The recent elimination of booking fees for airfare now appears to have been just the first salvo in the war between online travel booking sites. Expedia and Orbitz yesterday announced that they are reducing fees on hotel rooms booked by July 15th. Additionally, Orbitz is now displaying the entire cost for hotel booking upfront, inclusive of fees and taxes, rather than tacking on the aditional fees at the payment screen – a practice long criticized by consumers as being deceptive. Although these latest discounts will no doubt be embraced by consumers, continued erosion of revenues in the industry could result in a round of failures, mergers, and/or acquisitions.
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Posted in Travel industry news | 
Tags: deals, discounts, expedia, hotels, online travel service, orbitz, price wars, search engines, Travel
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These “who can go broke faster” battles isn’t healthy for any industry – especially travel, when it usually ends in tears for paying customers stranded in some far flung location. I think the recession.
The recession is what is driving prices down, always does. Expedia and Orbitz have their own market share and could care less if there is a “winner” as if a battle or contest were going on. The airlines and hotel industry start the downward trend and because Expedia and Orbitz sell hotel and airfare they appear to be slashing prices. I wouldn’t worry too soon if either of these companies are going belly up, as they both have deep pockets to weather this recession through.
all this can cause competition that is not healthy.
May be at risk to customer safety and comfortable.
.-= Nina Mays´s last blog ..Traveling With Young Children Before You Leave =-.