Is Hotwire’s new advertising slogan, “2 1/2-star hotels. 3-star prices.”?

Before you dismiss this latest story about a hotel ratings dispute as irrelevant, consider this: Changing a hotel’s star rating by just a fraction can translate into millions of dollars of revenue to an online travel company. So every half-point counts. It certainly does to Sugi Harto, who found himself booked at the Fairfield Inn Placentia through Hotwire recently.

As an “opaque” seller of travel, Hotwire doesn’t reveal the name of the property until you’ve after you’ve bought it. It only lets you see a location and a star rating while you’re shopping. Hotwire generously awarded the Fairfield Inn three stars. Harto found that many other credible sources gave it only 2.5 stars.

Is this a textbook case of star inflation?

The difference between a 2.5 star and a 3-star is relatively minor, to be sure.

Here’s the description of a 2.5-star:

Midscale 2.5-star hotels

These midscale establishments offer solid service that’s more than just the basics. Features often include:

* Guestrooms with couches and dedicated desks
* On-site dining
* An attractive, inviting lobby

A business administrative or health and fitness center may also be available. These properties are usually located near shopping or dining, and can be found in both downtown or resort areas and smaller cities.

And here’s a 3-star:

Quality 3-star hotels

These quality establishments make comfort and personalized service their priority. These full-service properties usually feature:

* An inviting, relaxed lobby
* On-site dining
* Room service
* Family-style rooms

A business administrative or health and fitness center may also be available. You can find these hotels in downtown or resort areas, and also in smaller, suburban cities.

So here’s Harto’s grievance.

In short, my arguments are as follows:

1. 6 out of 8 travel sites rate this hotel as a 2.5 star: Expedia, hotels.com, Priceline. Getatroom.com, Intervalworld, etc. I attached the screenshots for Hotwire, but they refused to open it because of possible virus (???). However, they also refuse to go to the Web site to verify. I faxed printouts to them but they never acknowledge any receipt.

2. Marriott has another property in the same street: Residence Inn, which is a 3 star.

3. Tripadvisor rates this place as a 2.5 star.

4. AAA rates this place as a 2 diamonds hotel.

Hotwire’s reply has been its general company line: No acknowledgment of the facts above. It’s been frustrating. Please help. All I expect is when Hotwire promises a 3 star hotel, it should provide me with a 3 star not a 2.5 star.

Hotwire’s methodology for its ratings is kind of vague. Its response to Harto was kind of lacking, too.

I understand that you do not agree with the decision regarding the Fairfield Inn. I regret that you are disappointed.

At Hotwire, we are committed to providing our customers with a quality experience and strive to present an accurate, up-to-date star ratings guide.

We determine our star ratings by:

- Visiting thousands of properties each year

- Carefully benchmarking our star ratings against other travel sites and ratings authorities

- Soliciting customer feedback following every stay and adjusting our ratings accordingly

- Investigating and acting on customer rating concerns

In support of our Star Ratings Promise we continuously monitor the quality of all hotel properties. You can review our Star Ratings Promise and our hotel star ratings guide by clicking on the link below or copying and pasting it into your browser.

http://www.hotwire.com/pop-up/hotel-ratings-popup.jsp

Customer feedback is an important component in ensuring quality products and services at Hotwire. Our goal is to exceed your expectations and we regret we did not do so on this occasion. We hope to have the opportunity to better serve your needs in the near future.

Now that’s a form letter. I decided to contact the company on Harto’s behalf. Here’s how it responded:

We’ve researched his concerns further, and feel confident in the star rating that was provided. While he is correct that several websites rate the Fairfield Inn Placentia as a 2.5 star property, there are others that rate it as a 3 star as well. For example, both Orbitz and Travelocity rate it as a 3, and the TripAdvisor customer reviews rate it as a 4 out of 5.

As you know, star ratings can vary depending on the source of the evaluation, especially when the difference is a ½ star. That’s why we have chosen to benchmark our site rating against some of the other large sites on a regular basis. We then evaluate our own customer post-stay feedback to see if we should downgrade a property further from the benchmark. In this case, the property rating is very well thought of by our customers, with 84% agreeing with the current 3 star level.

We do understand Sugi’s concern, however. We’ve contacted him and asked that he follow through with his check-in process in February. If he verifies that the quality of the hotel is not up to the level he would expect, we’ve asked that he call us immediately. We will work with the property to resolve any potential issues at that point, or we will re-accommodate him accordingly.

