Class Action Alleges Expedia Inflated Hotel Prices Using Algorithms
A class action claims Expedia used algorithms to drive up hotel prices beyond its own platform.
Why it matters: This lawsuit could establish legal precedent on platform liability for algorithmic pricing that affects consumer costs broadly. The case raises key antitrust and consumer protection issues for online travel agents.
- The lawsuit was filed October 2, 2026, in U.S. District Court, Western District of Washington.
- Plaintiffs allege Expedia’s pricing algorithms forced hotels to keep rates high across all booking sites.
- About 80% of U.S. consumer-to-hotel transactions go through Expedia, highlighting its market power.
- The suit alleges Expedia’s conduct breaches the Sherman Act and the Clayton Act.
- Class includes consumers booking after October 2022 on Expedia or other platforms.
On October 2, 2026, plaintiffs Ronisha Andrews, Pak Seong Hoi, and Lorraine Rocci filed a proposed class action against Expedia Group Inc. in the Western District of Washington.
The suit claims Expedia used AI-driven pricing algorithms to inflate hotel room rates across all platforms, not just Expedia itself. Hotels allegedly were prohibited from offering lower rates on their own websites and faced search result demotion if they did, enforcing uniform, elevated prices.
Expedia’s dominance is clear: plaintiffs say the company facilitates nearly 80% of gross booking value for U.S. consumers booking U.S.-based hotels.
Attorney Eric L. Cramer, representing the class, said, "We allege that Expedia has abused its monopoly power in the online travel agent market to inflate prices for hotel rooms to millions of consumers even when those consumers did not use Expedia."
The class includes consumers who booked certain hotels after October 2022, both via Expedia and non-Expedia travel agencies. Plaintiffs argue that Expedia’s practices violate the Sherman Act and Clayton Act, laws that forbid anti-competitive conduct.
This case aligns with wider legal action scrutinizing algorithmic price-setting in various industries, potentially setting a foundational ruling on platform liability for such algorithmic control and consumer impact.
By the numbers:
- 80% — Expedia’s share of U.S. consumer-to-hotel booking transactions
- October 2, 2026 — Date lawsuit was filed
- October 2022 — Starting date for bookings affected by alleged conduct