WASHINGTON -- Travelocity is blowing the whistle on Orbitz.
In a paper filed with the Transportation Department, Travelocity
said its rival is not complying with a recent DOT order about how
Orbitz must disclose its new service fee.
According to Travelocity, Orbitz should be told to shape up, and
should be required to put an additional consumer notice on its site
stating that, because it charges service fees, all fares on Orbitz
are "available for less" directly from the airlines' sites.
Orbitz recently obtained an exemption from the DOT allowing it
to state its new $5 per ticket service fee separately from the air
fare. The fee is capped at $10 for multiple ticket purchases up to
four. In granting that exemption, the DOT said Orbitz had to meet
certain conditions and "prominently disclose that it charges a
service fee on the first page of its Web site."
Travelocity said the Orbitz home page contains only a "vague
reference" to service fees with the following language: "Orbitz
Services and Fees. Learn the latest. More."
The wore "more" is a hyperlink that opens a pop-up window
explaining the Orbitz fee.
Travelocity said Orbitz not only failed to comply with the DOT's
order, but includes a statement in the pop-up window that "two
independent audit companies have confirmed that Orbitz meets or
beats the fares of our largest competitors in more than 8 out of 10
searches."
In the interest of preventing "consumer deception," Travelocity
said the DOT should order Orbitz to amend this statement to note
that the surveys were conducted before Orbitz adopted its $10
service fee.
Travelocity also complained that users of the Comet Systems
comparative shopping software do not see the DOT-mandated notices
about Orbitz's fees. As reported, Orbitz has an arrangement with
Comet Systems whereby users of the Comet software, when searching
on Travelocity or Expedia, will see a pop-up window inviting them
to view the results of a similar search on Orbitz.
According to Travelocity, this Comet pop-up window does not
contain the notice that Orbitz adds a $10 service fee to all
airline fares.
Travelocity told the DOT that it doesn't disagree with the new
policy that service fees can be stated separately from the air
fare, but it said the DOT should make sure that Orbitz is in full
compliance with the related conditions on disclosure.
It also asked the DOT to clarify its policy and allow airlines
and agents to do the same thing with airline fuel surcharges.