Overbooked at the inn? The blame game and what to do about it

by Janice Hough on December 7, 2012

A friend of mine, a very frequent flyer, usually has to book travel through her employer, but she is quite comfortable booking things for herself. Often she decides not to bother me for something small and simple.

In this case, she needed one inexpensive night in San Francisco at the beginning of a conference. She did a little research and found a $98 rate at the Majestic Hotel through Hotels.com and prepaid it.

When she arrived, the hotel was overbooked.

The Majestic is not a deluxe property (some reviewers call it old) but others call it charming. It seemed perfect for her needs, with a nice location not too far from her meetings and near Japantown.

Upon arrival at the hotel, she was told, “Hotels.com overbooked. But, we will give you a room at our ‘sister hotel,’ the Super 8 Union Square, and give you a free taxi ride over there.”

Now, as many travelers know, showing up late at night, while it might mean a lucky upgrade, does occasionally mean the hotel has given away all its rooms. But, this was about 4 in the afternoon, which is an odd time to “walk” someone.

Since the traveler had just walked about a mile from the conference site, she was in no mood to go anywhere.
She showed them a confirmation saying it was from the Majestic Hotel itself, not Hotels.com. After a few minutes of quietly stating she wasn’t going anywhere, they gave her a room, and it was a decent room at that.

When she told me the story later, she added that the Union Square location wouldn’t have been bad, had she not been tired. Plus, the “Super 8″ brand made her a bit nervous.

But, actually, there were a couple other issues:

First, the Super 8 was a significantly less expensive hotel, with rates starting at $66 for AAA members, and $74 otherwise. The Majestic usually doesn’t go below $98 and is often higher.

Second, the Super 8 is not exactly in “Union Square.” It is on the edge of the Tenderloin district, which is generally considered a sketchy area with a number of SRO hotels and people around who range from colorful to scary.

To be fair, the hotel is “only” three blocks from Union Square and there are interesting restaurants in the area. But, it certainly is not the first place I would suggest for a woman traveling alone, especially if you turn the wrong way walking out of the hotel.

In the end, things worked out. But had my friend not stood her ground, she would not have discovered the location issue and probably wouldn’t have gotten any money back (or even known it was a cheaper property).

Another option would have been to call Hotels.com on their 800-number.

Out of curiosity, I tried that today. It took a while to get an answer. A woman on the phone said Hotels.com did NOT overbook, and if a traveler called, they would call the hotel to get them to honor the booking.

Clearly, in this case the hotel was somehow overbooked, and was either trying to bump anyone they could early, or perhaps they were singling out online bookings as less revenue. (Often, when a hotel is booked through a third-party site, the property only gets a fraction of the price.)

The main lesson here, and my friend did it right, is that the time to complain and get a hotel problem fixed is at check-in. Once you accept an alternative, a partial refund is likely the best option and it’s not guaranteed. If it is late and a hotel truly is full, try to get as much information about the alternative hotel as you can and get any compensation offer in writing.

Regarding both overbooking and rate issues, never, ever, leave home without some sort of hotel confirmation either in an easily accessible email, or written on old-fashioned paper.

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  • Anonymous

    The main lesson here is NOT to book a room via a MERCHANT like hotels dotcom (i.e. Expedia). How difficult is it to book directly with the hotel?

  • Phil

    My immediate response to this article was that the Majestic was diverting customers that had paid a lower room rate to its less fortunate sibling near Union Square so that the Majestic would retain availability at its higher regular rate.

  • mtaabq

    I don’t know if this would have worked in this particular instance but I have found that the major chains are less likely to “walk” members of their loyalty programs. Even if you only stay a few nights a year at one particular chain it’s sometimes worth the trouble to sign up. In this specific instance I suspect, as Phil said, that the Majestic was diverting the lower-priced and/or third-party bookings. Wouldn’t be the first time.

  • DCTA

    The lesson is actually to book with a real Travel Agent, not an OTA. Probably would have been the same room rate but would not have been targeted for walking. On the other hand, for me personally, a rate of $98 in San Francisco would make me a little nervous. I would not want to book that for anyone.

  • Anonymous

    Re: “I would not want to book that for anyone.”
    Well, then why would she want to use a travel agent for this $98 room, if you [a TA] would not want to book that for anyone?

    My GDS cheapest rate is AAA 10% Commission for $95.22
    Rate of the day is $105.80 15% Commission.
    Priceline sells it for $99.19
    Others will cost about $105 ++

    IMO this is all about what a customer wants and not what we travel agents want to sell them.

  • Anonymous

    Janice, what is interesting here is that, usually, for a prepaid booking via Hotels dotcom (i.e. Expedia), the confirmation comes from the OTA and not the property. I am surprised Hotel Majestic sent her a confirmation (directly).

  • Anonymous

    I agree. However look at the “Walk” provisions with their (standard) contract with Expedia. Very lame in practice …
    Also not sure what loyalty club this particular property was a member of.

    Traveler Relocations: Property shall not treat any Traveler differently than Property treats any other Property guest, including, without limitation, how Property handles overbooking (i.e. “walk”) situations. If Property is unable to honor a Traveler’s reservation, then Property shall immediately (a) notify the Company of such inability, (b) relocate the Traveler to a comparable property, (c) prepay or make other arrangements to cover the room charges at such property for the nights in question and all transportation costs to such property, and (d) deliver a written explanation absolving the Company of responsibility for Property’s failure to honor the reservation.

  • http://profiles.google.com/saucywench S E Tammela

    Sounds to me like they wanted to fleece her out of the $30 difference.

  • paula6203

    What a customor asks for is not always the right or best choice. A good TA will counsel them about the quality and neighborhood you get for less than 100/night in SFO (or most major cities)!

  • Anonymous

    I could say the same thing for travel agent recommended hotels. They cannot possibly know what are the real good ones for every city.

  • Anonymous

    In general practice I am a member of EVERY loyalty program where I will or have stayed at a property. I think at last count that was 13 separate memberships.

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