State Puts Reservation System on Hold

Facing pressure from travel agents and tour operators, the California Division of Tourism clamped a 60-day moratorium on its new toll-free telephone and Internet system that allowed travelers to make their own lodging reservations.

The tourism office will conduct a series of meetings to hear comments on whether the state should be offering travel services. The department then will present recommendations to a legislative committee.

A number of travel agencies and tour operators complained that the new system was cutting into their business, said Assemblywoman Susan Davis (D-San Diego), who chairs the Committee on Consumer Protection, Government Efficiency and Economic Development.

Davis said she believes her panel backs the business owners.

“We need to see whether there’s a way to promote hotels and motels, but in a way that hooks people in who engage in this enterprise as private businesses,” Davis said.

Last December, the state established an online booking system and, soon afterward, a toll-free phone number through which travelers could book their own reservations at more than 300 California hotels, motels and inns. Participating businesses were listed free of charge.

The system generated 50 bookings--18 from California, 18 from other states and 14 from other countries, the state’s Director of Tourism John Poimiroo said.

He contends the new program isn’t hurting private businesses.

“People who want the travel services, the price savings and the convenience of using a travel agent, will continue to do so,” Poimiroo said. “This is directed to the self-motivated traveler who does [his] own travel arrangements.”

Poimiroo added that a number of states will be offering online reservation systems soon. New York state, as well as San Diego and San Francisco, have set up similar booking systems.

Many smaller operators in rural and metropolitan areas cannot afford to pay advertising costs involved in reaching a broader audience, he said.

But the industry says the state should leave travel accommodations to the specialists.

“The state should not be making hotel reservations at all,” said Coranne Gibson, president of the California Coalition of Travel Organizations.

“These are my tax dollars supporting a statewide system, and they’re competing against me,” she said.

“That’s the bottom line.”