Comments on: Upgrades and Downgrades — Pilot pay, Kayak searches, TSA names, and hotel taxes

By: Florida sues Expedia & Orbitz over hotel taxes: This may change the way agencies quote prices | Upgrade: Travel Better

Fri, 13 Nov 2009 04:43:18 +0000

[...] been sympathetic to the agencies on this front since I first posted about it in May. But the agencies aren’t doing themselves any favors: The problem for Orbitz and their peers [...]

By: Dino

Dino — Thu, 28 May 2009 11:47:39 +0000

I too am curious how this plays out. If you’d care to see the local newspaper editor’s opinion on this, check out http://www.islandpacket.com/opinion/story/857788.html

By: Jean - OurExplorer Tour Guide

Jean - OurExplorer Tour Guide — Sun, 24 May 2009 13:28:09 +0000

Think travel search engines are getting higher weight in traveler’s trip planning. So like kayak, tripadvisor keep improving their technology.

Have you graded any tour guide service? Since 2008, there appeared many websites providing personal tour guide services.

http://www.OurExplorer.com
Travel through the eyes of a local

By: Kate

Kate — Thu, 21 May 2009 18:58:07 +0000

I’m concerned about the impact of my hyphenated last name on the TSA rigamarole. Airline ticketing systems can’t deal with it, but my driver’s license sure is hyphenated.

By: Mark Ashley

Mark Ashley — Thu, 21 May 2009 15:53:05 +0000

Thanks for that, Dino. Here are a few crucial snippets from the article:

In many cases, the companies turn over bed tax money based on the wholesale cost of the room, even if they charge customers the tax on the full retail price of the room, according to attorneys representing the town.
[...]
Attorneys representing the travel Web sites argue that the difference between the wholesale and retail prices is not a mark-up, but rather a “facilitation fee” similar to those charged by travel agents. Therefore, it shouldn’t be subject to the taxes, they’ve argued in other cases.

You’ll notice that, when booking a (typically prepaid) hotel room via an Orbitz, Expedia, or Priceline, you see “taxes and fees” rolled into one number. When it’s a wholesale rate that’s being booked, the taxes are (supposedly) paid by the agency at the going rate, using the wholesale price for the room. Once you back that out of the “taxes and fees,” you’ve got a markup. Much like “shipping and handling” from mail order merchants exceeds the cost of the shipping alone. I think the same thing is happening here, and it’s a big reason why online travel agencies are loath to break out the taxes and fees.

If the agencies are collecting TAX on the full amount, then the cities and states that are raising a stink are fully in their rights. If it’s not tax, but fees, it’s a lot shakier.

I’m curious to see how this will play out, and if agencies will start to boycott Hilton Head reservations. Thanks for bringing it up!

By: Dino

Dino — Thu, 21 May 2009 13:21:00 +0000

When I read your downgrade about hotel searches in Columbus, Georgia, I was initially in agreement with the online travel agencies. Then I saw the front page of my home town newspaper, The Island Packet (Hilton Head Island, SC), where it’s reported the town has filed suit against discount travel web sites because “in many cases, the companies turn over bed tax money based on the wholesale cost of the room, even if they charge customers the tax on the full retail price of the room.” Now I have to question whether Columbus’ case was similar in nature.
http://www.islandpacket.com/news/local/story/851276.html