Hyatt Agrees $1.25M Settlement in US Hotel Pricing Dispute Over Hidden Fees

Hyatt Reaches $1.25M Settlement Over Hotel Pricing Dispute

Hyatt Corporation has agreed to a $1.25 million settlement with the Texas Attorney General’s office to resolve claims that it engaged in misleading hotel pricing practices by not clearly showing mandatory fees in advertised room rates. 

Allegations of Misleading Pricing

The lawsuit, originally filed in 2023, asserted that Hyatt violated Texas consum by advertising base room rates without upfront disclosure of mandatory charges such as resort or amenity fees. These extra fees were often only revealed later in the online booking process, making it difficult for consumers to compare total costs accurately. 

Terms of the Settlement

Under the agreement, Hyatt must now clearly disclose all mandatory fees upfront so tha  the full cost of a hotel stay before completing a reservation. The settlement is intended to prevent “drip pricing” practices that can mislead consumers. 

Industry Context

This settlement marks the sixth reached by the Texas Attorney General’s office against major hot platforms for deceptive pricing practices. Previous settlements have involved companies such as Marriott, Hilton, Choice Hotels, Omni, and Booking.com. 

Conclusion

Hyatt’s agreement to pay $1.25 million and change its pricing disclosure practices highlights increase on pricing transparency in the hotel industry, aiming to give travellers clearer information and more comparable booking options.