The picturesque landscapes and historic charm of Hungary have long been a draw for travelers seeking unique experiences. However, the idyllic scene has been marred by a financial storm as global accommodations giant Booking.com faces backlash for failing to make timely payments to its Hungarian hosts and hotel partners. The repercussions are dire, with numerous small businesses teetering on the brink of bankruptcy. The Hungarian Tourism Agency is taking action to assess the extent of the damage caused by this unfortunate situation.
The heartbeat of Hungarian tourism lies in its smaller establishments - cozy guesthouses, boutique hotels, and charming bed-and-breakfasts. For these enterprises, the delay in payments from Booking.com is a devastating blow. Many proprietors who rely on the platform to fill their rooms and sustain their livelihoods are now on the brink of financial collapse. While Hungary's landscapes remain as captivating as ever, the economic turbulence brought about by Booking.com's payment issues has cast a shadow over the country's tourism industry. The inability to receive their rightful earnings has forced some accommodation providers to lay off staff and reshape their business strategies.
Call for accountability
In the midst of this turmoil, opposition politician István Újhelyi, vice-chairman of the European Parliament's Transport and Tourism Committee, stepped forward. Újhelyi's letter to Booking.com's director highlights the company's lack of payments and insufficient customer service. Meanwhile, the Hungarian Tourism Agency has launched a comprehensive survey to gauge the extent of the impact and the financial losses faced by accommodation providers. The agency indicated in its announcement that it will initiate consultations on the subject with the relevant authorities, and will launch a legal aid service for businesses in trouble. The agency issued its announcement after Fidesz also demanded an official investigation into the matter. According to the agency, so far 2,290 businesses have declared that Booking.com has not paid them.
Booking.com has attributed the payment delays to a system maintenance operation that took place between July 1 and 11. While the company assured accommodation providers that payments would be resumed by specific dates, reports suggest that these promises were unmet. The lack of transparency and adherence to the stipulated deadlines has intensified the frustration among hosts and hoteliers.
Future uncertainties
As the cloud of uncertainty looms, it's the small-scale accommodation providers who bear the brunt of Booking.com's mishandling. Those who had opted for the company to manage guest payments now find themselves facing not only financial strain but also a sense of powerlessness in the face of a multinational corporation's actions. The lack of payments for no-show guests has exposed the vulnerabilities of these providers.
Kristóf Szatmáry, head of the cabinet for enterprise development under the ruling Fidesz party, condemned Booking.com's actions. He decried the withholding of funds, which are now in the billions of forints, as detrimental to the very essence of Hungarian hospitality. Szatmáry's call for swift action from the authorities underscores the urgency of the situation.


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