Paris for 10 euros a night — uh, make that 100 euros

Question: I recently booked a hotel in Paris through Travelocity for 10 euros a night. Great rate, huh? Afterward, I booked airline tickets separately.

Not long after that, in the course of e-mail conversations with the hotel, they told me this was a mistake and that they could not honor the rate. Instead, they offered to increase my rate to 100 euros a night.

I then contacted Travelocity via phone, told them the problem and they called back and left me a voice mail saying it was a mistake and to go ahead and travel and then when I got back to contact the consumer relations department for a refund. I still have the voice mail. I contacted the hotel via e-mail and I said I would accept the new rate.

Now Travelocity has offered me a $50 voucher for my trouble. A few days later, they upped it to $250. This is pretty much worthless to me as I usually travel using miles and book my hotels using points. Can you help? — Patrick Kerr, St Louis

Answer: You’re right, that’s a great rate for a hotel room. Unbelievably good. And if Travelocity hadn’t left a voice mail promising to refund 90 euros a night, your case wouldn’t stand much of a chance.

Think of it like this: If you see a kitchen appliance on sale for 99 cents at the department store, instead of $99, would you demand the store honor the first price? No. Someone obviously put the wrong tag on the merchandise.

Contacting Travelocity was a good call. Saving the voice mail was even smarter. An email might have worked in this case, too. But the point is, you have a Travelocity representative on tape promising to make good — and it didn’t.

Do I really need to quote the Travelocity “Guarantee” that promises, “Everything about your booking will be right, or we’ll work with our partners to make it right, right away.” No, I don’t. You can read the whole warranty here if you’re interested.

Never mind guarantees. If a company promises you something — as in, a refund of your rate — it should deliver.

I have mixed feelings about your problem. On the one hand, Travelocity shouldn’t have offered to pay the difference between the real rate and something that was obviously a decimal point error. On the other hand, because it did, I think it should be held to its promise — not allowed to backtrack and offer you a voucher.

I would advise you to review each price carefully before booking. But a 10-euro a night hotel room in Paris at the time you were buying it, when hotel rates were at their lowest levels in decades, almost could have been correct.

This is all so confusing.

I contacted Travelocity on your behalf. It took another look at your case and found “obvious breakdowns in communication,” for which it apologized. You’ve received a full refund, as promised.

(Photo: steven wel/Flickr Creative Commons)

  • MarkieA

    Chris

    I’m not sure that this is a case of decimal point error. Mr. Kerr stated that the hotel offered to increase his 10 euro rate to 100 euros, not that 100 euros was the original price. My first take on this was that the hotel – during the initial conversation – realized the mistake, but wanted to get SOMETHING reasonable for the room rate.

    I’ve stated my opinion several times on matters such as these in this forum. As soon as the airlines, hotels, rental car agencies, etc. stop punishing the consumer for “honest mistakes” then I’m all for letting them off the hook for their “fat-finger” discounts. Until then…..

  • Heidi

    Chris, I’m glad you intervened in this situation. Your regular readers all know your strong opinion on supposed “fat-finger fares.” Regardless of whether it was ethical for the customer to book a ridiculously low price, Travelocity promised to pay the difference. I believe that if an employee promises something from the company, even if they did so incorrectly and not in accordance with company policy, the company has to abide by its employees’ promises as a representatives of the company. It’s a good thing this customer saved the voicemail, or I’m sure this would have disintegrated into a ‘he-said, they-said.” I don’t think you should have any qualms about helping this guy out.

  • Cyn

    If the CUSTOMER makes a honest mistake (transposing dates, mixing up airline codes), the customer PAYS. So I’m all for holding businesses accountable for their honest screw-ups, until they cut us some slack.

  • John

    Chris… Disagree with you on the “fat-finger rate” issue and I’m normally fall to the “pro-business” side. Once the business excepts money for the booking, its a contract. No “take-backs”, mulligans etc.

    Good thing she kept the voicemail…

  • shruti

    I’m inclined to agree with Markie. I don’t think it is right that properties/airlines should be on the hook for mistakes, however, until they allow us that same grace, it does seem fair.

    John who writes his name Johm is chastised for not checking his records–well, before posting a rate, shouldn’t a property be checking their records too? But John gets socked a change fee for an obvious mistake, while the consumer is expected to forgive the property.

