A perfect Paris vacation foiled by a flagging flap — what can I do?

It was supposed to be a special trip for Alana Pitts and her father to celebrate his birthday in Paris. They’d made reservations at the Hilton Arc De Triomphe hotel in Paris back in June, using his HHonors points, and selected a special room on the executive floor with two queen-size beds.

But just a few weeks before leaving, Pitts’ father received some bad news by chance.

“My father called Hilton to ask whether we would receive free internet access in our room,” she says. “[A representative] informed him that Hilton no longer owned the hotel and that they would be moving us to another Hilton property outside of Paris — either Hilton La Defense, or Trianon Palace in Versailles.”

In other words, that perfect Paris getaway would not be happening.

“Both of these hotels are very far from where we planned to stay,” she adds. “As our trip is just two weeks away, we were shocked and upset to hear the news and were surprised that we weren’t provided any notice. My father had to call Hilton in order for Hilton to give the news.”

Pitts and her father are caught in the middle of a reflagging — a common event in the hotel industry. Hilton didn’t want to lose this hotel, which was its leading Paris property, but it was stripped of the right to call it a Hilton after a lengthy court battle with the property’s owners.

Chances are, Hilton was as unprepared for the reflagging as the Pitts. It may still be in denial that the Arc De Triomphe property is no longer in Hilton’s portfolio.

But what’s the fix? Hilton offered to rebook the family at a “comparable” hotel in Paris.

My father told Hilton that he was not satisfied with having to move to the other hotels.

The reason we booked the Hilton Arc De Triomphe Hotel was because of its central location within the city of Paris. We also chose the hotel for the two queen beds to accommodate three adults and his earned Executive Lounge access.

Neither of the hotel options have rooms with that setup — most would require a rollaway cot or pull-out couch, which no one wants to sleep on for a week-and-a-half-long trip.

The Pitts could always ask for their miles back and try to find another hotel. But even though it’s October, rates remain high.

“We started looking for other comparable hotels within central Paris, but with just two weeks until our trip, we are only finding exorbitant nightly rates,” she told me.

Ideally, Hilton would give the family the room it had originally promised them. And if it no longer owns the hotel, then it should pay the hotel. After all, a deal’s a deal, right?

But reflaggings are anything but simple. I’ve seen loyalty reservations get lost and reservations not honored in the wake of a rebranding. This one looks messier than most.

On the one hand, Pitts’ agreement was with Hilton and its HHonors program, and I don’t need to check the slippery HHonors contract to know that Hilton can drop this reservation whenever it wants to, and for whatever reason.

But on the other hand, isn’t a reservation a contract to offer a room at a given rate? And didn’t Hilton enter that agreement by accepting Pitts’ points when he made the reservation at the soon-to-be reflagged hotel in Paris?

I’m not sure whether there’s anything I can do to make Hilton sweeten the deal. I imagine there are hundreds, and perhaps thousands, of other guests in similar circumstances, and they are making adjustments to their schedule to accommodate a surprise court ruling.

  • Michael__K

    What do you expect France Hilton to do?

    I liked your analogy to walked guests. If they offered the standard “walked” guest treatment they would book them a non-Hilton hotel as nearby and comparable as feasible and offer them points back for the inconvenience.

    I didn’t see where they OP’s were asking for a free room. They wanted to pay a premium (and they did pay a premium months ago — in points) to stay at a central location in Paris. I don’t see how substituting a hotel in the suburbs outside of the city is a reasonable offer unless perhaps the entire city is sold out solid (which isn’t the case).

    I don’t think there’s any justification for letting a grudge with the new hotel owners stand in the way of Hilton doing the right thing for their loyal customers. Although I see that the new hotel (The Hotel du Collectionneur) is sold out at least for Oct 21-23 so that may be moot at this point.

  • http://www.facebook.com/CarverFarrow Carver Clark Farrow

    Its actually not the HHONORS program Terms and Conditions that are germane, but rather the Hilton contract with its guests which is independent (relatively) of the HHONORS program. Of course, I couldn’t find it ;)

  • http://www.facebook.com/CarverFarrow Carver Clark Farrow

    Beyond the grudge, Hilton was expecting to pay relatively little for the rewards guests. I suspect that negotiations would be difficult if not impossible under these circumstances.

