Booking Holdings Records $1 Billion Hit From FTC Action: $900 Million Off Q3 Revenue Plus a $100 Million Accrued Loss
Booking Holdings disclosed in its third-quarter results on November 3 that it recorded a $900 million reduction in revenue and accrued a further $100 million loss, both related to an action by the Federal Trade Commission, which pulled the company's third-quarter revenue down 1 percent year over year. According to Reuters, the action involves Priceline, one of Booking's brands, and its connection to Guest Reservations, a third-party booking website accused of using deceptive ads that impersonate hotels.
Booking Holdings is one of the world's largest online travel companies, with five consumer-facing brands including Booking.com and Priceline. Priceline supplies hotel room inventory to Guest Reservations through Priceline Partner Solutions. The FTC is investigating that relationship and whether it violates the rule against impersonating other businesses, along with other potential violations regarding fees.
Guest Reservations has been the subject of more than 1,000 consumer complaints to the Better Business Bureau, many from people who said they believed they were booking directly with hotels and then faced surprise fees and unresponsive customer service. A separate lawsuit against the two companies, filed by San Francisco, is also under way.
Booking said the cumulative hit related to the matter has reached $1 billion, that no settlement has been agreed, and that litigation remains possible. A settlement, the company said, would likely include Priceline paying a sum directly to the FTC as well as providing monetary restitution to certain U.S. consumers. Reuters reported in October that the case could carry more than $500 million in potential penalties.
An FTC spokesperson declined to comment. Booking said it is in discussions with the FTC to resolve the matter and warned that litigation and regulatory processes in other jurisdictions over similar claims could also harm its business.
(Source: Booking Holdings quarterly results disclosure)
Source: Booking Holdings quarterly results disclosure
Published by GSM · USA (original Chinese edition)
Photo: 酒店前台（资料图）。Basile Morin 摄，CC BY-SA 4.0，经 Wikimedia Commons。 / A hotel reception desk (file photo). Photo by Basile Morin, CC BY-SA 4.0, via Wikimedia Commons.
