Accommodation facilities file a class action lawsuit over non-payment by Booking.com|Attorney also mentions the risk of bankruptcy of accommodation facilities
On the morning of October 20, 2023, 10 owners of domestic accommodation facilities nationwide filed a lawsuit in the Tokyo District Court seeking damages of approximately 36 million yen over the issue of unpaid fees on Booking.com, the world's largest travel booking site.
Since around July this year, there have been a series of non-payment delays from Booking.com to lodging operators. On October 10, the company announced that it was experiencing "system maintenance issues, and while most of the outstanding payments have resumed, some operators are experiencing payment delays."
The owner of the accommodation facility said that he believed in the world's largest platformer, and that the cash flow of each accommodation facility deteriorated, and some facilities were forced to sell their real estate. The attorney representing him commented, "If the non-payment continues, many accommodations may go bankrupt." In addition, it is said that many inquiries have been received from accommodations other than those that have filed a class action lawsuit.
Booking.com started operations in Japan in 2005 and has increased the number of registered accommodation facilities in Japan by touting its strength in its online payment agency system. Currently, it is the No. 1 sales among foreign-affiliated OTAs operating in Japan and the largest in the world.
Non-payment to accommodation started around July, usually 1-2 months after the end of the month of the accommodation date. In addition, since nationwide travel support was provided during this period, a large amount of subsidies were paid to Booking.com from each prefecture. The Tourism Division of Kanagawa Prefecture, where there are unpaid accommodations, says that "travel agencies usually pay subsidies within about two months from the date of accommodation."
Booking.com is not a cash-strapped company, and it will pay the salaries of its own employees. In addition, even though we receive taxpayer-funded national travel assistance grants, a malfunction in our system is not a reason for non-payment. If cash had been withdrawn from the bank and the management and employees had gone to the accommodation to pay the fee, the property would not have had to sell the property.
