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Hopper · CHI Company Investigation · Travel & Hospitality

HopperHopper Inc. & Hopper (USA), Inc. · Travel booking app · Travelers

Conclusion: Supports · Scope: booking checkout and paid support, as alleged by the FTC · No score assigned

Hopper tested what happened when customers could actually see and choose its fees. Most stopped paying them.

The FTC alleged that Hopper hid and pre-selected optional Tip and VIP Support charges, while internal tests showed sharply lower payment rates when customers were shown the fees and asked to opt in. Hopper settled for $35 million without admitting or denying the allegations.

75%Paid the Tip when it was hidden and pre-selected, Hopper’s 2018 test
15%Paid when the Tip was disclosed and unselected
$85.6MTip + VIP Support revenue, 2021–2023 (CHI calculation)
$35MMonetary judgment for consumer redress, 2026 order

FTC allegations based on internal Hopper testing. $85.6M is calculated by CHI from yearly figures in the FTC complaint; the FTC did not publish this total, and it is not a measure of unauthorized charges.1,2

FTC allegationstated in the complaint, not adjudicated Court ordera term of the entered settlement Hopper statementHopper’s own position CHI calculationCHI arithmetic or reading
● Estimated read 10 min
01 · The test

What happened when customers were given a clearer choice?

According to the FTC complaint, Hopper ran a 2018 experiment comparing four ways of presenting the same fee. The fee was the same in every version. Only the interface changed: visible or below the visible screen, pre-selected or left for the customer to select.1

FTC allegationCiting Hopper internal testing
75%Hidden and pre-selected
15%Disclosed and unselected

Payment fell from 75% to 15% when the Tip changed from hidden and pre-selected to disclosed and unselected. The complaint states that, as a result of this experiment, Hopper changed its mandatory fee into the hidden, pre-selected Tip.1 The test measures how many customers paid under each interface; it does not by itself establish what each customer intended.

Source. FTC complaint, paragraphs 42 and 47, describing Hopper’s internal testing. The underlying test documents are not public; the figures are as the FTC reports them.1

02 · The pattern repeated

Later tests, same direction.

The complaint describes further experiments in 2023, on both the Tip and VIP Support. Each time a fee became visible and opt-in, far fewer customers paid it. According to the complaint, Hopper did not adopt the opt-in versions.1

VIP Support · air · Aug 202336.6% → 1.8%Paid when hidden and pre-selected, versus revealed and opt-in (¶42)
Tip attach rate · May 202343% → 0.75%“ON by default” versus a voluntary Tip, per a Hopper manager (¶43)
Opt-in Tip · May 2023−98% · −80% · −93%Fall in Tip payers for air, hotels and cars when the Tip was unselected by default (¶44)

Also in the complaint. A May 2023 VIP Support test in which requiring an opt-in lowered conversion from 37% to 5.57% for air and from 19% to 2.6% for hotels; the complaint states Hopper “did not adopt the opt-in user interface.” A 2021 test in which customers had to scroll past the fees before swiping was turned off after a revenue loss of more than $3 per transaction.1

03 · The checkout mechanism

The price on screen was not necessarily the price charged.

The complaint alleges that from 2020 to late 2023, Hopper’s air booking flow showed a “Total”, then asked customers to swipe to book, while two pre-selected fees sat below the visible part of the screen. A customer who swiped without scrolling was charged both.1

1 · Choose payment$997.85Shown as the “Total” price of the booking (¶25)
2 · Review detailsSwipe to BookThe visible part of the screen tells the customer to swipe (¶25)
3 · Below the visible screen+$3 · +$25An “optional” Tip and VIP Support, both pre-selected (¶27)
4 · ChargeAbove the TotalSwiping without scrolling meant paying both fees (¶26)
FTC allegation · customer record cited in the complaint

One customer transaction, 26 February 2024

Price the customer said the app showed
$213.00
Charged in total, per Hopper’s reply
$253.94
Of the difference: VIP Support fee
$25.00
Of the difference: Tip
$5.00
Difference not explained in the excerpt
$10.94
$213Displayed, according to the customer
$253.94Charged in total

What this example does and does not show

The customer wrote that the app “said $213”. Hopper’s reply, as quoted in the complaint, said a VIP Support fee of $25.00 and a Tip of $5.00 “was also added to the original reservation hence USD253.94 was charged in total”.1

The two named fees account for $30.00 of the $40.94 gap. The complaint excerpt does not explain the remainder, and CHI does not attribute it.

