I was wondering how Expedia can offer good rates that undercut the hotel rates and include free internet? Does Expedia pay the difference between the rack rate of the hotel or do they allocate rooms that needs to be sold and pass on the discount to the customer.

For instance we are staying at the Embassy Suites La Quinta on a prepaid Expedia rate with a no cancellation policy. We paid $71.50+15 in taxes. The hotel was going for $119 for the same room and we get free internet as part of their January schedule.

Now for some questions.

Is it illegal for Expedia to discount the customer and not refund the customer the money if they cancel per the hotel's cancellation time?We know our dates as it revolved around another resort that had no availability for the dates we needed. Say you booked this special and then you cancelled at 4 PM hotel time 24 hours before can Expedia keep your money? Isn't this tort as Expedia could resale the room or sale a room at other properties and would make money.

Say you booked an expensive hotel getaway with Expedia and they keep your money but if you booked with the hotel you could get a refund even if the price difference was small.

If you took Expedia to Judge Judy's courtroom could Judge Judy claim that Expedia sets its own standards and does not follow the hotel's standards. All Expedia could keep are the fees.

Also isn't it tort that Expedia charges an extra person fee $10 for 3 in a suite made for 4? If you are a Hilton Honors Member you are not charged $10 if you bring another family member or spouse? Wouldn't Judge Judy say that Expedia is stealing extra money from the customer.

If you book with a credit card would they refund your money for an unused room due to an emergency cancellation?

Why would Expedia have such a policy to not allow the customer to cancel the rate? I can see Priceline doing this because its opaque but Expedia you know what hotel you are getting.

Furthermore Expedia knows the customer could deny the charge with his or her credit card provider if they canceled by the hotel's' cancellation time.

Thanks for your advice.