Travel booking giant Expedia was hit with a recent lawsuit on behalf of consumers. The lawsuit stated that users booking and paying for hotel rooms through Reservations.com for Expedia also get hit with an inflated hotel "tax and fee."
The lawsuit contends that Reservations.com requires consumers to pay a "service fee" room charge and "tax recovery charges and fees." Reservations.com claims that the “tax recovery charges and fees” are “monies that the hotels must pay to the government.”
However, Hagens Berman claims that those taxes and fees are not actual taxes and exceed the real amount of taxes that are actually owed when booking a hotel room.
To explain what they mean, Hagens Berman gave an example. They booked a room at the W Hotel in Seattle through Reservations.com for November 22-24, 2018. The room rate appeared as $159 and the “tax recovery charges & fees” came out to $50.88.
The total state and local Seattle tax for Seattle hotel rooms are 15.6 percent, plus $2 per night, which should have made the “taxes and fees” for this room only $27, not the $50.88 listed.
The lawsuit claims that Expedia, the “back room” supplier of most of Reservations.com’s room inventory, pockets the additional overcharge.
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