I got a phone call from them today. They offered to honor the rate at the ABVI. I said I wasn't a big fan of ABVI so would they consider booking me elsewhere or on another date (elsewhere) in exchange for my cancellation. I'm pretty flexible.

Travelocity called back and said they would cover the cost of the original reservation. They originally stated this hotel was not willing to accept the price and that they were soon to be not part of Travelocitys offerings.

Nice customer service, and it never hurts to let them know what you would reasonably consider as consolation - sometimes you get it! I plan to take advantage of this room since I am way overdue for a trip to CA.