San Francisco sues Kayak and Booking.com over hotel booking scams

San Francisco City Attorney David Chiu filed a lawsuit accusing Booking Holdings, the parent of Kayak and Booking.com, of operating deceptive hotel‑booking sites called Book Online and Guest Reservations. The complaint says the sites masquerade as official hotel portals, use frequently changing URLs and sponsored ads, and charge tourists 35‑85 % higher rates. Chiu said, “These companies pretend to be real hotels, charge excessive markups, and trap people in bookings.” The lawsuit argues that these mark‑ups reduce visitors' spending on local services, hampering the city’s tourism‑driven economic recovery, which the city forecasts will generate about $9.9 billion this year.

Hotel industry leaders, such as Alex Bastain of the Hotel Council of San Francisco, warned that the practices damage hotel reputations and force staff to resolve bogus reservations. The suit claims Booking Holdings knowingly provided the fraudulent sites with inventory and payment systems, enabling the overcharges.