Saturday, December 07, 2013

Bait and Switch: How Web Travel Websites Are Scamming Consumers: a theory … by gimleteye

You decided to plan a trip. You log onto a popular travel website, like Expedia, or an airline, like American.

After searching and comparing, you find your flight and hotel room and a price that is not guaranteed until purchase. Fair enough.

Now you need time to consider price and arrangements. You have to talk with your significant other, or, your sister in Colorado to confirm whether she can find a babysitter in order to join you.

When you go back to the website to book the travel, the price you planned on has not only vanished: it practically doubled!

How does that happen? Here is a theory.

It used to be, that airlines fixed their prices for seats according to distance from booking to time of travel: lower cost, further from date. The opportunity cost for the airline balanced the need for predictable cash flow against the decision of travelers to either plan far in advance or at the last minute.

That is still true, but there's a more sophisticated way for the travel industry to defeat the opportunity cost.

With an IP address and / or login ID, the provider can "remember" when you are coming back to the site for a second time. Because there is no guarantee to the quotation on the first visit, the provider -- knowing it has you in its data mined cross-hairs -- can charge whatever the f@# it wants: and that would be the highest possible price.

That's why, when you do come back -- after you have made your decision -- you discover that prices have nearly doubled. This has happened to me and to friends, too often to be a coincidence.

Let's see how fast Florida's Pam Bondi, Attorney General without any visible portfolio, jumps to that bait. I'm guessing, not very fast; a good reason for the US Department of Justice to take a close look.

8 comments:

Anonymous said...

Delete cookies before second search.

Anonymous said...

If they hold your ip and login, and record of traffic, don't matter deleting cookies.

Anonymous said...

I have seen this happen too.
Seats disappear.

Gina said...

Try this one. Go to GoDaddy. Search for the name of a website that doesn't exist. Don't buy it. Go back the next day and see if it is still available.

Anonymous said...

Use a proxy server. Travel industry is full of bait and switch, fake reviews and hidden costs. One of the worst industries behind health care.

Anonymous said...

Take NO advice from anyone, there are many scams out there. It is a trap. Be careful.

Anonymous said...

You don't have to leave the site to make the prices go up... If you are searching through various day and date combos and leave for a bit or if decide to see if another city is cheaper and come back to the original city again... Oftentimes the price is different...

What about the " last minute " weekend deals.... Anyone ever get the deal ?...

Gimleteye said...

Very interesting about Go Daddy: that is exactly what I'm talking about.