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A lawsuit filed by the San Francisco City Attorney claims two hotel booking websites tricked travelers into believing they were booking directly with hotels while charging much higher prices for the same rooms. The legal action alleges that GuestReservations.com and BookOnline.com designed their websites to closely resemble official hotel booking pages, leading many customers to pay hundreds of dollars more than necessary. According to the complaint, the websites bought paid search advertisements that appeared near the top of online search results, purposely making them very visible to travelers. Officials say these ads often appeared above the hotel’s actual website, making it easy for travelers to mistake the third-party booking sites for the official pages. The lawsuit also claims the companies used internet addresses that included hotel names, making the sites appear even more legitimate.
San Francisco City Attorney David Chiu said the websites were set up in a way that could confuse consumers into believing they were making reservations directly with hotels. Once customers completed their bookings, they were allegedly charged prices far above the rates available through the hotels themselves. Essentially, they could have obtained the same accommodations for a fraction of the price had they booked directly.
To support these claims, the city attorney’s office carried out several price comparisons. One example involved the Palace Hotel in San Francisco. Officials searched online for the hotel and found a paid listing from GuestReservations.com displayed ahead of the hotel’s official website. For the same room and the same travel dates, the third-party website listed a total price of $595, including taxes. Marriott’s official website offered the identical room for $381, creating a difference of approximately 56 percent. The lawsuit also examined rooms with more flexible cancellation policies. In that comparison, GuestReservations.com listed a refundable room for $775, while Marriott offered a similar refundable room for $419. According to the complaint, the difference reached roughly 85 percent. The city attorney’s office performed a similar review of BookOnline.com. Officials found that one room offered through the website cost $526, about 38 percent more than the rate listed directly by Marriott. The complaint also stated that the website did not offer the same refundable booking option available through the hotel.
The lawsuit does not stop with the two booking websites. It also names Booking Holdings, the parent company of travel brands including Booking.com, Priceline, and Kayak. According to the complaint, Booking Holdings supplied hotel information, room availability, pricing data, photographs, and reservation technology that allowed the two websites to operate. Prosecutors argue that this support helped make the alleged business practices possible. The lawsuit states that Booking Holdings receives money whenever a reservation is completed through partner websites rather than directly with a hotel, and because of that arrangement, the company had a financial reason to continue providing services to the booking platforms.
As part of the lawsuit, the city attorney included examples of complaints posted by consumers over several years on websites such as the Better Business Bureau, Reddit, and Trustpilot. Some travelers claimed they believed they were booking directly with a hotel, only to discover later that they had used a third-party service and paid far more than expected. Others reported difficulty canceling reservations or obtaining refunds after realizing the price difference.
City officials are asking the court to stop the business practices described in the lawsuit. They are also seeking refunds for California consumers who allegedly paid inflated prices, along with financial penalties intended to discourage similar conduct in the future. Booking Holdings has denied the allegations. A company spokesperson said the business is reviewing the complaint and believes the claims do not have legal merit. The company also said protecting consumers remains an important part of its operations.
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Hotel booking ‘scam’ is overcharging travelers by up to 85%, California lawsuit claims
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