Booking Holdings to pay $9.5 million to settle Texas allegations of deceptive pricing practices.

Booking Holdings, parent company of Booking.com, Priceline, and Kayak, has agreed to a $9.5 million settlement with Texas over allegations of deceptive pricing practices. The lawsuit claimed that Booking Holdings misled consumers by advertising hotel room rates without disclosing mandatory fees until later in the booking process. Under the settlement, Booking Holdings will pay $9.5 million and disclose the total price, including all mandatory fees, upfront during the booking process. This settlement is part of a broader initiative by U.S. regulators to address hidden fees in the travel industry.

Title: Booking Holdings Agrees to $9.5 Million Settlement Over Deceptive Pricing Practices

Booking Holdings, the parent company of Booking.com, Priceline, and Kayak, has agreed to a $9.5 million settlement with the state of Texas over allegations of deceptive pricing practices. The lawsuit claimed that Booking Holdings misled consumers by advertising hotel room rates without disclosing mandatory fees—such as resort, amenity, destination, and utility charges—until later in the booking process. This practice, known as “drip pricing,” created the illusion of lower costs and gave the company an unfair advantage over competitors that provided transparent pricing.

Under the settlement, Booking Holdings will pay $9.5 million, with $8 million allocated to the Supreme Court Judicial Fund and $1.5 million to cover the state’s legal expenses. Additionally, the company is required to disclose the total price—including all mandatory fees—upfront during the booking process. While Booking Holdings did not admit to any wrongdoing, it expressed a commitment to transparency and aligning with federal efforts to standardize price displays.

This settlement is part of a broader initiative by U.S. regulators to address hidden fees in the travel industry. In December 2024, the Federal Trade Commission (FTC) implemented a “Junk Fees Rule,” requiring hotels, ticket sellers, and vacation rental operators to disclose the total price upfront. Attorney General Ken Paxton’s office has previously reached similar agreements with hotel chains such as Marriott, Hilton, and Choice Hotels to combat deceptive pricing practices.

The recent earnings report for Booking Holdings showed strong financial performance, with second-quarter 2025 earnings of $55.4 per share, beating the Zacks Consensus Estimate by 8.82%. Revenues of $6.8 billion also beat estimates by 3.56% and increased 16% year over year and about 12% on a constant-currency (cc) basis. Despite the settlement, the company's positive financial trends continue to be a focus for investors.

References:
[1] https://www.claimsjournal.com/news/national/2025/08/26/332568.htm
[2] https://www.hotelmanagement-network.com/news/texas-fines-booking-com-9-5m-over-hidden-fees/
[3] https://www.nasdaq.com/articles/booking-holdings-bkng-01-last-earnings-report-can-it-continue