This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.
Utah-based online booking agency Travelpass Group LLC alleges that online travel agency Expedia colludes with Marriott, Wyndham and several other major hotel chains to manipulate Google search results from competing brands. If proven true, the alleged actions would violate antitrust laws governing online travel booking.
“The defendant hotels’ illegal activities have severely reduced, and in many cases even eliminated, the revolutionary benefits of the Internet economy for hotel consumers,” Travelpass said in its lawsuit. “The conspiracy has left in its wake an online travel booking marketplace characterized by deliberately limited information and high transaction costs.”
Travelpass originally filed its lawsuit in Texas, and the case has been picked up by a number of US state attorneys general. The agency’s complaint also implicates Hilton, Caesars Entertainment, Hyatt, Six Continents Hotels (part of InterContinental), Choice Hotels and Red Roof Inn as defendants.
Federal and state antitrust laws prohibit collusion between companies that would harm competition. The Travelpass lawsuit alleges that Expedia, which also owns Orbitz, Hotels.com and Trivago, actively coordinated agreements between its partner hotels to avoid bidding on branded keywords on Google’s AdWords platform, going so far as to provide monitoring reports on agreement compliance. Expedia also instructed affiliate agencies like Travelpass to follow the company’s policy, or else risk losing access to hotel room inventory.
The Utah state attorney general’s office opened its investigation after Travelpass filed the complaint. A local Utah court has ordered Travelpass, which currently is undergoing arbitration proceedings with Expedia, to civil investigative demands.
TPG reached out to Expedia, Marriott, Hilton, Hyatt, Choice Hotels, InterContinental and Caesar’s Entertainment but had not hear back from most defendants as of the time of publication. Red Roof Inn told TPG that the company is not making any statements regarding the lawsuit at this time, and Wyndham also said it has no comment to offer.
Featured photo courtesy of Marriott.
Know before you go.
News and deals straight to your inbox every day.
NEW INCREASED OFFER: 60,000 Points
TPG'S BONUS VALUATION: $1,200
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- Chase Sapphire Preferred named "Best Credit Card for Flexible Travel Redemption" - Kiplinger's Personal Finance, June 2018
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- No foreign transaction fees
- 1:1 point transfer to leading airline and hotel loyalty programs
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
- No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
