Tuesday, March 17, 2009

Travelocity to Match Expedia on Booking Fees

The Wall Street Journal reported this morning that Travelocity likely will announce today that it matched Expedia and would drop its consumer booking fees on flights for tickets sold through the end of May.
Travelocity also plans to unveil a program similar to Orbitz's Price Assurance program on flights, according to the report. The Travelocity program would deal with vacation packages, however. Consumers would get compensated if they book a vacation package and the price drops after the booking.
Travelocity's decision to drop its booking fee on flights really puts the pressure on Orbitz, which would the sole major online travel agency charging a booking fee for flights if Expedia's and Travelocity's booking-fee moves become permanent after May 31. Priceline dropped booking fees some time ago.
And, Orbitz, more dependent on air ticket sales than its competitors, would be hard-pressed to drop booking fees on a permanent basis because it takes a majority of its profits from booking fees.
Orbitz finds itself between the proverbial rock and a hard place.

No comments: