Independent hotels sue Expedia for ‘brazen bait and switch scheme’
Online travel giant Expedia Inc is being accused of a ‘deceitful bait and switch’ scheme by small independent hotels, which are suing the travel giant in the US courts.
They claim Expedia-owned websites, including Orbitz, Trivago and Hotels.com, are falsely advertising their properties in order to lure travellers to their sites with the aim of persuading them to book with alternative hotels.
The tiny 11-room Buckeye Tree Lodge and sister property, the 10-room Sequoia Village Inn, both in California, are the only properties named in the class action law suit.
Neither have any relationship with Expedia, but they claim their rooms are advertised by Expedia-owned sites in what has been described a ‘brazen’ bait and switch scheme.
The complaint is seeking damages under false association and trademark infringement claims and under California state law for unfair competition, false advertising and unjust enrichment.
Attorney James Patterson alleges Expedia also buys Google and social media ads for non affiliated hotels, then shows zero availability and directs customers to other nearby hotels listed on its sites.
"Expedia posts fake telephone numbers for Buckeye Tree Lodge and other class member hotels to divert callers to Expedia’s own operators, who then try to book the consumers at Expedia member hotels," the hotels say in the federal class action.
"Worse, Expedia then targets social media advertisements — for hotels it cannot book — to those consumers, using the brands of class member hotels to divert business from them to Expedia members.
"Believing Expedia’s representation that there is no availability at a class member hotel, consumers take their business to Expedia member hotels. And the bait and switch is complete."
Expedia, Orbitz, Trivago and Hotels.com charge hotels a fee to book rooms via their website, but have no ability to book hotels that do not participate in their programme, including the Buckeye Tree Lodge and Sequoia Village Inn.
When TravelMole tried an online search for ‘Buckeye Tree Lodge hotel’ today, a link for Expedia appeared on the second page of Google (see below).
However, when we clicked on the link, this appeared:
Expedia said it was ‘investigating the allegations and whether our standard practices were followed’.
"The value of our marketplace as a fair and effective way to connect hoteliers and travelers is our number one priority," added Expedia spokesperson Tarran
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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