Feeds

LA sues travel sites for hotel tax chicanery

Internet math is bad math

  • alert
  • submit to reddit

Internet Security Threat Report 2014

The city of Los Angeles has sued a group of internet travel sites for allegedly skimping on hotel room taxes.

Priceline.com, InterActiveCorp's Expedia, Cendant's Orbitz and Sabre's Travelocity.com were all named as the travel services in question in the lawsuit filed in Los Angeles Superior Court. The travel sites currently pay taxes on discounted room rates worked out with hotels. They then up the room rate, up the taxes and sell the more expensive rooms online to consumers, according to a report from Reuters.

The lawsuit alleges that the travel companies pocket the money made between the different tax rates. LA also claims that the sites will often charge more in fees and taxes than is required, Reuters said.

"The lawsuit has no merit," Kendra Thornton, a spokeswoman at Orbitz, told the news service.

LA is looking to get class action status for its lawsuit. ®

Related stories

Cendant to buy ebookers for $415m - WSJ
Digital music firm demands big-name business boycott
Cendant offers $1bn for Orbitz
Orbitz founder seeks to rattle Sabre
Security fears holding back online travel market

Remote control for virtualized desktops

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.