A New Lawsuit Says Expedia’s Rules Keep Hotel Prices High Everywhere

A proposed antitrust class action filed October 2 in federal court in Seattle, Andrews v. Expedia Group, accuses the online travel giant of keeping hotel prices artificially high. The 53-page complaint seeks to represent customers who booked U.S. hotels listed on Expedia, either directly or through competing agencies, since October 2, 2022. It alleges Expedia handles about 78 percent of U.S. hotel booking dollars flowing through online travel agencies and uses its position to restrict competition.

At the center of the case are so-called rate parity rules. The complaint cites Expedia’s standard agreement, which requires hotels to give Expedia rates at least as good as their public online rates. The plaintiffs argue that this stops rival agencies from undercutting Expedia and, combined with search engine gaming, keeps consumers from finding cheaper rooms. The suit also alleges Expedia restricts points and status earning to rates not booked through its platform, and that VIP Access hotels charge customers elsewhere 10 to 25 percent more.

Not everyone is convinced. A widely shared figure claiming prices are inflated by 15 to 30 percent has circulated on social media, though one travel writer who read the complaint says he did not find that number in it. Critics argue that hotels already compete on price through loyalty discounts, AAA rates and member rates, that the 78 percent figure ignores hotel websites and offline sales, and that commissions have fallen from about 25 percent in 2010. Expedia’s 2025 net margin of 8.8 percent, they say, does not look like monopoly profit.

The case is at an early stage, and the claims are allegations, not findings. Courts in Seattle have let similar cases proceed, so the suit may survive a motion to dismiss, but there is no ruling yet. For travelers, the practical takeaway is unchanged: compare the same room across Expedia, the hotel’s own site and any member or AAA rates before booking, and note that loyalty points and status benefits can tilt the math toward booking direct.

Sources: View from the Wing, Top Class Actions