Expedia Group Faces Class-Action Lawsuit Over Hotel Price Inflation
Expedia Group faces a class-action lawsuit alleging the company used antitrust violations and parity clauses to inflate hotel prices for millions of customers.
A class-action lawsuit filed October 2 in the Western District of Washington accuses Expedia Group of violating federal antitrust laws to artificially inflate hotel prices. The complaint alleges the company used parity clauses in contracts to prevent hotels from offering lower rates on their own websites, loyalty portals, or call centers.
According to the lawsuit, these practices forced hotels to increase prices by 15 to 30 percent to match rates that included Expedia's commissions. This price hike affected millions of customers, regardless of whether they booked through Expedia or other platforms. The legal action encompasses all Expedia brands, including Hotels.com, Travelocity, Orbitz, and CheapTickets.
Expedia Group has dismissed the allegations as meritless, stating the company provides transparency and competitive value to travelers. The lawsuit follows similar legal disputes in Europe, where the Court of Justice of the European Union found that similar pricing clauses used by Booking.com reduced competition.
