Check in the mail: Orbitz refunds airfare price drops, but is it worthwhile?
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Elizabeth of Go Green Travel Green (not pictured) writes in to remind me of the new “price assurance” policy that Orbitz rolled out last week.
After you book your flight, Price Assurance guarantees that if someone else books the same flight (same date, same time) through Orbitz at a better rate than yours, Orbitz will send you a check for the difference (between $5 and $250 per person).
According to the Wall Street Journal, the move is an attempt to ward off competition from Priceline and Hotwire, both of which eliminated the ticket booking fees so often associated with online travel agencies. (Orbitz charges a $6 booking fee edit:$4.99 to $11.99 booking fee, variable depending on the itinerary, per ticket.)
So instead of offering a guaranteed discount (i.e., no booking fee), Orbitz is offering you the possibility of greater rewards, but for greater risk. It’s a gamble. And, in my estimation, it’s a losing bet, with the odds favor the house on this one.
Unlike Yapta, which tracks fare drops and alerts you when the published price goes down, Orbitz will automatically send you a check IF AND ONLY IF another Orbitz customer purchases the same ticket you booked, and they do it for less money. If the price just goes down, but no one buys that ticket on Orbitz, you’re out of luck. No refund.
So when would you be more likely to win in the refund lottery? It would need to be a frequently purchased itinerary, so I’d be expecting it on major business routes like Washington-Chicago, San Francisco-New York, etc. Trying to get a price drop refund on that Bozeman, Montana to Fayetteville, North Carolina itinerary? Good luck with that.
And besides, do you really expect fares to go DOWN much anytime soon? If Orbitz starts offering the other side of that wager, I’ll be in.
For the most part, I’d stick with either the airline’s own website, Priceline, or Hotwire, to save on the booking fee.
Related:
- The black art of repricing tickets
- Track airfare before and AFTER you buy?
- Putting low-fare guarantees to the test
- Orbitz (aff)
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June 25th, 2008 at 12:39 am |
Orbitz “price assurance” seems like the “EXPEDIA promise”. Just a marketing tool to scam naive travelers. (Click on my name to read how expedia tried to scam me once). At a first glance it sounds great but as you said “the odds favor the house”. It seems that nowadayas it is OK to cheat customers in this very despicable way.
June 25th, 2008 at 11:20 am |
Orbitz price assurance is a play on customer perception and trust. They keep their customers veiled from their refund eligibility status, giving the perception that they’re providing price-protection. In reality, the only thing Orbitz is “assuring” its customers is the possibility of a refund.
June 30th, 2008 at 2:57 pm |
Since airfares are based on both the outbound and return flight selection, the only way to get a refund is if somebody books on Orbitz after you and pays less. Their booking needs to be for the exact same itinerary. What are the odds somebody will be on the exact same round trip as you, purchased after you, used Orbitz, and paid less? This is really a worthless promotion.
July 2nd, 2008 at 9:15 pm |
Why would Orbitz even bother?
Oh, because it’s great press without actually costing them anything. /cynicism.