My hotel was infested by bedbugs — can I get a refund?

Jareynolds/Shutterstock

Jareynolds/Shutterstock

Sarah Gaines wants a refund for her short-lived hotel stay at the Windsor Hotel on Manhattan’s Lower East Side. The reason? She claims the property was infested with bedbugs.

The site through which she booked the hotel, Hotels.com, refuses to refund the $750 she paid, even though she checked out after staying in her room for just a few hours. Appeals to her credit card company have been unsuccessful, and now she wants me to get involved.

Here are a few specifics about Gaines’ case: Shortly after making her reservation through Hotels.com last fall, she looked up the property online. She found multiple complaints about bedbugs at the hotel.

“We immediately called and were assured the problem had been dealt with,” she says. “They even told us if we happened to find any problems upon arrival, they would be happy to move us to a completely different floor, as they were ‘sure to have vacancy’ still.”

That didn’t happen. When they checked in, the hotel was running a full occupancy.

“Both rooms had infestations,” Gaines reports. “We crammed into the one with fewer bugs — some of us on the floor. We left the next morning as soon as we found a new hotel.”

Gaines says she contacted the hotel after she checked out and asked for a refund. It refused, citing its refund policy. Then she contacted Hotels.com, the online agent that sold her the room. It also refused, citing its policy. Finally, she disputed the charge with American Express.

“Today we received our answer from American Express that the charges have been reapplied as neither Hotels.com nor Expedia guarantee ‘the condition of the hotel’,” she says. “Note, we stayed for about six hours in one room, and were charged the full amount for both rooms for both nights, and woke up to a bedbug on my six-year-old’s pillow!”

Oh my. As the father of a six-year-old, I can tell you that I would be pretty upset if I found a bedbug on my daughter’s pillow in a hotel.

Gaines adds,

I say their ‘no refund’ policy surely cannot apply when the hotel presents a health risk!

And worse, possibly, is that Hotels.com still has The Windsor on their site!! When I looked at it tonight, a pop up menu announces, “This hotel has been booked three times in the last 24 hours”!

Shameful!

It’s not immediately clear why Gaines didn’t investigate the property before making her reservation. Or why she didn’t make more of an effort to switch hotels prior to her stay — or why she didn’t ask for the hotel to help her once it became clear she was staying in an undesirable room. There may be, as commenters on this site would say, some “missing” details.

Once you’ve left the building, getting a refund is really difficult. From a hotel’s perspective, you’ve abandoned a room that they probably won’t be able to resell, so they’re out the $750 you spent. Their policy says: no refund.

But I’m not entirely happy with Hotels.com’s response, either. Saying that the site isn’t responsible for the condition of its rooms is absurd. After all, its tagline promises it will find you the “perfect place” — and a room infested with insects is not the perfect place.

I was going to put this case up for a vote, as I do every Tuesday, but shortly after I finished writing this story, I heard back from Gaines. Hotels.com offered her a full refund. Case dismissed.

Should Hotels.com have refunded her room rate?

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  • TonyA_says

    I agree with shame on the hotel. But why TRIPLE shame on AMEX?
    What did AMEX do wrong? Can you clarify what is AMEX’s responsibility here?

  • http://www.facebook.com/judyserie.nagy Judy Serie Nagy

    This is an ugly one, I’m glad she got a full refund. Would the best move have been to force the hotel to walk her to another property and apply her money to the new rooms? Do they rely on the fact that most people won’t waste 6 hours trying to solve a problem when they can just book and move themselves in an hour? I learn alot from you, Chris,and want to know what to do if this ever happens to me!

  • Ed Boston

    Could it possible be argued that the T&C is the facilitation of a habitable room and because it was infested, it was not habitable? Habitable being implied in that no normal reasonable person would ask to have them facilitate for a room that shouldn’t be occupied.

  • TonyA_says

    In essence she already argued that point with AMEX and lost the argument. I believe AMEX said that Expedia did not warrant the CONDITIONS OF THE ROOM. I tend to agree with AMEX on this specific point. Here’s what people need to know.

    When you use Expedia’s hotel online booking service, you must read the fine print and understand exactly what they are committing to do for you. Making assumptions and guessing is a dangerous game.

    Note to people – use a third party service with extreme caution.
    I believe AMEX would have taken her position had she contracted directly with the hotel itself. The terms and conditions would have been different had she done so,

  • emanon256

    That’s what got me back in the day when I used Expedia (I mentioned the story before on here). This was long before I started traveling for work, but sadly after I booked teh 4 star Days Inn. I stayed in a hotel maybe 3 or 5 times a year back then.