That seems more than fair. Except for just one thing: When I contacted Harto, he said he’d spoken with a Hotwire representative, who recommended that he dispute the star-rating with Hotwire because he had a good chance of prevailing, and advised him to book another hotel for that night — which he did. So now Harto has two nonrefundable reservations.

He’s disputing the first charge with his credit card.

I’m getting tired of covering the star-inflation scandal. Hotwire should peg its stars to a credible source, like AAA, instead of manipulating their star ratings for financial gain, as they appear to be doing.

Update (Jan. 28): Hotwire has reversed itself. From Harto:

Hotwire decided to cancel the reservation and refund the money. They still rate the property as a three-star. However, the quality control manager felt the supervisor who I talked to raised a wrong expectation and played a role in my booking of another property in the same area for the same period of time before resolving this issue. Thanks again for your help.

(Photo: J. Stephen Conn/Flickr Creative Commons)

  • larry bradley

    What I find interesting is that it is my understanding that Hotwire is owned by the same company that owns Expedia and Hotels.com, both of which gave the hotel a 2&1/2 star rating. In Europe when I book a 2 star hotel, I almost always get a hotel with a breakfast room. When booking a 3 star, there is generally a full service restaurant. The face that there is no restaurant at Fairfield Inns leads me to believe that they should only have 2&1/2 stars at best.

  • Eric

    A quick search of Fairfield’s web-site finds that the ONLY Fairfield with on-site dining and room service is the Disneyland location. No other Fairfield Inn within 50 miles has EITHER on-site dining, OR room service. A hotel lacking both of those features is NOT a three-star. And in my opinion, barely a 2.5 star. Yet another reason to aviod Hotwire and the like.

  • Mary H

    So now, instead of a clean comfortable room, this fellow has two of them…and neither refundable…..Too sweet!!!!!
    Seems to me, it makes more sense to get the directories of three or four chains and use those for guidance, instead of worshipping at the feet of God Internet. And…with prices all over the map, how can one fret at the difference between 2.5 and 3. What is it, a price difference that approximates so-many Lattes a week? It’s not rocket science, it’s human judgment. Will someone kindly tell me if i’m wrong in seeing this as a petty tempest in an obsessive brain? And hardly worth Chris’s time.

  • rgs

    I can understand the problem and these “opaque” sites are opaque in many ways. One possible solution is to check http://www.betterbidding.com and attempt to identify the place. After that, check alternative sites for their star ratings. I’ve used Hotwire for years and never have felt like I have overpaid. I suppose once in a while I’ll stay at a place that is either 1/2 star off or 1/2 better.

  • Mike

    Ok, so based on the Hotwire response that customers rated the property 4/5 stars means that it should be a 3 star property? That makes absoluetly no sense. The ratings that people give a property measure how well the property is doing based on their level of service and accomodations. if a cheap room is clean and well kept you will get a better rating from the customers. if I find a new bed and carpet in a cheap room, I may give the cleanliness 5 stars. perhaps the front desk person was very friendly and helpful, so bingo, andother good rating. This by no way means hat the hotel is a 5 star property, yet the Hotwire response would make it seem that the ratings are based on positive experiences rather than the amenities offered..

  • Thalassa

    I’m sorry, but I cannot side with the OP when the OP hasn’t even attempted to see the hotel.

    He booked with an opaque site and he knew it.

    Other reputable sites rank this hotel as a 3 star as well.

    The difference between a 2 1/2 and a 3 is negligible at best.

    He should have accepted the hotel reservation and gone to the hotel. If then, he saw it was completely unacceptable, then he could have said something. As it is, since he booked through Hotwire, I’m sure he got a very good price for the room. Consider it a learning experience.

  • Justin

    Or….People just need to NOT USE OPAQUE WEB SITES. The money you save by GAMBLING is simply not worth it. Half the time, these places usually ADD FEES. I’ll tell you what. When I book DIRECT with an airline, I often got quoted cheaper fairs than these websites offered. I am sure most individuals could call up the hotel, ask the AAA or senior rate, and walk away with the same or less price. Even if you save 5-10 dollars a night, is the GAMBLE of not knowing where you are going to stay really worth it? I’d rather I have the flexibility to view the properties and select the one I want. Maybe others have money to throw away or just don’t care. Honestly, it’d be a cold day in hell before I use Priceline, Hotwire, etc. Tavelocity isn’t even that great of a deal. Plenty of discounts exist where if you book, you can get a good price. That way, there is NO THIRD PARTY and no one to “KEEP” your money should problems arise. If the establishment fails to live up to its end, there can be no back and forth. You, your credit card, and all others know where to go for a refund.

