Virgin America: Hello MCO & YYZ, So Long SNA

Virgin America has announced plans to fly from Los Angeles (LAX) and San Francisco (SFO) to both Orlando and Toronto starting later this year. Toronto will mark Virgin's first international service while Orlando will be Virgin's second foray into Florida - and a route that potentially strikes at the heart of JetBlue.

Toronto makes a lot of sense for VA - good demographics, little low-fare competition - a great extension of the brand.

Orlando, while a huge destination, isn't exactly known for high yields. It is also the heart of both JetBlue (which runs a large operation at MCO) and AirTran (which also runs a large operation and is headquartered there.)

So, how long before JetBlue announces service from SFO and LAX to Orlando? Last time, it only took a day for JetBlue to announce overlapping service from LAX and SFO to Fort Lauderdale as we discussed.

And so much for Orange County (SNA) - San Francisco (SFO) flights which we chronicled here. While Virgin did succeed in running American out of town, apparently Southwest and long-time incumbent United were too much....

Pay Now or Pay Later: A New Choice at Priceline - And the Next OTA Battleground?

Priceline.com has begun including "pay-at-checkout" inventory alongside traditional, "pay-in-advance" merchant model hotel inventory at select hotels. Priceline has developed a

Users are then given the option of paying upfront or now in the rate display when they click to select the hotel.
And this isn't a matter of simply including traditional agency inventory sourced via a Global Distribution System (GDS) such as Sabre or Travelport. This stroke of genius is actually the latest convergence of booking.com inventory with Priceline.com non-opaque (i.e. Travelweb) inventory.

Booking.com's rapidly expanding inventory base within North America now enables Priceline to offer multiple sources of inventory with multiple payment options for the same hotel. At the same time, as more hotels roll out, Priceline has removed one of the largest perceived negatives to booking with an OTA - upfront payment.

The gap between supplier.com and online travel agencies continues to close. First booking fees fall, then change and cancel penalties disappear and now this latest game-changer.

Getaroom.com Tries Print - WSJ no less

We were a bit surprised to be leafing through yesterday's Wall Street Journal and find the ad (left) for getaroom.com in Section A. No, in the Personal Journal (Section D) where most travel related advertising and leisure oriented stories end up, but actually in meaty section A.

First take is, wow, interesting audience to go after - would not expect the average WSJ reader to be drawn to any hotel in NYC that is selling for $99. Most WSJ readers are typically Four Seasons types rather than Four Points. We'll grant getaroom.com that maybe the economy and TARP may be pushing WSJ readers down-market so maybe this makes sense.

Second thought is: "Wow, haven't we seen that bell-hop before?" Like so many parts of getaroom.com (including the founders!) it is a Hotels.com do-over.

Lastly, we'd like to actually see some examples proving the "Up to 50% off other leading websites" claim - either in print or on the website. If the deals are that good, lets see some, please?

San Diego CVB: Expedia "Partner of the Year" While City Sues Expedia Over Occ Taxes

Expedia Media Solutions (the media arm of Expedia Inc.) yesterday announced that the San Diego Convention and Visitors Bureau had named Expedia.com "Partner of the Year." According to the press release, the San Diego CVB was recognized as "a top advertising partner and major sales channel for San Diego hotels."

The press release continues:

"'As a promotion partner, Expedia not only grew San Diego's room nights year-over-year by 26 percent, but in these tough economic times they were able to grow revenue by 11 percent – exceeding ROI estimates and generating a significant return on investment of 125 to 1,' said Joe Terzi, President and CEO of the San Diego CVB. 'Serving many different consumer segments—from families booking a summer vacation to individuals arranging a quick weekend getaway—Expedia gives us a highly effective way to share San Diego's message to a broad audience of travel shoppers and potential visitors.' "

Hmmm. Interesting that the CVB is so enthusiastic given that the City of San Diego is one of the many municipalities currently suing Expedia and the other major online travel agents. An administrative hearing has been held on the case but before any decision was rendered, the Judge in the similar Anaheim case rendered her opinion in favor of the the OTAs.

And just how does the San Diego CVB receive most of its funding? You guessed it, occupancy taxes. According to the CVB's own website, "the majority of funding is derived from San Diego Tourism District Assessment Funds." Again from the CVB's own website, the current transient occupancy tax is 10.5% in the City of San Diego. There is also an additional 2% occupancy tax levied for the San Diego Tourism Marketing District. If you enjoy reading tax code, here is the actual language from the City of San Diego's municipal code.

Anyone who has been following the ongoing saga of the tax lawsuits against the OTAs knows that the issue is if the taxes above are levied on the net or wholesale rate actually charged by the hotel to the OTA or the marked-up, retail rate sold by the OTA.

So now we have an interesting situation: The very agency (the CVB) charged with promoting San Diego (whose funding comes from the occupancy taxes in question) is holding out an OTA (Expedia) as a great partner. At at the same time the city of San Diego is suing Expedia et al for non-payment of occupancy taxes that largely fund the CVB!

So, San Diego (and other cities) which is it?