Is this enough compensation? A discount on an icy hotel room

When the power went out in Jeri Kellerman’s hotel room at the Holiday Inn Express in Poulsbo, Wash., she and her husband spent the night in pitch black and freezing cold.

They assumed they’d get a refund for their room — others affected by the blackout in the area did. But they assumed wrong.

Their case raises bigger questions. Is there ever a time when a hotel should offer a full refund for a room? What about an act of God, like a natural disaster? Is a partial refund, or even just an apology, ever sufficient?

The couple checked into the Holiday Inn Express on Nov. 22, just as a powerful winter storm hit the region. Kellerman picks up the story:

At 6:45 p.m. the lights went out. My husband was in the middle of his Chargers game! We thought that the power would come back on soon, and seeing that the power was off as far as we could see, we hunkered down.

No one from the hotel came to our room (the phones were out) to give us any information.

After a very cold night — it was about 17 degrees outside — we waited until sun up to gather our things. The window sill in our room had ice on it. (that’s how cold it was). We had no heat, no hot water, no electricity and no hot breakfast as promised. When we checked out, a representative told us that he had no power to adjust our bill, but when the manager came in, and the power returned they would take care of it.

Holiday Inn offered a 25 percent discount on the room. They refused. The hotel bumped the offer up to 50 percent, but they said it wasn’t enough, and asked to speak with a manager.

He again offered only 50 percent, and said that it was the highest he was giving. He also told us that when the power went out, we could have left. Where would we have gone? The power was out!

His attitude has been horrible and unwilling to consider good customer service. We told him that we were going to complain to the head office, and he said “go ahead and call”.

Holiday Inn corporate hasn’t responded to the Kellerman’s pleas. Did it do enough?

A survey of more than 1,000 readers this morning suggests Holiday Inn could have done better.

Holiday Inn corporate has offered to pay the other half of the Kellerman’s hotel bill.

(Photo: Moby/Flickr Creative Commons)

Update (9 a.m.): I’ve clarified this post to reflect that Holiday Inn offered a 50 percent discount on the Kellerman’s current reservation, not a future room. Their initial email to me seemed to indicate that they were being offered a discount for a new reservation, but a follow-up note established that the hotel had offered to refund part of their current bill.

Update (12/5): From Jeri Kellerman:

Just thought I’d let you know that we have received a check from Holiday Inn corporate office, so they have finally paid for our entire room the night of the snow storm.

This however, does not mean we have goodwill towards them. Even if they had offered 50% off the room and 50% for a “future” stay we would have been pleased. It would have cost them nothing if we never went back, but the “good will” that would have been extended would have made a positive impression.

  • Wrona

    @Kathy, ever heard of cell phones? That’s what can be used to call the electric company, at least that’s what I use when my power goes out. Our power company will at least give general estimates, even if all it is we are still assessing the outage. Even if the estimate is it is widespread and we don’t know when it will come back on, that’s better than leaving your guests literally and figuratively in the dark.

  • Sarah Di

    At the very least, hotel staff should have checked on all the guests to make sure that they had enough blankets and to notify them of the widespread outtage. The fact that no guests were checked on and the manager’s attitude was poor when handling the situation is what I think warrants a larger refund. If the guests had been informed/checked on and the manager/representative had been helpful, I think 50% refund would be sufficient. Yes, it’s out of the hotel’s control. However, they are responsible for how they treat their guests and I consider that the larger issue here than the conditions created by the power outtage.

  • Steve

    I think that nothing short of a 100% refund for the night they spent in the cold and dark is acceptable; a future discount or free night in compensation for the inconvenience would be nice as well, but at a bare minimum they didn’t get what they paid for. Shame on anyone who says that it’s acceptable to charge people for a room that’s totally inadequate – and in 2010, a room without power and heat is totally inadequate.

    I also agree that this sounds like a case where disputing the charge with their credit card company makes sense. This isn’t a highly subjective, my-room-was-dirty kind of a case where you can argue that the guest still basically got what they paid for. It also doesn’t matter one bit whether the power outage was the hotel’s fault or not.

  • Charles

    When I read this, the first thing I thought was that Holiday Inn has a 100% Satisfaction Guarantee, so there should have been no question about refunding the entire night’s cost. Then, I went looking and could not find that guarantee anymore. I find it interesting that they USED to have a guarantee and no longer do. I’m not sure I will be as likely to stay at a Holiday Inn, anymore.

    @Darryl Wilson “Do you honestly believe that it is reasonable or easy for them to go to every single room?”

