Hotels class action accuses Hilton, Wyndham, others of price-fixing

Hotels price-fixing class action lawsuit overview: 

• Who: A group of consumers filed a class action lawsuit against Hilton, Four Seasons, Choice, Wyndham, Omni, Hyatt and SAS Institute Inc. and its subsidiary Ideas Inc. 
• Why: The group claims the major hotel chains conspired to fix the prices of hotel room rentals nationwide. 
• Where: The hotels class action lawsuit was filed in California federal court. 

A new class action claims Hilton, Wyndham and four other major hotel chains conspired to fix the prices of hotel room rentals nationwide. 

A group of consumers claim Hilton and Wyndham conspired alongside Choice, Four Seasons, Omni and Hyatt to “fix, raise, and stabilize hotel room rental price,” in an alleged violation of Sherman Antitrust Act. 

The group argues the hotel chains fixed prices by using a shared pricing algorithm developed by a North Carolina company’s revenue management system (RMS) and by other communications, interactions and “signals to and with” eachother. 

“Consumers have been harmed as a result, paying higher prices for hotel rooms and losing important sources of competition,” the hotels price-fixing class action says. 

The group wants to represent a nationwide class of individuals and entities who have rented hotel guest rooms from the hotel chains in the relevant sub-markets from April 26, 2020, “until the Defendants’ unlawful conduct and its anticompetitive effects cease to persist.” 

Hotels class action says chains provided RMS provider with ‘non-public,’ ‘sensitive,’ price and occupancy info

The group of consumers argue the hotel chains agreed to provide RMS system provider iDeaS with non-public and sensitive price and occupancy information while knowing their “horizontal competitors” were also sharing the same information. 

“IDeaS plugs this confidential information into its algorithm and generates supra-competitive pricing recommendations for each (hotel chain), which the (hotel chains) then implement in nearly every instance,” the hotels price-fixing class action says. 

The plaintiffs demand a jury trial and request injunctive relief along with an award of statutory treble damages, compensatory damages and punitive damages for themselves and all class members. 

In a case from last year involving hotels, a federal judge in Nevada dismissed claims that Las Vegas Strip hotel operators collaborated to fix their prices. 

Have you ever rented a hotel guest room from Hilton, Choice, Four Seasons, Hyatt, Omni or Wyndham? Let us know in the comments.

The plaintiffs are represented by Daniel J. Mogin, Timothy Z. LaComb and Jonathan L. Rubin of MoginRubin LLP, Joseph R. Saveri, Cardio Zirpoli, Christopher K. L. Young and Kevin E. Rayhill of Joseph Saveri Law Firm, LLP, and Don Bivens of Don Bivens PLLC. 

The Hotels price-fixing class action lawsuit is Dai, et al. v. SaS Institute Inc., et al., Case No. 3:24-cv-02537, in the U.S. District Court for the Northern District of California.

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