Booking.com Declared as Travel Agent, Must Join Pension Scheme

This article was last updated on January 30, 2024

Canada: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
USA: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…

A Turning Point for Booking.com: Court’s Declaration

As per the verdict from the court in The Hague, popular travel portal Booking.com has been mandated to take part in a pension foundation designed for the travel domain. This directive came as a surprise to the travel giant since it perceives itself mainly as an internet enterprise. However, the court stressed that Booking.com, known for its exceptional service in accommodations and hotel stays, is fundamentally an internet-based travel agent.

The Contention of Bpf Reisbranche

This court order was the outcome of a dispute initiated by pension fund Bpf Reisbranche. This organization challenged Booking.com as it claimed that the pension fund of travel was not necessary for them. Bpf Reisbranche, standing firm with the thesis that Booking.com actively advocates for travelers, raised the question about Booking.com’s identity as a travel agent or organizer. If approved, it should also be obligated to contribute to the pension fund assigned for such companies.

Booking.com’s Argument

Opposing the claim by Bpf Reisbranche, Booking.com made its stand clear by rebutting that it does not participate actively in the contract between hotel owners and tourists.

Court’s Interpretation: A Deeper Look

The court in The Hague drew a conclusion considering Booking.com’s articles of association, its website, its annual reports, and general trading conditions. The company turned out to illustrate active involvement in mediating accommodation services for travelers. For the court, this included the software deployed by Booking.com as well.

Long-Lasting Legal Battle Reaches an End

The legal spat about participation in a pension fund has continued over years. Although Booking.com received a favorable judgment in past rulings, the tide has turned now. Presently, the court has ruled against the booking site after years, implying the ruling will be applied retroactively from 1999. Consequently, the parent company of Booking.com speculates that the ruling would culminate in additional costs amounting to 405 million euros.