    I booked a pre-paid hotel on Expedia near LGA for one night as I had a 5am flight. I got there late, maybe 9 or 10 pm. The hotel was out of rooms. I gave them my confirmation and they said they can’t help, they are out of rooms, and that I would have to talk to Expedia. I called Expedia and they said its between me and the hotel. I tried the hotel again and nothing, they said they canceled my reservation and refunded Expedia. I tried and the Expedia rep tried finding other hotels, no one had any rooms. After awhile the hotel told me I need to leave their lobby as I am not a guest.

    Long story short, Expedia refused to give me a refund and said it was between me and the Hotel, and the Hotel refused to give me a refund and said it was between me and Expedia Expedia.

    My job at that time gave me free pre-paid legal counsel, so I used them and they spoke to Expedia and then told me about the whole “facilitation fee.” Expedia stated that 100% of what I paid them was the “facilitation fee” and they paid for the reservation themselves on my behalf and since they did make the reservation, they performed their duty and I am not due a refund. The lawyer said their contract was air tight and I could not get my money back. I have not used Expedia since.

  • TonyA_says

    Wow, horrible lesson to learn. I hope everyone here reads your story. This is EXACTLY what I am referring to when I warn folks to read the Expedia contract you are about to get into.

  • mszabo

    Well even in that case isn’t Expedia still on the hook for that “facilitation fee”. In this case Expedia didn’t do its job and didn’t book the traveler a habitable room. Certainly that is completely the fault of the hotel and not Expedia, but that just means Expedia has some action to take against the hotel.

    The Traveler has no idea (and doesn’t need to know) the breakdown between the actual room rate and expedia’s facilitation fee. I’d even say this is probably considered trade secret information. Unless Expedia wants to let the cat out of the bag, and tell the traveler how much money to request back from the hotel, I’d think getting the entire refund via Hotels.com is the best solution.

  • Miami510

    Probably an apocryphal story, but something that you will probably always remember.
    A woman finds bedbugs and many bites on her body after an evening renting a hotel room. She writes a well-crafted letter explaining the problem and the uncomfortable results.

    A week later she receives a letter from the chairman of the board of the
    hotel corporation:

    Dear Madam,

    It is with the utmost embarrassment that I read your letter, and in behalf of Board of Directors and our management, I offer you our sincere apologies. This has never, ever happened at any of our 200 hotels before, and I assure you of our earnest efforts to see that this is a singular occurrence. In
    recompense I’m enclosing a coupon for a free stay at any one of the hotels in
    our chain.

    Cordially,

    Xxxxxxx

    In error, his secretary also included the guest’s original letter, and scribbled in pencil on the bottom of her letter were the instructions:

    Send her the bedbug letter.

  • TonyA_says

    If you read what AMEX said, they (expedia) are not.

    Look, I do not want to defend Expedia.

    That is a very uncomfortable position for me to be in.

    BUT PEOPLE NEED TO UNDERSTAND THAT THEY ARE DIYing their hotel search AND they are USING AN ONLINE VENDING MACHINE TO BOOK THEIR RESERVATION.

    What do you expect?

    The room rate, net rate, fees is not that important. What is important is HOW THE GUEST CAN GET A REFUND OF WHAT SHE PAID (ALL OF IT) FOR THE NIGHTS SHE DID NOT STAY. Those who have her money should return it. The hotel has most (maybe 75-80%) of her money. Hotels.com probably has about 20-25% of her money.

    To ding hotels.com for 100% of her money is just as unfair if they don’t have her money. Why does anyone think Expedia can recover that from the hotel? It is also not Expedia’s fault the hotel has bedbugs. The end does not justify the means.

  • girlygirl

    One read of the Expedia contract was enough for me not to do business with them. Too much gray area and ping-ponging between Expedia-hotel-and any third party involved. Full price seems like a bargain to me after I read about some of the hoops these customers have to jump through.

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

    That procedure makes sense if the relationship between the hotel and Expedia is clean. But the hotels are saying that Expedia has the money and that you need to go the Expedia to get the refund. Then Expedia says you need to get a refund from the hotel. That’s not clean and the customer shoudn’t have to figure our who have the money.
    That’s why the law has joint liability. It works for such murky cases.

