Hopper, the travel prediction app, has settled with the Federal Trade Commission over deceptive pricing practices. The company pays $35 million to resolve charges that it misled consumers about flight prices and savings claims. This settlement follows Expedia's decision to sever ties with Hopper for 17 months starting in 2023, citing identical concerns.
The FTC alleged that Hopper deceived users by displaying inflated baseline prices to exaggerate how much travelers could save. The app also claimed to predict the best time to book flights, but the FTC found these predictions lacked reliable basis. Consumers received misleading notifications suggesting prices would rise soon, pressuring them to book immediately through Hopper's platform. The company further misrepresented its ability to predict hotel and rental car prices with similar accuracy to flight predictions.
Hopper operates as a price-comparison and prediction tool that partners with airlines, hotels, and travel platforms. It holds significant clout in the online travel space, attracting millions of users seeking to optimize booking timing. The app's core pitch relies on predictive analytics claiming to alert users to price fluctuations before they happen. This settlement undermines that central value proposition.
For travelers planning trips, the Hopper scandal highlights the importance of verifying prices independently across multiple booking sites. Tools like Google Flights, Kayak, and direct airline websites provide transparent pricing without the algorithmic manipulation the FTC identified. When using price-prediction apps, treat suggested savings with skepticism. Baseline prices displayed on any platform warrant comparison with the actual fares airlines charge directly.
The $35 million penalty represents a significant blow to Hopper's credibility but proves modest relative to the travel app market's scale. The settlement requires Hopper to substantiate future claims about savings and pricing predictions. Expedia's earlier exit from the partnership demonstrated that major travel players recognize