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Are Expedia Deals Always a Great Deal?

By  +Follow September 17, 2013 12:34PM
Tickers Mentioned:

Editor's note: The following is a firsthand account of a recent experience with Expedia.com's booking system from writer Andrew Klips.

As any good marketer would do, Expedia.com (EXPE) bombards visitors with a bevy of links on its home page that can be a bit dizzying, unless you want to just click on the prominent “Plan Your Trip on Expedia” interface at the top, which is likely what most people do.  An Expedia user myself, a recent experience harkened the question, “Is this really a deal?” and compelled me to share and let dealseekers know that they should take a closer look and perform their due diligence before they hit the “buy” button.

Let me explain with a couple images.  This is an actual confirmation of a reservation for three nights at the Waldorf Astoria in New York City. The room is called a “Queen Superior” and the cost was $379 per night. Seems like a fair deal and certainly comparable in cost to other hotels in the area. Way to go Expedia, you got me a great deal. Or did they?


Needing to add another day to the trip led to a call to Expedia only to be informed that they didn’t have the same room available. Understand that Expedia purchases blocks of rooms from hotels at a discounted rate and then sells them to consumers, so I understand that they could be out of that particular room for that day. But for me, it meant that I would have to get a different room for one night and then check out/check back in the next day into a different room. Not exactly what I wanted to do, and the cost for a different room was $499 for that extra night. I wasn’t actually told what type of room it was, but after a call to the Waldorf, we surmised that it was a “King Deluxe” and it was at the same price that the Waldorf charges guests. I also learned that the cost of the “deal” for the “Queen Superior” of $379 per night was the same price that the Waldorf charges.

A call to Expedia again – which connected me with a call center (in the Philippines, I was told) – started putting the pieces of the puzzle together. Speaking to a supervisor, I of course questioned the pricing model and requested a better deal that was beneath the cost that the Waldorf was charging. That was a moot request because I was informed that was not happening. Upset, I cancelled the Expedia reservations and made them directly through the Waldorf, getting four days in the same room at the same price as going through Expedia. There were no cancellation fees involved.

So, now I decided to investigate the matter a bit more by picking a random future date and checking prices on Expedia and double-checking with the Waldorf. Here’s an image of the Expedia search:

Sure looks like a great deal, right? In fact, getting a 4-1/2 star hotel (nonetheless the Waldorf in Midtown NYC) at a 48-percent discount? That sounds incredible.


Let’s move on by calling Expedia, which again connects me with the reservation service in the Philippines. The intention was to have a representative do the same search that I did (the image above) so that we were on the same page and could discuss what type of room was available for $429 that the Waldorf would typically charge $829.

After a few moments of the rep trying to find the same price quote that I was looking at, I was informed that was a basic room with a king bed, was hearing accessible and could have either a bathtub or a walk-in tub. When asked what “hearing accessible” means, I was put back on hold and never could get a good explanation. A quick call to the Waldorf provided the answer, which was that there are several features, such as flashing lights, TTY for telephone calls, etc. to provide accommodative services for guest that are hearing impaired.

Apropos, the reality is that pursuant to Title III of the Americans with Disabilities Act, it’s mandatory that hotels offer rooms that meet specific needs for people with disabilities.  I’m not sure it should be offered-up like it’s an amenity.

Back to the Expedia rep. When inquiring about upgrading to a “King Luxury” room, the rep couldn’t even tell me what the difference was other than “it’s fancier” or “sometimes the room is a little bit bigger and more expensive, of course.” After looking for a more descriptive response, I learned that it is $499 per night and, yes, some of the rooms are larger on a square footage basis. It apparently also confirmed the extra night that was originally offered was indeed a King Luxury room.

A check with the Waldorf informed me that they don’t charge $829 per night for the basic king room. My cost would be…you guessed it…$429. Now, in fairness, rates get shifted around all the time based upon day, season, holidays, etc., so perhaps there are times when it is $829.