    Yes, I do. When a business has an emergency, the first thing you do is call in reinforcements. At the very least, they should have called in the manager. Then, they should visit every room or at the very least call every room to let the customers know what is going on. They should have arranged for a place for the customers that is warm and they should have made sure they had lighting and extra blankets. It’s not a question of if they did enough here; they didn’t do anything at all.

    Suppose a customer had been elderly and died in the room. Would his children be able to sue this Holiday Inn? Certainly.

    “I don’t know where people get this idea of a contractual relationship for air conditioning and other amenities?”

    Holiday Inn advertises a list of amenities. If they advertise breakfast and then don’t provide it, they have reneged on a contractual agreement. If they advertise air conditioning and don’t provide it, they have reneged on a contractual agreement. If we assume you have no contractual rights, where does it stop? Do I not have a contractual relationship for a roof? Businesses lose money when there is a power outage or other disaster. They protect from that loss with insurance because if they can’t provide the service due to the disaster, they can’t expect to be paid for the service.

    100% refund was absolutely due in this case.

  • Brian C

    Since when is the hotel in control of electrical services for the city? This wasn’t something you said was in the hotel’s control, “there were no lights as far as the eye could see”.

    This is something the hotel had ZERO control over. I’m sorry, if you didn’t want to stay in the cold hotel room, perhaps you should have gathered your things and left. Then you could have disputed the bill. Instead you chose to stay and you had a place to sleep that night.

    People are greedy…these two are more than greedy. The hotel did plenty.

  • Kyle

    @Darryl
    I mostly agree with you but I would like to point out that the power went out at 6:45 PM not in the middle of the night. At that time the hotel should have been able to at least knock on each door to make sure the guests were okay. I am a hotelier myself and honestly at a 1-200 room hotel it wouldn’t take very long to knock on all the doors even with only one or two people doing it. I doubt the hotel had enough blankets to give extras to each room, which is probably why they didn’t knock on each door.

    @ Kara Jones
    “A blackout is not exactly a surprising event in a cold-winter town. It’s not exactly like a tsunami popping up in Arizona.”

    have you ever been to the Pacific Northwest in the winter? western Washington is a mild winter area that rarely gets snow so yes, this is kind of like “a tsunami popping up in Arizona.”

  • Kyle

    I forgot to mention that I think 50% refund would be acceptable given the power outage was beyond the hotels control.

  • Buckster

    If it was a utility outage what do they expect the hotel to do? If it was a hotel issue then a refund. Otherwise 50% was pretty generous.

  • Lyn G

    These people are spineless. After spending a night in a freezing room, with no power, all the hotel is offering is 50% off the bill? Incredible. OK, here’s what they SHOULD have done. After the temperature in the room dropped to what THEY believed was uncomfortable, they should have walked to the front desk, told them they were leaving, and asked the hotel to send them to somewhere that had power. If the hotel refused, then pack up and go anyway. Call up the credit card company and dispute any charges. It is against the law in most states for an innkeeper to not provide for reasonable accomodations. Certainly no power and no heat would not be considered reasonable. If necessary, take the hotel to small claims court.

  • charlie

    I suprised myself by stopping a moment to determine an answer. At one time I’d instantly say the hotel should give a full refund since it’s too difficult to even sleep in freezing cold unprepared so the guests didn’t even have a night’s rest. I think I have determined that is my answer still.

    But I did go through the process of thinking I guess that’s what insurance is for…either trip insurance for the guest or the hotel’s insurance for the hotel to collect on.
    I do know that people feel a lot better when they feel they have been respected and validated.

    And employees should have a desire for care and responsibility in distributing info and making sure everyone is okay.

    There should have been an employee walking every floor with the lamp one would expect a hotel would have on hand giving people simple instructions and info. There should have been the respect of an offer to help people who required warmth or power for health reasons. I know people whose throat closes from their apnea without their machine and most don’t bring the backup system I’m afraid except when camping…so they would not be able to sleep for example. Many older people, the chick’s hatchery types, could not take that cold. People could have an accident in the dark even in their own room.
    This facility’s area doesn’t require back up lighting for the halls at least? People might congregate in the hall and find some warmth. And the staff could have gone to those nearby restaurants, albeit fast food and Starbucks, for thermoses of coffee and passed out their own breakfast danish. The generator might allow at least some cooking of some of their breakfast items.

    No employee found rooms for the guests at a nearby hotel? Say by 9 or 10?

    If the hotel didn’t show any of this consideration, they deserve to lose their money and collect on their own insurance for the loss.

