Bill Under Debate to Govern Foreign Online Travel Agency Market Entry in Türkiye
What happened
A bill is currently before the Public Works, Zoning, Transport and Tourism Committee that outlines rules for foreign booking platforms in Türkiye. The proposal would allow booking.com to resume domestic hotel reservations in the country, provided it obtains a permit from the Culture and Tourism Ministry and appoints a representative in Türkiye. Under the bill, fees and commissions would be capped at 17 percent of the sale price, excluding value-added tax. The legislation would also permit platforms to sell flight tickets directly, and combined sales of transport and accommodation would not be classified as package tours.
Why it matters
The proposed rules address the operational limitations that led to booking.com ceasing domestic hotel reservations in Türkiye following a 2017 court ruling initiated by the Association of Turkish Travel Agencies. If passed, the bill would introduce foreign competition into the domestic tourism market, though concerns remain about the potential for foreign platforms to gain excessive market power.
Who's involved
- booking.comOnline travel platform considering market entry into Türkiye under new regulatory proposals.
- Association of Turkish Travel AgenciesLocal travel agency association that previously challenged booking.com's operations in Türkiye.
- Booking HoldingsParent company of booking.com, whose brand is involved in the potential market entry.
- TurkeyThe country whose tourism market is the subject of the proposed operational changes.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- TurkeySpeculative
The country's tourism market could see increased foreign competition under the new regulatory framework.
Keep exploring
The entities involved
-
booking.com
website and mobile apps for booking accommodation
-
Association of Turkish Travel Agencies
Nothing else this week.