    Of course, an eye for an eye…

  • Charles

    “Think of it like this: If you see a kitchen appliance on sale for 99 cents at the department store, instead of $99, would you demand the store honor the first price? No. Someone obviously put the wrong tag on the merchandise.”

    I’m sorry, but I think this is not necessarily a good example for a couple of reasons. In the State of Michigan we have a price marking law. If the price was marked by the store, they have to honor it. Now, if a customer (illegally) moves a price tag, they don’t have to honor that, because the price was not what the store marked. But, if they mess up and mark it wrong, they have to eat it and likely pay a scan penalty as well. The law is to protect you from scanner errors by requiring the store to clearly mark the price on items. If they can claim the marked price is a mistake, the entire law becomes useless.

    Second, I’ve can’t recall having purchased a $99 item for $0.99, but I have purchased items in the $20-30 range for around a dollar before in real stores. In general these were items that were discontinued and will not be sold in the future by the store and they are just wanting to get rid of them, usually with an as-is stipulation. It’s cheaper for them to just push them out quickly to customers than to trash them and they need the shelf space. For some reason I’ve seen them most often in computer stores (discontinued peripherals, media, etc.), though Wet Seal has had 90% off racks on occasion (we bought a jacket my daughter just loves for $3). I’m cheap, so I look for great prices and closeouts, and occasionally I find something like this. Now, it’s usually pretty clear that that was the intent. The price tags are often hand-written and indicate closeout.

  • Carver

    I guess I”m not nearly as jaded towards hotels and the airlines. I’ve made mistakes and have had them correct it with no fees, etc.

  • Eric

    I come down on the side of the traveler on this one. If he was told he would get a refund after the fact, then he should. And until travel companies quit quoting fine print to explain why I have to eat a reservation because of an honest mistake, then travel companies should have to live up to their commitments, no exceptions.

  • Mike Z

    I’m with MarkieA. The hotel didn’t say it was supposed to be 100 Euros a night, but that the hotel offered that as an incentive. My guess is that the actual rate is a bit higher.

    There should have been no reason to get Chris involved as the travel provider should have immediately stepped up and given the refund as promised. And honestly, why should the traveller have had to pay anything extra? Travelocity should have immediately called the hotel and worked it out internally with nothing but a reservation for the Op to deal with.

  • MarkieA

    @Charles

    Interesting law you have in Michigan. What about this? The price is marked as .99 cents (I can’t figure out how to insert the “cents” sign) versus $0.99. In reality, the first example is less than a penny, not 99 cents. I see this all the time. Will the Michigan law uphold that?

  • Robin

    @MarkieA –
    Yes, the Michigan law is quite explicit and while stores will try to weasel out of their obligations from time to time, if you cite the law, they quickly give you the proper amount. The Attorney General cracked down on retailers about 10-15yrs ago and had scores of “secret shoppers” go into stores to insure compliance.

    The Michigan law goes even further as to penalize the retailers for overscanning customers – the customer is entitled to 10x the difference (up to $5) PLUS the difference.

    So if a grocery store scans a loaf of bread and the price comes up as $2.99, but the bread has a price tag or shelf tag listing the price at $2.49, the customer will get $5.50 from the retailer.

    I live in NYC now and at my local grocery store, I know exactly which products I will be overcharged for each week. In Michigan, you’re hardpressed to find a store that doesn’t correct their prices immediately. Its quite helpful to the consumer.

    Back on topic – the fat finger rates can be hard to spot by the inexperienced traveler, especially when you see ads from Hotwire or Priceline touting “Cars from $9″ or “Hotels from $19″. Why wouldn’t people think that these fees exist?

    I get charged if I don’t type in my name correctly or if I transpose my dates. If companies don’t want to be on the hook for errors in pricing, then they can put in safeguards (2 people must review before a fee is posted) to ward off “error” rates.