  • Bunnee

    I live in the Pacific NW and we had power outages over a widespread area that day. If they had left Poulsbo, they would have probably had to drive quite a ways to find another hotel which had power. While I think the hotel could have done a better job of notifying guests about the problem and the likely duration, they did have a room to stay in and were no worse off than the residents of the area who were also coping with the loss of heat and power. 50% seems fair to me.

  • Tom

    @cjr

    Generally, we light some candles and eventually go to sleep early.”

    So, when I go and stay at a hotel, I should carry candles and a few extra blankets to make sure I don’t freeze to death…

    – The power went out at 6:45 pm. If they got in bed at 7:30, they could have a nice, long sleep in a very quiet and dark hotel room. The idea of freezing to death is complete hyperbole. At worst, the hotel room might drop into the high 50s unless they had the window opened. So it’s quiet and dark and a little cool, but you have your bed and blankets and maybe a wife with you to keep things warm. Somehow mankind survived for 10s of thousands of years in a lot harsher conditions. As a matter of fact, I bet half the people on the planet spent the same night in rougher conditions than a Holiday Inn Express without electricity.

    Also if service was their concern, why not stay in a regular Holiday Inn, not an Express, or better yet at the Ritz Carlton.

  • Ellis

    Don’t most large hotels have generators for such eventualities? Unless this hotel was the size of the Motel-6, then NOT having a generator seems out of the norm. (At least to this frequent traveler).

  • Ellis

    Never mind … just read that this was a Holiday Inn Express (as opposed to a full service Holiday Inn). I wouldn’t expect an Express to have a generator. Disregard my previous post.

  • charlie

    Re Tom’s “As a matter of fact, I bet half the people on the planet spent the same night in rougher conditions than a Holiday Inn Express without electricity.”
    But how much did they pay for it? What were they used to? What were the expectations?
    When I go in the bush I have different expectations even than when I stay at the cheapest roadside motel in the US.

  • Jake

    Just as everyone is so quick to jump on the ‘buy travel insurance’ bandwagon, I’ll jump on the ‘buy business interruption insurance’ bandwagon. The hotel seemingly gambled they would not need it, and lost. 100% refund is due.

  • Mel

    I think 50% refund was fair. The hotel had no control, anymore than an airline that can’t fly due to weather. If the hotel offered 100% refunds to an entire hotel full of people, that’s a significant loss for something beyond their control. Yes, they could have babysat each guest and checked on them, and yes they could have had a generator if this is a common event, and yes, maybe someone could have run out and brought in donuts or bagels for the guests’ breakfast; but asking for a 100% refund just seems greedy to me over a few “they could have dones.” I don’t understand the mentality of “if my isn’t perfect someone owes me something.”

  • Chris in NC

    Wow! I’m speechless at some of the responses here. The cold hard facts (no pun intended) is that the hotel was NOT able to deliver the product. If the electricity were out for 5 minutes, or if a certain food item in breakfast were unavailable, then no refund is due. Its all relative to the amount of inconvenience. In this case, there was no electricity or heat for the ENTIRE night. Yes, it is outside of the hotel’s control, but it has to be able to deliver the product, regardless of who’s at fault.

    Think of it this way. You booked a non-refundable rate to stay at the Hyatt Regency New Orleans. Then Katrina hits, and the power is out, the windows to all the rooms are broken. The hotel is uninhabitable. You wouldn’t apply the argument that “since it was an act of God, the hotel keeps the money?”

    Things happen that are outside of the hotel’s control. Thats what business insurance is for.

    @ Darryl
    Suppose you booked an airplane flight. You get on the plane, it takes off, but after flying for 30 minutes, it returns to the airport because of an issue. The airline cannot rebook you to a different flight, and you cancel your trip. Guess what, you still get a refund.

    The equivalent analogy is if your cable went out for 27 days out of the month, then yes, you deserve a refund for the month. If you ate at a restaurant and your meal was just served and the power went out and you could not eat your food, then no you don’t get charged. Yes, it has happened to me before.

    Hotels SHOULD have an emergency plan or contingency plan. Yes, the hotel is still responsible for their guests, even if something happens. Thats just the way it is when you own the business.

    You are right on one thing, sometimes the customer demands too much. But you are wrong on this case.

  • Chris in NC

    While I still think a full refund is due, I would take the 50% reduction is an acceptable compromise. I didn’t notice the addendum (it wasn’t there when I originally commented), and just saw it while reading through earlier comments.

  • http://bidontravel.com/blog/ Don Nadeau

    “[The manager] also told us that when the power went out, we could have left.”

    Absolute rubbish. The hotel had the couple’s credit card number and would almost certainly have processed it.