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

    I have to disagree
    1. We can only speculate AMEX reasoning. I’ve deal with huge reputable corporations that summarily deny claims and only review them on appeal.
    2. Regardless of the terms and conditions, there are consumer protection law which prevents merchants from selling defective or fraudulent goods and retaining the customer’s money.

  • TonyA_says

    If the guest has not stayed yet (check in yet) then Expedia has all the money. But if the guest has already left and the hotel billed Expedia (i.e. one time use credit card), then the hotel already has (her) money.

    So now there is a big problem. How does the customer get the money from BOTH the hotel and Expedia?

  • TonyA_says

    Carver, please read Expedia’s T&Cs on hotel bookings and tell me what service they say they will do for the customer.
    It is shocking (at least to me), why anyone would use them.

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

    You were due a full refund. Period.

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

    That doesn’t sound like blackmail or extortion, although state laws vary. Now if you asked for additional “hush” money, that would be a different matter.

  • TonyA_says

    It would be great is Expedia commits itself to take responsibility for refunds due to customer dissatisfaction(s). But they don’t. In fact many parts of their T&Cs makes sure that they don’t have to.
    If only consumers read first what this company is committing to do (or not do), then perhaps they will run away from this company.

  • TonyA_says

    If there is anything missing here it is that EXPEDIA must include a statement in its T&Cs on how it will process REFUNDS for customers who are dissatisfied with their hotel stays and depart earlier.

    Their existing contract seems to suggest they have no such responsibility. And, the action of AMEX may simply embolden Expedia not to change its position.

  • TonyA_says

    If a travel agent (human) sold this hotel to you, they will get at most a 10% commission and they are expected to help you get a refund.

    If you buy this room from an OTA, they will make about 30% gross margin and you are left on your own figuring out how to get a refund.

    Grossly unfair.

  • Sarah Gaines

    Obviously we got the (one) employee on staff involved. This is a mom and pop business, I guess. The employee’s english was limited. He was very apologetic, but had zero to offer in terms of solutions. We were given extra sheets and pillows to sleep on the floor in the less-infested room. He told us we would have to contact the manager with our concerns.

    After a long weather delay on our flight out, (then a $50 cab ride from the hotel) we arrived with our 2 year old, 6 year old and their 75 year old grandmother at about 2 am. We didn’t “up and leave”. We got all the help this person could offer when he gave us the extra pillow. We spent two hours online and on the phone trying to find an alternate solution.

  • Sarah Gaines

    *a six year old, a two year old, a 75 year old, 10 bags, computer, and yes, an iPhone. (at 2 am and no alternate hotel to go to.)

  • Sarah Gaines

    Do I get a yes vote (not that I need it since Hotels.com reversed itself, but I guess I want to be understood!) since we 1.) left as-immediately-as-possible and 2.) raised the issue of the refund/dispute immediately but the very polite, but powerless employee referred us to the manager’s number? (and we were never able to get a response from the manager at all.)

  • Jane

    People who pay a fee for an AMEX card, like I used to, SHOULD hold them to a higher level of responsibility. I pay them (plus I know they charge higher fees that other cards) and in return I expect them to do more for me. The hotel had bedbugs and would not (or could not) give them a bug-free room. They shouldn’t have to pay for this horrible experience. Amex should be on their side and not on the side of those providing the poor experience.

  • TonyA_says

    Hi and thanks for coming here to talk about your problem. I’m sorry to hear this awful thing happen to you, your young kids and your old mom.
    I’m sure you tried to get hotels.com to help you out of this situation. Can you please tell us why the refused to refund your money or maybe get something else for you. Did they propose any solution? Thanks.

  • Sarah Gaines

    What we didn’t know at the time is that Hotels.com has a division to help place you in an alternate location if there’s ever a problem like this. That would have been great to know at the time.

    We really didn’t anticipate any resistance on getting a refund. It seemed so obvious to us based on the circumstances. When it became clear that we would never reach the manager we called Hotels.com.

    When we first contacted them they were supportive and asked for 24 to 48 hours to get in touch with The Windsor. They never followed up. When we contacted them again, we spoke to a different (much less interested) agent who agreed that we should go through Amex.

    The fact that American Express sided with Hotels.com/Expedia was the biggest shock of the whole thing to me. “The merchant has informed us that… Expedia does not guarantee any hotel or amenity or the condition of the hotel. They only guarantee the hotel reservation.”

