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.
December 5th, 2008 at 9:18 am
Price Assurance is not working….possible scam.
I booked a flight on Sept 9th DTW- AUS for $379 (total cost). I just booked the EXACT same flight for a co-worker on Dec 2nd at $335 (total cost) on my same Orbitz account. When I select my “Price Assurance” link in my account, both itineraries are listed, and both say, “Tracking – You currently have the lowest price!” …though one is listed at $379, and the other at $335. I spent an hour on the phone with a customer service rep, but they were not able to help me at all, even though they confirmed that all details were correct. They had no idea why it was not working. I even received a follow up email listing my current Price assurance reward at zero dollars.
I wonder how many other people are being ripped off as most are not booking the same flight twice…they have to have faith that Orbitz is being honorable and holding up their end of their guarantee. I have taken screen shots of all details and plan to spread this information and take action if necessary to stop their false advertising and guarantee.
December 5th, 2008 at 11:45 am
@Mark, to clarify, are the DTW-AUS flights you booked departing the same day? You say you booked one on September 9 and one on December 2. But to get the refund, the TRAVEL dates need to be the same. Is that the case?
March 17th, 2009 at 11:54 pm
[...] Orbitz may counterargue that they provide value-added with their price guarantee, but since that service is of relatively limited value, I wouldn’t pay a premium for it [...]
April 7th, 2009 at 8:40 pm
[...] they pitch that the combination of the newly-deleted fees and the Price Assurance program (analyzed here and here) makes them the online agency of choice. Assuming that the fares are the same at, say, [...]
April 16th, 2009 at 9:03 pm
Just got off the phone with a second customer service rep in a week. Bastards Scammers White collar crooks ! I am surprised that they are still able to conduct business here in the US.
I booked 3 tickets for over $1100 with them even though I was getting it cheaper else where bcoz of the price assurance. Later our aunt decides to join us for the trip and her daughter books the exact same flight (same day/same time/next row) for around $250, so the difference Orbitz owes me is well over $100 per ticket, but the lying SOG Orbitz tracker still says that I have the lowest price. First time I called, they asked me to give 48 hours, I said fine, I will give you a week, 2 weeks later, still the same. Today, I was told that she is going to write to the back office folks as to why the lowest price has not been reflected yet. I told her to better get straighten it out or I want a fkin refund by tomorrow so I can book the lower price directly with the airlines. Lets see.
This one, I have all the proof, screen-shots, screen videos, printouts, their Price Assurance policy, everything and am willing to take it all the way. If it does not go nicely, I will first complete the travel, then dispute the entire CC charge with Amex and send them the entire information. I will make sure that not only I get the price difference which is by all means mine but I also get reimbursed for all the pain and anxiety caused by their criminal intent.
May 31st, 2009 at 3:27 pm
Price assurance gaurntee is a JOKE. My flight cost dropped 2 days after I purchased my ticket by $70 and stayed that way for 3 weeks. I NEVER got a check. I plan to go online to every chat line I can find and let people no that it is virtualy impossible to have someone else book your EXACT flight. Stop with the false advertising!!!
July 6th, 2009 at 4:53 pm
The Price assurance is a joke!! I paid $983 for a couple tickets and then recieved an e-mail stating that I would recieve a rebate of $430 dollats. Problem is the fine print at the bottom of the e-mail which basically says you will recieve at least $5 per ticket maybe.
Total ripoff, Orbitz just lost a customer.
August 10th, 2009 at 9:15 pm
I have a simple question. Has anyone reported their non refunds with the Attorney General?
I too bought 2 tickets before the 4th of July. Guess what, the price has dropped and for a month now it is over $130 less than what I paid for the tickets.
I know in my business if I print a misleading Ad I am subject to treble damages. Why is not Orbitz???
November 10th, 2009 at 2:04 pm
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November 10th, 2009 at 2:06 pm
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