Travelocity - or Travelocracy?


Travelocity - or Travelocracy?

Deborah Martin
Copywriter

07.14.2010
Comment: 1
In: Professional / Financial Services, Public Affairs

I just received an email from Travelocity with the headline “Help stop politicians from raising taxes on your travel.” Immediately I thought, “What’s the story here?” The email requested my support for the Internet Travel Tax Fairness Act. Apparently local governments are filing lawsuits to collect what they call “lost taxes” (i.e. the money that online third-party intermediaries like Travelocity and Expedia collect when they book hotel rooms at wholesale and then sell to customers at retail prices). I felt my dander getting up as I considered the effect this political action could have on the low prices I enjoy when I book through online travel sites.

The truth: I started this article with the intention of chastising state and local government for sticking their hands into the pockets of businesses in order to fill out their budgets. Good thing I decided to dig deeper first. Like all things political, there are more wizards behind the curtain than you thought. While it appeared that the relationship between travel sites, airlines and hotels was working well to serve the customer, the hotels apparently feel like redheaded stepchildren being cheated and mistreated. So they’re joining forces with state and local officials to stick it to online booking sites and get the piece of the travel revenue they think they deserve.

If the Internet Travel Tax Fairness Act passes, then there will be no way for hotels to recoup money they lose when customers book through third-party intermediaries. However, the Act will protect the low prices that Travelocity, Expedia and the like offer us, the travelers, looking for a deal.

So, do we want legislation to protect our vacation budgets — or do we let the businesses and the politicians duke it out and see where we land?

Read more posts by Deborah Martin.


Comments

  • James   9:05a.m. 07.15.2010

    It's bizarre that companies like this wade into political matters so blindly. Travelocity just removed itself permanently from my considered set of vendors.

Leave a Comment

  • Please confirm your humanity: *

  • * required fields