Scalper1 News
A property owner who is also an alternative-accommodations host has filed a lawsuit in federal court against Expedia ( EXPE )-owned HomeAway. The suit seeks class-action status. The suit is centered around a recent change that HomeAway made to its booking fees, which is how the company makes money. Previously only the owner of the rental property charged travelers a booking fee. Now both HomeAway and the property owner charge fees. The change has frustrated some home owners and property managers , who are struggling with how they convey the changes to travelers. In the complaint filed in the Western District of Texas federal court, the plaintiff claims that HomeAway’s decision to change the fee structure will cause her monetary damages and that it represented a breach of contract. The suit also claims that HomeAway has violated a range of consumer protection statutes. The lawsuit alleges 10 causes for action in all. HomeAway spokesman Jordan Hoefar said that company policy was not to comment on pending litigation. When asked why the company elected to make the fee change, Hoefar wrote via email that the new fee structure will help the company fund fraud protection, “more integrated advertising and promotions” and other things. Competitor Airbnb also charges travelers booking fees. Airbnb and HomeAway let people rent their homes, or rooms in their homes, to travelers. Expedia online travel rival Priceline ( PCLN ) also offers alternative accommodations . Expedia is set to report Q1 earnings on April 27, after the market close. Scalper1 News
Scalper1 News