Hyatt to pay $1.25M to settle Texas lawsuit over hidden "Junk Fees"
The Grand Hyatt Hotel stands at the Dallas-Fort Worth International Airport in Dallas, Texas, U.S., on Thursday, Nov. 5, 2009. Hyatt Hotels Corp., the chain controlled by Chicago's Pritzker family, climbed in its first day of trading as it raised $1.
AUSTIN, Texas - Hyatt settled a lawsuit for $1.25 million for hiding fees while marketing hotel rooms at prices that were not as advertised.
Why Hyatt was sued
What we know:
Attorney General Ken Paxton’s 2023 lawsuit claimed hidden fees gave Hyatt an unfair and unlawful advantage over honest companies that were transparent in displaying the actual price of rooms.
Some of the "mandatory and unavoidable" fees mentioned were resort fees that do not align with "resort-like" experiences, destination fees, or amenity fees. A significant portion of the amenities that these fees cover are offered free of charge regularly, but Hyatt also charges these fees regardless of whether consumers use the amenities or not.
Transparency requirements for Hyatt bookings
The settlement’s terms require Hyatt to now disclose any fees added to a hotel room’s price, allowing consumers to more efficiently shop and compare prices.
A man waits outside the Grand Hyatt Hotel at the Dallas-Fort Worth International Airport in Dallas, Texas, U.S., on Thursday, Nov. 5, 2009. Hyatt Hotels Corp., the chain controlled by Chicago's Pritzker family, climbed in its first day of trading as
Hyatt operates hotels worldwide, including in Texas, under brand names such as Hyatt, Grand Hyatt, Hyatt Regency, Hyatt Place, and Thompson Hotels.
Texas cracks down on hotels
What's next:
According to the release, this settlement marks Attorney General Paxton’s sixth settlement related to these deceptive pricing practices for online hotel reservations. Paxton previously reached agreements with Marriott, Omni, Choice Hotels, Hilton, and Booking.com to ensure that online hotel reservation practices are transparent.
The Source: Information in this article was provided by the Texas Attorney General's Office.