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Expedia Shocks Travel Industry And Customers, Actually Lowers Fees

November 6, 2009 at 5:24 PM | by Omri | 0 Comments

Expedia just announced they're waiving their $20 fee for the 7% of Americans who book their itineraries over the phone, establishing themselves in a niche and sticking a finger in the eyes of competitors. Airline centers mostly charge $5-$35 for telephone bookings—Southwest is the only exception—while Orbitz and Travelocity charge $25 per ticket. Priceline doesn't even offer that option.

This won't be much use to us, since our calls to booking agents are limited to rants about the impossibility of reserving rewards travel these days. But Expedia had already eliminated flight booking fees online, and it's nice to see anyone cutting any fee for any reason, no matter how marginal or symbolic the gesture:

Expedia's move, announced today, is aimed at what senior vice president and general manager Tim MacDonald calls 'an overlooked minority' of phone-using Americans. According to the online travel consulting firm PhoCusWright, only 7% of U.S. airline passengers booked through airline call centers last year... MacDonald wouldn't specify what percentage of Expedia's current airline bookings are made by phone, but said it was in the 'high single digits.'

Airlines, of course, are increasing their fees in anticipation of the holiday season (because what are you going to do, not see mom and dad?) There's no in-flight amenity left that's safe from nickle and dime surcharges. And they're doing all that even as they're cutting already booked holiday flights, leaving many passengers with vague promises about soon finding them substitute transportation.

Even rental car taxes are through the roof, though that's mostly courtesy of cities and states that target non-local tourists who vote not there. We're up to 114 different local excise taxes on rental cars, spread arcross 43 states and DC. You couldn't create that kind of unpredictable business-chilling patchwork if you tried. The travel industry is in great shape folks. Awesome shape.

[Photo: Notwist / Wiki Commons]

Related Stories:
· Expedia eliminates phone booking fee, undercuts airlines [USA Today]
· Expedia Coverage [Jaunted]
· Travel News Coverage [Jaunted]

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