I know this to be true! I booked a weekend with them to Helen GA at a place that was showing no availability through the resort's site. I happened to call the resort direct to ask a question the day we were to check in, they said they were completely full and overbooked, they would be turning me away if I showed up with my Travelocity reservation!

I called Travelocity and read them the riot act, they apologized and refunded my payment.