Booking Holdings Inc., the operator of Booking.com, has been sued by the state of Texas for purportedly engaging in deceptive trade practices related to hotel room prices.
Texas alleges that the company omits mandatory fees from its advertised rates, presenting potential guests with falsely lower prices. The lawsuit, filed on Thursday, claims that Booking Holdings operates with this practice across its consumer-facing brands, which include Priceline, Kayak, Agoda, Rentalcars, and OpenTable.
Texas asserts that this strategy obstructs fair comparison shopping and allows Booking to entice customers with artificially reduced room rates. The lawsuit includes evidence showcasing discrepancies between listed and actual prices due to undisclosed fees. Booking Holdings has not yet responded to the lawsuit. The travel-search company primarily earns revenue through commissions from accommodation bookings on Booking.com, while similar practices have previously been scrutinized by UK and EU regulators for clarity and accuracy.
The case is Texas v. Booking Holdings, 2023CI16493, Bexar County District Court (166th District)