Now, the point here is not to degrade the representative. I’m sure it can be a tough job for minimal pay that puts workers in a position to deal with people like me sometimes.  It’s also not to say that there is something out of the ordinary about using a call center outside of the United States. That goes on every day as well (although it can be a hassle to deal with). Nor is this an exercise in bashing Expedia, although in this case, I certainly felt a bit duped with the “deal” being at the exact same price as the Waldorf charges.

Incidentally, checking reservations at The Palms Hotel & Spa in Miami Beach (using the same dates as above) at Expedia and then with the hotel itself again shows that the same price can be paid going directly to through the hotel.

Contacting Expedia for a comment resulted in the following email response from the HL Group (the company that apparently handles PR for Expedia):

“Expedia’s goal is to provide the best prices and availability possible to their consumers. The company does provide the Best Price Guarantee to travelers that applies to hotels, flights, vacation packages, car rentals and activities.”

Fair enough and pretty much what I expected in a response.

The bottom line is that, like me, most people are happy when they feel like they got a good deal. But sometimes that glee can be replaced by a salty taste in your mouth by doing a bit of due diligence. The truth is that it is all a matter of perception. Expedia held up their end by offering the lowest price; there’s no denying that, but the “crossed out” price next to the “deal” price that they are providing is misleading at best and alters perception. In the cases above, it wouldn’t have cost me any more or any less to use Expedia, so I actually shouldn’t get upset about it other than believing in my head that I was getting a discount.  

There are also travel rewards points and convenience of bundled deals at Expedia if that’s a requirement. Of course the question is: Are there times when I could actually pay less by going directly to the source? That requires further examination. None of this means that I won’t ever look at Expedia again or that they don’t provide a good service, but when I do, it will certainly be followed-up with additional research to make sure I’m getting the most bang for my buck.


DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for EXPE
Media Sentiment
31 Oct 14 10:44:58
$EXPE received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 396
31 Oct 14 10:42:55
Expedia pops following Q3 beat; PCLN and TRIP also outperform $EXPE $LONG $PCLN $TRIP http://t.co/WFiNcvUTjE
Quantpost Service
31 Oct 14 10:42:27
$EXPE $PCLN News: "Expedia pops following Q3 beat; PCLN and TRIP also…" http://t.co/PUb5Ds7Ha6 Board view: https://t.co/m6YV2hXmVN
31 Oct 14 10:42:26
Expedia pops following Q3 beat; PCLN and TRIP also outperform http://t.co/7STAJPdFW1 $EXPE $LONG $PCLN $TRIP
Media Sentiment
31 Oct 14 10:24:53
$EXPE received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 388
31 Oct 14 10:20:14
TripAdvisor Poised For A Strong Q3'14 Backed By Better Platforms, Aggressive Expa... http://t.co/exHpx65MnP by Trefis Team $TRIP $EXPE $PCLN
Shiraz Lakhi
31 Oct 14 09:52:23
Most ACTIVE consumer #stocks in-play / up on STRONG volume $GRPN $COLM $TUES $CTHR $EXPE ++ (click "View") http://t.co/hz2Vq1igPR
31 Oct 14 09:22:48
$EXPE has 3 analyst ratings in the last 7 days. Median target: $92. View here: https://t.co/AKeNLu2skK #EXPE
31 Oct 14 09:19:41
@Sarge986 @YahooFinance yea... so did i. completely forgot about $EXPE reporting this week. was focused on $PCLN earnings 4 NEXT week. :(
31 Oct 14 09:18:52
#Ebola revenues for $LAKE announced. $SMED has 4 ways Ebola positively impacts their bottom line: http://t.co/vxKje2CxK4 $INTC $EXPE $APT
Scenario King
31 Oct 14 09:02:55
RT @CNNMoneyInvest: So far it’s been a fun #Halloween for #tech. #Nasdaq’s 1.3% rally is leading the way as $LNKD, $EXPE pop: http://t.co/c…
31 Oct 14 08:56:34
RT @StockSignaling: Movers and Shakers: Trading on Major News: $WU $NEM $ABX $EXPE $GG $GRPN $ABC $TTWO $BWA $NOV $TASR $WLT $BG $V $MPC ht…
31 Oct 14 08:52:23
S&P500 #Stocks Performance $MCHP $ADI $LLTC $TSO $TXN $XLNX $KLAC $MHK $AMAT $EXPE $MU $EMN $BRCM $MYL more@ http://t.co/RPeaHBZz9y
31 Oct 14 08:51:45
Nasdaq100 #Stocks Performance $ADI $MXIM $LLTC $AVGO $NXPI $TXN $XLNX $KLAC $AMAT $EXPE $MU $BRCM $MYL more@ http://t.co/YdSIjG11yN
Lynn Hoggan
31 Oct 14 08:42:52
“@StkConfidential: $PCLN seeing big buying interest after $EXPE 's results.”
Paul Johnson
31 Oct 14 08:33:52
$PCLN seeing big buying interest after $EXPE 's results.
31 Oct 14 08:32:29
$PCLN get job longs, I didn't play on $EXPE heals
Julius Schorzman
31 Oct 14 08:29:11
RT @WrigleyTom: Some Earnings Reports (this week) $AMGN $BWLD $TWTR $FB $EA $PNRA $WDC $SODA $BIDU $MA $V $SBUX $LNKD $EXPE $GPRO http://t.…
31 Oct 14 08:29:09
$EXPE $AWAY Expedia Q3 2014 Earnings Review http://t.co/CP6uKiSJap
31 Oct 14 08:26:07
@murphyrosecliff @karenfinerman @jimcramer $EXPE reported strong bookings. That should be very positive for $HTZ.
Точка Входа.Трейдинг
31 Oct 14 08:16:19
$EXPE long 85.01
FinSentS SP500
31 Oct 14 08:10:32
$EXPE:US Analyst Upgrades: Expedia Inc, GoPro Inc, and Yahoo! Inc. #EXPEDIA INC http://t.co/O7iG4ILsmb #SP500
Perfor Mance
31 Oct 14 08:06:25
Option Millionaires: maytepper: $EXPE Cantor Assigns Buy On Expedia Following Earnings http://www.smarter http://t.co/tURQxNfXmd
31 Oct 14 08:06:16
maytepper: $EXPE Cantor Assigns Buy On Expedia Following Earnings http://www.smarter http://t.co/GcA8UAyPvp
31 Oct 14 08:02:49
ah, note to myself again. whenever $EXPE reports look at $PCLN and likewise. third time this has happened.
Option Alert
31 Oct 14 08:01:23
