B&B confirmed the wrong rate — do they have to honor the price?

The Pensione Nichols looks like the kind of bed and breakfast I’d want to stay in the next time I’m in Seattle. It’s charming, historical and it’s even recommended by my own magazine.

But there’s one other thing the inn — or more specific, the inn’s proprietors — aren’t, according to Blair Baker. They’re not very good with math.

This spring, Baker made a reservation for her and her husband during the busy Labor Day weekend.

“We decided to book a suite, since it includes a kitchen and would allow us to save money on food by cooking our own meals,” she says. “And since we were booking so far in advance, they gave us the room at a discounted rate of $200 a night. The day after making the reservation on the phone, I received an email confirmation from the hotel with a reservation number, the dates, number of guests, and price per night.”

But last week, when Baker tried to re-confirm her stay, she encountered a problem.

“I called the hotel to double-check all the details and ended up speaking with the owner, Lindsey,” she says. “Everything went smoothly until I asked her to confirm the $200 a night price. Lindsey said that wasn’t possible as the suite books for way more than $200 a night, especially for a holiday weekend.”

Baker says she explained that she’d spoken with another employee when she made her initial reservation, who had confirmed the $200 rate. She also had the confirmation in writing.

At that point, she says the B&B’s proprietor agreed to honor the rate.

“A few hours later, I receive an email from Lindsey saying she simply can’t give us that rate and we will have to pay $265 plus tax per night, or we can cancel the reservation.”

Bakers says she can’t afford to spend another $65 a night for her accommodations.

“Is there anything we can do to get Lindsey to honor our original, confirmed-in-writing reservation at Pensione Nichols,” she asked me.

I suggested that she make another request to the property in writing. Baker did just that, sending a strongly-worded email to the inn. Perhaps a little too strongly-worded.

Her set-up is pretty neutral. She explains the problem, and where things stand now. Then she continues:

But to my dismay I found your business lacking the integrity and professionalism I thought it possessed.

My husband and I are incredibly upset about the treatment we’ve received regarding this reservation, and would like to keep it for the room at the rate we were guaranteed as we planned our entire trip around staying at your B&B almost 6 months ago.

I called you back as soon as I saw the email to clarify the situation and was immediately and crisply told “You can either pay the increased rate or cancel your reservation.” When I tried to explain everything had already been confirmed in writing months ago and we no longer had time to make any changes, I was brusquely told “I have to check a guest in” and practically hung up on.

The email also mentions the inn’s favorable reviews online, which could be interpreted as a threat to populate the Internet with not-so-favorable reviews.

Given that, I’m not really surprised that the Pensione didn’t move an inch.

My position on rate mistakes, also called “fat-finger” fares, is well known. If it’s a reasonable price (one cent fares don’t count) and the travel business confirms the rate in writing, it should honor the price.

By my count, the Pensione confirmed its $200 per night rate three times; twice verbally and once in writing.

If, however, Baker knew the B&B was quoting erroneous rates (say, she’d seen it on a certain popular travel website that begins with the letter “F”) then I wouldn’t consider her case. That would be stealing.

But there’s no evidence of that happening.

My only hesitation in asking the Pensione to honor its initial price is this: I’ve seen the emails between the hotel and guest. The B&B seems to have taken a hard line on this case.

Yes, they mistakenly confirmed a $200 rate, and they admit it in writing. But in their estimation, it’s a mistake, and it can be corrected at any time before the guest checks in.

I’m not sure if the B&B will change its position, even if I ask.

  • Ed Boston

    This is not another case of “do what I want.” This is a case of “do what you promised.” The OP is asking for nothing more than what they negotiated for with the business in good faith.

  • Elmo Clarity

    The OP may have legal remadies available to them. They have a written offer that the business is no longer willing to honor. This could be breach of contract. Even though no money has been exchanged, there is an agreement that is one party does something (stay at the B&B) they other party will accecpt as compensation the agreed upon amount ($200/night). So if the one party shows up fulfilling there end of the agreement and the other party refuses to honor their agreement, you have breach.

