Report: Orbitz steers Mac users to pricier hotels

A screenshot of Orbitz's search site

(CBS News) When Orbitz, the online travel booking giant, learned that users of Apple products spend as much as 30 percent more than their Windows-using counterparts on hotels, the site began offering up pricier options first to those surfing from a Mac, the Wall Street Journal reports.

Orbitz executives insisted that the same room wasn't being shown at different prices to Mac users, and that customers always retain the option of searching by room price first, the Journal reports.

In its report, the Journal writes:

"Orbitz found Mac users on average spend $20 to $30 more a night on hotels than their PC counterparts, a significant margin given the site's average nightly hotel booking is around $100, chief scientist Wai Gen Yee said. Mac users are 40% more likely to book a four- or five-star hotel than PC users, Mr. Yee said, and when Mac and PC users book the same hotel, Mac users tend to stay in more expensive rooms."

The move by Orbitz is part of the growing trend of online retailers tailoring their offerings based on a wide variety of available user data; in this case, they targeted the hardware used by the shopper.

While this appears to be a legitimate business practice, Orbitz has in years past been hit with fines for employing deceptive practices.

In October, 2011, Orbitz was hit with a $60,000 fine for violating rules prohibiting "deceptive price advertising," by not displaying all the hidden fees in its airline ticket prices, CNET reports.

In 2009, a congressional investigation found that Orbitz and other online retailers had used "marketing companies (that) were found by the government to have "tricked" consumers into entering their e-mail addresses just before they completed purchases at Orbitz and the other retailers. A pop-up ad, which many consumers said appeared to be from the retailer, offered them cash back or a coupon if they keyed in their e-mail address. Those who provided information often had no idea that they were agreeing to join the programs because--you guessed it--the disclosure was buried in fine print."

[Bojax39]

Orbitz just figures anybody dumb enough to pay hundreds of bucks on the newest iPhone or iPad just so they can show off a gadget with the newest go-faster stripes won't mind overpaying for hotel accommodations. :-)

[Roman011]

I never use just one. I search all the travel sites on one website to find the best deals http://traveldealshq.com/

[JustinKintz]

ORBITZ RESPONSE
Seems to be lots of confusion and misunderstanding about this WSJ story. A misleading headline and the selective placement of the WSJ paywall cuts off the story and leads people to jump to conclusions. If you carefully read the WSJ, it never says Orbitz charges Mac users more. Because we do not. This story grew out of our observation that Mac users are 40% more likely to book 4-5 star hotels as compared to PC users. We make recommendations about hotels along a number of variables, i.e., traveling with or without children. Our recommendation module has extremely high levels of consumer engagement, indicating that it's a feature that our users really appreciate. Our CEO shared a broader discussion on this topic with USA Today readers in May. Please see his blog post at http://usat.ly/JWLTzz.

[ralphing]

We understand. (Wink, Wink)

Just tell them they are getting the Apple rate, and they'll be ecstatic. Apple consumers are used to paying more to get less.

[smorrow66]

Yep - while looking prices for a trip to the Caribbean next year, Orbitz would offer me the cheap flights like I requested (how is flying from Texas to Newark NJ and spending the night to fly onto the Caribbean cheap?).

The hotels it would show me first were the expensive ones. It wasn't an omission, but they sure did order their list that way.

[davidd5063]

This actually makes sense. Mac users are likely to me more concerned about ease of use (amenities) than just price alone.

[alphaa10000]

A stereotype which-- no offense intended-- takes us back to the MS vs. Mac wars about "efficiency" vs. "ease of use". As you, yourself, probably concluded years ago, this is a false dichotomy. Even Windows users like comfort and ease of use, which is why many have switched to Mac.

And which may explain why Orbitz is about to suffer a loss of volume from angry users of both persuasions who now realize Orbitz will offer whatever high-ticket amenities make its advertisers happy.

[Pasporte]

"when Mac and PC users book the same hotel, Mac users tend to stay in more expensive rooms". Which means they would most likely get the same amenities...

[venusvegasvada]

That sucks.