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Travel Roundup: Online Travel Owes $21 Million, Amtrak Cuts Prices, Allegiant Chooses LAX and More

By Barbara E. Hernandez | Feb 18, 2009

Online travel sites ordered to pay $21 million to Anaheim, Calif. — Online travel Web sites including Expedia, Orbitz and Hotels.com were ordered to pay Anaheim, Calif. $21 million in lost hotel taxes last week. The online travel companies have been sued by numerous cities in an attempt to recoup lost city dollars. The online companies bought the hotel rooms from local hotels for a wholesale price and paid taxes on that rather than the cost of the retail price they later charged to a customer. The online travel agencies are asking the Orange County Superior Court to overturn the decision. [Source: Los Angeles Times]

Amtrak cuts Acela Express pricesAmtrak sliced ticket prices up to 25 percent on its Acela Express to attract more passengers. Starting in March, business class tickets will cost $99 for a trip between Washington, D.C. and New York while fares between New York and Boston start at $79. The tickets are available for travel beginning March 3 through June 26. Amtrak was recently approved for $1.3 billion from the government’s economic stimulus plan. [Source: Washington Business Journal, Associated Press]

Allegiant Airlines chooses LAXAllegiant Airlines announced that it will start flying out of Los Angeles International Airport May 1. The Las Vegas-based airline will fly nonstop from LAX to 11 smaller destinations, including Bellingham, Wash., Fargo, N.D., Sioux Falls, S.D., Grand Junction, Colo. and Medford, Ore. [Source: Press-Enterprise]

JetBlue offers ticket refund to laid off travelersJetBlue Airways is offering a ticket refund program to those customers, 18 or older, who lose their job on or before Feb. 17 and bought tickets from Feb. 1 through May 30. Those affected will be eligible to cancel the reservation and receive a refund. The new program doesn’t apply to code-share flights and the carrier must receive refund requests at least 14 days before departure. [Source: Tampa Tribune]

Bay Area resident and award-winning business journalist Barbara E. Hernandez has covered tourism, real estate and personal finance. Her clients include the New York Times, Los Angeles Times, San Francisco Chronicle and Washington Post.

BNET User Analysis

Web Buzz:
  • Florida Sues Expedia And Orbitz Over Taxes

    WebProNews - 4 days 15 hours 43 minutes ago

    Florida Attorney General Bill McCollum said today his office has sued online travel companies Expedia and Orbitz for failing to pay the right amount of taxes on hotel room rentals.The lawsuit states that while the companies have been collecting these taxes from consumers all along, they have only been paying a portion of the taxes to the state...

  • Trouble in travel land

    Fortune - 185 days 21 hours 45 minutes ago

    (Fortune Magazine) -- Class-action lawyers are offering cash-strapped municipalities a new way to fill their dwindling coffers: sue online travel companies like Expedia, Hotels.com, Orbitz, Priceline and Travelocity. The argument is that online travel companies (OTCs) have not been paying enough local occupancy taxes on the hotel rooms they help...

  • Expedia Signs Global Agreement with Japan's Largest Independent Hotel Chain, Prince Hotels

    Travel Industry Wire - 61 days 3 minutes ago

    Expedia Signs Global Agreement with Japan's Largest Independent Hotel Chain, Prince Hotels Expedia, Inc. (NASDAQ:EXPE) , the world's leading online travel company, today announced a global partnership agreement with Prince Hotels & Resorts, the largest independent hotel chain in Japan. Under the agreement, Expedia will add Prince Hotels...

  • Occupancy tax update on internet hotel booking - By Jim Butler, author of www.HotelLawBlog.com

    Hotel News Resource - 3 days 21 minutes ago

    Occupancy tax update on internet hotel booking - By Jim Butler, author of www.HotelLawBlog.com Hotel Lawyer: The transient occupancy tax litigation by cities and local governments continues to mushroom.On November 3, Florida filed one of the first lawsuits against Expedia and Orbitz for lost bed taxes, but using the Florida Deceptive and Unfair...

  • Four lesser-known travel search sites for summer vacation

    CNET News - 212 days 19 hours 57 minutes ago

    You might be using Expedia or Orbitz to plan your vacation (if you're taking one) this year, but there are some lesser-known travel search sites that could help you plan a better and less expensive trip. These sites will still help you plan your vacation, but they do it in a slightly different way that should help you save some...

 

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