Wednesday, June 17, 2009

Travel sites lose ruling

This is going to get big. The issue is; If an Internet booking agent, such as Travelocity, charges a guest $100.00 per night for a room and then only pays the hotel $75.00 per night per agreement, what happens to the Room Tax on the $25.00 "commission".

In a true commission situation the hotel would bill the guest $100 and then pay the agent $25. But in this case as the rate is net there is a discrepancy.

The same could be said for a Wholesaler such a GoGo Tours? They normally have net rate agreements and then charge the guest more.

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