  • TonyA_says

    I also voted NO, not because of the merits but because it does not make sense to pursue it further. If I am already at odds with the owner of a B&B, then I wouldn’t like to stay there. What will they do? Give me evil stares while I am at their home? Serve me cold breakfast? Spike my tea? Give me dirty sheets and towels? I might as well can it quits and go somewhere where I (and my $200) will be liked and appreciated. Sometimes it’s more than the money or the “principle”. You just have to move on and enjoy life. We all know already – this B&B sucks.

  • http://pulse.yahoo.com/_UJC5HI5WQKB6P56XX7IOTMJKYA Faboo Frank

    You might think so, but that’s not always the case. I stayed at a very upscale Omni for Labor Day weekend last year (booked two rooms) and got a very good rate for this property. Was just back there earlier this summer (not a holiday weekend) and paid top rates, about 35%/night more than last Labor Day. You just never know. I did later find out that it was some kind of festival in the small town and that jacked up the rates, I believe.

  • TonyA_says

    Wow, that’s too harsh on the employee.

  • Joe Farrell

    The problem with the conclusion that its not fair to take advantage of an obvious mistake is the sob stories we hear on here all the time of people making a booking error and booking 18 nights instead of 1 or some such silliness and the hotel’s first response is screw you.

    Look – it seems to me that these folks should not be staying here anyway at this point – the relationship seems damaged beyond hope and what kind of response are they going to get when they arrive?

    Yes – they booked a room 6 months in advance – you know what happened? The owner took the reservation without knowing it was a holiday weekend – you KNOW thats what happened. Now they have sellers remorse that they could have sold the room for $200 more than they did.

    In this case – they need to SAY that – own up to a mistake for being stupid – and make some reasonable offer. Like split the different or provide groceries or some accomodation. Telling the people that they pay more or don’t come adds them to my list of never stay at properties – the B&B has this reservation for SIX MONTHS. Its a done deal at this point.

  • Bill___A

    A B&B is a far more intimate place than a hotel, and a deeper relationship between the proprietor and guests is required.
    It is wrong for this place to confirm the rate of $200 and then revert to a rate of $265. It is even more wrong for them to persist in changing a rate they already confirmed. They will not make a loss, they will merely lose money. When there is a $65 per night mistake then it is pretty much assured that someone is not going to get their way. If the B&B misquoted the rate and confirmed that misquote, then it is their error and they should eat the $65 per might.
    However, in my opinion, things have degraded to the point where adjusting the rate would still result in an unpleasant stay for both the guests and the hosts.

  • RetiredNavyphotog

    Just e-mail the B&B in question and tell them you would never do business with them because of their shady practices.

  • MarlaM

    That is probably not legal. Not sure about WA, but definitely would be illegal in CA.

  • MarlaM

    I’m planning a trip in just a couple of weeks and if the hotel I booked was suddenly $65 per night more expensive, I would have to cancel the entire trip. This isn’t an emergency. It’s an owner who is refusing to do what is right.

  • RetiredNavyphotog

    Your comment was not very nice. Some people scrimp and save to go on vacation and any additional expense would hurt. If they have to spend an extra $65 per night, that is extra money they are not spending in restaurants or tours.
    In addition, their whole trip to Seattle might be tainted by this dishonest behavior of the owner of the B&B.
    Don’t assume everyone is rolling in money.

  • Extramail

    Can the OP not go to the b & b and, if the proprietor charges their credit card more money, then dispute the charge with your written confirmation? Or can’t the b & b pull a bait and switch and add the additional expense as a resort charge? There are so many ways proprietors quote you one rate and charge you another, I could go on and on and on . . . (for those who don’t get it, my point is that it seems these days we never know what the end fee is going to be in any part of the travel industry!

