Nebraska has reached another settlement with a major hotel chain to end a deceptive practice referred to as “drip pricing.”
“Drip pricing,” is a practice many hotel chains and online travel agencies engage in, where they gradually disclose fees to consumers as they proceed through the booking process. Customers often don’t learn the total price of their booking—room rate plus mandatory fees—until the last page in their online booking, or sometimes until they check into the hotel.
In 2019, the Nebraska Attorney General’s (AG) Office sued Hilton, arguing that such a pricing model was deceptive, unfair, and a violation of Nebraska’s consumer protection laws. AG Mike Hilgers announced today, his office has reached a settlement with Hilton Hotels that would require their hotels to “prominently disclose the total price of a hotel stay, including room rate and all other mandatory fees, on the first page of their booking websites as part of the total room rate.”
The hotel chains have also agreed to make the room rate the most prominently displayed price, to include required fees when a consumer sorts by price (allowing for appropriate comparison shopping), and to provide additional information about what amenities are covered by mandatory fees. The AG’s Office will also receive $300,000 for attorney’s fees and costs.
A Hilton spokesperson provided a statement to KLIN News.
“We know consumers prioritize transparency and Hilton has long been supportive of ensuring that mandatory fees charged by hotels in our system are fully disclosed before booking on our websites and all other distribution channels. In 2023, we made voluntary changes to our technology to further enhance the display of mandatory fees upfront on all Hilton websites and apps, and continue to advocate for the upfront display of fee-inclusive pricing across all booking platforms that sell our inventory. We are pleased to have settled this matter amicably with the State of Nebraska.” – Hilton spokesperson
This settlement is the latest in a series of Nebraska settlements with major hotel chains, including Marriott, Omni, and Choice, which have all agreed to alter their business practices.
For information on consumer protection, how to file a consumer complaint, or report a scam, visit protectthegoodlife.nebraska.gov or call (800) 727-6432.