  • Scott Kopper

    Power outages are not uncommon in this area of the Northwest (I’m in Redmond, WA) and the hotel should have been equipped with a generator to provide some level of emergency service, like heat. The hotel is at fault. I’ve even been in third world countries and been pleasantly surprised to see notes slipped under the door explaining and apologizing for interruptions in various services. Making up a note and copying it should not have been a problem with even the smallest generator which I’m sure they could have found by walking down the street to a gas station or something.

  • Ernest

    If I have a reservation and can’t make it due to the storm, the hotel is still going to charge me for the room. If I do make it to the room and it does not have the basic services such as electricity, heat and water, then the hotel owes me a refund for the night. It does not matter why they did not provide the services, only that they defaulted in their contract. It matters not that if the entire state was dark, the contract between the hotel and the OP is the issue. Its not my job to call the electric company even if I did have a cell phone (which I don’t).

    The OP should have gone to the desk and asked about the power. If it was unknown when it would be restored, he could have asked for additional blankets or amenities. I would not have sat the entire night freezing without talking to someone.

    I do find it odd that there was no hot water. Most water heaters get their pressure from the city supplier and water should have been available. Also, lobby pay phones should have worked. Most hotels have a limited battery backup on their switchboards but if not, pay phones or non switchboard phones are powered by the phone company and they do have a backup system. Not sure who they would have called (corporate line of Holiday Inn?)but the option was there.

    If they had their own car, they should have had a winter survival kit in it incase the broke down while traveling. The extra blankets, heat packs and snacks could have made the difference. While it would not hurt them to be prepared, it does not change the obligation of the hotel to provide or refund.

  • Linda K.

    @ Kyle, yes we are usually a mild-winter area but that can change year by year here in W. Washington. I live on the other side of Puget Sound in a rural area and outages each year are a given (trees on wires the main culprit). The TV weather reporters have been saying for quite some time this fall that we are going to have a “La Nina” cold, wet winter (worst since 1950) and telling everyone to be prepared. Granted, spending a night in a cold hotel isn’t that great but it was caused by a storm. If the power went out at 6 at night, why didn’t they go to the lobby and check to see what was going on. Then they could have made a decision to stay or go. Sounds to me by their story they stayed in the room all night and didn’t make any attempt to find out what was going on.

  • Carver

    @Darryl

    I respectfully disgaree with your analysis. I’m not sure where you get the idea that a motel only sells sleep. If that were true all motels in a given locale would sell room by the square foot. Motels, even cheap ones, attempt to differentiate themselves so as to avoid commoditization. For example, one hotel might offer free breakfast, another might have free phone calls, another has in-room jacuzzi’s, etc.

    If a promised amenity is missing, then you didn’t get what you paid for and you are entitled to a refund.

    Your analogies are flawed. If the Cable company is unable to deliver cable TV for a week, yes, I expect a 25 percent reduction. If I order a 5 course meal and the restaurant only provides 4 course, they must fix that.

    The basic flaw in your logic is that its not about fault. Its about whether or not the merchant delivered what it is contractually obligated to do. If not, a refund is required.

  • Aaron

    Sure, the power outage wasn’t in the hotel’s control, but their treatment of guests was.

    They could have fired up a generator outside and at the very least offered some space heaters in the lobby or lounge. They did not.

    They could have obtained insurance to cover losses from reimbursing guests after a natural disaster (or power outage). They did not.

    A hotel is in the service business. There was no service provided — just a frozen room. They deserve a full refund.

  • Steve

    @Brian C: “This is something the hotel had ZERO control over.” Agreed…but that doesn’t matter one bit. As a consumer, I don’t care if the reason I don’t get what I paid for (and would anyone argue that this couple got what they paid for?) is that the business genuinely couldn’t provide it or if it’s because they didn’t bother to. Either way, I want my money back

    @Tom: “At worst, the hotel room might drop into the high 50s unless they had the window opened. So it’s quiet and dark and a little cool, but you have your bed and blankets and maybe a wife with you to keep things warm. Somehow mankind survived for 10s of thousands of years in a lot harsher conditions.” No one is arguing that it’s impossible to survive a night in a cold, powerless hotel room. The point is that when you’re paying most likely upwards of $100 a night (even a Holiday Inn Express isn’t cheap), those conditions are unacceptable.

    Also, people have commented that you wouldn’t ask your cable company or your electric company for a refund if your service was interrupted…I sure as heck would! The only reason I haven’t is because the interruptions I’ve experienced have been short enough that it wouldn’t be worth my time and aggravation to call customer service to haggle over a couple dollars. If I lost cable service for, say, two weeks, you bet I wouldn’t be paying a full bill that month…because I didn’t get the service I was paying for. What’s so hard to understand about that?

