Orbitz

Orbitz Improves Its Hotel Search – Is It Enough?

by RobertKCole on August 10, 2010

The Orbitz press release boldly announced “Orbitz Launches Groundbreaking Hotel Search Experience with Industry-Leading Property Comparison Features.”

It's New and Improved, but What Is It?
Creative Commons License photo credit: Erik Charlton

The Orbitz hotel user interface may be new and improved, but is it enough of a dramatic step forward to catch the attention of travel shoppers?

Wow, sign me up! Nothing grabs my attention better in online travel than a big leap forward for hotel search innovation.

In reality, calling the enhancements “groundbreaking” or “industry-leading” is a stretch. These changes are incremental, mostly derivative and unfortunately not significantly innovative.

Not to denigrate this big step forward for Orbitz, but given the hyperbolic claims of the press release, I was expecting changes that would dramatically surpass the current hotel search paradigms.

Orbitz has definitely provided a more Kayak-like experience, with some improvements like including user ratings when mousing over a property on a map, but in many cases, Kayak still offers better functionality.

What was added?

  • Google Maps, including street-view
  • Location, hotel classification, customer review score, amenity and brand filters

What was removed?

  • Hotel neighborhood / star classification matrix

Orbitz’ attempt to translate the airline carrier/number of stops matrix display to a hotel star rating/neighborhood format never really resonated with users due its inability to categorize and differentiate a hotel product that is much less commoditized than air travel. continue reading →

Tagged as: Expedia, hotel, innovation, Kayak, online travel companies, Orbitz, Priceline, search, travel, travel search, Travelocity, user interface

Be the first to comment

Bathing in the Hotel Merchant Tax Quagmire

by RobertKCole on December 22, 2009

There is no economic recession when it comes to courts litigating hotel merchant tax cases between various local tax jurisdictions and the online travel agencies. With an estimated seventy cases at various stages of the process, legal teams representing both sides appear to have guaranteed job security into the foreseeable future.

Quicksand
Creative Commons License photo credit: publicenergy

As municipalities, courts, states, online travel agencies, hotels, lobbyists and lawyers on contingency continue battling, it seems the more they struggle, the deeper they sink

The fundamental issue is whether Online Travel Agencies (OTAs) should be held responsible for collecting hotel occupancy taxes on a) the retail price charged to consumers, or b) on the net wholesale rate paid to the hotel – the current practice. Simply put, the question for juries across the land is if the OTA’s should be paying room tax on markups that are embedded in the quoted room rate.

This topic has been simmering for years, initially with several cases dismissed by courts asking the tax authorities to exhaust administrative remedies. Earlier this year, a couple smaller jurisdictions won victories over the OTAs, but more recently, the tide has turned against the OTAs, with several high profile cases decided in favor of the local municipalities. It is very important to note that the vast majority of these verdicts are under appeal by the OTAs.

Instead of becoming more straightforward as the cases progressively create precedents, verdicts are creating more confusion. New jurisdictions are electing to litigate, while others are choosing to rewrite their tax codes. Smaller markets like Columbus, Georgia have been boycotted by OTAs following court victories, but the same has not held true in larger destinations like Anaheim. A Washington State consumer class action targeted Expedia, adding a new front for the OTAs to defend (Priceline is also currently named in two consumer class actions.) New York City decided to make package booking margins taxable as well. Despite all the activity, there has been no advancement in technical standards or operational process improvements that simplify the identification, recording or remittance of hotel merchant taxes. It seems all parties are in some form of denial regarding the long term impact of changes to the hotel tax environment. continue reading →

Tagged as: Expedia, hotel, hotel tax, online travel companies, Orbitz, Priceline, Travelocity

Be the first to comment

Online Travel Companies in Hotel Tax Squeeze Play

by RobertKCole on June 2, 2009

A recent King County summary judgment against Expedia (NASDAQ:EXPE), reportedly the largest consumer class action suit in Washington State history, creates a new front in the growing litigation battles facing the Online Travel Companies (OTC’s).  Expedia competitors Priceline (NASDAQ:PCLN), Orbitz (NYSE:OWW), and privately held Sabre’s Travelocity potentially risk facing similar claims, although their exposure is somewhat limited relative to Expedia due to lower hotel sales volume and merchant model transaction ratios.

Online Travel Companies getting squeezed by cities and consumer class action suits
Creative Commons License photo credit: capsicina

Cities, and now consumers, look to squeeze Online Travel Companies for hotel merchant taxes

The King County judgment is significantly different from earlier claims targeting the Online Travel Companies.  High profile cases, such as the claim filed by the City of Anaheim, focused on the local taxing jurisdictions attempting to secure the hotel merchant tax differential from the OTC’s.  In the Washington State case however, the plaintiffs seek compensation to consumers for the hotel merchant tax differential.  The suit fundamentally alleges that the tax was collected on a retail basis from consumers, but remitted on a wholesale basis to the hotel (and then passed through to local jurisdictions.)  In short, the suit claims the tax amount paid by consumers was overstated by Expedia and the difference should be refunded.  Expedia is refuting these claims and appealing the ruling. continue reading →

Tagged as: Expedia, hotel, hotel tax, online travel companies, Orbitz, Priceline, Travelocity

Be the first to comment

Online Travel Companies and Travel Technology Innovation

by RobertKCole on May 5, 2009

NOTE: This post originally appeared as my comment to one of Dennis Schaal’s blog posts commenting on Expedia using the term “legacy online travel agency.” Please take a look at the post – not just because Dennis is one of the few bloggers that produces such consistently good quality that I eagerly await seeing his latest points, but because this post inspired a great collection of comments from a number of travel industry players I respect. The combination of the post and the comments provides a great overview of the state of travel industry innovation in May 2009. So with that background out of the way, here is my take on why it is seemingly so difficult for “legacy” travel companies to support organic innovation.

Innovation
Creative Commons License photo credit: Ross Mayfield

Organic innovation has traditionally been a challenge for Online Travel Companies - who favor acquisitions

First, the size and investment profile of the Online Travel Companies (OTC’s) applies pressure on the organizations to chase quarterly profits and defer innovative projects that require greater development effort or longer time horizons.  As a result, product and development teams are driven to find the proverbial “low hanging fruit” and progress becomes evolutionary instead of revolutionary. continue reading →

Tagged as: Expedia, innovation, online travel companies, Orbitz, Priceline, Travelocity, Travelport

Be the first to comment