Monday, February 07, 2011

Florida Tax Fight Between Hotels, Online Travel Companies, and Theme Parks

When the money is low and the economy still in a tough situation, people, companies, local municipalities, and states are fighting for every tax dollars that they can avoid or collect. This is what it seems is going on here on the issue of how online travel companies such as Orbitz and Expedia sell hotel rooms. But what is interesting here is that the battle pits hotel giants such as Marriott and Hilton on one side, against theme park giants Walt Disney World and Universal Studios on the other.

One on side are hotel heavyweights such as Marriott International and Hilton Hotels & Resorts, which are out to eliminate what they contend is a competitive advantage the online companies have in selling hotel rooms.

Aligned with the Internet companies are theme-park giants Walt Disney World and Universal Orlando, motivated at least in part by concerns that requiring Expedia, Orbitz and others to absorb higher taxes could jeopardize a tax advantage the resorts themselves now have when selling vacation packages.

You will have to read the whole news article to see what they are fighting about. At some point, it got too complicated in my head and my eyes just glossed over the rest of the details. Someone else will have to explain to me what this is all about. :)

Zz.

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