вторник, 18 февраля 2014 г.

The answer is simple: Changes in the service fee and the wholesale rate cause the final bills to var


Travelers often pay "tax recovery charges" instead of taxes when booking a hotel room in the US through a major online travel hawaii travel agents maui prince 2001 discount agency like Expedia , Orbitz , Priceline , and Travelocity . What are these mysterious charges?
Say you book a night's stay at a hotel through a major online travel agency, and you pay $100 plus "tax recovery charges" and service fees. The $100 rate includes a profit margin for the website, which is typically between 15 and 25 percent, according to Daniel Toja, CEO of Myhoteloutlet.com . For our example, we'll say that's the wholesale rate is $80, and the travel website adds on $20 to the price and charges you $100. The hotel then calculates a tax on the $80. That tax is passed on to you by the website. (By tax, I mean the whole grab bag of taxes and charges municipal and state governments slap on hotels, such as the "room tax" that some cities add.)
What is the service fee? It's an effort to disguise the wholesale rate. Without it, anyone could look at the tax rate and the price paid and figure out what the wholesale rate is. But the service fee adds an element of mystery, confusing any competitor company trying to figure out how much a rival is discounting a room.
The answer is simple: Changes in the service fee and the wholesale rate cause the final bills to vary among the sites. hawaii travel agents maui prince 2001 discount Hotels may have cut special deals with one website, offering deeper discounts. Or the website itself is running a sale to attract business.
(By the way, in my example above, I don't mean to imply that Travelocity typically charges more in service hawaii travel agents maui prince 2001 discount fees than the other companies; I randomly selected hawaii travel agents maui prince 2001 discount companies and prices to illustrate how all of these companies charge varied service fees. No one company is known to charge more than the others hawaii travel agents maui prince 2001 discount consistently.)
Complicating things hawaii travel agents maui prince 2001 discount even further, taxes are changing a lot lately. Sometimes governments might change taxes between the time you book the room and the time you actually stay. When you reserved a room in October, the tax rate may have been 6 percent, but by the time you check in for your stay in January, the tax may have risen to 7%. To prepare for possible changes in the rate, the company estimates what the tax will be (based on the current tax rate) and calls this estimate the "tax recovery charge."
An Expedia spokesperson explained hawaii travel agents maui prince 2001 discount to me that, "generally without exception," when a change happens, the tax goes up, not down. When the tax rises, the hotel not Expedia makes up the difference on the customers' behalf.
But what if the opposite situation hawaii travel agents maui prince 2001 discount happened? What if the tax rate actually dropped instead? Might Expedia keep any leftover the customer hawaii travel agents maui prince 2001 discount overpaid for "tax recovery charges"? hawaii travel agents maui prince 2001 discount A company spokesperson says: "Expedia never pockets any tax dollars... When this issue has been raised as a sideshow in the hotel occupancy tax litigation, every court who has looked at this baseless allegation has ruled in Expedia’s favor, finding that Expedia does not overcharge customers or pocket any tax dollars."
The situation is the same with the other major online travel companies, according to spokespeople and previously issued public hawaii travel agents maui prince 2001 discount statements. They argue that because they are not hotels and do not "furnish" rooms to travelers, the hotel occupancy sales tax does not apply to them. There's one exception. New York City and New York State have explicitly hawaii travel agents maui prince 2001 discount changed their laws so that they also tax the money on the online travel hawaii travel agents maui prince 2001 discount company's mark-up and service fees. Expect other municipalities and states to copy that move.
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