Booking.com hit with $9.5M Texas settlement over hidden hotel fees

Attorney General Ken Paxton calls it the state’s largest “junk fee” case as Booking Holdings agrees to show all mandatory charges upfront

Booking Holdings, parent company of Booking.com, Priceline, and Kayak, has agreed to pay $9.5 million to settle a lawsuit with Texas Attorney General Ken Paxton over so-called “junk fees.” The case centered on allegations that the company misled consumers by hiding mandatory hotel fees until checkout, creating an uneven playing field against competitors who displayed full prices upfront. The settlement — the largest of its kind in Texas involving hotel or travel sites — now requires Booking to disclose all fees clearly in its advertised room rates.

Key Takeaways

• Record settlement: $9.5 million is the largest hotel-related “junk fee” settlement in Texas history.
• Hidden fees at issue: Booking was accused of showing artificially low prices and only revealing mandatory fees at checkout.
• Unfair advantage claimed: Texas officials argued this practice undercut competitors who disclosed full costs upfront.
• Attorney General’s stance: Paxton called the practice “deeply unethical” and pledged ongoing consumer protection enforcement.
• Transparency required: Booking must now display all mandatory fees alongside room rates, improving price comparisons for travelers.

Get the full story at Reuters