Case dismissed: A suburban spat over a Hotwire hotel room

Here’s a relatively common problem with a so-called “opaque” booking site — with a relatively common resolution.

Unfortunately, it’s the wrong resolution, as far as Phillip McKeough is concerned. He recently booked a Hotwire room in Grand Rapids, Mich. Or thought he had.

Hotwire’s system is not like other online travel agencies. You get to select the room category and location, but don’t find out which hotel you’re staying at until after you’ve made the purchase. When McKeough selected his hotel, he was given a room at a property in Walker, Mich., a suburb about seven miles away from Grand Rapids.

“I believe there has been some sort of mistake,” he told me. “The brand of hotel and price are all fine, but I can’t use a room in Walker. I would like a refund or credit to use in the actually city I need to stay in.”

I agreed that Walker wasn’t Grand Rapids, and asked him to send a polite email to Hotwire, asking it to reassign him to a hotel in the city.

McKeough did some more digging, and found another problem.

It turns out the Holiday Inn Express, the property he was staying at, had room rates on its own website that were only $2.36 a night more than the Hotwire rate. Why jump through all the hoops just to save a few bucks? (Hotwire guarantees rates are up to 60 percent off published prices. I guess the operative word is “up to.”)

He called Hotwire to see if he could sort it out. He asked to speak with a supervisor.

I thought I would have a good argument when I looked on Holiday Inn Express’ website and found that their standard rate was only $2.36 more than my Hotwire price.

The supervisor actually had the gall to tell me I was getting a deal. I was also surprised when she told me that the distance they quoted me was a straight line, rather than driving distance. I really thought I’d get her with the standard “Don’t you want me to be a happy customer?”

I guess not.

It was like talking to a robot. She just kept repeating that the details were in the fine print and there was nothing they could do because of their contract with Holiday Inn Express. I asked “what about your contract with the customer? I just want a hotel in Grand Rapids for a fair price.”

She told me that they never promised me a hotel in Grand Rapids.

I was disappointed by that response, so I contacted Hotwire on his behalf. Here’s the answer I got.

The Holiday Inn Express Hotel & Suites- Walker, MI does properly qualify under the area details provided by our site map for the Grand Rapids area. The possible location for a hotel within this selection is marked with a shaded overlay on our map. That specific area covers parts of Grand Rapids, as well as the neighboring towns of Walker and Wyoming.

[Note -- I've posted that map above.]

Both of these border towns are clearly marked on the standard view of our map. By selecting hotel results within this area, Mr. McKeough was receiving properties that could fall into any of those three towns.

That’s also why the labels for those results are noted as “Grand Rapids Area Hotel”. I’ve attached a mark-up of our map as a reference in case it might be helpful. (To note, area B. is Grand Rapids, C. is Grand Rapids East, and E. is Grand Rapids South – Wyoming).

In terms of the distance range provided for this area, the 0.7 – 5.2 miles is also accurate. My assumption again would be that the customer is using a distance measure based on traveling through streets from the map’s pin to the hotel location. In reality, these distances are provided on our site as a radius from the map pin. So the 5.2 miles represents a straight line from the map pin to the farthest corner of the area that was selected.

There are many factors that contribute to the size and shape of the areas we use for each of our destinations. Those factors can include things like the number of hotels available, the distribution of those hotels, and opaque protection for our suppliers (in return for providing discounted rates). As a general rule, the smaller the city, the larger the geographic area that each selection will cover on the map.

We’ve contacted Mr. McKeough to share the details of how our maps and areas work, as well as how and when to take those details into account if you have specific needs associated with your booking. We’ll also log his user case into our system to help inform future considerations when updating our site.

Separately, a Hotwire representative called McKeough and told him there was “nothing” they could do about the $2 savings.

So there you have it. Not only was the hotel in the right place, but Hotwire beat Holiday Inn’s published rate.

While Hotwire may be technically right, I think this is the wrong way to do business. McKeough will never click on Hotwire again, because he feels duped by the site. And for what? Saving $2 so he could stay in the suburbs? Come on.

I guess the real question is: In a case like this, should an “opaque” site bend its rules to make a customer happy — or stick it to ‘em?

  • Josh

    Which is why I do not use opaque booking sites. I want to know where my hotel is and what I am getting. The savings (especially in this case) do not outweigh the risks.

  • Tony A.

    Hello, What do you expect? Isn’t Hotwire and Expedia in the same dysfunctional family? Quelle Surprise!

