Booking CEO Calls for Regulatory Scrutiny of Google’s Growing Influence in Travel
The online travel landscape is shifting, and Booking Holdings CEO Glenn Fogel is sounding the alarm about what he sees as a growing imbalance of power. In a recent interview, Fogel argued that regulators are failing to recognize Google as a key competitor in the travel booking space, a critical oversight as artificial intelligence reshapes how people plan and book vacations. Booking reported record revenues of €22.775 billion in 2025, fueled by 31 million listings worldwide – 22.4 million hotels and 8.6 million alternative accommodations – but this success came with a significant increase in marketing costs, largely attributed to the dominance of Google search. The core of Fogel’s concern centers on the increasing number of consumers who begin their travel planning directly within Google’s search results, effectively giving the tech giant a powerful position in the market.
Fogel contends that the current regulatory framework doesn’t adequately address Google’s evolving role. “The regulators define what is a position of dominance. And what they don’t realize is that more and more people are going to see the Google hotel finder and that is giving them a dominant position,” he stated. He emphasizes that consumers now consider both Booking and Google, alongside direct hotel websites, when making travel arrangements. This shift, he believes, is only going to accelerate with the integration of artificial intelligence into travel planning. “We’ve been partners for decades, but now we are also competitors and that needs to be regulated,” Fogel explained. He predicts a future where travelers bypass traditional online travel agencies and go directly to Google to book their entire trip, a change he believes will solidify over the coming decades.
Rising Marketing Costs and Google’s Dominance
The financial impact of Google’s growing influence is already being felt by Booking. The company’s marketing expenses surged by 12.5% annually, reaching €770 million in absolute terms, directly linked to the increased reliance on Google search. This substantial increase in marketing spend, despite record revenues, highlights the challenge Booking faces in maintaining visibility and attracting customers in a market increasingly controlled by Google’s algorithms. The company’s 2025 revenue of €22.775 billion represents a 13% increase from the previous year, according to reports, but the rising marketing costs are a point of concern for investors.
Fogel’s criticism extends beyond simply acknowledging Google as a competitor. He argues that regulators are too focused on controlling short-term rental accommodations – often in response to concerns about housing crises and overtourism – while overlooking the broader competitive landscape. He believes a more balanced approach is needed, allowing all players to operate on a level playing field. “Short-term rentals have become responsible for all the evils. What I believe is that you have to let all the actors involved operate on a level playing field, being aware that the administrations will be the ones who have to decide if they want more or less tourist accommodation,” Fogel said. The debate over short-term rentals continues to be a contentious issue in many cities, with regulations varying widely across different regions. For example, restrictions on tourist rentals in Madrid and Barcelona have faced criticism from both landlords and tenants, as reported in February 2026.
Ongoing Legal Battles and Regulatory Scrutiny
Beyond the concerns about Google, Booking is also navigating several other legal and regulatory challenges. The company is facing lawsuits from hotels in Europe alleging abuse of its dominant position, specifically related to “parity clauses” in contracts. These clauses reportedly require hotels to offer the same prices on Booking as they do on their own websites, preventing them from offering lower rates elsewhere. Fogel defends these practices, arguing that Booking drives more business to hotels, even if customers initially discover them through the platform. “The first truth is that hotels get more business if customers come directly to buy their rooms than if they do it indirectly through Booking. What they are not taking into account is the added value that we provide by generating the content, putting it in 40 languages and facilitating payment methods,” he stated.
Despite these disputes, Booking remains a dominant force in the hotel booking market. According to a recent report by SiteMinder, a hotel platform analyzing sales channels in twelve major destinations including Spain, Booking continues to be the leading platform for hotel bookings globally. The SiteMinder report underscores Booking’s continued strength despite the challenges it faces.
Adding to these challenges, Booking is also contesting a substantial fine imposed by the Spanish National Commission on Markets and Competition (CNMC) in July 2024. The CNMC levied a €413 million fine against Booking for allegedly abusing its dominant position between 2019 and 2024 by restricting hotels from offering lower prices on their own websites or through alternative sales channels. The fine, the largest in the CNMC’s history, is currently being appealed in the National Court. Fogel maintains the company’s innocence, stating, “We believe the decision is wrong. Our position is correct and we are confident that justice will ultimately give us reason.”
Expansion in the US Market and Future Outlook
While Booking maintains a strong global presence, the company sees significant growth potential in the United States. Fogel noted that Booking’s footprint in the US is considerably smaller than that of Airbnb, indicating an opportunity for expansion. The US travel market is highly competitive, with several major players vying for market share, including Expedia, Airbnb, and direct hotel bookings. The company’s strategy for growth in the US market likely involves increasing marketing efforts, expanding its range of accommodation options, and leveraging its technology platform to offer a seamless booking experience.
The evolving role of artificial intelligence is poised to further disrupt the travel industry, and Booking is actively investing in AI-powered solutions to enhance its platform. Fogel believes that AI will fundamentally change how people plan and book travel, moving away from traditional travel agencies and online platforms towards direct interactions with AI-powered search engines like Google. This trend underscores the urgency of addressing the competitive concerns Fogel has raised regarding Google’s growing influence.
Key Takeaways
- Google’s Increasing Influence: Booking CEO Glenn Fogel argues that Google is becoming a dominant force in travel booking and should be considered a key competitor by regulators.
- Rising Marketing Costs: Booking’s marketing expenses have significantly increased due to its reliance on Google search, impacting profitability.
- Ongoing Legal Challenges: Booking is facing lawsuits from hotels in Europe and a substantial fine from the Spanish CNMC related to anti-competitive practices.
- US Market Expansion: Booking sees significant growth potential in the United States, where its market share is currently lower than that of Airbnb.
- AI’s Disruptive Impact: Artificial intelligence is expected to reshape the travel industry, with Google potentially becoming a central hub for travel planning and booking.
The coming months will be crucial as Booking navigates these challenges and adapts to the changing dynamics of the travel industry. The outcome of the CNMC appeal and the response from regulators regarding Google’s market power will significantly shape the company’s future. The next steps in the CNMC case are expected to be announced by the Audiencia Nacional in the coming quarter. Readers are encouraged to share their thoughts and experiences with online travel booking in the comments below.