Travelocity is upping the ante in the ongoing wars between the major online travel agencies. The agency is offering refunds if a hotel rate drops between the time you book a room and the time you stay at the hotel.

Here’s their pitch:

While competing sites offer price protection on hotel bookings only when lower prices are found on their respective sites, or only within the supplier`s cancellation window, Travelocity customers who find the same hotel booking for less elsewhere online (excluding hotels booked using a name-your-own-price service) any time prior to the day of check-in, can notify Travelocity and receive a refund for the difference in price. Additionally, as a special offer to introduce the hotel price match guarantee, between now and Dec. 31, 2009, customers will also receive a $50 discount toward future travel.

The new guarantee is aimed at two competitors: the hotels’ own lowest-price guarantees, and Orbitz.

Hotel websites typically offer a 24-hour window for filing a claim if you can find a lower rate. (See Hyatt’s terms, for example.) That’s not that impressive.

Orbitz offers an automatic refund (”Price Assurance”) if another customer on Orbitz books the same room for the same dates at a lower rate. Those are some slim odds. Yes, it’s automatic, but again, the odds are against your ever seeing a penny.

Travelocity’s guarantee is stronger than both of these offerings, insofar as the rate simply has to drop, and in a huge window of opportunity. But since you have to do the legwork and call Travelocity in order to get the refund, they are effectively betting that you won’t be tracking rates on a regular basis.

To be clear, this is only relevant (and possible) for prepaid reservations anyway. A cancelable reservation can always be replaced with a new reservation at a lower rate, after all, should the price drop. Travelocity calls their prepaid rooms “Good Buys” so look for that label to be covered by the new guarantee.

So, how DO you track rates once you’ve booked? Bring in Yapta.

Yapta allows you to receive updates when rates drop for specific hotels’ rooms (they do it for airfare, as well). So if you book a hotel room on Travelocity, you should immediately run a search for that specific hotel on Yapta, then select “track price drops.” If the price goes down, you get an e-mail. Then, contact Travelocity. Collect refund.

I don’t believe Travelocity was counting on customers using automated assistance when they launched this. But they’re about to find out if this is a feature they can actually sustain.

Related:
- Orbitz Price Assurance re-examined: Real savings or gimmick?
- Check in the mail: Orbitz refunds airfare price drops, but is it worthwhile?
- Less Choice: Expedia excluding hotels from searches
- Track airfare before and AFTER you buy?