- Days left
As a sign of just how desperate travel sellers are getting -- or perhaps one of how the Web is turning into a true free-for-all -- the major travel booking sites have been shucking their fees. Last month, Orbitz, Travelocity, CheapTickets, Hotwire, and Expedia all reduced or eliminated the fees they charged for booking airfare through May 31. That eliminates a cost to passengers of about $7 per flight.

Until recently, if you compared a hotel quote on, say, Travelocity and Orbitz, you might see a lower price on Travelocity than on Orbitz, but when you clicked through to make your purchase, suddenly the "taxes and fees" line item that showed up near the end of the process could reverse your good fortune and make the other website the winner. It was time consuming, annoying, and expensive. But the websites make their money out of a portion of those fees (and some analysts think that up to 60% of their income is based off the fees), which can easily mount $25 to $40 on a single night at a standard business class hotel.

But Orbitz will not charge a fee through July 15. Presumably, it will take its profit out of any markups in the hotel rate. In response, Expedia matched the fee cut (I'd expect Travelocity to do it soon, too), but Orbitz says it will still be cheaper than competitors like Travelocity "80% of the time."

Hooray! With the new savings, we can finally afford to check bags and use pool towels again!

Orbitz, though, hasn't ended the changes there. The site, which is clearly trying to remake itself to draw travelers again and stay in business, has started quoting you one price, a what-you-see-is-what-you-get rate. I wish the airlines could try the same thing. I'm sick of combing through airfare sales for $199 that turn out, when I'm ready to plug in my credit card number, to be nearly twice that price because of taxes and fees. Tell me the price, the whole price, and nothing but the price. Then we'll see how you really stack up in the marketplace.

Increase your money and finance knowledge from home

How to Buy a Car

How to get the best deal and buy a car with confidence.

View Course »

How Financial Planners go Grocery Shopping

Learn to shop smart and save.

View Course »

TurboTax Articles

Video: Tax Guidelines About Gifting

Note: Some of the content of this video applies only to taxes prepared prior to 2012. It is included here for reference only. Find out the tax guidelines about gifting with help from TurboTax in this video on tax tips.

Video: What are Income Tax Rates?

Note: The content of this video applies only to taxes prepared for 2010. It is included here for reference only. Income tax rates change depending on both the amount of money you make and how you made it. Find out about income tax rates with help from TurboTax in this video on tax tips.

Video: How To Reduce Errors on Your Tax Return

Did you know that errors on your tax return can affect the amount of your tax bill and the amount of time it takes to get a refund? Fortunately, TurboTax helps you avoid errors AND be sure you're getting all the tax deductions and credits you deserve.

Does Your Company Need to File Form 1095-B?

A company is responsible for filing IRS Form 1095-B only if two conditions apply: It offers health coverage to its employees, and it is "self-insured." This means that the company itself pays its employees' medical bills, rather than an insurance company. A company that doesn't meet both conditions won't have to deal with Form 1095-B. Its employees might still receive a 1095-B, but from their insurer, not the employer.

Video: Who Qualifies for an Affordable Care Act Exemption (Obamacare)?

The Affordable Care Act requires all Americans to have health insurance or pay a tax penalty. But, who qualifies for an Affordable Care Act exemption? Find out more about who qualifies for an exemption from the Affordable Care Act tax penalty, how to claim an exemption on your tax return and how the Affordable Care Act may affect your taxes with this video from TurboTax.

Add a Comment

*0 / 3000 Character Maximum