Online Travel Companies in Hotel Tax Squeeze Play

Online travel agencies such as Expedia, Travelocity, Orbitz and Priceline are being subjected to lawsuits from a large number of cities claiming that they are underpaying the hotel room tax on stand-alone hotel bookings. A $184 million consumer class action lawsuit was recently filed in Washington State against Expedia that now opens a new front for these online travel agents to defend.

Online Travel Companies and Travel Technology Innovation

Online travel companies Expedia, Travelocity, Orbitz and Priceline have grown substantially through acquisition of small entrepreneurial organizations that have created innovative online travel technologies. Critics say that the online travel industry reached a functionality plateau and the online travel companies have difficulty with organic innovation. The root cause may be due to the trade-offs involved when managing for quarterly profits and investing in R&D for longer term success.

Google Acquire Expedia? An Unfounded Rumor

Rumors circulating that Google has an interest in purchasing Expedia surface periodically – it now seems on an annual basis… All indications are that a purchase of Expedia would not only signal a dramatic change in Google’s strategic direction, but also jeopardize its considerable advertising revenue from travel suppliers and distributors.