This is one record among the complaints the FTC cites. It does not show that every Hopper transaction followed this pattern.

Source. FTC complaint, paragraphs 24–28 (booking flow, January 2022 screenshots) and 31 (customer relationship records, 2021 to mid-2024).1

04 · Revenue generated

Tip and VIP Support brought in about $85.6 million in three years.

The complaint gives yearly figures for both fees. VIP Support was the larger of the two in every year shown. The complaint also quotes Hopper describing VIP Support as “literally 100% of the gross profit that our air business derives.”1

YearTipVIP SupportCombined
2021Tip$6.03MVIP$12.93MCombined$18.96M
2022Tip$8.38MVIP$30.30MCombined$38.68M
2023Tip$3.56MVIP$24.39MCombined$27.95M
2021–2023Tip$17.97MVIP$67.61MCombined≈$85.6M
Complaint figures are approximate and given to the dollar; rounded here to two decimals in millions.

CHI calculationCHI calculation from annual figures in the FTC complaint. The FTC complaint does not itself state an $85.6M total. The total is revenue from the two fees, not a measure of charges made without consent, and it does not measure the same thing as the $35M judgment.1,2

05 · How the Tip changed

From service fee to “Tip”.

The FTC complaint alleges that Hopper previously charged a mandatory $5 service fee. In late 2018, according to the complaint, Hopper changed the fee after testing different presentations, moved it below the visible area, pre-selected it and labelled it a “Tip”.1

  1. Until late 2018 Mandatory $5 fee Charged on each booking

    A service fee on every booking transaction (¶47).

  2. End of 2018 Renamed “Tip” Hidden and pre-selected

    Testing showed a hidden, pre-selected fee “would double conversion rates”; the fee was relocated below the visible screen, pre-selected and renamed (¶47).

  3. 2020 – late 2023 Below the fold Air booking flow

    Pre-selected Tip and VIP Support under the “Swipe to Book” screen (¶24). Late 2023: pre-selected fees resumed “above the fold” after a temporary suspension (¶46).

  4. From 2023 After the booking Post-purchase Tip screen

    The Tip moved to the end of the purchase flow (¶48). See the September 2025 exhibit below.

“Seems like the tip is straight up a fee, which we try to avoid.”Hopper employee, internal communication of 9 December 2021, as quoted in the FTC complaint, paragraph 401

FTC complaint exhibit, September 2025

The post-purchase Tip screen

The complaint includes screenshots dated 30 September 2025 from the end of a hotel booking. After the swipe, screens tell the customer to keep the app open while the booking is confirmed. The next screen offers a Tip:1

Pre-populated amounts
$1 · $5 · $9
$0 option
None shown
Way to decline
An “X” in the corner

The complaint alleges the screen does not say the Tip can be declined or that declining has no effect on the booking (¶¶51–54).

How to read this exhibit

This is an FTC complaint exhibit, not verified current behavior. CHI did not inspect the live Hopper app.

It matters for the timeline: Hopper says the challenged practices were discontinued in mid-2023. The complaint’s exhibit is dated more than two years later. This screen is the basis of the complaint’s Fees Rule count for short-term lodging bookings made since 12 May 2025.1,5

A May 2023 internal design proposal had included a “No thanks” option; the complaint alleges it was not adopted (¶50).

06 · Inside the company

What employees wrote, as quoted by the FTC.

The complaint quotes internal messages. They are supporting context; the test results above are the stronger evidence. Each quotation below was checked against the complaint PDF.