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

    I not quite as convinced that she started out pleasant. I’m don’t think the BB is justified in its behavior, but I think that’s the reason for the position.

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

    I agree that the rate does not appear to be an obvious mistake. Accordingly, the OP was perfectly correct in booking it and the BB should honor it.

    With regards to the first paragraph, I believe it should go both ways. If the travel industry was more flexible in showing leniency when travelers make obvious errors, I think people would feel more charitable when they make mistakes.

    The problem is that the travel industry is fragmented into an infinite number of individual providers each with their own paradigm.

  • LeeAnneClark

    You may well be correct. Note that I didn’t say I was “convinced”, only that it “sounds to me as if…”.

    Regardless, the B&B has a professional and ethical obligation to honor the price they quoted. The tone of the email from the customer is immaterial to the issue. If a business can increase prices or even deny service to a customer just because they don’t like their attitude while trying to resolve a dispute, that opens up all kinds of problems, doesn’t it?

  • Joe Farrell

    Whats amazing to me is I just checked – there are still – 4 weeks out – two kitchen type suites available to book. Given the choices one has in Seattle . .. I think that there may be a lot of open and available rooms –

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

    I don’t think the deposit is important, but the contract almost certainly had a clause that a mistaken rate is not enforceable.

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

    I quite agree that the tone shouldn’t matter. But what can you do?

  • Ed Boston

    I don’t think a clause like that would be enforceable. Allowing a clause like this would allow any business to offer something at a very low price but when you went to get the service they tell you it’s another price because it was a “mistaken” price. Basically would allow bait and switch to be legal.

  • http://www.facebook.com/jennifer.black.589 Jennifer Black

    Actually, for the location, there are remarkably few places available with kitchens. It’s right downtown, steps to Pike Place Market and there’s only one other hotel with kitchenettes nearby that I know of. And the one other that I’m familiar with is a step down in quality (and missing the views that Pensione Nichols has)

  • andrelot

    I think fat-finger mistakes are seller beware. While I’m willing to give them some leeway in unconfirmed bookings or verbal dialogues, once a hospitality or transportation service has confirmed some reservation in full and in writing, it should be obliged to honor it.

    While I’m aware with Chris Elliott’s stance on fat finger errors, I think companies should be held to higher standards in a digital age. Especially companies that are in the market for services such as lodging or transportation where there is just no “reference good-faith price” to be considered.

    Indeed, I’m more willing to cut some slack to a car dealership that put a $ 850.00 instead of $ 8,500.00 online ad for an used Honda Civic than to any hotel or airline or cruise line. Especially considering how there is now a widespread expectation costumers’ reservations are final once they’ve filled credit card number and clicked “pay”.

    If hotels and airlines were required by law to honor prices confirmed to guests in writing, I bet they’d place safeguards or change their processes such that “unusual” fares were not displayed to costumers before an employee bright pop-up red window appearing on their data center.

  • Mozue Cat

    I believe that since it was confirmed more than once, it should be honored.

  • http://twitter.com/nwtripfinder Lauren

    Downtown Seattle is likely to be pretty booked up already for Labor Day weekend.

  • https://plus.google.com/115197896619361127605/posts Aaron Weiss

    $200 for a B&B in Seattle is clearly not a “fat finger” rate. That’s an employee who’s unable to read from a rate card, or was mistakenly giving a discount they weren’t authorized to give.

    If they’d been quoted $20 the B&B would have a case here… but arguing with a customer over an unintentional 25% discount is shameful, and the Pensione Nichols deserves any and all negative attention or reviews they get as a result of this.

  • purplekat99

    If it was confirmed in writing, then it should be honored. I booked a hotel 2 months in advance for a super cheap rate in a small town in New Zealand during peak months over the phone and when I followed up via email the same day with a confirmation in writing, I received a response the following day saying the person on the phone quoted me the wrong rate and to confirm my booking at the new rate. Since I was tight on time and the town was tiny, I approved it. Annoying, but since I got it in writing, what else could I do. At least it wasn’t a surprise at check-in.

