Online travel deal wars

These days it seems like everyone is getting into the online discount travel business. From auction sites like LuxuryLink to members-only travel like Gilt Groupe’s Jet Setter to group-discounters like TripAlertz, every site has its allure.

Now there’s a new player in the field jockeying for your attention: Overstock.com.

Yup, that’s right. The same discount website that brought you great deals on retail brand names is turning its sights to travel. So you can buy that Panasonic 32” LCD TV for $283 and/or 3 nights at the Key West Marriott for $302.

It makes sense; Hotels – just like retailers – have surplus merchandise they need to unload. But is it a good deal for you?

At first glance, I’m not much of a fan. Sure, the site itself looks pretty, and I like the fact that there are deals for domestic and international hotel stays. However, the hotels offered are pretty limited.

The biggest hitch? You can only use the deals in the single month they are offered. For example, the 4-star Omni Majestic in St. Louis is $219 for 3 nights, but only in the month of September. I don’t know about you, but I like a little more flexibility in my trip planning especially with all the other travel website deal options that are out there.

The other thing that bothers me is that it really not clear just how much you are saving. If it's such a great deal, tell me about it! Who doesn't want that warm, cozy feeling you get when you know you just saved a bundle on a great getaway?

I'll cut Overstock some slack since its vacation site just launched, but with so much competition out there I think if it wants to be successful a lot more work needs to be done.

Travel search going the way of the dinosaur?

Orbitz is losing out on yet another partnership. Last year, American Airlines pulled all its flights from the online travel website. And now comes word Enterprise and Orbitz are going their separate ways after “months of difficult discussions”.

Are these partnership break ups an Orbitz problem? Or an industry-wide problem?

Maybe both.

American Airlines (AA) originally pulled out of its deal with Orbitz because it wanted to cut costs and eliminate the “middle man” (although you still can book AA tickets on Priceline).

But if American’s business strategy proves successful, it won’t take long for the other airlines to follow suit and pull out of deals with Orbitz, Expedia, and the other sites. Heck, just look at Southwest Airlines. It has never offered its fares on any website but its own.

Ultimately, I worry the biggest loser is you the traveler. Less competition means higher prices and lower selection for flights, hotels, and rental cars...not to mention inconvenience!

Can you imagine the days of booking a flight by searching each individual airlines’ website and comparing each one-by-one? I need a vacation just thinking about it.