While it may come as a surprise to you, it is actually a common practice to add 10% service charge in Asian hotels, especially in Taiwan. In fact, I don't know of any hotels in Taipei which does NOT add a 10% service charge to room rates. Sheraton, Westin, Hyatt, Hilton, Intercontinental, Shangri-la all do.
I agree that Travelocity should have made it clear though. OTOH, tax is never included in rate quotes in the US.
[Edited for typo]
[This message has been edited by TerryK (edited 09-12-2001).]