Germany’s largest travel portal, Check24, faces resistance from travel providers over its cashback practices. The company’s dominant position in the online travel market has been bolstered by offering substantial rebates, which, while attractive to customers, are causing significant issues for the industry.
According to the report, many travel providers are in dispute with Check24 over compensation terms. A sales director from a top-ten German travel company stated, “Negotiations have always been difficult and tedious. Currently, they’re completely stalled with us because the demands are simply too high.”
TUI Takes a Stand
Market leader TUI is reportedly considering discontinuing its agreement with Check24 for 2025/2026. However, no travel provider wants to be the first to stop paying overrides or kickbacks, as this could result in Check24 hiding their offers. The portal’s annual travel revenue of €8 billion makes this a significant concern.
Check24’s success stems from its advanced booking technology and substantial marketing investments, including TV ads and cashback offers of up to €800 per booking. This undermines price parity, weakens brand value, and compromises customer service.
Cashback Concerns
Traditional travel agencies, which rely on customer proximity and service, struggle to compete with these cashback offers. A survey of 700 travel agencies revealed that 76% admitted to blocking contingents after customer consultations to counter “consultation theft” by cashback portals.
Industry expert Max Hübner concluded that cashback practices harm not only medium-sized travel agencies but also create dead capital for travel providers and hoteliers. He questioned whether portal revenue is genuinely profitable for providers in the long term.
Cashback’s Broader Industry Impact
Price-sensitive customers compare online offers, and Check24’s in-house provider, Aurum, often presents more attractive booking options. This dynamic pressures competitors to lower prices, creating a race to the bottom.
The Impact on the Industry
Check24’s cashback strategy has disrupted the travel industry, forcing traditional agencies to adapt or risk becoming obsolete. The practice has also led to a race to the bottom in terms of pricing, as competitors struggle to match Check24’s offers.