Orbitz waives some fees as booking battle heats up

CHICAGO, April 7 (Reuters) - Orbitz Worldwide Inc (OWW.N) on Tuesday said it would waive booking fees on flights booked on Orbitz.com and Cheaptickets.com through May, a move that pits the company against rivals in a battle for spring travel customers.

Online travel agencies like Orbitz, Priceline.com (PCLN.O), Expedia Inc (EXPE.O) and Travelocity are struggling to overcome slumping travel demand in a weak economy. The companies hope to spur travel with sales and other promotions.

Orbitz's promotion, which lasts until May 31, follows price guarantees offered last month by Priceline.Com Inc (PCLN.O) and Sabre Holdings Corp's Travelocity and a fee waiver issued in March by Expedia Inc (EXPE.O).

Experts have said the various promotions may lure new customers, but they also could erode revenue streams.

Shares of Orbitz were down 1 cent at $1.33 on the New York Stock Exchange. (Reporting by Kyle Peterson, editing by Gerald E. McCormick)