Texas Attorney General Ken Paxton announced the settlement on Tuesday, calling it the largest of its kind by any U.S. state targeting deceptive “junk fee” practices by a hotel group or online travel agency.
According to the lawsuit, Booking engaged in “drip pricing” tactics by concealing resort fees, amenity charges, destination fees, and utility surcharges within a vaguely labeled “taxes and fees” section during the checkout process. The state argued that this pricing method presented artificially low room rates to consumers, creating an unfair competitive advantage over rival platforms that disclose full costs more transparently.
“These ‘junk fees’ amounted to a bait-and-switch that misled consumers and distorted competition,” said Paxton. “Today’s settlement ensures that Booking Holdings must disclose all mandatory fees up front.”
As part of the settlement, Booking Holdings is required to clearly present all compulsory fees prior to checkout. While a full copy of the agreement was not immediately released, Paxton confirmed it aligns with broader enforcement efforts aimed at enhancing pricing transparency across the travel and hospitality sectors.
The settlement follows similar agreements Paxton reached in 2023 with major hotel chains including Choice Hotels, Hilton, and Marriott over comparable issues.
Although Booking Holdings, which is headquartered in Norwalk, Connecticut, did not admit any wrongdoing, the company stated it remains committed to transparency and the accurate presentation of pricing information for consumers.
The case reflects a growing push across the United States to crack down on hidden fees in travel and other sectors, as regulators and policymakers target practices that obscure the true cost of goods and services. The Federal Trade Commission’s new Junk Fees Rule, set to take effect in May 2025, is expected to further tighten compliance requirements across the travel industry.
Tags: Booking.com, Priceline, Kayak, Booking Holdings