    It wasn’t until I ranted a little on Twitter that someone from Hotels.com re-opened the investigation. One lesson, perhaps, is that the outcome of your complaint may rely on the agent you are working with.

  • TonyA_says

    I still have my AMEX card and have no problems with it.
    Please allow me to explain why I think AMEX could not do anything more.
    The merchant to the charge was Expedia (hotels.com).
    Expedia is not the hotel itself. You are simply paying Expedia a facilitation fee to book the hotel THAT YOU PICKED YOURSELF. That said for as long as Expedia is able to make the booking, they have accomplished their responsibility.
    The hotel stay is therefore the hotel’s responsibility.
    That, in essence, is the gist of your contract with Expedia.
    So even if your hotel stay was awful, it is not Expedia’s fault.
    AMEX knows that, so that is why they could not force a chargeback on Expedia. Expedia did what it said it would do – book your hotel stay (as is with no warranties).

    While this might absurd to you (and me), it is the contract and AMEX has no choice but to follow it. The solution is to stop using Online Travel Agencies (OTAs) and not to chastise AMEX.

  • TonyA_says

    Thank you for explaining the point I have been trying to say here to others – that your contract with Expedia only requires Expedia to make a reservation (facilitate a booking) and does not guarantee anything else. I know it sounds ridiculous, but unfortunately that is exactly what their Terms and Conditions say.

    What Expedia is doing is most probably legal (since they obviously have the best legal minds money can buy), but is, in my opinion so DISINGENUOUS.

    Here is the reason why (note I am not a lawyer).

    Expedia’s standard contract with hotel properties has this clause:
    Property shall not charge any amount for a Room if a Traveler arrives at the Property but departs as a result of the Traveler’s dissatisfaction with the Property …

    If the Company refunds a Traveler because of a Property’s actions, then the Property must reimburse Company for such refund within 30 days after Company requests reimbursement.

    They do not explain this to their customers. They do not even tell customers about it. For if the customers know that Expedia has the right to claw back payments to hotel properties and that guests have a right to walkout and Expedia does not need to pay the properties if that happens; then IT MIGHT CAUSE A MINI REVOLUTION.

    Bear in mind the contracts of Expedia with its customer and that with its Hotel properties are two separate and distinct contracts. So they can say they have nothing to do with each other (from a legal standpoint). I am simply pointing out how disgusting it is to ask YOU the customer to challenge (dispute) your charge with the credit card company (AMEX), knowing fully well their (as a merchant) contract with you is bulletproof and you will lose, and while they knew their contracts with the hotel properties have provisions that could have PROTECTED YOU.

    I hope Carver (who is an attorney) would comment on my post.

  • TonyA_says

    Hey I guessed the iphone part correctly :-)

  • Jeanne_in_NE

    Darn, but you’re good!

  • TonyA_says

    LeeAnne, I just dug up a standard property contract of Expedia.
    OMG, right in the contract is a clause that could have protected the OP. Shame on Expedia.

  • Extramail

    I’d be curious as to how many rooms were infested with bed bugs and how many, if any, other guests found their room uninhabitable. And, even more than that, why is the hotel still offered as an option? Disclaimer: I have never used an opaque site to book travel and I’m glad of that every single time I read Chris’ newsletter.

  • mszabo

    Well as you noticed they have a clawback clause. In this case it seems pretty clear that getting anything from the hotel isn’t fair to the hotel. If the hotel grants the refund then there is the potential that Expedia could will clawback a second refund later. This is what I somewhat suspected when I made my post. It really is in Expedia’s best interest to not publish the net rate otherwise their customer base may well get somewhat pissed off when it learns that Expedia earned $400 to book that 3 night stay. If you recall this happened just a few months ago (clearly the customer was in the wrong then but still is pretty bad for buisness). Having that clawback clause allows Expedia the opportunity to keep this information a secret.

  • TonyA_says

    According to the property contract, the hotel should not bill Expedia AT ALL (or used the one time use credit card if Expedia sent them one) EVEN FOR ONE NIGHT. (My original post suggested they should bill one room one night.)
    Had the hotel promised NOT TO BILL Expedia, then Expedia could have refunded the OP easier or much sooner.
    The clawback is there just to make sure the hotel does not bill Expedia later.

    Because of the way the merchant hotel system payment works, REFUNDING a customer can get very dirty.
    That is probably the reason why the agent of Expedia tried to pull a fast one on the OP.
    Maybe he wanted to protect their relationship with the hotel (keeping the revenue) more than protecting the OP.