  • http://www.facebook.com/monica.l.kennedy Monica Lynn Kennedy

    My questions is if that map of the Grand Rapids “area” was posted on the website, so he could see that there was a possibility to be sent to Walker. If so, he has no room to grumble, especially since he used an opaque site. If he had a specific type of hotel in mind in a specific area, he should just book through the hotel. He learned a hard lesson here, but other than a little bit of bad service, HotWire did exactly what it’s terms dictated.

  • Dave

    Another reason not to use the opaque sites.

  • Djp

    I had a similar problem with notepad once where they actually booked me in a hotel that was technically outside the grey area. I called them on it and after ahbout half hour I won.

    The heart of the problem goes back to elementary school and how many people are just very poor with geography and knowing what is close and what isn’t.

  • Andre K.

    These “opaque” sites should offer a distance toggle and use something like a Google Maps integration so that customers enter their desired location and then a distance radius from said location. Then that way these situations should never happen.

  • AV

    Again and again, people are surprised at sub-standard results from the opaque sites. As this user learned, $2 isn’t worth it! Pick your own hotel after doing even cursory price comparisons on non-opaque sites and stick with it. Then you know exactly what you’re getting. 

  • DavidS

    The location of the Holiday Inn Express appears to be within the shaded area of the map.

    I love opaque sites, but I do my homework first and compare standard rates in the area along with other websites where people post their results.

    I have gotten some real deals and steals over the years, very few duds.

    What terms did Hotwire not live up to?

  • Grey83

    I have used Hotwire for many years. when I look on their site, I always uncheck the areas I do not want, to avoid this issue. Also, whenever I look at sites like Hotwire or Priceline I also go to a site like Expedia to see what hotels are in the area and what their rates are. Due diligence is a key phrase.

  • Raven

    This is why I don’t use Hotwire and it’s ilk. Also, the reason the “customer service agent” just kept repeating herself is that she was probably in a call center in India using a script. 

  • BillC

    It seems that Hotwire performed exactly as advertised. I don’t see the problem. I always wonder why people complain when a third-party site doesn’t the same service as booking directly with a certain company. If your goal is to save a couple of bucks you will get what is provided. If you want to stay in a certain location make sure you book a hotel in that area. 

    I don’t think that bending the rules at least in this case would make much sense from a business point of view.

  • Michelle B.

    Did hotwire provide a hotel in the area indicated by their map? Yes. Did they provide a cheaper rate than the OP could have gotten on his own? Yes. That is the most you should expect from them. If you want a hotel in a much more narrowly defined geographic area, go to Expedia or whatever.

  • Michelle B.

    Did hotwire provide a hotel in the area indicated by their map? Yes. Did they provide a cheaper rate than the OP could have gotten on his own? Yes. That is the most you should expect from them. If you want a hotel in a much more narrowly defined geographic area, go to Expedia or whatever.

  • http://www.theworldofdeej.com The World of Deej

    Cant find any fault with Hotwire here. It’s a relatively simple site to work, and the customer was clearly shown the possibilities of where he could be staying. Could they have gone the “extra mile” and offered him an alternative, perhaps…but if one wants customer service, using a opaque website isn’t exactly the way to get it…

  • Mbods2002

    Thing is, when you help us out by publishing these experiences, it’s not only the “wronged” person who will never click on a site again, it’s many of us too…..

  • Anonymous

    I voted no.. Why?  As an earlier post of Chris’ indicated– I do think there’s some value in the notion of uniformity; that is treating all customers the same and not waiving the rule for customer X, but not for customer Y…

    I do think that unless there’s been a clear case of rules or policy violation, or an extreme case to the contrary, it really should be that all customers be treated and held to the same standard..

    While I don’t like all policies, especially those that I may view as a negative to me.. but I’d be even more upset to hear that my request for a waiver or the like was denied, when someone got approved for basically the same thing.. To me that smacks of bias and inconsistency. If you’re going to hold me to XYZ rules, then I’d expect everyone be held to the same XYZ rules..

    In this case, I don’t see that Hotwire did anything wrong.  yes, it may not be in Grand Rapid proper- as defined as within the city’s legal boundaries, but I do think that it is in the GR *area* and it appears the the customer was informed of this at the beginning via hotwire’s map..

    As to the rate– again, there was never a guarantee of how much.. Sure the 60% sounds good– and it may apply to some rates, but as is common across nearly all industries, it’s just that.. a range.. it may be less than 60%.. Is $2.36 a savings?  yes it is.. is it alot? No.. but then again, if my grocery store overcharged me $2.36 on my total, I’d be darn sure I brought it to their attention.. so it’s all relative..  Did Hotwire save him money?  yes, they did.. I don’t see it as hotwire’s fault that in his case it was ‘only’ $2.36.

