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WASHINGTON, DC — A new report from government watchdog Accountable.US revealed today that five out of six major hotel operators involved in a “major class action” lawsuit for alleged price-fixing violations are among the worst offenders when it comes to resort fees and have faced various lawsuits and scrutiny for their resort and junk fee practices. The analysis coincides with the Bureau of Labor Statistics’ Consumer Price Index (CPI) which revealed that even as inflation cooled to a three-year low, shelter costs continue to rise, driven in part by ongoing corporate greed.

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It’s not just potential collusion driving up the cost of a hotel stay, but excessive, hidden junk fees inflating the price for millions of American families. Unfortunately, the hotel industry would rather spend millions of dollars to keep their greedy practices in place. While inflation slowed to a three-year low, which brings relief for many Americans, shelter costs including hotel stays have remained unreasonable because big landlords and hoteliers would rather chase record profits. It’s a reminder why Congress should support – not obstruct – Biden-Harris administration efforts to lower costs by cracking down on junk fees and price-gouging.”

Accountable.US’ Liz Zelnick

Hilton, Wyndham, Hyatt, Omni Hotels, Choice Hotels, and Four Seasons stand accused of exploiting G3 RMS, an artificial intelligence algorithm, to illegally collude in price fixing their room rates, in violation of federal antitrust law. All six hotels are represented on the board of directors of the American Hotel & Lodging Association (AHLA), the “largest hotel association in the U.S.,” which has spent nearly $3 million while lobbying against fee disclosure legislation since 2022. 

In August, the Department of Justice and several state Attorneys General sued software company RealPage Inc. amid allegations the company’s software “enabled landlords to collude to raise rents.” 

 

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