San Francisco Sues Booking Sites Over Scam Hotel Rooms

• San Francisco sued GuestReservations.com and BookOnline.com over deceptive business practices.
• The sites allegedly charge exorbitant rates and impose inflexible cancellation policies.
• Over 1,800 consumer complaints have been filed against the booking sites with the Better Business Bureau.
• Booking Holdings is accused of facilitating scams by supplying hotel rooms to its partner platforms.

San Francisco City Attorney David Chiu has filed a lawsuit against GuestReservations.com and BookOnline.com, accusing them of scamming travelers into booking hotel rooms at significantly higher rates. The city claims the booking sites use misleading online advertising and websites that mimic official hotel sites to trick consumers into paying more. When travelers realize they did not book directly with a hotel and try to cancel their reservation, the sites refuse to refund their money. This has resulted in over 1,800 consumer complaints being filed against GuestReservations.com and BookOnline.com with the Better Business Bureau, with BookOnline.com earning a BBB rating of 'F'.

The lawsuit, filed on behalf of the people of California in San Francisco Superior Court, alleges that GuestReservations.com and BookOnline.com engage in unfair business practices by charging exorbitant rates and imposing inflexible cancellation policies. The city also claims that Booking Holdings, which the city claims facilitates the alleged scam by supplying hotel rooms to these platforms, is aware of their conduct but does nothing to stop it, all while profiting from each hotel room booked through its partner platforms. This has led to a situation where consumers are being taken advantage of, with some paying up to 85% more than they would have if they had booked directly with the hotel.

The lawsuit against GuestReservations.com and BookOnline.com may prompt hotels to review their online booking policies and consider implementing stricter cancellation terms to protect consumers from overcharging. This is particularly relevant given the current economic climate, where inflation is straining household budgets. The city's claims also highlight the need for greater transparency in online booking platforms, as well as the importance of holding companies accountable for their role in facilitating scams.

San Francisco's lawsuit against GuestReservations.com and BookOnline.com may prompt hotels to review their online booking policies and consider implementing stricter cancellation terms to protect consumers from overcharging.

Source: Original reporting via Courthouse News Service