beware of orbitz...

I participated in an online forum last week on the subject of booking luxury hotel rooms online. My assertion: you can usually get much better value booking from a travel agent specializing in luxury travel, especially an agent who is a Virtuoso member. My assertion was challenged by another forum participant who urged readers to forget my advice. "[E]asy to book any of the luxury ones on-line," he wrote. The discussion continued, with another member telling of bargains he had gotten on Priceline. He also mentioned skyauction.com as a source of "excellent hotel luxury values."

So I did an experiment (which readers are encouraged to duplicate on their own). My methodology was as follows. I simulated three identical bookings (on Friday, Dec. 8 at 12 noon PST) for the lowest priced "luxury hotel" in Paris offered by skyauction.com, the Splendid Etoile (pictured above): one room for two guests for two nights, checking in March 15. (Skyauction has a two night minimum).

(1) I simulated the booking on skyauction.com.
(2) I simulated the identical booking on orbitz, travelocity, and expedia (the Big Three).
(3) I simulated the identical booking on Sabre (a GDS used by travel agents that shows availability and all available rates).
(4) I compared the rates, payment terms, and cancellation policy.


The results

(1) Skyauction charged a base rate of $245 a night, adding $32 per night for taxes and service fees, and a $20 processing fee. Total cost: $574. This amount is charged immediately to your credit card, and the reservation is NON-CANCELABLE and NON-REFUNDABLE.

(2) Orbitz charged a base rate of $318.42 a night including breakfast, adding a total of $57.95 in taxes and fees. Total cost: $694.44. This is a pre-paid rate (meaning they charge this immediately to your credit card). If you cancel more than three days prior to arrival, Orbitz charges a $25 cancellation fee. Within three days, you are charged for one night.

By the way, neither Travelocity nor Expedia showed availability at this hotel.

(3) The Sabre GDS showed all the available rates. The "Exclusive Hotels Best Rate" was 119 EUR ($158) with taxes included. Total cost in USD: $316. You guarantee the room with your credit card (your card is not charged), and you can cancel without penalty up to 3 days before arrival. Within three days, you are charged for one night.

(4) Another observation: Skyauction, orbitz, and travelocity give Splendid Etoile a four-star rating. Expedia gives it a three-and-one-half star rating. The hotel's own description on Sabre states that they have a three-star rating from the French Tourist Board.


My conclusions

(1) If you want the experience that a luxury hotel can offer you, take online promotions of luxury hotel values with a grain of salt. Make that a lot of salt! You would likely be quite disappointed with the Splendid Etoile if you are looking for upscale, luxury accommodations. A travel consultant who specializes in luxury hotels will have extensive knowledge and experience to guide you in the selection of a hotel.

(2) Beware of orbitz, even with their "low price guarantee." The "special negotiated rate" they quoted in this experiment was more than double what any travel agent in the world can get you.

(3) Beware of pre-paying for your room. When you prepay an online travel agent such as orbitz, you may be booking a NET rate that orbitz has negotiated with the property and is marking up. How much is the markup? I don't know, but compare prices and make your own guess.

(4) Do your internet shopping first; then go to your travel agent and see what he or she can do for you. True story: A client recently came to me with a discount price she had gotten from the hotel's own website for a two night booking. I saved her 140 EUR (about $186) ... and got her free breakfasts each morning in addition, as well as a room upgrade upon arrival if available.


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