    Also what’s not clear is if the customer did any ADVANCE homework by checking with the property directly to see what rates he could obtain directly from the property versus using a 3rd party agent..  just from the sounds of it, it appears he did his price comparison checking AFTER the fact.

  • DavidS

    Who was “wronged”? The OP got a hotel in the area he bid on.

    I don’t think he understood the site and/or did his homework ahead of time.

  • Julie

    He used hotwire, he got what he paid for. If you’re not willing to take this kind of risk, do not use the site.

  • Phil

    While I may disagree with hotwire, the problem is that if you bend the rules for one then where do you draw the line for others. I am currently looking at hotwire for a hotel, and I also look at priceline, just noticed that hotwire increased the price of the 2.5 star by $9.00, so will now bid on priceline. I really dont like hotwire, but have had good luck with priceline when bidding.

  • Caseyg51

    Here again we have an OP that wants to change the terms of the agreement.  Hotwire met their terms of the agreement and it was clear that the hotel could be in a broad area beyond the city limits.  As noted in other post “due diligence is a key phrase”.  Review the terms, review the locations and brand of product (when possible) and know what your are paying for.  As for Hotwire, I have used them over the years and find them to comply with their offers.  Sometimes I have gotten great deals other not so much.  However, I don’t hold Hotwire responsible for the less than perfect deals I got “I picked my nubmers and took my chances”.

  • Ro

    We had a similar problem with Hotwire about a year ago in San Jose, Costa Rica.  The deserted hotel we pulled up to was off a busy highway way out of the city.  After lots of negotiations (and I mean lots) we prevailed and got a credit which we subsequently used towards car rentals.  In contrast, Priceline is much fairer.  We booked an opaque hotel in Paris a few months ago and the Priceline price was actually more than the Tryp Hotels price (a very rare happening).  They were very honorable and refunded us the entire difference which factored in their fees as well as the higher cost.
    Rosanne Skopp, West Orange NJ 

  • Carver

    Part of the problem is a misunderstanding of how these sites work.  Hotwire and priceline are not discounters.  They are consolidators.  Hotels, airlines, etc run statistical models as to the predicted occupency.  Exess inventory is sold to third parties such a hotwire at a wholesale rate.  Hotwire then resells it to you.  There is no guarantee that the hotel won’t lower its prices in the interim.

    Booking with an opaque site is a gamble. Sometimes get a great deal, sometimes not.  Unless you are prepared to accept that fact, opaque sites will leave you disappointed.

  • Haygar

    I use priceline when i don’t have a specific area i need to stay in then i use betterbidding.com to see if i can figure out the hotel. I have received the hotel i thought I would about 80% of the time but have always been happy. That being said i use it for Europe and these citieshave all had a public transportation system that as long as your near a station it does not really matter where you stay

  • Bill

    Hotwire seems to have the maps and the documentation to show that the hotel was within the area selected.  McKeough (and I suspect some other readers) are using their definition of what the boundaries should be.  Since Hotwire discloses this on a map, this isn’t hotwire’s fault.  Their business model can’t be bent to fit everyone else’s idea of a business model.

    To a great many people, this distance wouldn’t matter at all.  McKeough’s mistake was using Hotwire in the first place.  Location was important to him and instead he tried to go for savings and saved a paltry $2.

    People need to get their priorities straight and not use hotwire or priceline when they should be using another site where they can pick the property.

    Another “waste of time” issue.

  • Bill

    Hotwire seems to have the maps and the documentation to show that the hotel was within the area selected.  McKeough (and I suspect some other readers) are using their definition of what the boundaries should be.  Since Hotwire discloses this on a map, this isn’t hotwire’s fault.  Their business model can’t be bent to fit everyone else’s idea of a business model.

    To a great many people, this distance wouldn’t matter at all.  McKeough’s mistake was using Hotwire in the first place.  Location was important to him and instead he tried to go for savings and saved a paltry $2.

    People need to get their priorities straight and not use hotwire or priceline when they should be using another site where they can pick the property.

    Another “waste of time” issue.

  • Anonymous

    If you don’t check the map to see what “Grand Rapids Area” includes, then I don’t see how HotWire could be at fault there.

