A class action filed in federal court in Seattle on October 2 claims Expedia inflates US hotel prices by 15-30%, even pushing up what you pay when you book directly with a hotel. The case, Andrews v. Expedia Group, covers guests who booked US hotels listed on Expedia or other agencies from October 2022 onwards. Whether it survives is one question — but for travellers, the more useful takeaway is that the same room is frequently cheaper outside Expedia right now.
The complaint argues Expedia controls 78% of US hotel booking dollars flowing through online travel agencies, and uses rate-parity clauses in its contracts to stop rivals and hotels from undercutting it. But that figure excludes hotel websites entirely, which is where a lot of the real price competition happens. Travel industry commentator and long-time Expedia critic View from the Wing is sceptical of the suit's core claim, pointing out that hotels actively compete against Expedia every day: Hilton Honors member rates start around 2% off, with AAA discounts of up to 10% when you book direct, and Marriott pushes Bonvoy member pricing. On top of that, loyalty points and elite-night credit usually only accrue on direct bookings — perks that can easily be worth more than a small headline price difference.
The economics in the complaint also look shaky. Expedia's contracts actually restrict it from displaying rates below a hotel's best available price — a rule hotels demand, partly so they can protect their own direct pricing. And Expedia's commissions have been falling for over a decade, from around 25% in 2010, as chains like Marriott renegotiated. The company's 2025 results show $14.7 billion in revenue but a modest 8.8% net margin, with over $8 billion going to marketing and customer acquisition — hardly the picture of monopoly profiteering.
There's an irony here too: Expedia itself discounts. OneKey member rates knock 10% off for Blue members, 15% for Silver, and 20% for Gold and Platinum at participating hotels, and Expedia-supplied inventory has shown up cheaper through portals like Bilt and Citi Travel than on the hotel chains' own sites. The suit tries to frame those discounts as proof everyone else is overcharged — a hard argument to square.
The practical lesson for anyone booking a hotel is simple: never take the first price you see. Check the hotel's own website, its loyalty member rate, AAA or similar affiliations, and credit card travel portals before committing. Sometimes Expedia wins, sometimes the hotel does, and the gap can be meaningful. As for the lawsuit, it faces long odds despite Seattle courts having previously let similar antitrust claims proceed — but expect it to keep the pricing question in the headlines for a while.
View from the Wing
