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.
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.