  • http://www.facebook.com/CarverFarrow Carver Clark Farrow

    I have to respectfully disagree with your legal analysis. In order
    1. Is a reservation a contract. Yes. Undeniably. Mutually enforceable promises are sufficient for a contract, which is what we have here. The difficulty is knowing exactly what was promised on the merchant’s side. I suspect one woud have to dig very deep into the contract taking into account all of Hilton exceptions and contingencies.
    2. Given that its a contract, the entire discussion of gratuity is not relevant.
    3. The fact that the Hilton points belong to Hilton is neither here nor there. The validity of the hotel contract does not depend on who owns the points. Numerous valid contracts are entered into in which at least one party doesn’t have possession, custody, or control, of the promised consideration, Stocks are often traded that way. Speculators often operate that way.

  • http://www.facebook.com/CarverFarrow Carver Clark Farrow

    I don’t think its appropriate for us to say to the OP what is relevant to her enjoyment of the trip, particularly since we don’t know whether Paris is just a cool destination or has additional meaning.

  • TonyA_says

    Re your Point #1: All existing reservations beyond September 18, 2012, will be handled by the new hotel operator (Hotel du Collectionneur Arc de Triomphe).
    However, the new hotel operator is no longer a part of the HHonors program so it won’t accept your reward certificate as payment.

    So the hotel is not walking you. It is rejecting your form of payment.

    What you want to do is for Hilton (the FRANCHISOR) to walk you. Now that is an interesting point since Hilton is not (or no longer) the hotel where you have a reservation. What you have is a useless reward certificate to a hotel entity that no longer exists or a new hotel that would not take it.

    I guess your “rights” are determined by the T&Cs of the HHonors program. http://hhonors3.hilton.com/en/terms/index.html

    Some points to consider:

    Specific Program benefits and services have been established for all Members; however, benefits and services offered by hotels within the Hilton Worldwide portfolio may vary. If Hilton HHonors Worldwide, L.L.C., or any HHonors Marketing Partner improperly denies a Member an accrual or benefit, the liability of Hilton HHonors Worldwide, L.L.C., or the Marketing Partner will be limited to the equivalent value of that accrual or benefit as determined solely by Hilton HHonors Worldwide, L.L.C..

    Hilton HHonors Worldwide, L.L.C., is not responsible, and assumes no liability, for changes or discontinuances of the Marketing Partner’s service or product(s) which may affect Program Rewards offered, the accrual of points or devaluation of Certificate.

    Nowhere therein requires Hilton to walk you if you paid with points.

  • Michael__K

    The moment the OP made a reservation, their points were forfeited and converted to a reservation commitment.

    As I wrote in another comment, the provisions you quote pertain to HHonors perks (like executive floor access, free/discounted amenities, earnings points for your stay, etc.).

    The fact that they spell out that the perks aren’t guaranteed if the program is changed or the property is re-classified is a tacit acknowledgement that the reservation itself is an entirely other matter.

  • Cybrsk8r

    None of which should come out of the OP’s pocket.

  • Cybrsk8r

    What I have learned from this story is that the Hilton HHonors program is pretty worthless.

  • Michael__K

    If we agree that they should be treated as walked guests, I’m not sure negotiations are necessary.

    Can’t Hilton either book the public rate for the OP or else just reimburse them? If the OP agrees to a non-refundable reservation for a “Double Double” room (205 Euros/night) that’s as low a rate as I can find anywhere in the Arc de Triomphe area for a 4-star hotel with availability for 3 adults in October.

    The “Flexible rate” is about twice as much, yet that is still competitive for 4-stars / 3 adults in that neighborhood.

  • Michael__K

    Would that be the “Rules & Restrictions” one sees when one books a room on their website?

    If so, those just consist of a few short paragraphs dealing with cancellation deadlines, early departure penalties, amenities that cost extra, etc. There’s absolutely nothing in there about reservations not getting honored or the possibility of getting “walked” to a different hotel.

    On the other hand, if this “contract” is not visible to customers on their website at any point during the reservation process, then is it enforceable?

  • James

    The Hilton La Defense is very nice, and is literally 5 minutes on the RER. They should take the offer of La Defense. I am sure they get a nice room there.

