Yesterday afternoon, I also made a $0.01 cent reservation for a London hotel on Expedia. I actually made two reservations after deciding to stay at a different hotel. This morning, I canceled the first reservation (and kept the other reservation). Without my consent, Expedia canceled both reservations.

I purchased this on their website. Expedia does not have the right to cancel my reservation without my consent. I've contacted them about restoring my reservation (the one I never canceled).

Expedia called me back and said that they are investigating. They told me that they do not yet have any directive as to how to handle this, but that they will get back to me in a week. The Expedia representative indicated that they may, in fact, honor the reservation at the price for which I booked it, and as such, they told me not to make a new reservation at this point. With a company as reputable as Expedia, I'm hopeful they do the right thing.

I will keep you posted.