15 July 2021 · ¶38A principal software engineer, in a chat with a customer experience manager
“I’m struggling to see how we view this as anything but deceptive UX [user experience].”FTC complaint, paragraph 38
9 December 2021 · ¶40An employee, in an internal discussion of the pre-selected fees
“To me, the problem here is that we’re tricking users.”FTC complaint, paragraph 40

Context. Quotations are as they appear in the FTC complaint, including its bracketed insertions. They are the FTC’s selection from Hopper’s records and are allegations in a settled case.1

07 · Paid support

Faster help was sold as a separate product.

Basic support was included in the booking price. VIP Support was an optional paid upgrade, sold since 2020. The CHI concern is the monetization of expedited support and the alleged gap between its promise and its performance, not a charge for all support.1

Air bookings$10–$42VIP Support fee range (¶18)
Hotel stays$9–$25VIP Support fee range (¶18)
Car rentals$9VIP Support fee (¶18)
What Hopper’s in-app ads promised
“Get a guaranteed response within 5 minutes” · “Upgrade to VIP Support to chat with an agent instantly”
Pop-up dated 6 Dec 2022; ad dated 30 Jan 2023 · FTC complaint, Figures 8–91
What Basic support was told
“You may be waiting for up to 48 hours for a response” · “Requests will be responded to via email within 24 hours”
Same ads, describing the included Basic Support1
The support-performance evidence is materially weaker than the checkout evidence.

The complaint alleges VIP buyers “were often unable to reach a customer support agent at all or had to wait substantial amounts of time”. Its examples are four consumer complaints to the FTC and one employee message reporting no VIP response “after 45 min”. It gives no aggregate response-time data.1

Also alleged. VIP Support was pre-selected at checkout alongside the Tip (see section 03), and its fee was not refunded when a booking was cancelled unless the customer asked (¶29).1

08 · Price Freeze · partially supports

Price Freeze: the product was not the core problem. The description may have been.

A paid option to hold a fare or room price for a period is not hostile in itself. The complaint’s allegations concern the gap between how Price Freeze (also sold as Hold the Room) was marketed and how it worked.1

  1. When launched · 2019Deposit model

    The Price Freeze payment was applied to the booking (¶78).

  2. About 24 Mar 2022 · airFee model

    Hopper stopped applying the payment to the booking and retained it as a fee, generally non-refundable (¶¶79, 82).

  3. About 7 Dec 2023 · hotelsFee model

    The same change for hotel stays (¶79).

How it was marketed

“Freeze Flight Deals With Just a Deposit” and “If the price increases, you’ll pay the price you see now” (¶66).

After the change to a fee, the complaint alleges “deposit” language continued, for example “$35 deposit, pay 7 days later” (¶80).1

How it worked, per the complaint

  • No seat or room held. If someone else bought the booking, the freeze could not be used (¶75).
  • Capped. Hopper would “cover the difference up to $300 per traveler”; the customer paid any increase above the cap (¶¶73–74).
  • Fee retained. After the change, the fee was generally non-refundable and not applied to the booking (¶¶78–82).
Internal research · ¶8662%Did not understand there was a price cap
Internal research · ¶8645%Thought the Price Freeze fee was refundable
Internal research · ¶86≈50%Of customer-service contacts from fee-versus-deposit confusion
What weakens this finding.

The cap and the no-hold terms were disclosed, on a second screen after selecting Price Freeze (¶¶73, 76). Hopper later added a statement that the “Fee will not apply to the price of the ticket”, which the FTC calls ambiguous (¶87).1 A Hopper help article reviewed during the research phase, no longer available at the original URL when this page was built, described the Price Freeze purchase as non-refundable, and said a customer pays the lower price if the fare drops.6

Not established. How often customers hit the cap or lost availability, and Price Freeze revenue. When this page was built, the help article cited above returned “not found” and no Price Freeze article appeared in Hopper’s help-centre search; CHI draws no conclusion from that about the product’s current status.6

09 · Two accounts of the timeline

When did the practice end? Hopper and the FTC tell different stories.

CHI presents both positions. It does not resolve the conflict: the complaint’s allegations were not tested in court, and CHI did not inspect the live app.