  • TonyA_says
  • y_p_w

    Here’s the part of the terms that might apply here:

    http://hhonors3.hilton.com/en/terms/index.html#hotel_rewards

    “4. Participating hotels within the Hilton Worldwide portfolio and Reward
    types and classifications may change at any time without notice at
    Hilton HHonors Worldwide L.L.C.’s sole discretion.”

    Seems pretty broad. I also understand that a paid and/or credit card secured reservation promises a minimum payment to the hotel owner – the “consideration” that was mentioned. However, many of these rewards programs are contingent on the participation of the individual hotels that are part of the network. They agree to host these stays under the programs for minimal or no cash considerations in order to be part of the greater network. Once they’re free from the network, they probably don’t feel as if they’re obligated to comply with the former terms.

  • bodega3

    This isn’t any different than any other business taking over for another. It isn’t like Hilton isn’t providing any stay, just not at the one that is no longer part of their company. I am a HH member and find their program to be very much like any other. If you have a free mileage ticket on a carrier and they pull out of that airport, they are not going to protect you on another carrier. They will either give you your miles back or protect you out of another airport. With the OP or the air example, you are still getting to use your awards, it just may not be what you originally planned, but free is free, so you need to decide to take it or pay for something else.

  • http://flyicarusfly.com/ Fly, Icarus, Fly

    Very interesting! It’s all part of the marketing expense, I guess. (Unless you’re in a popular location and lots of people want to cash in award points to stay.) All the more reason why Hilton wouldn’t want to pay cash to the property to maintain the reservation, opting instead to send the OP to another property. It’s not exactly comparable, but if I were the OP, I’d take the Hilton La Defense (just under 7km or 4 miles away). That beats paying for my own room. Perhaps they can persuade Hilton to give them the new property for half the miles, considering they screwed up the notification…

  • http://flyicarusfly.com/ Fly, Icarus, Fly

    I’d liken it more to a flight that gets cancelled. The airlines will put you on the next available flight which you might or might not like. Rarely will they give you a ticket on another airline. I have a feeling the OP is being treated very differently than a cash-paying customer would be…

  • http://flyicarusfly.com/ Fly, Icarus, Fly

    Take it!

  • http://flyicarusfly.com/ Fly, Icarus, Fly

    I think this is what I would do if I were in this position. But I’d ask that since it’s not a comparable property, that Hilton take less points for it. Or throw in a few breakfasts or dinners. I think they’d go for that!

  • http://flyicarusfly.com/ Fly, Icarus, Fly

    Not sure how this is different from a flight that suddenly gets cancelled. The airline would just put you on another flight (which may be worse than your original one, with layovers, for example). As long as it’s a reasonable wait time, I don’t think they’d even consider putting you on another carrier. In this case, the property is no longer available so they’re offering her one 7kms away. Definitely not as good, but within reason, I think…

  • TonyA_says

    HH participating hotels pay Hilton about 5% of the guest’s folio (what they spent on room plus other services). This is in addition to royalty franchise fees. In other words, hotels are paying for the points the guests are EARNING. When the guest uses points to stay in a HH hotel, Hilton pays the hotel a LOW reimbursement rate for the room unless the hotel has at least 96% occupancy where Hilton will up the reimbursement rate to 90% of ADR (the average rate hotel charged for rooms).

    I understand that Hilton offered La Defence and Versailles as substitutes. But neither are in the center of Paris. The irony is that the Arc de Triomphe property is not that well located either. It is still quite a walk ro anywhere a tourist would normally want to go. Most clients I have served would prefer to stay near the Opera, the Museums or at the Le Marais area.

    IMO, Hilton could have given affected customers some gratis points for the incovenience they had caused. If you read the flyertalk thread on this bruhaha, many folks were targeting the property for its free Executive Lounge. Maybe Hilton could have given out passes to other lounges elsewhere. Personally, I would not be too attached to any hotel and would be ready to accept a decent substitute in a good location. I certainly cannot say I would miss a hotel that I have not yetstayed in.

  • Adam1222

    Whether its a Hilton or not is hardly “legal minutiae.”

