Booking.com

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Booking.com
Booking.com logo.svg
Booking.com screenshot.jpg
Type of businessSubsidiary
Type of site
Travel and accommodation services
Available in43 languages
Founded1996; 26 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; 26 years ago (1996)
Current statusOnline
Booking.com screenshot.jpg

Booking.com is a Dutch online travel agency for lodging reservations & other travel products, and a subsidiary of Booking Holdings. It is headquartered in Amsterdam.[1]

The website has over 28 million listings.[2] The site is available in 43 languages.[2]

History[]

Booking.com was formed when Bookings.nl, founded in 1996 by Geert-Jan Bruinsma, merged in 2000 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 1997, Bruinsma wanted to post an ad in De Telegraaf, the Dutch newspaper with the highest circulation. The ad was rejected since De Telegraaf only accepted ads with a phone number, not with a website. In 2002, Expedia refused to buy bookings.nl.[3][4]

In July 2005, the company was acquired by Priceline Group (now called Booking Holdings) for $133 million, and later it cooperated with ActiveHotels.com, a European online hotel reservation company, purchased by Priceline Group 9 months earlier for $161 million in Sept 2004.[5]

In 2006, Active Hotels Limited officially changed its name to Booking.com Limited.[6] The integrations of Booking.com and Active Hotels successfully helped the parent improve its financial position from a loss of $19 million in 2002 to $1.1 billion in profit in 2011. This acquisition 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]

Darren Huston was appointed as Chief Executive Officer of Booking.com in September 2011 by its parent company,[8] and also served as President and Chief Executive Officer of Booking Holdings since 1 January 2014[9] until his resignation on 28 April 2016 after an at-work relationship was revealed.[10]

After Gillian Tans resigned in 2019, Glenn Fogel took over as CEO.[11]

Corporate affairs[]

Booking.com's head office in Amsterdam

Marketing[]

Partnerships and agreements[]

In August 2012, Ctrip (now Trip.com Group) a Chinese online travel company, formed a partnership with the company to allow it to access Booking.com's global portfolio.[12] Panorama Group, Indonesia's largest tour and travel company, formed a strategic partnership with Booking.com in 2013 to access the website's portfolio of hotels.[13] In October 2014, Ural Airlines partnered with Booking.com.[14]

Advertising[]

In January 2013, Booking.com's first brand campaign, ‘Booking.yeah’, was launched online and aired on television networks for the U.S. market. Booking.com worked with the advertising agency Wieden + Kennedy Amsterdam for this campaign.[15] In 2014, the company launched advertising campaigns in Canada, the U.K., and Germany. [16][17][18][19]

Booking.com and its subsidiaries were the top spenders in the Travel & Tourism category for Google Awards in 2016, spending $3.5 billion in PPC.[20]

Operation[]

Applications development[]

In November 2010, the company launched a hotel and lodging mobile app for the iPad.[21] Booking.com launched the same mobile app on Android the following year in February.[21]

The company launched the first global last-minute hotel app, ‘Booking.com Tonight’, designed for iPhone and iPod Touch in April 2012.[22] The app became available for Microsoft Windows, using Windows 8, in October.[23] The iPhone app was updated with a new function called Passbook that same month.[24] The Kindle Fire app became available for download in December.[25]

In July 2015, the company launched an improved Android mobile app.[26]

Controversies and criticism[]

Anti-competitive allegations by OFT[]

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. The OFT alleged 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.[27][28]

Leaks of customer data[]

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.[29]

The website was again targeted by hackers in June 2018.[30][31]

Brand hijacking accusations by German hotelier[]

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. His letter outlined details relating to Booking.com's use of Google Adwords, and how it was doing damage to his business. The letter was discussed in specialist media and led to a debate concerning current difficulties and challenges for online distribution within the hotel industry.[32]

Prohibitions against offering lower rates[]

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.[33] Booking.com further agreed to extend and apply its proposal across all EU states.[34] Hotels are still prevented from discounting prices directly on their own websites.[35]

