Expedia Sues United Airlines, Revealing a Months-Long Bitter Feud
*Update 4/18/19: United executives confirmed on the airline's earnings call that they were moving forward with pulling fares from Expedia, and they were confident that they could sustain United's profits after the move on Sept. 30.
"The most simple way to say this is time to change," Andrew Nocella, United's executive vice president and chief commercial officer, said on the Wednesday call. "But quite honestly we think we can sell our lowest fares just as well, and that's where we are. So, we look forward to having a direct relationship with our customers going forward and that's really where we are with Expedia."
A cursory search of Expedia still showed it was offering United fares after the airline's cutoff date for their agreement, Sept. 30. It would be wise to avoid purchasing a United fare through Expedia after that date, because, as United stated during its legal dispute, customers who book through Expedia "will no longer be able to assist customers traveling after the contract expiration date who need to make a change to their United reservation."
Expedia Group is suing United Airlines, a new lawsuit filed Monday in the Southern District of New York shows.
The lawsuit, a civil complaint, stems from a contract dispute between the travel fare aggregator and the airline in their ticketing agreement. In the filing, Expedia accuses United of "a flagrant breach of its obligations under the Agreement," and "a brazen attempt to force Expedia to renegotiate the Agreement's economic terms, with which United is unsatisfied," according to a redacted copy of the lawsuit obtained by TPG.
The exact nature of those terms is redacted in the complaint, but United has confirmed that it has revoked fare listings on the site for Oct. 1 and beyond.
"United's contract with Expedia expires this fall," United said in a statement. "For months, Expedia has refused to engage in constructive discussions with United about a new contract and United currently expects that our fares will not be listed on Expedia sites in the U.S. and Canada effective October 1, 2019."
In the lawsuit, Expedia goes on to ask the court for its "intervention to enjoin United from unlawfully discontinuing Expedia's access from..." and the rest of the sentence is redacted in the filing, but logically filling in the gaps, it would be the fare data for its flights beyond Sept. 30. The fare aggregator argues in the complaint that "by unlawfully cutting off Expedia's access" to this information, United will "undermine" Expedia's ability to give customer service to the many customers who have already booked Post-September 2019 flights and also to those customers who will seek to change a pre-September 2019 flight reservation to a post-September 2019 flight."
United, too, says it is "concerned" for those customers, and the airline sent Expedia a letter last week, "months in advance of the expiration date," formally notifying Expedia that United intends to prohibit Expedia from booking tickets for travel Oct.1 and beyond.
"We are concerned about the negative impact on customers who book tickets now for travel after September 30 because Expedia will no longer be able to assist customers traveling after the contract expiration date who need to make a change to their United reservation," United's statement says. "This includes customers who need to change their travel plans and instances where a travel waiver is in place due to inclement weather. With each passing day, more United customers are buying tickets for travel after the expiration date."
United also says that because the booking site doesn't say how it will protect customers, "Expedia's lawsuit is more about their ability to make money off their customers than it is to serve them."
On the other hand, Expedia alleges that United is trying to renegotiate the economic terms of its contract by trying "to leverage its power in the air travel market as one of the four largest airlines in the United States to pressure Expedia."
A search of Expedia on Tuesday showed that currently, United flights were still available for purchase on the site.
Similar legal issues between fare aggregators and airlines have resulted in the carrier's flights being pulled from the sites, Skift reports. For example, American Airlines tickets weren't available on Orbitz for a time in 2014 because "the relationship had become too costly," USA Today reported at the time. That issue was eventually resolved.
If United flights do disappear from Expedia, that would also affect booking United through the Chase Ultimate Rewards travel portal, which is powered by Expedia. So the result of this lawsuit could also likely affect the ability to use Chase UR points at fixed value to book United flights.
United says it is "happy" to allow its customers to book through meta search sites, OTAs and travel agencies, "like Kayak or Google Flights," just not Expedia.
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.