  • backprop

    Nobody said it was. Minutiae refers to the legal wranglings that apparently went on between the hotel and property owners that let to the Hilton name being removed from the hotel. The point is, the hotel was a Hilton when the OP made the reservation. It is unreasonable to expect a traveler to magically find out that the hotel was rebadged and that Hilton’s responsibility is nothing more than that of a travel agent who helped someone buy a ticket on an airline.

  • TonyA_says

    I am amazed how some people think they can plan and accomplish their DREAM vacation for free (using only awards or points). It is like having their cake and eating it too. They fail to see that there is a service provider on the other side of the equation who will be paid little or nothing and may not be that welcoming and hospitable.

  • Michael__K

    Arriving at your destination several hours late is a common well known and risk that also happens to be very well documented on every carriers’ website.

    Spending 2 weeks or whatever at an entirely different destination then you had planned, even though there is availability at your original destination is not only highly irregular, but you won’t find any mention of this possibility on any hotels’ website.

    Many places, 7km is actually a very reasonable distance to send a guest. However, when 7km is the difference between Central Paris and a suburban business district — and the hotel prices between the two locations starkly reflects that difference — then that is not reasonable.

  • backprop

    How is it any different from walking into Subway with ten stamps on your card (and I have NO idea if Subway still does this, so bear with me) and “thinking you can eat and drink their lunch for free”?

    Loyalty programs, while the legalese allows pretty much whatever, are there to get people to use services, loyally (!), with the expectation of a reward after a predetermined number of uses. It’s not unreasonable to expect to redeem them.

  • http://twitter.com/johntbaker John Baker

    Thanks for the analogy because you are exactly right… This case is no different than your Subway analogy. You might want to redeem your award at the Subway down the street but if it becomes a “John’s Subs” overnight they won’t honor your Sub Club card any more since their not a Subway. You’d have to go to the next nearest Subway to redeem it. That is exactly what happened here.

  • Chris_In_NC

    Tony, I can vouch for that. There were 2 times in the past when redeeming Marriott rewards points, I was inadvertently charged the reimbursement rate to my credit card instead of to Marriott Corporation. I was shocked at the amounts. Both were in the $16-18 range. One was a Residence Inn and the other was a Marriott Hotel.

  • Michael__K

    Flight cancellations are very common and airline websites document those policies. A cancelled flight doesn’t mean you can be sent to a different airport without your consent.

    Hotel-side “cancellations” are relatively uncommon and the hotel websites generally do not even document this possibility. Yet there are industry-wide policies in place for that and I don’t see why those policies shouldn’t apply here. There isn’t ordinarily a distinction between cash-paying and rewards customers (from firsthand experience) when a guest is walked.

    Added: Also, if you are significantly delayed by a cancelled flight in Europe (assuming it’s not force majeure) you get cash for your trouble.

  • Adam1222

    Actually, you said the relationship between Hilton and the property was legal minutiae. And that is the sole issue here. There are two different issues here; (1) failure to provide notice and (2) what the actual solution is. Hilton clearly tried to maintain this reservation, by engaging in litigation with the property. That failed. The end.

  • Michael__K

    A better analogy would be if Subway took dinner reservations and you had a confirmed reservation….

  • backprop

    Um, I was addressing your statement as to “I am amazed how some people think they can plan and accomplish their DREAM vacation for free.”

  • TonyA_says

    The Paris Metro is a good example. You can buy 10 tickets at a discounted price. You don’t earn a free ticket by simply riding more often. It is more of a bulk discount rather than a loyalty program. There is no other Metro you can take.

    A hotel loyalty program is mainly there to hook you to stay in the same brand of hotels, so you would not switch. Sure you can get a free night once you reach so many points. But my point is if you use that freebie on a very important event then you need to understand the consequences. Because no matter what they tell you, the guest that PAYS for a room will get more rights. Why, because the loyalty programs reimburse the hotel so little for your stay.

    This Hilton fiasco proves my point. If the hotel thinks they can rent out the room for 350€ then why should they bother to continue to accept Hiltons probably 70€ reimbursement rate? From Hilton’s perspective, why should they rebook you at a different hotel when they can shove you in another Hilton for 50-70€?

    If the event is that important then consider paying money for it.