    As far as the price goes… they don’t promise you’ll get a killer deal; if he thought it was a fair price when he bid, why does it become unfair just because HI will come close to it on their own?

    (FYI, the forums at betterbidding.com have hotels listings for many (though not all)  Priceline and Hotwire map areas.  You simply match the star rating and amenities to the list, and you can often figure out which hotel is which.  I got a good rate at an FLL Hyatt Place from Hotwire that way.)

  • Middle-aged-diva

    I used to use opaque sites, but not for a long time. Add me to the long list of people who think it’s too risky. Better customer service would probably increase their volume.

  • Middle-aged-diva

    I used to use opaque sites, but not for a long time. Add me to the long list of people who think it’s too risky. Better customer service would probably increase their volume.

  • Middle-aged-diva

    I used to use opaque sites, but not for a long time. Add me to the long list of people who think it’s too risky. Better customer service would probably increase their volume.

  • http://www.facebook.com/asiansm Dang Ph

    I never understand how people can buy something they don’t know what it is just to save some bucks (Of course, in some countries some people are also too stupid enough to marry a person they don’t know). My logic behind it is very clear, they hide the merchandise because they cannot sell its discovered.
    I never pay a room until I see it by my on eyes on place, not even on Internet.
    May be you can use those site for research or to be inform of the trend of the prices but don’t make a reservation without knowing where it is, and, specially the actual extra-ordinary circumstance like : construction, recent hurricane, recent tsunami, social unrest…

  • Grey83

    Thisperson was not wronged, this person was an inexperienced shopper who failed at entering the necessary criteria

  • http://www.blogster.com/mellifshitz#profile Mel Lifshitz

    Aside from the lost savings, the time you spent looking for justice and being angry at being scammed cannot be compensated by money.

  • http://www.facebook.com/chazowen Charles Owen

    On the left side of the screen you can click on the area map and see all of the areas. When you click on a price in Hotwire.com, you get a page about the hotel that includes a map of the area the hotel is in. I’m not sympathetic in this case at all. Also, I assume the OP is from a small town, since they consider 7 miles such a major commute for Grand Rapids.

    I’ve never gotten a good deal with Hotwire.com. I’ve had good results on hotels with Priceline, but every time I have looked carefully at the options in Hotwire, I could beat it without going opaque. Maybe it’s just me and others have great success, but don’t ever book these opaque sites without first researching what systems like Expedia have to offer. Also, there are sites that list the hotels people have gotten; it’s worth it to be sure what they call 4 star is what you would call 4 star.

  • Michael K

    As someone who has used Hotwire frequently, I know to look at their maps carefully and to make the worst case assumptions about the ultimate location (they typically gerrymander their map regions to just barely include peripheral properties).

    In this particular example, the Holiday Inn Express property is exactly on the boundary they’ve drawn.  I can see how someone new to the game could find it confusing and deceptive.  They do show the map on the bottom of the page where you click “Book Now”, but an inexperienced user might not scroll down and study it.  It might be a good idea if they added a mandatory checkbox that forces the user to acknowledge that they’ve looked at the map(s) and are willing to live with a result anywhere in the selected region(s).

  • Joe Farrell

    I don’t know what it was when he signed up but I went there today and it said ‘Grand Rapids AREA Hotel’ it did not say Grand Rapids city hotel – but the use of the word ‘area’ is a red flag in travel.  You want to stay at Disney World and you get a message that says Disney World ‘area.’  Is that hotel on property or is it in the ‘area.’  Same thing with Times Square – you want to stay on Times Square on New Years Eve with a view of the ball drop or times square area? Which one gets you a view?   If, as Hotwire states, their ‘deal’ is in the area, then the OP got scammed because HE did not pay attention. 

    As for their ‘savings,’  Hotwire is a joke. They sell you a $66 hotel room for $63.  They split their commission in half and rebate it to you as discount – its not brain surgery. . .

  • Rosered

    Do I understand Hotwire to say that the distance measurement is “as the crow flies” and not calculated on driving distance?  That could be a BIG difference in a downtown area with one-way streets, or even in the suburbs, where one might have to travel over secondary roads to get from point A to point B.  At any rate, as we say, “You buy your ticket and you take your chances.”  Notwithstanding my question, Hotwire delivered what it was supposed to.  What’s the beef??

  • Rustymcneal

    Using Hotwires logic; your Disneyland Vacation may be in South Central Los Angeles or LAX Airport.
    When rating a hotel the old real estate law still applies; location, location, location.  If you gamble that away, you’ve lost all control of your reservation.  Tough lesson not to use opaque booking schemes.

