Cy Yavuzturk, chairman of the mechanical engineering department at the University of Hartford in Connecticut, booked a low rate at the Dupont Circle Hotel on Expedia.com for a Department of Energy meeting in Washington, D.C., last month. The three-day reservation totaled $868 and was charged to his credit card. When the DOE canceled the meeting, Mr. Yavuzturk was left paying $868 for nothing—a heavy cancellation penalty.

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