  • Art

    Also do your homework & go to an “independent site” like “Trip Advisor” to check ratings of hotels.

  • Monica

    I agree with Thalassa. The customer hasn’t even been to the hotel yet and is disputing its quality. That’s not fair to the hotel. Give it a chance.

    However, I do see the other side. The requirements between 2.5 and 3 stars is minor, and Fairfield obviously doesn’t meet the 3-star requirements. Just because some other travelers said good things about it doesn’t mean its star should be increased. There is still a basic guideline to follow. I’d give a good review to any hotel that delivers what it promises. If it doesn’t promise a pool, then I’m not going to give it a bad review because one wasn’t there. I’d rate it on the things that are expected and advertised.

  • Adrian Shadowmoss

    As my man George would say, “Been there, done that.” I, too, was quoted a 3-star hotel in Anchorage but found it to be a ‘transitient’ lodging, hardly worthy of a 1-star let alone a three! Booked through an ‘opaque.’.

    Anyone what has traveled even a little bit knows what Justin said, that you shouldn’t gamble on the opaque sites. A little on-line research can not only save you money, it can get you better sites in better locations, etc.
    My advice? Stick with the hotel sites that often are just as – if better in price than – the “opaques.
    AJC

  • Steve

    I agree with Mike. The ratings that travelers provide are based on entirely different metrics than the star ratings that sites like Hotwire use to rate hotels; it’s entirely irrelevant for Hotwire to cite the property’s TripAdvisor rating in their response. The star ratings on sites like Hotwire are used to set expectations for what the hotel will be like; the ratings on sites like TripAdvisor are used to rate how the hotel measures up to those expectations.

    I’ve written TripAdvisor reviews where I gave a very inexpensive, low-level property like a Motel 6 four or five stars because they exceeded my expectations for that type of property. That certainly doesn’t mean I think a Motel 6 is a luxury property! Similarly, I would not hesitate to give a low rating to a fancy hotel if I was unhappy with the accomodations and service…but that doesn’t make it a budget motel.

  • JS

    I agree with Justin, in part. The problem with Hotwire, in my experience, has been dishonesty. Blatant, misleading, dishonesty.

    Personally, I am a huge fan of Marriott brand hotels, including the Fairfield Inn. I have no doubt that this Fairfield Inn received a 4/5 positive response rate; the Marriott brand has always met or exceeded my expectations thus far. However, the Fairfield Inn does not generally offer the amenities that are included in the description of a three-star hotel. The OP is right to be upset, as he was mislead by Hotwire.

    Hotwire’s profit motive is clear: people will pay more for hotels with higher stars. So inflating the stars for hotels is unfortunately an obvious tactic for Hotwire, especially since the same owners (Expedia) gave this same hotel 2 1/2 stars.

    I agree with the other posters who are in favor of dealing with companies directly, rather than third-party vendors on the internet. I prefer staying with brands that I know and trust. At the moment, Marriott happens to be my number one choice for hotels, and that’s what I recommend for most people.

    This way, people won’t be mislead and deceived by unapologetic companies like Hotwire. I would not use Hotwire any more than I would fly on Spirit Airlines, another very dishonest company.

    Just my two cents on this matter.

  • Roberto

    OP isn’t arguing about whether or not he’ll he satisfied with the hotel; he’s arguing that he paid for a 3 star, but was given a 2.5 star. Maybe he’d be happy staying 2.5 star hotel, but why should be expected to be happy to pay 3 star rates for a 2.5 star property?

  • David Farnham

    Given that it is obvious that US hotel star ratings are entirely subjective–AND based on guests’ reviews–I can only characterize this case as one of “Whine, whine”. Doesn’t Mr. Harto have anything better to do?

  • Di

    The star rating is needs to be overhauled and standardized. There should be an organization (just like AAA’s diamond rating) that manages the star ratings. And get rid of the half stars. It makes rating the properties much more difficult. From what I can see from the star descriptions given in this post, the only difference between a 2.5 and 3 star hotel is room service.

