Orbitz, Travelocity, Expedia Suspend Airline Booking Fees
If you've been avoiding the big travel websites because of their booking fees, you might want to reconsider. Orbitz, Travelocity and Expedia have all stopped charging airline booking fees until May 31.
The Chicago Tribune says that Expedia was the first to drop their booking fee, followed by the other two. (Priceline hasn't charged booking fees for 2 years.) The idea is to eliminate the advantage that airlines have over travel agents by eliminating the price difference.
Will the fees return eventually? No one is talking. Orbitz, however, has also dropped booking fees for hotels reserved by July 15.
Travel Web sites send their fees on vacation [Chicago Tribune]
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Comments:
How do the companies make money without the booking fees? Do the airlines pay them a commission per ticket sold?
How nice. Apparently the possibility of a pandemic and the subsequent reduction in travel has inspired these three to find an incentive for more travel. Thanks for the "let the world burn as long as they book flights" mentality.
Awsome! Time to finally take that trip to Mexico.
You should usually try booking directly with the hotel anyways. That way when you have issues you don't have to go through a third party. The rooms are usually better too. I think I learned all of this here actually...
It's nice and all, but unless they're offering a radically different price or package deal than what the airline wants or it's a multi-airline situation (not like NWA and Delta, but Delta and United) on a the routing of a trip, there's no point in booking with these sites.
I used every major site looking for the flight I bought last week and ended up booking on Delta so that there was no middle man that could mess things up between me and Delta. Same price as the sites, but better service in the event of delay or cancellation- no one can blame the other.
I don't recall ever paying a booking fee with any of these services...
@IronCrow: You're absolutely right. The entire travel industry should place all of their employees on unpaid vacation and close up shop until this swine flu is contained.
@BigFoot_Pete: yeah but then the public forgets and starts using them again. We need a much better memory...what the hell was I saying...ohh yeah...so
The booking fee was always bundled in - it was between $5 and $7 for airfare, and an undisclosed amount for hotels.
Most of the time it was a better deal to book with the airline/hotel directly, but with coupon codes and no fees Orbitz/Expedia are looking better now.
I think they finally got wise to people who check their site for pricing, then go book directly from the airline/hotel.
Plus, it's easier to deal with problems directly with the hotel, instead of a third party.
@djanes1: They earn a commission on "bundle deals", like when you book an airline ticket and hotel together, or a ticket with a rental car. They also cross-sell group tours, amusement park tickets, and the like.
Generally on the sale of air tickets alone, they don't get a commission.
@IronCrow: Yeah, the difference in whether I'd travel to a risky area and risk my daughters' lives would be whether I had to pay a booking fee.
@EarlNowak: This is also why you can get a great deal on a package if you book "last minute" (read: a month or less before you leave). My understanding, and I'm by no means an expert, is that the companies agree with the hotels and airlines to sell X number of bundles for which them make a small profit but every bundle they sell beyond X, they make a much bigger return. If they have a bunch of unsold bundles and the end date is closing in, they will try to unload them for virtually no profit so they get the opportunity to hopefully sell a few of the higher margin bundles as well. My girlfriend and I got an amazing deal for seven nights in Paris through selloffvacations.com, the only downside was that we had to wait until 3 weeks before we were planning to leave to book it (which wasn't a problem for us as we're both fairly spontaneous and fairly seasoned travelers, but for some it would be stressful waiting that long to book a vacation).
I still won't use them.
I always book directly with the airline and hotel. That way, if something goes wrong, they contact me rather than Orbitz. I've had two instances where flights have changed and the third party booking service (Orbitz in one case, Hotwire in another) never bothered to tell me. Luckily I found out on my own.
When I book directly with the airline and something changes, I get an email or a phone call from a phone rep who will get me rebooked.
Like the article says, Priceline hasn't charged those fees for about two years. I have always gone through them or directly through the airline itself.
@BigFoot_Pete:
c'mon man, us airWAYS. they're so much classier now than they used to be. :-)
remember when usair began with u?
Count me as another person who will only book directly with the airline or hotel. Travel is stressful enough without having to deal with a third party.
Another advantage to dealing directly with a hotel is you don't pay until you stay. And you can cancel up to 6pm on the day of arrival.
In early April, I needed to find a room for 3 nights in Maui. I booked directly with the hotel and got a 1 bedroom ocean-front suite for $129/night; complete with a kitchen and everything! Deals are out there, you just have to look for them.
@HiPwr: Thats not what I am saying and you know it. The estimated downturn in travel due to the concern over the flu is, more than likely,what inspired this cut. It puts profit over the public interest. Don't lay off or put people on vacation but don't collectivize the very process that has probably made this from an epidemic to a pandemic.
@Yossarian: No but the difference in whether you or someone else travels or not may very well hinge on it and thus increases the incentive and thus the chance of further infection.
So, when you charge dumb fees, consumers stop using your resources? USAIR LISTEN UP!!