  • Scarlett

    Except that you WOULD expect the .99 price at the store, because until they fix it, or print a retraction (in the case of an advertisement that misquotes the price) they HAVE to sell it to you at the listed price. So if Travelocity sells you something that they later say is priced incorrectly (after you’ve paid for it), they have an obligation to give it to you at the originally stated price. If you can’t change the terms of the contract once you’ve made the purchase, they should not be able to either. (This was originally my comment on MSNBC, where the story was posted first)
    We have the same law in California – I’ll give you a great example, the day after Thanksgiving almost 10 years ago, a car dealership advertised (in a newspaper ad) a car for the price THEY paid for it, instead of the price they wanted to sell it for (several thousand dollars more). My dad went down there with the ad when they opened, and bought the car at the price in the ad. Until they printed a retraction (which they can’t do while you wait…), they didn’t have a choice.
    I used to work at a national bookstore chain, and we had the same deal. If an item was marked incorrectly, until we had something up in the store stating that, we had to sell it at the incorrect price. Obviously, once a customer comes up and points it out to you, the item was usually removed from the shelf until the proper price was displayed, but that depends on employees paying attention, and knowing their merchandise.

  • DJP

    Its a two way street. Airlines and resorts dont honor your bookings when price decrease and screw you over if an honest mistake occurs when you book.

    When the airline of hotel fat fingered then its their fault and it must be honored.

    Many places have real promotions that are crazy so its hard to say what is real vs what is a crazy promotion.

    When it comes to stores and pricing erros (usually in the store favor). There have been estimates that 10% of stores profit come from pricing errord. Its most common when their regular price does not match the advertized sale price…or the store labels werent up to date with their computer sytem.

  • kenish

    Mr. Kerr was good to save the voicemail….”for quality control purposes” !

  • Ernest

    What is promised is what is due. If the OP was promised a rate or refund, he should get it.

    On the mispricing issue, I have gone into the megastore Wal-mart and and picked things off of the shelf because of their price and found it was different at the register. When I brought it to the managers attention, I was given the marked price with the explanation that they were required to honor the marked price, regardless of what it should have been. I do not believe it is a law in NM but it is one way a company can keep customers by giving what it promises. I was never a fan of this chain until they treated me right. It was not worth their it for them to drive away a customer because of their mistake.

    These travel companies, hotels and airlines could learn something from that.

    Make no mistake about it, what the OP saw and purchased for 10 Euro was a promise and the offer to refund the difference by Travelocity was a promise. In this case, it was a binding contract. The only problem with a verbal contract is proof of it and the OP has that with his voice mail.

    If Travelocity had not offered to reimburse the OP and he agreed to the 100 Euro, it would have been a different story.

    Again Chris has “encouraged” the companies to do what they knew was right.

  • Joe Farrell

    Chris – why do you bother? Does ANYONE think that even at the rattiest flea bag you are gonna find a hotel room in a place like Paris Texas for $12.50 a night? Seriously? This person is cracked. Errors happen – this one was CLEARLY an error.

    A rooming house room will cost $500 a month in a major city ANYWHERE in the US – and this nutjob thinks they can get a room in Paris France. no Paris Kentucky or Texas, but France, for $378 a month – which is 10 Euros a night times 30.

    So this joker thinks that a $378 a month hotel room in Paris is reasonable. . . . there are rooms that cost that night – and I’ve stayed there – but that is not here or there.

    If this person REALLY thought they were going to get multiple nights in a hotel in Paris for 10 Euros = ok – they must be either ignorant or naive – in either case – they deserve nothing.

    This is not a fat finger fare, its a mistake. Its not like charging someone $450 for a $750 airline fare [if you are entering it on a keypad its the next number and a fat finger mistake] its an error. If you called the hotel you would not get a $10 rate – its a MISTAKE. Get on with it.

    Why should Travelocity have to pay for a mistake?

    your poster does not a reasonable resolution of a coding error – they want to be given something for free essentially. Anyone anywhere would see this as a mistake – its not a fixable error – its a ‘we make a mistake and we’ll make you a good deal mistake.’

    For the same reasons – both Travelocity and Expedia and the now the airlines allow you to cancel ‘non-refundable’ tickets within 24 hours – when you make a mistake.

  • Elisa

    “Think of it like this: If you see a kitchen appliance on sale for 99 cents at the department store, instead of $99, would you demand the store honor the first price? No. Someone obviously put the wrong tag on the merchandise.”
    In Europe, this means you pay 99 cents and is up to the retailer to have correct prices on their shelves – the European Law for Consumers give the duty of care to the retailer, certainly not to the customer – who knows that the retailer wants to use low prices to attract further purchases? Once the price is on the shelf (and that’s the same for hotel websites), it’s valid and must be honored. It’s happened recently to an hotel in Venice: they put on their website the price of 1 Euro per night (an obvious mistake, in a hotel normally charging over 200 Euros per night) and yet, they had by law to honor the bookings accepted during the time the offer was visible on the website.
    Companies are supposed to have responsible, sensible people working for them; if they have superficial, uncapabable employees, it’s not to the consumer to sustain it.

