Published on : Tuesday, July 8, 2014
The Travel Technology Association, or Travel Tech, the trade association for leaders in the online travel industry, release the following statement after Colorado’s Court of Appeals ruled decisively in favor of online travel companies (OTCs) and reversed a previous decision by a lower trial court. The Court of Appeals affirmed the reality that OTCs are not hotels and thus the compensation they retain for their services is not subject to tax.
“We applaud the Colorado Court of Appeals ruling that Colorado hotel tax laws do not apply to OTCs and the amount they charge for their online services, ” said Travel Tech President Steve Shur. “As the court recognized, online travel companies are not hotels that furnish rooms. Online travel companies look forward to continuing their work with the Colorado hospitality industry, and communities across the state, to promote Colorado as the great tourist destination that it is.”
Online travel companies use innovative platforms and technologies to help drive travelers to the state by facilitating more than 450,000 room night bookings annually in Colorado hotels. Travel Tech’s members also spend millions each year marketing Colorado destinations to tourists around the world.
“Today’s ruling follows dozens of court decisions in other states over the past three years that have agreed on the fact that online travel companies are not accommodations providers and hotel taxes do not apply,” Shur added.
Source:- Travel Tech