What does the FTC's case against Priceline mean for travel agencies?

On November 3, Booking Holdings reported its third-quarter results with a charge set aside for a single matter: a Federal Trade Commission action over hotel ads tied to Priceline. Gross bookings still grew 10 percent. The charge pulled reported revenue down 1 percent, and the company warned of further fines. For agencies that book hotels for corporate travelers, the case is a timely reminder of where hotel bookings leak and what the FTC expects from anyone who quotes a room.

What is the FTC investigating?

Priceline's relationship with Guest Reservations, a third-party site that advertises rooms at named hotels and often charges higher rates and fees. Reuters reports that the FTC is looking at whether that relationship breaks the rule against impersonating other businesses, along with possible fee violations.

Priceline supplies hotel inventory to Guest Reservations through Priceline Partner Solutions, according to a lawsuit in San Francisco. Guest Reservations has drawn more than 1,000 complaints to the Better Business Bureau. Many came from travelers who believed they were booking with the hotel itself, then met surprise fees and a customer service line that went unanswered.

The FTC's chairman, Andrew Ferguson, told Reuters in September that the agency is looking at misleading online ads, including third-party sites that buy search ads to rank above a hotel's own website.

Where does the case stand?

Open. Booking says it is in talks with the FTC and that a settlement "would likely" require Priceline to pay the FTC and refund some US consumers. Litigation is still possible, and the FTC declined to comment. Booking first disclosed in August that the FTC was weighing action against Priceline and an affiliate over fees and billing.

Why does this matter to a TMC?

Because the same lookalike sites catch business travelers. A traveler who searches a hotel's name on the way to a meeting can land on a reseller's ad, pay a marked-up rate and leave your program with a stay hidden from your reports.

That gap shows up in three places. The hotel night is missing from the client's hotel attachment report. The negotiated rate goes unused, which weakens the client's next hotel negotiation. And if the trip goes wrong, your duty of care team has a traveler whose hotel is missing from the record.

The hotel trade sees the same pattern. AAHOA's chief executive, Laura Lee Blake, told Asian Hospitality that hotel staff field the complaints when third-party bookings go wrong.

Does the FTC's fee rule cover agencies?

Yes. The FTC's Rule on Unfair or Deceptive Fees has applied to short-term lodging since May 12, 2025. The FTC's guidance says it covers businesses that offer lodging, "including third-party platforms, resellers, and travel agents."

The rule asks for one thing above all: when you show a price, show the total price too, with every mandatory fee the business knows and can calculate up front. Resort and destination fees count. Government taxes, and optional extras the traveler chooses, can sit outside the total.

What should agencies do this week?

1. Check your hotel quotes. Make sure proposals and itineraries carry the total price with resort fees included. The total should be the most prominent figure.
2. Send travelers to the right place. Put the hotel's confirmed booking in the itinerary and link to the chain's own site or app for changes.
3. Look at hotel attachment by client. A trip with air and an empty hotel line is often a stay booked somewhere else. Flag the gaps in the monthly report.
4. Brief account managers. Clients will read about the case. A two-line note on how your program books hotels answers the question before it's asked.

What should we watch next?

Three things: whether the FTC and Priceline settle, what any order requires of sites that resell hotel rooms, and whether the FTC acts on platforms that carry misleading ads. On September 24, the FTC asked for public comment on updating its impersonation rule to cover the role of platforms. We'll update this post when the case resolves.

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