  • Michael__K

    You forget that the customer already spent the reward points (which would otherwise be usable at other vendors) 4 months earlier at the point when they made the reservation. And selling a restaurant is a planned event, not a surprise.

    Of course people don’t make reservations 4 months ahead for restaurants except perhaps for one of those celebrity-chef Michelin-rated restaurants (which I doubt have rewards programs, but maybe you can earn dining miles :).

  • TonyA_says

    Oh my goodness, I was eating a footlong Subway sandwich when I read your post and I thought you meant a subway like the underground train. I’m now laughing at myself.:-)

    I think when you get your 11th sub for free, it is still a sub and you can easily afford to pay 5.99 for it if you have to. I doubt if the OP regularly pays €350 per night for a hotel room. It is more common for folks to accumulate HHonor points in cheaper Hilton chains, save until they have a big balance and then use it for a grand vacation they normally cannot afford if they had to pay cash. Do not be too upset if your FREE grand vacation does not happen as planned.

  • TonyA_says

    Michael, the hotel would walk you if they were still getting paid by Hilton (a reimbursement fee).
    But in this example, the hotel will honor your reservation only if you pay them with cash or card the ongoing rate since they no longer accept Hilton certificates.
    Note that Hilton never prepaid the hotel for your stay so the hotel does not owe you anything.
    You might have exchanged points for a certificate which you could use to pay for your stay. But until the hotel can get your certificate and redeem it for money, then it has nothing. Since Hilton and the hotel no longer have a business relationship, then no exchange will happen.
    Your only recourse is to deal with Hilton itself. And, I doubt if they would get you a room at that same location if they have to pay the rack rate because their only obligation is the reimbursement rate the hotel agreed to when they were still with the program.

  • Michael__K

    The stuff between Hilton and it’s franchises is all inside-baseball. Good to know and thanks for pointing it it out, but if this isn’t spelled out in any customer-facing terms and conditions then I don’t see why it should matter.

    Notice that Hilton is NOT claiming that they don’t owe anything. According to Chris’ article, they acknowledge that they are on the hook for a “comparable” room. So the disagreement is mostly about what “comparable” means. (And I was further asking why these relocated guests deserve any less in inconvenience compensation than is standard for any other walked rewards guest)

    Just to be clear: I’m not suggesting that the Hotel du Collectioneur (the new hotel) owes the OPs anything — the obligation to the customer is 100% on Hilton.

  • TonyA_says

    I read a post in flyertalk that some folks who checked in 18 or 19 SEP were walked to a different hotel nearby by HILTON. Then again some posts complained about being placed in the Airport Hilton after the cutoff date. The point is no one was left out in the streets of Paris by Hilton. IMO Hilton can simply make up for the incovenience by giving back some points to its members. But trying to find a comparable NON-HILTON hotels for that many folks affected might not be possible economically.I understand that some properties can have 30-50% of its rooms as awards! That hotel has about (I think) 500 or 400 rooms.

  • Michael__K

    I don’t have much sympathy for the “not possible economically” argument.

    As you reported, they had two and a half months between the Court verdict and the cutover date. And since this was a “lengthy court battle”, I assume the possibility of losing the lawsuit was a known risk for many months even prior to that.

    How many of room-nights are normally reserved 2.5+ months in-advance? You reported that Hilton spent $60 million fighting the lawsuit. If they set aside 1% of that money to deal with potential guest relocations that would pay for about 4,000 room-nights at the new hotel’s publicly available non-refundable rate (which starts from 185 Euros).

  • Michael__K

    I don’t have much sympathy for the “not possible economically” argument.

    As you reported, they had two and a half months between the Court verdict and the cutover date. And since this was a “lengthy court battle”, I assume the possibility of losing the lawsuit was a known risk for many months even prior to that.

    How many of room-nights are normally reserved 2.5+ months in-advance? You reported that Hilton spent $60 million fighting the lawsuit. If they set aside 1% of that money to deal with potential guest relocations that would pay for about 4,000 room-nights at the new hotel’s publicly available non-refundable rate (which starts from 185 Euros).

  • TonyA_says

    They appealed the lower court ruling in August and apparently was not able to get an injunction. I DID NOT SAY it cost them 60€ million. I said they were being sued by the property owners who claimed they lost the huge amount in opportunity cost or lost profit due to Hilton’s inability to get the hotel’s maximum potential.