  • Mike Z

    It is amazing to see how many people think that because the outage was widespread that the people aren’t owed a refund. It does not matter how localized or widespread the power outage was. The hotel contracted with a guest to provide specific services. The hotel could not deliver on almost all of it’s obligations that it charged for. The reasons why they could not deliver do not matter one bit. A 100% refund is due.

    I keep seeing the cable company analogy here. So lets say you don’t have cable for 3 weeks and they say it is because an asteroid hit a satellite and that no cable subscribers or satellite tv subscribers had any channels either. Would you just tell yourself you still have to pay 100% of the bill because others were also inconvenienced and it really wasn’t the cable company’s fault? NO, NO, NO. You would ask for credit on the portion of the bill in which you did not get service.

  • Kyle

    @Steve and Mike Z

    the cable company/satellite TV analogy you are using doesn’t work. This situation is not the same as your TV service being interrupted for several weeks. This is more like your HD channels being interrupted for an entire month. Sure you will get a partial refund for not having HD for the month but your cable/satellite company is still going to charge you for the portion of the service that you did receive. 50% refund is adequate, anything more is being generous given there was absolutely nothing that the hotel could have done to restore power.

  • Steve

    @Kyle: “Sure you will get a partial refund for not having HD for the month but your cable/satellite company is still going to charge you for the portion of the service that you did receive.” I see your point, but sorry, I don’t buy it. In the United States in 2010, at a national-branded hotel like Holiday Inn Express, having electricity and climate control is so integral a part of the stay that I think a customer is correct to argue that the absence of those things means that they didn’t receive a portion of the promised service – they effectively did not receive it at all.

  • flutiefan

    I agree with Kyle (above) and a few of the other posters. It was out of the hotel’s control, but something should be done to make them feel better.

    My question: WHY WHY WHY didn’t they go to the front desk after it became apparent that the power wasn’t going to be immediately restored? If it happened at 6:45pm, you can bet that by 7pm I would be making my way down to talk to someone.

    That said, I feel the 50% refund was appropriate, but not necessarily the attitude of the manager they spoke with (if they, in fact, approached him with basic civility).

  • The Good Doctor

    At least they had a solid roof over their heads and a place to sleep for the night. Beats sleeping in their car!

  • Jeri Kellerman

    While I find most of the comments interesting, there are some things that need clearing up. We did not have an emergency kit in the car because we were 1500 miles from home and it was a rental. The car was not an AWD and therefore, because of the road conditions, it was not safe for us to go further down the road. There were dozens of cars that had slid off the road between Kingston and Poulsbo, so it was better to stay put for the night. We were understanding about the power being out…what we weren’t understand about was the attitude of the manager who lied to us and said he wasn’t the manager just to avoid talking to people the next morning. There were not more than 20 rooms filled that night. How much would it have taken for 20 doors to be knocked on to check on the status of guests? This was not about the money, it was the principal of the thing and the fact that the managers attitude was so rude to us the next morning and in subsequent follow ups. He told us that he didn’t care about customer service and demonstrated that to us many times. The money they saved that night on heat, electricity, hot water and breakfast probably more than paid for those 20 rooms that were occupied, that would’ve added up to $2000 maximum, which is small change compared to the goodwill of those that will return and stay there again. You can bet we won’t be at any Holiday Inn in the future. The hotel has refunded 50% of our room rate, and Holiday Inn corporate office is sending the other 50%….We’ll see if we receive the check in the mail.

  • Cañete

    Take your 50% discount and go home boys. Theyre giving you fair deal since is not hotels fault.

  • http://tdhurst.com Tyler Hurst

    50% seems decent, though they should have definitely checked on the rooms.

    Unless the power went out because the hotel didn’t pay their bill, what do you expect them to do?

  • Voss Christan

    A full refund is due and there should have been a discount on a future stay if they valued you as a customer. A hotel should not be compared to renting a house, which leads me to believe some people with no common sense or insight on business responded to this. Renting a house or apartment is a contract for usually 6 to 12 months where as renting a hotel is usually around a one to three day/night contract. 

    This contract entitles you to receive basic necessities such as water, a bed, and heat/air. A motel you could expect less maybe, but a hotel these are required. There have been lawsuits against hotels before many years ago resulting in the creation of Business Interruption Insurance, the people that mentioned this get an A+ for knowing their rights. 

    Also, a random fact; there were laws passed in certain states when trains were the main transportation, that every hotel required a safe to store valuables.