22 April 2009

Expedia to Florida - BITE ME!

So the war between the Hotel Taxing Authorities and the OTAs was opened on another front.

Expedia has decided that after a long relationship of DMO partnerships with the State of Florida - that it will end the relationship if Florida's legislature proceeds with legislation to tax the Hotel sellers for the full selling rate and at source rather than the hotel to collect or the collection of hotel tax on net revenue not the gross selling price.

"There are a lot of places that have beaches. There are a lot of places that can satisfy the leisure traveler," Brent Thompson, vice president of government affairs at Expedia said recently.

I am sure that the elders in the State Legislature in Tallahassee are going to be dictated too....

"I just don't think it's credible to make the argument that changes in tax policy don't create changes in behavior," Thompson said. "Markets react. Tax policies have implications for incentives and how businesses operate."

Now is probably not a good time for anyone to be having this pissing match. So let's hope for everyone's sake they kiss and make up.


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