity in which the company bids significant sums of money to be the top listing on Google Search for several hotel brands.[29]

Prohibitions against offering lower rates[edit]

In April 2015, French, Swedish and Italian competition authorities accepted a proposal by Booking.com to drop its "rate parity" clause and thereby allow competitor travel agents to offer lower hotel prices than Booking.com.[30] Booking.com further agreed to extend and apply its proposal across all EU states.[31] Hotels are still prevented from discounting prices directly on their own websites.[32]

Allegations of market dominance[edit]

In April 2015, the European Union warned that Booking.com is one of several internet firms that may have reached market dominance beyond the point of no return.[33]

Violations of Turkish competition law[edit]

In March 2017, a Turkish court halted activities of Booking.com in Turkey due to a violation of Turkish competition law in a case filed by the Turkish Association of Travel Agents (TÜRSAB). The ruling blocked the website in Turkey; however, website and application can be used from foreign countries to make reservations for hotels in Turkey.[34][35]

Charging commissions on prices including VAT[edit]

In July 2019, luxury-hotel chain Aldemar, invoking "practices [by Booking.com] that go against the laws of the market," terminated its participation in Booking's offerings. The Greek Hotels Association denounced the practice of Bookings.com of charging its percentage fee on the VAT-inclusive full-room price. The company responded that according to the terms of its bilateral agreements with hotels "everywhere," each party to such an agreement is free to walk away from it.[36][37]

Inclusion of listing in Israeli settlements[edit]

See also: List of companies operating in West Bank settlements

On February 12, 2020, the company was included on a list of companies operating in West Bank settlements involved in activities that "raised particular human rights concerns" published by the United Nations Human Rights Council. The company was categorized under "the provision of services and utilities supporting the maintenance and existence of settlements".[38][39] The international community considers Israeli settlements built on land occupied by Israel to be in violation of international law.[40][41][42]

In September 2022, the company added a warning to its listings in Israeli settlements, although the language was toned down at the request of the Israeli government.[43]

European Commission criticism of manipulative sale techniques[edit]

In 2019, following dialogue with the European Commission and national consumer (CPC) authorities, Booking.com committed to ensuring that marketing statements regarding; time-limited offers, the amount of rooms available to book, price comparisons, and the type of vendor offering the accommodation was made clearer to consumers. Changes were also made to make sure that sponsored listings were flagged and that the total price was presented to consumers.[44]

Eligibility of registration of trademark[edit]

Booking.com attempted to register the term "Booking.com" as a trademark but this application was rejected by the United States Patent and Trademark Office (USPTO) on the grounds that the trademark sought was rather generic in nature and hence that it could not be registered. The United States District Court for the Eastern District of Virginia, the United States Court of Appeals for the Fourth Circuit, and finally the Supreme Court of the United States, all held in the case Patent and Trademark Office v. Booking.com B. V. otherwise saying that the term "Booking.com", via the suffix ".com" had created an identity that could be differentiated from the generic verb and hence could be trademarked. The Supreme Court went on to say that later if a site along the lines of "flightbooking.com" came along, Booking.com could not sue the site or prevent them from trademarking the name without proof that said trademark causes potential clientele to be confused between the two.[45]

Criticism over request for Dutch aid during COVID-19 pandemic[edit]

In April 2020, Booking.com drew criticism when it applied for government aid from the Dutch government's relief program for business affected by the COVID-19 pandemic, while paying billions to shareholders, with $6.3 billion in cash on its balance sheet.[46] In response, on May 22, Booking announced that it would not seek further wage subsidies from the Dutch government, and instead look for long term answers.[47] The company laid off 25% of its global workforce.[48]

Fine for untimely disclosure of data breach[edit]

On April 6, 2021, the Dutch Data Protection Authority (DPA) imposed a €475,000 fine on the company for failing to report the breach within the time frame mandated by the General Data Protection Regulation. Criminals obtained the personal data of over 4,000 customers including the credit card information of almost 300 people.[49]

References[edit]

