Better Business Bureau came through!

While still admitting no fault, at least Orbitz responded when I complained via the BBB.

Dear Mr. Dave:

Better Business Bureau has forwarded your recent complaint to us for review and direct follow up with you. Thank you for your recent comments regarding your experience with Orbitz. On behalf of my colleagues at Orbitz, I sincerely apologize for the dissatisfaction you've expressed, and I appreciate the opportunity to respond.

We know that understanding the expectations of our premium customers is the key to maintaining their loyalty and support. We can understand when we don't that you may doubt our desire and ability to provide you with the quality of service you expect and deserve. Please be assured we are listening and that your comments have not gone unheard.

Although we fully sympathize with your situation, however, at the same time we do not want to come across as being insensitive to your concerns. After a thorough investigation about this matter, our record indicates that your hotel reservation was successfully transmitted to the hotel on January 12, 2006 at 17:29 GMT. Nevertheless, please understand that Hotels just like the airlines do overbook and on occasion will exceed overbooking ratios. This process is solely controlled by the individual hotels and or their representative companies. On occasion we find these hotels are unsuccessful in closing their inventory allowing customers the ability to still book rooms. Although we understand this does not excuse your experience, Orbitz fully holds the hotel responsible. By sharing your concerns we hope the property will take action in better managing their inventory in the future. We thank you for bringing this to our attention.

Furthermore, in the interest of goodwill, Orbitz has made a one time exception and would like to offer you a $200 rebate on your next Orbitz.com booking. This compensation is not intended to place a value on your experience. It is meant to emphasize our commitment to you as a customer and to encourage you to continue using Orbitz for your travel needs....

Note that they have no record of acknowledgement by the hotel. Good thing Orbitz doesn't write networking protocols for a living. Anyway, the lessons here are: Orbitz may be cheap, but you have to double-check their work, and if somebody tries to dick you around, let the BBB know.