Hopper’s position · 2 July 2026

Narrow, outdated and already discontinued

“primarily outdated display practices implemented during the pandemic, limited to the Hopper app, and discontinued by Hopper in mid-2023, prior to the start of the FTC’s inquiry.”
  • “the FTC raised no issues with the current Hopper app or website”Hopper settlement statement5
  • “The settlement amount does not reflect the merit of the claims.”Hopper settlement statement5
FTC complaint · 2 July 2026

Earlier start, later activity

The complaint alleges:

  • The hidden Tip originated in late 2018Paragraph 47
  • Pre-selected fees were suspended in 2023, then resumed “above the fold” in late 2023Paragraph 46
  • A post-purchase Tip screen existed in September 2025Paragraphs 51–52, Figure 7
  • “No hidden fees” advertising appeared as late as April 2026Paragraph 19, Figure 11
Neither account is adjudicated. CHI does not state that Hopper’s statement is false, or that the FTC proved continuation.
  1. End 2018
    Mandatory $5 fee becomes a hidden, pre-selected “Tip”

    After testing four presentations (¶47).

    FTC allegation
  2. 2020 – late 2023
    Tip and VIP Support pre-selected below the visible screen

    Air booking flow, January 2022 screenshots (¶¶24–27).

    FTC allegation
  3. Mid-2023
    Hopper: display practices discontinued

    “prior to the start of the FTC’s inquiry”.

    Hopper statement
  4. Late 2023
    Pre-selected fees resume “above the fold”

    After temporary compliance steps, including suspending the fees, were rolled back “because of the costs involved” (¶46).

    FTC allegation
  5. 30 Sep 2025
    Post-purchase Tip screen: $1, $5, $9, no $0

    Hotel booking flow, complaint Figure 7 (¶¶51–52).

    FTC allegation
  6. 13 Apr 2026
    Website ad: no “hidden fees or gotcha charges”

    Complaint Figure 1 (¶19).

    FTC allegation
  7. 2 Jul 2026
    Complaint and proposed order filed

    U.S. District Court, District of Massachusetts. Commission vote 2–0.

    Court record
  8. 20 Aug 2026
    Stipulated order entered by the court

    $35 million monetary judgment; fee-disclosure and consent requirements.

    Court order
10 · Regulatory outcome

FTC v. Hopper: settled, not adjudicated.

Hopper neither admitted nor denied the substantive allegations. For the purposes of the case it admitted only the facts needed for the court’s jurisdiction. The $35 million is a monetary judgment designated for consumer relief such as redress; it is not a civil penalty.2,4

Complaint · FTC allegation

Filed 2 July 2026

6 counts FTC Act Section 5 · Fees Rule (lodging)

Charging Tip and VIP Support without express informed consent; “no hidden fees” claims; undisclosed Tip terms; VIP Support response-time claims; Price Freeze claims; and, for short-term lodging since 12 May 2025, the Fees Rule.1

CaseD. Mass. No. 1:26-cv-13058
Stipulated order · court-entered

Entered 20 August 2026

$35M Monetary judgment for consumer redress

Paid in twelve instalments. Money may go to a Commission-administered fund for consumer relief such as redress; any remainder may go to related relief or the U.S. Treasury.2

AdmissionNeither admitted nor denied
Required changes · court order

What Hopper must do

  • Express informed consent before any fee
  • No misleading total-price representations
  • Total price shown more prominently than other prices
  • No calling a fee a tip or deposit when it is not
  • Automatic refund of fees on cancelled or uncompleted transactions, unless clearly disclosed as non-refundable
  • Long-term compliance reporting and recordkeeping
SourceStipulated order, Sections I–V and compliance sections2

Other proceedings. A proposed class action in Quebec, Canada, repeats similar themes; an application for authorization was filed in July 2026 and the class has not been authorized.8 No state attorney general action was found. Hopper states there are no other ongoing investigations by the FTC or any other agency.5

11 · The customer journey

The strongest alleged extraction came late in the funnel.

The strongest alleged extraction occurred deeper in the funnel, after the customer had selected the itinerary and progressed toward payment. By then the customer has chosen a trip, entered payment details and committed time to the booking.

  1. 1 · Search“No hidden fees”

    Advertising framing, dated 2021 to 2026 (¶19).

