Expedia class action lawsuit overview:
- Who: Three consumers are suing Expedia Group Inc.
- Why: The plaintiffs allege Expedia inflated hotel rates by punishing hotels that offered lower rates on other websites.
- Where: The Expedia class action lawsuit was filed in Washington federal court.
A new class action lawsuit accuses Expedia of artificially inflating hotel rates by prohibiting hotels from offering lower rates on other websites.
Plaintiffs Ronisha Andrews, Pak Seong Hoi and Lorraine Rocci filed the lawsuit against Expedia Group on Oct. 2 in Washington federal court, alleging violations of the Sherman Act and Clayton Act.
According to the Expedia class action lawsuit, the company used its dominant position in the online travel agency market to impose restrictive contracts and pricing algorithms on hotels listed on its platforms, including Expedia.com, Hotels.com, Travelocity, Orbitz and CheapTickets.
These restrictions allegedly forced hotels to increase their hotel rates, affecting consumers who booked through Expedia as well as those who used rival websites or booked directly with hotels.
The plaintiffs claim Expedia’s actions have caused millions of consumers to pay inflated hotel rates for hotel rooms in the United States.
“Expedia has abused its monopoly power to impose exclusionary contracts and pricing algorithms on hotels in violation of the federal antitrust laws,” the antitrust lawsuit says.
The plaintiffs are looking to represent two nationwide classes of consumers: those who purchased U.S. hotel accommodations at properties listed on Expedia-owned websites and those who used direct booking channels starting Oct. 2, 2022.
Expedia alleged to have used exclusionary tactics to drive up hotel rates
The Expedia class action lawsuit alleges that Expedia’s exclusionary tactics have led to higher accommodation prices across the board.
The plaintiffs claim that Expedia’s contracts with hotels include a “most-favored-nation” provision, which prohibits hotels from offering lower prices through their own websites or other distribution channels. As a result, hotels were forced to inflate hotel rates even when it was cheaper to sell through their own channels, the plaintiffs say.
The class action lawsuit also alleges that Expedia used algorithm-based tactics to punish hotels that offered lower prices on competitor websites. The company allegedly demoted search results for hotels that posted lower rates on rival platforms like Booking.com, Priceline, Agoda and Trip.com.
Expedia’s “automatic rate match” tool pressured hotels to adjust their Expedia rates to match their lowest prices on rival sites, the plaintiffs say. In addition to inflating prices, the lawsuit claims that Expedia’s practices have degraded customer service across the online travel agency market.
The Expedia class action lawsuit points to opaque fees, restrictive refund and cancellation policies, and unresponsive customer service as issues that have persisted due to Expedia’s lack of competitive discipline.
They are suing for violations of the Sherman Act and Clayton Act and seeking certification of the Expedia class action, damages, fees, costs and a court order halting the alleged anticompetitive practices.
Also facing price-fixing allegations, the Hilton, Marriott and Ritz-Carlton hotels are accused of conspiring to fix hotel rates by exchanging competitively sensitive information via the Amadeus Demand360 platform.
What do you think of the claims in this Expedia class action lawsuit? Let us know in the comments.
The plaintiffs are represented by Beth E. Terrell and Blythe H. Chandler of Terrell Marshall Law Group PLLC; Eric L. Cramer, Dennie Zastrow, Jeremy Gradwohl and Robert E. Litan of Berger Montague P.C.; and Edward Normand, Kyle Roche, Stephen Lagos and Joseph Lemoine of Freedman Normand Friedland LLP.
The Expedia class action lawsuit is Andrews, et al. v. Expedia Group Inc., Case No. 2:26-cv-03743, in the U.S. District Court for the Western District of Washington.
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