Allegations of market dominance[]

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.[36]

Violations of Turkish competition law[]

In March 2017, a Turkish court halted activities of Booking.com due to a violation of Turkish competition law.[37][38] Booking.com halted selling rooms in Turkey to Turkish users, obeying the order to block the website. However, the website and application can be used from foreign countries to make reservations for hotels in Turkey.[39]

Disputes with hotels in Greece[]

In July 2019, luxury-hotel chain ,[40] 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.[41]

Involvement in Israeli settlements[]

See also: List of companies operating in West Bank settlements

On 12 February 2020, the United Nations published a database of all business enterprises involved in certain specified activities related to the Israeli settlements in the Occupied Palestinian Territories, including East Jerusalem, and in the occupied Golan Heights.[42][43] Booking.com and its parent company, Booking Holdings, have been listed on the database in light of their involvement in activities related to "the provision of services and utilities supporting the maintenance and existence of settlements".[42][43] The international community considers Israeli settlements built on land occupied by Israel to be in violation of international law.[44][45][46]

Authorities denounced the practice of using manipulative techniques[]

On 16 June 2020 expired the deadline set by the European Commission and national consumer protection (CPC) authorities for Booking.com. The authorities denounced the practice of using manipulative techniques such as hiding sponsoring in the ranking, unduly putting time pressure on users or misrepresenting rebates etc. [47]

Eligibility of registration of trademark[]

Booking.com attempted to get the term "Booking.com" registered as a trademark but this application was rejected by the United States Patent and Trademark Office (USPTO) as they believed 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.[48]

Criticism over state aid during Covid-19 pandemic[]

On April 24, 2020, Booking.com drew criticism when it applied for state aid from under 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.[49] 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.[50] The company soon after decided to lay off 25% of its global workforce, and moved on to collective lay offs of on the Amsterdam workforce approximately 25% of its pre-COVID workforce.[51]

References[]

