A lawsuit filed this month accuses Expedia Group of forcing millions of customers to pay significantly inflated prices for hotels, even if they’ve never used the booking giant’s platforms. The suit, which is seeking class-action status, was filed Oct. 2 in the Western District of Washington. It claims Expedia violated federal antitrust laws by enforcing contracts that prevented hotels from offering lower rates via their own websites, loyalty portals or call centers.
An Expedia spokesperson called the allegations “meritless,” saying the company has brought transparency, competitive offerings and better value to travel shopping for more than 30 years. The lawsuit claims hotels were forced to inflate rates to match Expedia’s prices because of parity clauses, which prevent hotels from offering better rates elsewhere. This practice, the suit claims, inflated hotel prices across the board by 15 to 30 percent, corresponding to Expedia’s commission.
Eric Cramer, the lead lawyer for the plaintiffs and chairman of Berger Montague, said Expedia abused its dominance in the online travel agency market. Gary Leff, operator of View From the Wing, expressed skepticism, noting hotel chains undercut Expedia’s prices “all the time.” Expedia leads the market for online travel agencies in the U.S., according to Phocuswright.
Expedia’s biggest competitor, Booking.com, recently faced legal disputes in Europe over similar pricing requirements. In 2024, the Court of Justice of the European Union found such clauses most likely reduced competition.
Source: New York Times Business · Summarized by HeadlinesBriefing