Hotel Room Overpricing
Did you book a hotel in 2015, 2016 or 2017? You likely overpaid for your hotel room.
The nation's largest hotel chains illegally raised prices. Find out your rights to potential compensation »
Which hotel chains are involved?
Our investigation revealed that 60% of all hotels have been involved in an overpricing scheme, increasing the price of consumers' hotel rooms. Chances are, if you booked a hotel in 2015, 2016 or 2017, you overpaid for it due to a scheme involving the following five big hotel chains:
- Six Continents Hotels - including Holiday Inn, Holiday Inn Express, Candlewood Suites, Crowne Plaza, Staybridge Suites and all other InterContinental-branded hotels
- Wyndham - including Travelodge, Super 8, Knights Inn, Ramada, Days Inn, Howard Johnson's and all other Wyndham-branded hotels
- Hilton - including Hampton Inn, DoubleTree, Embassy Suites, Homewood Suites, Hilton Garden Inn, Waldorf Astoria and all other Hilton-branded hotels
- Marriott - including Sheraton, Starwood, Ritz-Carlton, Residence Inn and all other Marriott-branded hotels
- Hyatt - including Park Hyatt, Grand Hyatt and all other Hyatt-branded hotels
Our attorneys have found that the five hotel chains involved in the overpricing scheme agreed to illegal measures to reduce competition and raise prices for their hotel rooms.
In this agreement, competitors willfully refrained from bidding for online advertising that would appear in response to searches containing the competitors' brand names. For example, Hilton Hotel declined to bid to have its ads appear in response to internet searches for Hyatt, thus making it more difficult for consumers to get information about and compare and contrast competitive information, such as price and quality, between the two hotels.
By agreeing not to advertise in response to searches for competitors’ brands on popular online search engines, these hotel chains have effectively reduced the ability for consumers to conduct a reasonable comparison between various competitors to get the best price for their hotel rooms. This in turn, leaves hotel chains with free reign to keep prices high, with no threat of consumers seeing competing ads.
To increase their hold on the hotel market, these five hotel chains also forced their hand with online travel agencies (such as Priceline.com or Expedia), to keep them from bidding on branded keywords as well. Online travel agencies need access to hotels' room availability and other information. In exchange, these hotel chains made the travel agencies play by their rules, keeping them from advertising for their branded keywords, thus making it less likely consumers would see the choices available on those online travel agency websites.
Hagens Berman believes consumers deserve to pay fair prices for their hotel rooms, not inflated prices raised by the big chains that own the majority of the hotel industry. Our firm will fight for your right to a just hotel room-pricing system. We believe these hotel chains should pay consumers a refund for their illegal hotel room overpricing, and put an abrupt end to their scheme.
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Hagens Berman is one of the most successful consumer litigation law firms in the U.S. and has achieved more than $260 billion in settlements for consumers in lawsuits against food corporations, automakers, big banks and others.
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