Notable gainers among liquid option names this morning include $MCHP (+7.2%), $ADI (+6.3%), $EXPE (+5.1%), $EMN (+5.0%), and $LLTC (+5.0%),
31 Oct 14 08:00:25
@Kuwait_340 markets are great IF you in right stocks and the indices, today. take a look @ $PCLN -sympathy play 4 $EXPE which reported Thurs
31 Oct 14 08:00:04
Price Advances: $AVIV $FLT $TNAV $MTZ $SGMS $EHTH $AFFX $TBBK $GMED $AFOP $UVE $FSL $EXPE $MHK $MCHP http://t.co/Vv2VEn80mr #investors #dow
Courtney Cols
31 Oct 14 07:55:10
RT @FluentInFinance: Stocks to watch today: $RBS $AVIV $HLT $SBUX $C $LNKD $GPRO $SAM $GOOG $OUTR $TPX $EXPE & more via @CNBC http://t.co/k…
Alexander Morris
31 Oct 14 07:53:06
$EXPE: 1mRunaway+:2 [+5%,1.7%offLo], News, allTFs+; TLM:1.4; ILM:1.0, PrvClGap+[+4.3%], 1WkHi+, DyVol:2.5M:0.4x:0.6x, DyRng:3.1%:0.4x:0.8x,
Smarter Analyst
31 Oct 14 07:51:15
$EXPE Cantor Assigns Buy On Expedia Following Earnings http://t.co/OmVHlrt82d
Media Sentiment
31 Oct 14 07:49:55
$EXPE received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 309
31 Oct 14 07:49:21
http://t.co/pcvtAVzmyu LIVE Chatroom is simply on Fire today right from the opening. $LNKD $AMBA $GPRO $EXPE $ATRC $AEGR $SLCA WE NAILED IT!
CNNMoney Investing
31 Oct 14 07:47:24
So far it’s been a fun #Halloween for #tech. #Nasdaq’s 1.3% rally is leading the way as $LNKD, $EXPE pop: http://t.co/c4Tur4Pc64
Patrick He
31 Oct 14 07:41:01
$EXPE CEO is on. Space Needle, DT Skyline & Mt. Rainier in the background. http://t.co/LazaWZlMEE
31 Oct 14 07:38:26
wow...!! $PCLN .. this is THE one to have played off $EXPE earnings yesterday ..rookie mistake NOT playing it
31 Oct 14 07:38:24
$CDTI Long here @ $3.30 $FB $GPRO $TWTR $EXPE $CNET
31 Oct 14 07:37:59
Expedia CEO tells CNBC that travel in Africa up, no Ebola fallout so far $EXPE
The Fly
31 Oct 14 07:37:34
Expedia results seen as positive indicator for Priceline earnings beat $PCLN $EXPE $OWW $TRIP $TZOO: Full Story http://t.co/Twr4bzmJN3
Zainap Bentley
31 Oct 14 07:37:31
RT @FluentInFinance: Stocks to watch today: $RBS $AVIV $HLT $SBUX $C $LNKD $GPRO $SAM $GOOG $OUTR $TPX $EXPE & more via @CNBC http://t.co/k…
31 Oct 14 07:36:48
Expedia CEO tells CNBC travel in Europe strong despite economic weakness $expe
31 Oct 14 07:34:37
RT @FluentInFinance: Stocks to watch today: $RBS $AVIV $HLT $SBUX $C $LNKD $GPRO $SAM $GOOG $OUTR $TPX $EXPE & more via @CNBC http://t.co/k…
Patrick He
31 Oct 14 07:29:59
Definitely, $EXPE is shinning this morning. Its CEO will be on in 1/2 an hr per CNBC. To hv time to listen b4 leaving http://t.co/g0RsXgJ7FW
Robert garcia
31 Oct 14 07:28:49
RT @StkConfidential: $GPRO, $EXPE, $MELI, $LNKD yesterday's big earnings winners and moving well this morning. $BIDU following through nic…
Trader Bob
31 Oct 14 07:25:54
Fri ALL BUY ORDERS already bot $RMBS $RTEC $CSIQ $UNXL $BITA $EXPE $LVLT $AMBA $aNAC http://t.co/7e7kOdc5Ev
Trader Bob
31 Oct 14 07:23:52
Zubeyr Kamil Açıksar
31 Oct 14 07:22:49
RT @dfindles: Earnings soar for $EXPE with gross bookings up 29% - CEO @dkhos joins @squawkstreet | 10:30 AM ET #trivago #hotwire #egencia
Trader Bob
31 Oct 14 07:22:28
Squawk on the Street
31 Oct 14 07:20:15
RT @dfindles: Earnings soar for $EXPE with gross bookings up 29% - CEO @dkhos joins @squawkstreet | 10:30 AM ET #trivago #hotwire #egencia
Deborah Findling
31 Oct 14 07:20:01
Earnings soar for $EXPE with gross bookings up 29% - CEO @dkhos joins @squawkstreet | 10:30 AM ET #trivago #hotwire #egencia
By  +Follow September 17, 2013 12:34PM



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