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Hotel Occupancy Taxes

A key issue confronting travel distributors, including online travel companies, is the attempted application of hotel occupancy taxes to the compensation they receive for facilitating hotel bookings, i.e., enabling consumers to book their own hotel rooms online.  This effort, prompted frequently by plaintiffs' class action legal firms, is damaging to consumers, and to hotel bookings generally in the destinations which try to apply this tax, whether through litigation or legislation, and threatens an industry that has been an important driver of travel and tourism and the economic benefits that brings to localities everywhere.  The articles below provide a range of information that explain the issue, the industry, the business model and the counterproductive impact of these taxes.