    Many reward stays are booked way in advance. You can read flyertalk for a firsthand view. Finally sympathy and reason are two different things. Some people could interpret Hilton’s not moving early as a hopeful thing. Some people may have little sympathy for those who book FREE rooms and expect to be treated the same as one who paid €350 a night. :-)

    I just do not believe it is reasonable to require Hilton to pay for BAR rates at other hotels for FREE REWARD stays under these circumstances. Any reasonable person can understand that reward points is Funny Money.

    BTW, the price you mentioned the current hotel owners are charging reflects both the effects of the Hilton pullout and the bad economy in Europe. That’s not what they were asking the HIlton Reward guests last Sept.

  • Starship Jeff

    Priority Club (Holiday Inn) has a feature that allows you to book at competitor’s hotels. It’s called “Hotels Anywhere”. Never used the feature and not sure if it is the best use of points, but the option has been there for some time.

  • Michael__K

    I’m sure Hilton has a competent legal department and they are ultimately responsible for managing their own legal risk. Especially when their customers are not privy to any of that risk.

    If Hilton felt the risk and potential relocation costs were too high, they could have stopped accepting (at least) rewards reservations at that location. But they didn’t. They gambled and they lost. Their customers had nothing to do with that gamble and shouldn’t shoulder the burden of that gamble. The so-called “Funny Money” was already collected by Hilton and converted to reservation commitments.

    BTW, if the current prices reflect a steep drop then Hilton should have been able to profit on their cash reservations…

  • bodega3

    I am not getting your argument. Hilton is protecting them at another Hilton hotel, not far from where they were orginally going to stay. They can take it or leave it and the rules that they agreed to when they signed up are pretty clear, as others have posted here. They are not being stranded without a place to stay.

  • Michael__K

    not far from where they were orginally going to stay.

    So if you have a reservation in midtown Manhattan, you signed up for the possibility of staying in Jersey City?

    If you have a reservation for the Fisherman’s Wharf area, you signed up for the possibility of staying in East Bay?

    Can you please quote the rules you claim that “they agreed to when they signed up” that you think are relevant?

    The only rules I’ve seen posted are the one’s that say the rewards perks are subject to change. A reservation is not one of those rewards perks.

  • TonyA_says

    You do not have your facts right. Hilton stopped accepting rewards for that property about 2 weeks after the court ruling around mid
    July. Their appeal or injunction plea was denied around August 10.
    The last day or turnover to the owners began 18 Sep. Since this was Hilton MANAGED hotel, it had to be run as a Hilton till the last day. On 18 Sep, that property was no longer a Hilton.

    The OP made a reward booking last June, before the July ruling.

  • TonyA_says

    I agree with Bodega. Michael, you need to show how Hilton breached the HHonors rewards program agreement. The way you sound, you equate the rights of Rewardees with the rights of Paid guests. I do not believe you are correct.

  • TonyA_says

    A long time ago, I was a paid guest at the Cairo (Conrad) Hilton. They packed my bags and sent me by taxi to a new hotel in Giza BECAUSE THEY HAD TO MAKE ROOM FOR HENRY KISSINGER’S ENTOURAGE.
    No refund, no compensation, nothing. The new hotel was freezing that night. Elliott must have been much younger at that time so I could not write anyone for help. Bear in mind that I was a paid guest. I wonder what they would have done to me if stayed there on a reward certificate? :-)

  • Michael__K

    Bodega asserted that customers agreed to this when they signed up. Show me.

    I can’t find anything in Hilton’s terms & conditions that allows them to refuse to honor any reservation. I can’t even find anything that so much as addresses the possibility that a guest could be walked to another hotel. Does that mean anything goes?

    Answer my question re: Manhattan/Jersey City , Fisherman’s Wharf/East Bay.

  • Michael__K

    What facts do I have wrong?

    Here is what I actually wrote:
    As you reported, they had two and a half months between the Court verdict and the cutover date. And since this was a “lengthy court battle”, I assume the possibility of losing the lawsuit was a known risk for many months even prior to that.

    You haven’t addressed anything in the post you were responding to or provided anything to support the assertion by Bodega that you said you agreed with.