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Texas Reaches $9.5 Million Settlement With Booking Holdings Over Hidden Hotel Fees

The agreement reflects a broader federal push to end drip pricing under the FTC’s new rule.

Booking.com app is seen on a smartphone in this illustration taken February 27, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • Booking Holdings must disclose all mandatory hotel fees upfront as part of the Texas settlement.
  • Texas Attorney General Ken Paxton described the deal as the largest state case of its kind against any hotel or online travel agency.
  • The lawsuit alleged deceptive drip pricing by bundling resort, amenity, destination and utility fees into a single taxes and fees line at checkout.
  • Booking denied wrongdoing, said hotels typically set and retain resort fees, and reiterated a commitment to pricing transparency.
  • The action follows the FTC’s Junk Fees Rule that took effect May 10, 2025, and builds on Texas settlements in 2023 with Marriott, Hilton and Choice, signaling enforcement now reaches online travel agencies.