Expedia faces antitrust class action over alleged hotel pricing algorithm
Consumers have filed a class-action lawsuit accusing Expedia of using exclusionary contracts and pricing algorithms to raise hotel room rates, even for bookings made on rival sites.
A group of consumers has initiated a federal antitrust class action against online travel giant Expedia, asserting that the firm imposed exclusionary contracts and algorithmic pricing that inflated hotel room costs for millions of U.S. shoppers. Lead plaintiffs Ronisha Andrews, Pak Seong Hoi and Lorraine Rocci argue that Expedia’s dominance—accounting for roughly 80% of the gross booking value between U.S. consumers and U.S. hotels—allows it to demand high commissions, which hotels pass on to guests.
The complaint further alleges that Expedia prohibited hotels from posting lower rates on their own sites and penalized those that offered cheaper prices on competing platforms like Booking.com or Priceline by demoting them in search results. Major hotel chains, including Marriott International, Hilton Worldwide, InterContinental, Wyndham, Hyatt and Best Western, are identified as affected. The plaintiffs contend these practices breach the Sherman Act and the Clayton Act and request that the court declare the conduct illegal and halt the pricing scheme. Expedia has not commented on the allegations.
Why it matters
The case could reshape pricing practices in the online travel market and affect hotel rates for millions of consumers.
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