    Like I’ve said elsewhere on this site, I will not use the opaque sites because you never know what you are being given. I just don’t trust people to make decisions for me. I am planning a long trip to Ireland this spring, and while I went through a travel agent to book the flight and car (and I chose the flight ahead of time), I am pouring over the reviews of places to stay while there. After I make my list, I will give it to my travel agent to book (sense of security), complete with 1st, 2nd, and 3rd choices.

  • y_p_w

    Star ratings for Hotwire/Priceline purposes aren’t primarily based on guest reviews. They’re primarily based on “hotel class” with amenities as the primary criteria, although I suppose bad guest reviews might knock the ratings down a half-star or so. Hotwire ultimately determines the star ratings. They have a rating system for three stars, and I’d say that in general it would correspond to what most people expect out of a well-run Holiday Inn, Hilton Garden Inn, Marriott Courtyard, or Sheraton Four Points location. I’ve stayed at a Fairfield Inn location before, and it’s definitely not what I would give three stars. They’re one step higher than a well run motel, and I’d say 2-1/2 stars is what I would assign to the one I stayed in. It wasn’t a bad experience, but I suppose some people expect more.

  • Ed Greenberg

    The web is filled with hotels and third party sites offering rooms for rent where they DO tell you the price and the property up front. Why, oh why, do people continue to buy from these opaque sites, and then expect fair treatment?

  • Ernest

    My list of stupid things NOT to do:

    1. Drive drunk
    2. Flash lots of cash in a strange town
    3. Use a 3rd party booking agent
    4. Carry a weapon through airport security
    5. Drink the water in a 3rd world country

    Well, you get the idea. Justin is right on the money about using these people that I personally call ‘rip off artist’. I learned the hard way that they can not be trusted, from their come on pricing that is magically sold out when you try to buy to their false promises to fix the problems you should never of had from using them. They should be run out of business until they understand the meaning of integrity and put it as their FIRST order of business.

  • Nobody

    Opaque booking sites.
    Hotels that have problems, can’t get people to stay without paying a third party to sell their product at a lower price than the norm, would probably close if left to its fate from market pressures. They may even close between the time you pay for the room and the time you show up. This isn’t a matter of taking advantage of the hotel management’s greed for letting the last room go for half-price rather than staying empty with no revenue. It’s more of the hotel management taking advantage of the renters greed and vanity.
    “All right you Angel Beach *******
    You go down this hallway and wait by the far door.
    All right, ya down there? Are you ready?
    Here comes your night to REMEMBERRRR!”–Porky
    Nobody was faster

  • Carrie Charney

    After reading about experiences with Trip Advisor on Elliott, I have a poor opinion of the site and no longer trust it.

  • Dave J

    I would argue that AAA isn’t a reliable source either. Hotels often have to wait a long time being rated and the level of service/accomations can slip between ratings. I’ve seen enough properties rated as a 3* by AAA that were 2*’s at best.

  • Steve

    “Given that it is obvious that US hotel star ratings are entirely subjective–AND based on guests’ reviews–I can only characterize this case as one of “Whine, whine”.”

    Again…the star ratings in question here are not the ones that come from reviews left by random guests. They’re specific metrics that evaluate the amenities that a hotel provides, and the ratings themselves are determined by the travel companies. It’s not a perfect comparison, but I would liken it to the distinction between the movie ratings determined by the MPAA (G, PG, R, etc) and the 0-4 star ratings that a critic provides for the same movie. If you wanted to see a G-rated movie with your kids and were led to an R-rated movie instead, you’d be upset. That doesn’t mean that the R-rate movie is a bad movie – maybe it consistently got 3-4 stars from the critics. But it’s not what you were looking for.

    Furthermore, in this case, the fact that Expedia gives a lower rating to the same property than Hotwire does (even though they’re owned by the same company) is evidence that Hotwire is inflating ratings.

  • Carver

    @nobody

    Your statement is simply not true. Its not true that its the crappy hotels that use priceline/hotwire. Selling excess inventory to third parties, such as consolidators is a well established, completely uncontroversial business practice within the hospitality industry.

    For example, looking at biddingfor travel.com, the cheat website for Priceline I see several 4*Westins, Hyatts, Hiltons, etc., hotels that I have personally stayed at within the past year or two.

    And yes, the savings can be substantial. My friend just booked the Waldorf Astoria in Palm Springs for $80/night using priceline.

    Now, I personally don’t use these sites because they don’t work for my travel habits, but to pooh pooh carte blanche is to be uninformed.

