Expedia Inc says it will look in to whether its own regulations were followed correctly after being accused of a "bait and switch" scam.
A California, US-based property, Buckeye Tree Lodge And Sequoia Village Inn, has launched a class action lawsuit against Expedia, Hotels.com, Orbitz and Trivago (all part of the Expedia Inc family) after claims of a "classic" portrayal of a method to lure customers away from booking at a particular property.
The lawsuit says:
"Expedia's deceit is brazen. Expedia posts fake telephone numbers for Buckeye Tree Lodge and other class member hotels to divert callers to Expedia's own operators, who then try to book the consumers at Expedia member hotels."
"Believing Expedia's representation that there is no availability at a class member hotel, consumers take their business to Expedia member hotels. And the bait and switch is complete."
Buckeye's two properties are not participating members of the Expedia booking programme.
Travellers looking for the Buckeye on Google will find a number of search results with listings for the property but find themselves either redirected to the homepage (Wotif, another Expedia brand) or find a blank page (Venere, again an Expedia website).
The lawsuit also claims that the defendants have purchased ads on Google that features copy associated with the hotel.
Ads have also been placed on social media, using a similar tactic whereby consumers are lured in with the promise of booking availability for non-member hotels but are then redirected to other properties, the suit adds.
An Expedia official says it takes the allegations seriously and is now investigating "whether the standard practices were followed".
She adds:
"However, the value of our marketplace as a fair and effective way to connect hoteliers and travelers is our number one priority."
The suit is charging Expedia Inc with trademark violations, unfair competition and business code violations, amongst others.