Hotel Room Purchasers Must Arbitrate Sherman Act Claims Against Travelocity

Consumers alleging that online travel agencies conspired with hotels to maintain and enforce resale price maintenance and most favored nation restrictions must arbitrate their claims against Travelocity, Inc. and Sabre Holdings Corp. on an individual basis, according to a June 14 decision by the U.S. District Court for the Northern District of Texas, which concluded that an arbitration clause set forth in Travelocity’s user agreement is valid and enforceable (In re Online Travel Co. (OTC) Hotel Booking Antitrust Litigation, N.D. Tex., 3:12-cv-03515-B, 6/14/13).

Challenged Conduct.

Numerous consumers who purchased hotel rooms online directly from one or more online ...