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

    I know I’m late to the party on this one…
    This is one of the few areas where Chris and I hold opposing views on something and I come down on the side of the consumer.
    Here’s my stance – I don’t care why it happened. Once something is confirmed, its confirmed. If a business wants to save money going digital, that’s great but there’s a risk that you might accept a booking for a bad rate. That is not the purchaser’s problem. That’s yours. In the case of online booking engines, nothing says that you have to charge and confirm immediately. You have the option of having a human do a common sense check before confirming the booking and rate.
    On this one, the property had multiple opportunities to catch their error and didn’t. They own the mistake.

  • http://www.talestoldfromtheroad.com/ Dick Jordan

    Offer made to rent the room for $200/night. Offer accepted. Consideration: Guest booked months in advance, so given discounted rate. Result: B&B has contractual obligation to rent room at quoted rate. Basic contract law.

    Additional factor requiring quoted rate to be honored: B&B owner could have reviewed booking shortly after it was made, notified guest of error, and offered another room at the same rate, or given the guest an opportunity to cancel and re-book elsewhere. Instead, B&B owners doesn’t raise the issue until contacted by the guest to confirm the reservation. Forcing the guest to either pay more, or cancel, might have left the guest scrambling to find affordable and desirable accommodations in Seattle for Labor Day weekend.

    And what would the B&B owner have done if the guest had not called to confirm, and just showed up, written rate confirmation in hand? Would she have told the guest to either pay the additional $65/night, or go elsewhere?

    This B&B owner needs to follow the example of Seattle-based retailer Nordstrom: The customer is always right (even if we’re right and the customer is wrong!) It pays off in the long-run, even if not in the short-run, to operate this way.

    Cost to B&B due its employee’s error in owner honors the quoted rate: $65/night. Cost to B&B for loss of good-will, reputation, future booking from this guest and probably some readers of Chris’ blog, due to failure to honor the rate (which the owner initially indicated she would do): Beyond calculation.

    I actually considered staying at this place on my last trip to Seattle because I thought the location was good and prices reasonable. I’m hardly likely to do so next time I head to my former hometown.

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

    Offer made to rent the room for $200/night. Offer accepted. Consideration: Guest booked months in advance, so given discounted rate. Result: B&B has contractual obligation to rent room at quoted rate. Basic contract law.
    —————————————
    Its alot more complex than that. You have to look at the contract as a whole before you can speak meaningfully about the obligations of each party. For example, is there an escape clause. If the contract was drafted by an attorney knowledgeable about travel, then there are several escape clauses all on favor of the property.

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

    Every business generally have disclaimers that they are not liable for errors. Have you ever been to the grocery store and they have a flyer apologizing for an error in the weekly specials and that they will not be honoring that price?

  • http://www.talestoldfromtheroad.com/ Dick Jordan

    It’s not a complex contractual situation, Carver. Nowhere on the B&B’s Website is even a cancellation policy stated, let alone an “escape” clause that would let it force a guest to choose between paying more than the confirmed nightly rate or canceling the reservation. Presumably nothing of the sort was contained in the confirmation sent to the guest, either.

    Vacation home or condo rental properties might have a list of rules and conditions that apply to their rental. Hotels, motels, and B&B’s often have rules payments, deposits, refunds, cancellations, pets, children, extra guests in rooms.

    But I can’t think of any type of lodging that I’ve stayed at where the owner reserved the right to change the rate or room type after booking. And I can’t imagine anyone agreeing to book a room at any place that did so.

  • mira

    Maybe the mistake was originally made by the owner. There are a million reasons why the guest was mis-qouted. Charging $65 a night to the employee who’s name is on that mistake is even more unethical of a situation! The employee, if being paid minimum wage, is probably not even making that much a day. Pleee-ase!!