  • KWT

    With the ease of booking hotel rooms directly online, I cannot see why anyone would want to use any 3rd party to book a room.  You can book directly, compare rates and get exactly what you want in a specific location.

  • Rustymcneal

    After reading the comments; I want to make my position more clear.

    There is nothing wrong with using 3rd party booking systems. You can often get the best deal by locking yourself into a non-refundable date versus the flexibility of booking direct.

    On the other hand, I will never recommend booking a hotel that witholds it’s name and location.

    I had the same experience when my company used Priceline for a meeting in Manhattan…I was booked in a Long Island motel with no means to public transportation.  They suggested I rent a car…hence lose lots of money and time.  In the end I realized it was cheaper to eat the cost of the room, book another hotel in Manhatten myself, and save the time and money of a rental car and New York parking.

  • Steve R

    While I generally avoid the opaque sites because of situations like this, I don’t think they’re automatically a bad deal. The primary issue is that the opaque sites aren’t clear about location.

    Last weekend some friends and I stayed at a hotel in downtown Chicago in three rooms. We stayed at that particular hotel because one friend had booked his room there through one of the opaque sites and got a rate of $120 a night; I had to pay $206 a night through the hotel itself (since I couldn’t take a chance on an opaque site and getting assigned a different hotel…I was annoyed at my friend for not coordinating things better, but that’s not the site’s fault). The hotel and room were just fine.

  • DavidS

    I use an opaque booking site when I have a pretty good idea of what hotel I am going to receive, can get it for a substantial discount off the published rate and can live with a non-refundable/non-changeable reservation…that’s when I use Priceline and/or Hotwire.

  • DavidS

    On Hotwire, you can actually narrow a Disneyland stay down to hotels in Anaheim-Disneyland South or North areas if you wish. No risk of getting LAX or South Central.

  • DavidS

    If you got a Long Island motel from Priceline,  whoever booked your hotel did not understand the geographic zones Priceline uses. There are 13 bidding zones in Manhattan, none cross into Long Island.

  • Sunny

    Frankly, the OP is probably getting a better deal staying in Walker than in GR proper.  I live in Grand Rapids and aside from a few (expensive!) hotels right downtown, I would guess all the major hotel locations are technically not in the city, but instead right off the major highways in other suburbs.  Unless he wants to spend big money for one of the luxury hotels right downtown, the suburbs are his best option.  And it’s not like we are a huge city, driving time from Walker to downtown GR is 15 minutes at most.  I drive into work from a suburb that’s 13 miles out and it only takes me 20 minutes. And that’s in “rush hour.”

    Although, I’d be annoyed by the only $2 savings too.  He should have looked  around at prices a little before jumping right on Hotwire.  They’re clearly not always that great a deal!

  • Aaron

    Buyer beware. The maps were on the site. He could just as well have checked the rates on hotels in the selected area. And the hotels that Hotwire offers on its non-opaque listings sometimes give a clue as to what hotel you may end up at.

    I have used Hotwire from time to time; simetimes I have saved a lot of money and other times I have not saved much at all, but I have always done my homework first and I have always received a fair rate on a clean room. When you use Hotwire or Priceline you roll the dice, although you rarely lose money; you may just not win very much.

    I voted no. If Hotwire bent the rules for everyone who didn’t get a killer deal, how would they stay in business? Sounds like Mr. McKeough didn’t pay close enough attention. That’s not Hotwire’s fault.

  • cjr

    “Also, I assume the OP is from a small town, since they consider 7 miles such a major commute for Grand Rapids.”

    That would be a poor assumption.

    In many major cities, 7 miles can be a nightmare to cross. This person may not have a car or be renting one, meaning that they have to find another mode of transportation.

    There are all sorts of possibilities here.

  • cjr

    “Also, I assume the OP is from a small town, since they consider 7 miles such a major commute for Grand Rapids.”

    That would be a poor assumption.

    In many major cities, 7 miles can be a nightmare to cross. This person may not have a car or be renting one, meaning that they have to find another mode of transportation.

    There are all sorts of possibilities here.

  • Jebaker

    Anyone who uses these sites deserves what they get.  When you really want a deal, this is not the way to do it.  

  • Z44212

    I don’t see the problem other than user error.

    If you need to stay in a particular spot, don’t use an opaque consolidator.

  • DavidS

    I disagree. If you understand the concept and can agree to the terms it is a fantastic way to stay in some very nice hotels at a fraction of the cost.