FX Excursions

FX Excursions offers the chance for once-in-a-lifetime experiences in destinations around the world.

Lawsuit Claims Expedia Falsely Inflated Hotel Stay Taxes and Fees

by KatieS

Jan 2, 2019
News

Seattle-based law firm Hagens Berman filed a nationwide class-action lawsuit against Expedia, claiming the hotel booking site Reservations.com, which Expedia supplies, falsely inflated hotel stay taxes and fees, with Expedia reaping the benefits.

The lawsuit states consumers pay a service fee room charge and tax recovery charges and fees, the latter described as “monies hotels pay to the government.” According to the law firm’s statement, a room rate of $159 tacks on $50.88 in tax recovery charges and fees. Given the total state and local Seattle tax for Seattle hotel rooms is 15.6 percent, plus $2 per night, a two-night stay should have taxes and fees totaling $27. The overage of $23.88, Hagens Berman says, is pocketed by Expedia.

“While Expedia takes an under-the-table cut through its deal with Reservations.com, consumers are left completely in the dark, unknowingly paying inflated costs disguised as ‘taxes and fees,’” said Steve Berman, managing partner and co-founder, Hagens Berman. “Any reasonable consumer would assume this to be a government-regulated hotel tax, and that’s exactly what Expedia has banked on and profited from, for years.”

The lawsuit seeks to collect the overpayment of taxes and return the amount to consumers who booked and paid for a hotel room via Reservations.com since 2014. The suit also alleges violations of state laws against conversion and unjust enrichment.

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