  2. 2 · SelectionPrice Freeze

    Protection products offered; cap and no-hold terms on a second screen.

  3. 3 · CheckoutDisplayed total

    Alleged hidden, pre-selected Tip and VIP Support.

  4. 4 · PaymentFees at the swipe

    Charged even before the supplier confirmed (¶29).

  5. 5 · Post-purchaseTip prompt

    Shown while the booking is confirming (¶51).

  6. 6 · SupportFaster help sold

    Basic included; VIP Support paid.

  7. 7 · CancellationAdd-on fees kept

    Complaint alleges they were refunded only if specifically requested (¶29).

Before commitmentAfter itinerary chosen and payment entered →

Source. FTC complaint as cited in each step.1 The journey is CHI’s reconstruction from those allegations.

12 · Refunds and cancellation · insufficient evidence

A narrow refund finding, not a broad one.

The evidence is insufficient for a broad refunds-as-credits or Hopper-controlled cancellation thesis. One narrower point is supported by the complaint.

Alleged in the complaint

  • Tip and VIP Support fees were charged at the swipe, even if the supplier never confirmed the booking.
  • They were not refunded when the booking was cancelled, including within a free-cancellation window or when the supplier cancelled.
  • They were refunded “only if consumers noticed and specifically requested a refund of each fee by name.”FTC complaint, paragraph 291

Not established

  • A systematic Hopper policy of substituting credits for cash refunds that were otherwise owed.
  • Hopper control over 2020 refund-versus-credit outcomes, which often originated with airlines.Contemporaneous reporting7
  • A separate Hopper-imposed cancellation fee.

Now required. The 2026 order requires automatic refunds of fees on cancelled or uncompleted transactions, to the original payment method or cash, unless the fee was clearly disclosed as non-refundable.2

13 · Pattern classification

Two patterns supported. Two not supported.

CHI’s institutional signal taxonomy, applied without forcing a fit. These describe the alleged economic effect.

SP002

Existing-Customer Yield Optimization

Supported · strongest

Final-stage checkout monetization: pre-selected charges, default-on design, a post-purchase Tip prompt, and continued monetization after internal tests allegedly showed far lower voluntary uptake.1

SP001

Unmonetized Access / Entitlement Monetization

Supported

Expedited support sold separately from the Basic support included in the booking, and Price Freeze economics moved from a deposit applied to the booking toward a retained fee.1

SP003

Legacy Product Deprioritization / Portfolio Concentration

Not supported

No evidence found.

SP004

Regulated / External Cost Pass-through

Not supported

Hopper did not attribute these charges to external or regulated costs.

14 · Counterevidence

What weighs against a hostile reading.

Listed so that the evidence can be weighed, not to soften the finding.

Legal posture

Settled, not proven

  • No admission on the merits; no adjudication.2
  • Hopper says the challenged practices were discontinued before the FTC’s inquiry.5
  • Some alleged behavior was app-specific; the website was used “to a limited extent”.1
Product design

Optional, and disclosed somewhere

  • The Tip was labelled “optional”, and both fees could be switched off by scrolling.1
  • The FTC did not challenge VIP Support or Price Freeze simply for existing.
  • Price Freeze’s cap and no-hold terms were disclosed, on a second screen.
  • The VIP Support performance evidence is much thinner than the checkout evidence.
Context

Market practice and Hopper’s claims

  • Similar fee-display practices have drawn enforcement elsewhere in online ticketing and travel.9
  • Hopper cites 96% four- and five-star app reviews, more than $100 million saved through Price Prediction and a further $175 million through its flexibility products. CHI did not verify these figures.5
15 · Current state

What is historical, what is now restricted, and what is unknown.

Historical · POST

  • Scroll-hidden, pre-selected Tip and VIP Support flowComplaint: 2020 to late 2023. Hopper: ended in 2023.

Restricted by the 2026 court order

  • Fee pre-selection without express informed consent
  • Misleading total-price presentation
  • Misleading Tip or deposit terminology

Not independently verified

  • The current live Hopper app implementation
  • Current fee presentation
  • Current compliance with the order
CHI did not inspect the live Hopper app for this investigation.