  1. ^ Harger, Jim (25 August 2015). "Booking.com signs 10-year lease for its growing global contact center in Wyoming". Advance Publications.
  2. ^ a b "Booking.com: About Booking.com". Booking.com.
  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.
  7. ^ "Booking.com, the best acquisition in Internet history". Hotel Marketing. 12 September 2012.
  8. ^ "Darren Huston Named Chief Executive Officer of Booking.com" (Press release). 26 September 2011.
  9. ^ "Darren Huston Named as President and CEO of the Priceline Group" (Press release). Booking.com. 7 November 2013.
  10. ^ "Priceline Group CEO Darren Huston Resigns; Chairman Jeffery H. Boyd Appointed Interim CEO" (Press release). PR Newswire. 28 April 2016.
  11. ^ "Booking Management Shakeup Leaves Gillian Tans Out as CEO of Flagship Unit" (Press release). Skift. 26 June 2019.
  12. ^ "CTRIP and Booking.com Forge Global Travel Partnership" (Press release). Booking.com. 7 August 2012.
  13. ^ Mimil, Hudoyo (20 February 2013). "Panorama and Booking.com launch international hotel reservation site". TTG Asia.
  14. ^ "Ural Airlines has begun working with Booking.com". rusbiznews.com. 6 October 2014.
  15. ^ "Booking.com Launches 'Booking.yeah', Its First-Ever Brand Campaign, Created for the U.S. market" (Press release). Booking.com. 22 January 2013.
  16. ^ "Booking.com Launches First Canadian Brand Campaign". Booking.com. 22 January 2014.
  17. ^ Swift, James (17 February 2014). "Booking.com launches first UK brand campaign". Campaign.
  18. ^ Davies, Jessica (18 February 2014). "Booking.com launches first UK TV campaign to inspire British travellers". The Drum.
  19. ^ "Booking.com ramps up European push with German branding campaign". Hotel Marketing. 17 July 2014.
  20. ^ "Google can rejoice: Priceline Group spent $3.5 billion on PPC in 2016". Phocuswire. 28 February 2017.
  21. ^ a b Scott, Jennifer (27 February 2013). "Booking.com embraces mobile apps". Computer Weekly.
  22. ^ "Booking.com Launches First Global Last-Minute Hotel App" (Press release). Booking.com. 10 April 2012.
  23. ^ "Booking.com Joins Windows 8 Push with Launch of its First Windows App" (Press release). Booking.com. 29 October 2012.
  24. ^ "Booking.com Enables Passbook on Latest Release of iPhone App" (Press release). Booking.com. 16 October 2012.
  25. ^ "Booking.com Launches Native Kindle Fire App" (Press release). Booking.com. 6 December 2012.
  26. ^ "Booking.com continues to revolutionize the on-demand travel space with the launch of Booking Now for Android" (Press release). Booking.com. 17 July 2015.
  27. ^ "Skyscanner wins appeal, UK watchdog to rethink OTA hotel rate clubs". Phocuswire. 26 September 2014.
  28. ^ "Investigation into the hotel online booking sector". Office of Fair Trading.
  29. ^ Howard, Bob (7 November 2014). "Scammers target leading online travel agent Booking.com". BBC News.
  30. ^ WHITEHEAD, JOANNA (4 June 2018). "Customers were targeted by phishing emails and instructed to provide payment details". The Independent.
  31. ^ MALLINSON, HARRIET (4 June 2018). "Booking.com customers targeted by hackers in WhatsApp and text scam". Daily Express.
  32. ^ "Brand hijacking – Open letter to booking.com".
  33. ^ Vidalon, Dominique (21 April 2015). "France, Sweden, Italy accept booking.com antitrust proposals". Reuters.
  34. ^ "DECISION" (PDF). Swedish Competition Authority. 15 April 2015.
  35. ^ "Hoteliers claim Booking.com parity agreement still wrong and anti-competitive". PhocusWire.
  36. ^ Hern, Alex (24 April 2015). "EU warns of 'point of no return' if internet firms are not regulated soon". The Guardian.
  37. ^ "A Turkish Court Has Temporarily Shut Down Booking.com". Fortune. Reuters. 29 March 2017.
  38. ^ Solaker, Gulsen (29 March 2017). "Turkish court halts activities of Booking.com over breach of competition law: association". Reuters.
  39. ^ "Turkish travel association seeks to extend Booking.com ban to Airbnb, Expedia, Skyscanner". hurriyetdailynews. 8 August 2018.
  40. ^ 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. Retrieved 19 August 2019.
  41. ^ 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. Retrieved 19 August 2019.
  42. ^ a b "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. Retrieved 5 July 2021.
  43. ^ a b "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. Retrieved 5 July 2021.
  44. ^ "S/RES/2334(2016)". United Nations Security Council. 23 December 2016. Retrieved 5 July 2021.
  45. ^ "Legal Consequences of the Construction of a Wall in the Occupied Palestinian Territory" (PDF). International Court of Justice. 9 July 2004. Retrieved 5 July 2021.
  46. ^ "Conference of High Contracting Parties to the Fourth Geneva Convention". International Committee of the Red Cross. 5 December 2001. Retrieved 5 July 2021.
  47. ^ "Booking.com commits to align practices presenting offers and prices with EU law following EU action". European Commission. 20 December 2019. Retrieved 22 June 2020.
  48. ^ Booking.com V. USPTO (https://www.supremecourt.gov/opinions/19pdf/19-46_8n59.pdf)
  49. ^ "Booking.com's Call for Help Draws Dutch Outcry, Policy Rethink". www.bloomberg.com.
  50. ^ "Booking.com won't ask for more wage subsidies, looks to long term answers". www.dutchnews.nl.
  51. ^ "Booking.com to slash workforce 25%, Amsterdam implications unclear". www.dutchnews.nl.

External links[]

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