  1. ^ Harger, Jim (25 August 2015). "Booking.com signs 10-year lease for its growing global contact center in Wyoming". Advance Publications.
  2. ^ Lightfoot, Ashley (27 September 2022). "How Booking.com Became Travel's Biggest Brand". Latana.
  3. ^ Schaal, Dennis (2016). "The Definitive oral history of online travel". Skift.
  4. ^ Schaal, Dennis (2018). "The Oral History of Travel's Greatest Acquisition: Booking.com". Skift.
  5. ^ Schaal, Dennis (25 June 2012). "How Booking.com turned the other OTAs into converts". Skift.
  6. ^ "Active Hotels becomes Booking.com". 19 October 2009. Archived from the original on 31 May 2021.
  7. ^ "Booking.com, the best acquisition in Internet history". Hotel Marketing. 12 September 2012.
  8. ^ Scott, Jennifer (27 February 2013). "Booking.com embraces mobile apps". Computer Weekly.
  9. ^ "Booking.com Launches First Global Last-Minute Hotel App" (Press release). Booking.com. 10 April 2012.
  10. ^ "Booking.com Joins Windows 8 Push with Launch of its First Windows App" (Press release). Booking.com. 29 October 2012.
  11. ^ "Booking.com Enables Passbook on Latest Release of iPhone App" (Press release). Booking.com. 16 October 2012.
  12. ^ "Booking.com Launches Native Kindle Fire App" (Press release). Booking.com. 6 December 2012.
  13. ^ "Darren Huston Named Chief Executive Officer of Booking.com" (Press release). 26 September 2011.
  14. ^ "Darren Huston Named as President and CEO of the Priceline Group" (Press release). Booking.com. 7 November 2013.
  15. ^ WEINSTEIN, BRUCE (2 May 2016). "Here's the Real Fallout From the Priceline Sex Scandal". Fortune.
  16. ^ "Priceline Group CEO Darren Huston Resigns; Chairman Jeffery H. Boyd Appointed Interim CEO" (Press release). PR Newswire. 28 April 2016.
  17. ^ "GILLIAN TANS APPOINTED CHAIRWOMAN OF BOOKING.COM". Northstar Travel Group. 27 June 2019.
  18. ^ "Booking Management Shakeup Leaves Gillian Tans Out as CEO of Flagship Unit". Skift (Press release). 26 June 2019.
  19. ^ "Booking.com Launches 'Booking.yeah', Its First-Ever Brand Campaign, Created for the U.S. market" (Press release). Booking.com. 22 January 2013.
  20. ^ "Booking.com Launches First Canadian Brand Campaign". Booking.com. 22 January 2014.
  21. ^ Swift, James (17 February 2014). "Booking.com launches first UK brand campaign". Campaign.
  22. ^ Davies, Jessica (18 February 2014). "Booking.com launches first UK TV campaign to inspire British travellers". The Drum.
  23. ^ "Booking.com ramps up European push with German branding campaign". Hotel Marketing. 17 July 2014.
  24. ^ "Google can rejoice: Priceline Group spent $3.5 billion on PPC in 2016". Phocuswire. 28 February 2017.
  25. ^ "Skyscanner wins appeal, UK watchdog to rethink OTA hotel rate clubs". Phocuswire. 26 September 2014.
  26. ^ "Investigation into the hotel online booking sector". Office of Fair Trading.
  27. ^ Howard, Bob (7 November 2014). "Scammers target leading online travel agent Booking.com". BBC News.
  28. ^ WHITEHEAD, JOANNA (4 June 2018). "Customers were targeted by phishing emails and instructed to provide payment details". The Independent.
  29. ^ "BRAND HIJACKING – OPEN LETTER TO PETER VERHOEVEN, MANAGING DIRECTOR EUROPE, MIDDLE EAST, AFRICA AT BOOKING.COM". 22 February 2015.
  30. ^ Vidalon, Dominique (21 April 2015). "France, Sweden, Italy accept booking.com antitrust proposals". Reuters.
  31. ^ "DECISION" (PDF). Swedish Competition Authority. 15 April 2015. Archived from the original (PDF) on 18 September 2017. Retrieved 1 May 2015.
  32. ^ "Hoteliers claim Booking.com parity agreement still wrong and anti-competitive". PhocusWire.
  33. ^ Hern, Alex (24 April 2015). "EU warns of 'point of no return' if internet firms are not regulated soon". The Guardian.
  34. ^ Solaker, Gulsen (29 March 2017). "Turkish court halts activities of Booking.com over breach of competition law: association". Reuters.
  35. ^ "Turkish travel association seeks to extend Booking.com ban to Airbnb, Expedia, Skyscanner". hurriyetdailynews. 8 August 2018.
  36. ^ Kourlibini, Vicky (19 August 2019). "Συνεχίζεται η κόντρα Βooking-ξενοδόχων για τις τιμές στα δωμάτια" [Bookings and hoteliers' clash over room prices continues]. Capital magazine (in Greek). Athens, Greece.
  37. ^ Bellos, Helias (3 July 2018). "Στρατηγική συμφωνία Aldemar με HIG Capital στον τουρισμό" [Strategic agreement between Aldemar and HIG Capital on tourism]. Kathimerini (in Greek). Athens, Greece.
  38. ^ "UN rights office issues report on business activities related to settlements in the Occupied Palestinian Territory". Office of the United Nations High Commissioner for Human Rights. 12 February 2020.
  39. ^ "Database of all business enterprises involved in certain activities relating to Israeli settlements in East Jerusalem and the West Bank (A/HRC/43/71)". ReliefWeb. 14 February 2020.
  40. ^ "S/RES/2334(2016)". United Nations Security Council. 23 December 2016.
  41. ^ "Legal Consequences of the Construction of a Wall in the Occupied Palestinian Territory" (PDF). International Court of Justice. 9 July 2004.
  42. ^ "Conference of High Contracting Parties to the Fourth Geneva Convention". International Committee of the Red Cross. 5 December 2001.
  43. ^ Alsaafin, Linah (5 October 2022). "Is the Booking.com reversal on Palestine corporate hypocrisy?". Al Jazeera.
  44. ^ "Booking.com commits to align practices presenting offers and prices with EU law following EU action". European Commission (Press release). 20 December 2019.
  45. ^ "Booking.com V. USPTO" (PDF).
  46. ^ "Booking.com's Call for Help Draws Dutch Outcry, Policy Rethink". Bloomberg News. 24 April 2020.
  47. ^ "Booking.com won't ask for more wage subsidies, looks to long term answers". www.dutchnews.nl.
  48. ^ "Booking.com to slash workforce 25%, Amsterdam implications unclear". www.dutchnews.nl.
  49. ^ Page, Carly (2 April 2021). "Booking.com Hit With €475,000 GDPR Fine For Late Reporting Of Data Breach". Forbes.

External links[edit]

Wikimedia Commons has media related to Booking.com.