Current-state conclusions are based on the court order and available Hopper/FTC materials, not independent observation of current app behavior. This page does not state that Hopper still uses the challenged practices, or that it has fully complied with the order.

Final CHI assessment · Supports

Hopper allegedly measured what a clear choice would cost it, and kept the pre-selected design.

According to the FTC complaint, Hopper’s own tests showed that most customers stopped paying its Tip and VIP Support fees when the fees were visible and opt-in. The complaint alleges Hopper kept pre-selected designs, and the two fees brought in about $85.6 million in 2021–2023 by CHI’s arithmetic.

Hopper settled for $35 million without admitting or denying the allegations, and says the practices ended in mid-2023. Price Freeze partially supports the thesis; the refund and cancellation thesis is not established.

The evidence supports customer hostility in Hopper’s booking checkout and paid-support practices during the period investigated. No numerical CHI, CVI or CFS score has been assigned.

Tip paid, hidden vs. clear choice75% → 15%
Tip + VIP revenue, 2021–23≈$85.6M
Redress judgment$35M
Price FreezePartially supports
Refunds-as-creditsInsufficient evidence
CHI conclusionSUPPORTS

Hopper tested what happened when customers could see and choose its fees.
Most stopped paying them.

Sources

Evidence behind this page.

Every statement on this page comes from the Hopper CHI research memo (12 October 2026) and traces to a source below. Primary sources lead. Quotations from the FTC complaint and the stipulated order were checked against the original PDFs when this page was built; Hopper’s statement was checked against Hopper’s own page. Paragraph numbers (¶) refer to the FTC complaint. Secondary marks reporting used only where primary evidence does not reach.

  1. FTC, Complaint for Permanent Injunction, Monetary Judgment, and Other Relief, FTC v. Hopper (USA), Inc. and Hopper Inc., D. Mass. No. 1:26-cv-13058, filed 2 Jul 2026. ftc.gov Primary
  2. Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief, entered by the court, filed 20 Aug 2026. ftc.gov Primary
  3. FTC, case page “FTC v. Hopper (USA), Inc.”, matter 232 3086 (read 12 Oct 2026). ftc.gov Primary
  4. FTC press release, “Travel App Hopper to Pay $35 Million to Settle FTC Allegations It Charged Fees Without Consent and Deceived Users About Fees and Benefits of Some Products”, 2 Jul 2026. ftc.gov Primary
  5. Hopper, “Hopper reaches settlement with the FTC”, 2 Jul 2026 (read 12 Oct 2026). media.hopper.com Hopper statement
  6. Hopper Price Freeze help article — reviewed during the research phase; no longer available at the original URL when this page was built. Unavailable at build
  7. TechCrunch, “Unicorn travel startup Hopper is facing a pandemic-fueled customer service nightmare”, 18 Dec 2020. techcrunch.com Secondary
  8. Consumer Law Group, “Hopper Misleading Prices and Fees Canadian Class Action” (application for authorization, Quebec, July 2026). clg.org Secondary
  9. TechCrunch, “Travel app Hopper to pay $35M in FTC settlement over ‘unfairly’ charging hidden fees”, 2 Jul 2026 (comparable StubHub and Booking Holdings fee cases). techcrunch.com Secondary

Limits carried onto this page. All merits evidence comes from the FTC complaint, which states allegations that were never tested in court; Hopper settled without admitting or denying them. The internal tests, revenue figures and screenshots are as the FTC reports them; the underlying documents are not public. Revenue is given only for 2021–2023, and no count of affected customers is published. The VIP Support performance evidence is anecdotal. CHI did not inspect the live Hopper app, and Hopper’s Terms and product pages could not be retrieved for this investigation.

Status. Research frozen 12 October 2026. No numerical CHI, CVI or CFS score has been assigned; scoring is reserved for a later calibration stage.

Reading this beside the rest of the index

Travel, and the fees that arrive at checkout.

Hopper is assessed here as the intermediary between travelers and airlines, hotels and rental-car companies. Airbnb shows another travel platform’s fee design; Ticketmaster shows checkout fees in a different market. Read the methodology for why no score is assigned yet.