  • y_p_w

    If one is simply pissed and wants to report someone to the authorities, that’s one thing. If the threat of reporting (and offering to withhold the reporting) is directly linked to a refund, that could very well be considered extortion under NY state law:

    “http://public.leginfo.state.ny.us/LAWSSEAF.cgi?QUERYTYPE=LAWS+&QUERYDATA=$$PEN155.05$$@TXPEN0155.05+&LIST=LAW+&BROWSER=BROWSER+&TOKEN=09950648+&TARGET=VIEW

    § 155.05 Larceny; defined.

    2. Larceny includes a wrongful taking, obtaining or withholding of another’s property, with the intent prescribed in subdivision one of
    this section, committed in any of the following ways:

    (e) By extortion.
    A person obtains property by extortion when he compels or induces another person to deliver such property to himself or to a third person by means of instilling in him a fear that, if the property is not so delivered, the actor or another will:

    (ix) Perform any other act which would not in itself materially benefit the actor but which is calculated to harm another person materially with respect to his health, safety, business, calling, career, financial condition, reputation or personal relationships.”

    This was the law that was used to convict the guy who blackmailed David Letterman. The requirement is that some property be delivered in exchange to withhold the threatened action, and my reading of the law is that “delivering property” is very broadly defined.

  • JenniferFinger

    Good thing Hotels.com refunded her in full. Shame on Amex. What the hell are they thinking that first they assured her that they took care of the problem, they very clearly didn’t, and then they give this “neither X nor Y guarantee the condition of the hotel” ? Who do they think would want to stay at a hotel full of bedbugs?

  • TexanPatriot2

    I looked and look and looked at online reviews before picking a Manhattan hotel. Just because of these absurd policies.

  • TexanPatriot2

    People who are flying into New York from Missouri don’t generally bring bedbugs with them. If your logic was true, then they should have bedbug infestations in EVERY major city. Why does the word Bedbug and NEW YORK CITY seem synonymous?

  • TexanPatriot2

    As a general rule, I never issue a threat. I just do it. More often than not it’s a bluff anyway.

  • Sam Varshavchik

    If you dig into that web site further, you’ll find the alternative number to 311, which is (212) NEW-YORK

  • LeeAnneClark

    Glad to see that you found that, and recognize that Expedia has a responsibility to provide what they sold…even if they are not the provider. They took the money from the client, they can’t just keep her money if she doesn’t get what she bought. Good to know their contract reflects that in some way.

  • TonyA_says

    I am afraid that pointing out an inconsistency between their contracts with customers and hotels only carries moral and ethical weight. Legally the customer still has very little leeway, allowing this company to thumb its nose at even the most basic customer service issues. And since the customet PREPAYS, it will be an uphill battle all the way. Time and time again, this company always seems to make it to Elliott’s shame list. Unless a government agency or a judge forces them to ammend their hypocrital we are a mere facilitator customer contract, then IMO nothing will change.

  • KaraJones

    Oh, you’re blaming New York for bed bugs? Does it happen in some hotels? Of course it does – in nice ones, too. And it started due to international travelers who brought them in. But they didn’t only bring them here to NY! Ya’ll come back now, Texan. LOL!

  • 57bigcheese

    Knowing that Amex didn’t stand behind the customer, I wouldn’t apply for a credit card from them.

  • 57bigcheese

    As far as booking thru Expedia …never would I trust them again. They are thru as far as i’m concerned.

  • 57bigcheese

    I disagree. Amex could also issue a credit for a good customer. Amex would allow the charge to stand but issue a credit on the customers bill.

  • 57bigcheese

    I think it’s because of all the liberals in the city….lol

  • Olivia Heartelly

    Well, if they are responsible enough and really mean good business (which a give and take relationship) then they should issue a refund no questions ask and they should fix the problem after…
    NABedBugs.com

  • Casper

    Here in lies the problem with these 3rd party reservation centers, i.e. Hotels.com, Expedia, travelocity, etc…They have a strict no refund policy but in most instances they will usually relocate guests at no extra costs. I have been working in the industry for over 10 years and always reccommend that you book directly through the hotel. Usually you have more pull on guest related issues if you book directly with the property instead of 3rd party reservation centers because guess what, their in business for themselves not for you the guest. My tip: Next time book directly with the property and always make sure to check online reviews before booking anything!