  • larry bradley

    What was I thinking in my original post? Senior moment…Hotwire is not entirely opaque. It does post icons of all amenities. This means that NO restaurant icon was on the booking screen and that would be fair warning for the person booking that the rating was suspect. I have long suspected that Hotwire inflates their ratings by at least 1/2 star and book with them accordingly. For example, if I am booking a 3 star using the bid process on Priceline and the bid is denied, I will only book a 3&1/2 to 4 star with Hotwire. In addition, I always research Priceline hotels on biddingfortravel.com and research Hotwire hotels on betterbidding.com. I think there are some folks who should not use opaque travel sites and the OP is one of them.

  • http://www.upgradetravelbetter.com/ Mark Ashley

    Inflation by a half-star is bad, but how about inflation by a full two stars?:

    http://www.upgradetravelbetter.com/2009/06/11/hotwires-4-star-surprise-or-how-i-enjoyed-a-wildly-overrated-room/

    For what it’s worth, the quality control at Priceline is significantly better than at Hotwire, in my experience.

  • Carver

    @Larry

    The lack of a restuarant doesn’t make a hotel suspect. For example, the Hilton Garden Inn chain generally lacks an on-site restaurant, but they will routinely receive 3 AAA Diamonds or higher. Also, many courtyards by Marriott don’t have restaurants either and still received 3 AAA Diamonds or higher

  • larry bradley

    Mark: Excellent article and I totally agree with you about Priceline! Carver: I always enjoy reading your take on stuff. I will have to slightly disagree with you on the rating thing though. While I agree with you about the AAA Diamond rating, I was referring to the star rating used by Mobil and Michelin. I have never run across a hotel in my travels in Europe, where I do most of my traveling, that did not have a restaurant in a 3 star property. I think the problem for hotel guests in the United States is that there is no single standardized rating system, which makes every travel web site somewhat suspect. I do think that AAA and Mobil both do a good credible service.

  • Carver

    @Larry

    You are correct, I hadn’t considered European hotels. And it would be nice to have a standard system that both reviewers adhered to and the traveling public was very familiar with.

    I remember booking a 5 star hotel on Priceline. I got the Westin LAX, pre-heavenly bed. Not a top hotell by any means.

  • John

    Hotwire inflates properties by at least one half star on a regular basis. In this case, the Fairfield is listed as a three star. But if you search the Hotwire site under the vacation package tab, this exact hotel is listed as a two and a half star.
    Same hotel, same site. 3 stars hidden, 2.5 stars known.

    I just got the same result at property I recently stayed at. 3 star hidden, 2.5 star listed.

  • Jim J

    Several years ago, I booked a three star hotel in Orlando through Hotwire. What they gave me was an aging Quality Inn that was well below what I considered to be the three star level. I learned my lesson from that experience and since then have used Priceline for most of my hotel bookings. I would guess that over the past 10 years, I have been a Priceline hotel customer at least 40 times and never have been disappointed with the truthfulness of their ratings.

  • Lucille

    The gentleman complained and got your attention. Patience seems to have gotten the best of him and he kept calling Hotwire on his own in an effort to resolve this matter. Now he, himself, is the bigger fool with two non-refundable homes.

  • Calli

    You think thats bad.. I am in Dispute with Hotwire over a 3
    Star purchase, and the hotel they gave me is a microtel. Even in
    their own rating system, microtel is listing in the 2 star
    category. The excuse they gave was that they include user
    satisfaction into their rating, which makes no sense at all! I
    could give 5 stars in satisfaction to a 2 star hotel, since I rate
    based on my expectation..i expect 2 star service from a 2 star
    hotel so i would give it a high satisfaction rating. If i got that
    same service at a 5 star hotel, i would be furious. I cant find a
    website anywhere on the internet that gives microtel a 3 star
    rating

  • http://www.facebook.com/randy.greencorn.9 Randy Greencorn

    Without a doubt, Hotwire is ‘generous’ with their hotel ratings. A comparison of hotel ratings by HotelDealsRevealed.com found that of the 1,100 hotels in its database, 31% were rated higher by Hotwire than Priceline by at least half a star. On the contrary, only 7% of hotel were rated higher by Priceline than Hotwire. HotelDealsReaveled collects their data by crowdsourcing — that is, people who share their hotel wins and reports. Not entirely accurate but a good indication that Hotwire ratings tend to be on the generous side. See full details of study: http://www.hoteldealsrevealed.com/blog/hotwire-hotel-ratings/