Expedia Faces Antitrust Suit Alleging Hotel Pricing Curbs

The lawsuit was brought by consumers Ronisha Andrews, Pak Seong Hoi and Lorraine Rocci, according to Courthouse News Service. The plaintiffs are seeking to represent consumers who booked certain hotels directly, as well as travelers who made reservations through online agencies other than Expedia, dating from October 2022.

The consumers allege Expedia has leveraged its position in the US online hotel-booking market through contractual restrictions and pricing mechanisms that make it harder for hotels to offer cheaper rooms elsewhere. The claims are allegations and have not been established by a court.

According to Courthouse News Service, the complaint estimates that Expedia facilitates almost 80% of the gross booking value generated by transactions between US consumers and US-based hotels. The plaintiffs contend that Expedia’s position allows it to impose sizable commissions on hotels, which then have an incentive to raise room rates to offset those costs.

The suit also alleges that Expedia restricts some hotels from advertising cheaper rates on their own websites. Hotels offering lower prices through competing travel agencies may face less favorable placement in Expedia’s search results, according to the complaint as reported by Courthouse News Service.

Those practices allegedly have effects beyond Expedia’s own customers. The plaintiffs contend that hotels are pushed toward higher direct-booking prices even though selling rooms directly can cost them less than distributing inventory through an online intermediary.

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The restrictions also make it more difficult for competing travel websites to win business by charging hotels smaller commissions and passing some of those savings on to travelers through lower prices, according to the Courthouse News Service account of the complaint.

Major hotel operators cited as affected by the alleged practices include Marriott International, Hilton Worldwide, InterContinental, Wyndham, Hyatt and Best Western, Courthouse News Service reported. The complaint argues that Expedia’s conduct creates barriers for existing and potential rivals by limiting their ability to compete primarily through lower hotel rates.

The plaintiffs also contend that reduced competition has consequences beyond room prices. According to Courthouse News Service, the complaint alleges weaker competitive pressure has allowed problems involving fees, refunds, cancellations and customer service to persist, while reducing incentives for travel agencies to improve booking technology and develop cheaper distribution methods.

Eric L. Cramer, an attorney representing the plaintiffs, told Courthouse News Service that the consumers allege Expedia used monopoly power to raise hotel-room prices for millions of travelers, including people who didn’t book through Expedia. He said the plaintiffs intend to pursue their claims before a jury in Seattle.

The lawsuit alleges violations of the Sherman Act and Clayton Act and asks the court to find that Expedia violated federal antitrust law and to stop the challenged practices, according to Courthouse News Service.

Expedia had not responded to Courthouse News Service’s request for comment before the publication of its April 23, 2025 report.

Source: Courthouse