  • Mike Z

    Joe Farrell, you are 100% wrong on this one. it is not up to the traveller to know what the hotel wants to charge you or what the historical room rate was at a specific hotel. There are many reasons why a hotel would offer a room for a very cheap rate. Maybe construction was going on, or perhaps it was in a part of the city where there has been a lot of violent crime lately and people had beeen cancelling bookings. There really is no way to know for sure why something was advertised at the price it was. However, it was advertised that way and the consumer chose to accept the offer and pay up front on a non-refundable room. Also, nothing in the story says that the OP was there or wanted to be there for 30 days, so your analogy and math are non issues. And yes, Travelocity should pay for a mistake they made. That’s how life works.

  • Clifw

    Interestingly, under Australian law if there is an error in pricing on merchandise (not sure about accommodation- but to use your dimestore example), the lower of the prices MUST be honoured. Whereas here in the US I’ve found they’ll just withdraw the product from sale.

  • Joe Farrell

    Yep – the place is in such a horrible location infested with violent crime and anti-western sentiment its a 10 Euro a night room – just where I want to stay on vacation.

    Or, look at it this way – anyone with half a brain can see that a hotel cannot hire and pay employees under French cradle to grave social care at 10 Euros a night. This person booked the rate and then pressed the issue not because they wanted ‘the benefit of their bargain’ but because they wanted to take advantage of someone’s mistake. Most travel providers today offer a refund for a true mistake if recognized timely and a request for a revision is made. . . .

    And I can’t believe you are so totally ignorant as to not see the 30 days as means of comparison to reveal how silly expecting that a 10 Euro a night rate is a reasonable one, not that the person was going to stay there 30 night.

  • Ernest

    I don’t think the issue is the price of the room anymore, it is Travelocity’s promise to refund the difference between the offered price and the accepted price. Patrick took the room at the higher rate based on his conversation with Travelocity. When the hotel told him it was a mistake and offered him the room at a different rate, he accepted it only after he was inticed by travelocity. As a result, he was entitled to the 90 Euro/day reimbursement. If they did not intend to give it him, they should not have offered it.

    Chris’s intervention was not to secure the promised 10Euro rate, it was to compel Travelocity to do what they had promised. Nothing more and certainly nothing less.

    Maybe Patrick was trying to pull a fast one on everyone, maybe not. I doubt it. I suspect that if was trying to pull a fast one that Travelocity would not have honored their promise to reimburse him. I also suspect that Chris would have figured it out before he went to bat for him. He seems to be pretty good at sorting out the chaf.

    Hopefully Travelocity, the hotel, and Patrick learned something over this issue. I certainly did.

  • http://tdhurst.com Tyler Hurst

    Charles, nothing you said was in any way useful.

  • Carver

    @Mike Z

    Joe is 100 percent correct on this one.

    1. 10 Euro a night for Paris is ridiculous. No one who is being honest expects to pay $12.50 for a room in the cheapest part of the US, let alone the world’s most traveled destination.

    2 Most travel providers will give you a grace period to fix an error.

    3. Joe’s calculation is merely an analogy. The daily price for a hotel is always much higher than the monthly rate for a comparable sized apartment. $12.50 a day translates to an $378 per month which is ridiculously low.

  • Carver

    @Charles

    I did a cursory check of the Michigan law and its nothing like you said. Its similiar to califonia which is geared towards weights, measurements, and most importantly scanners. The issue is the price being labeled one thing and scanned at another. Also, it doesn’t apply to shelf prices.

    Next time you go to an appliance store, note that the appliances all have shelf tags, not individual tags. Perhaps partiallyto avoid this issue

  • Jasper

    Dutch law also says that stores have to obey by their own pricing. No debate. In the case when they’ve found an obvious misprint in a public advertisement, they have to print a correction at the store’s door. Until that hangs, they have to sell for the advertised price.

    US merchants tend to be very unforgiving towards their customers, so I have no issue holding them to their own standards.

    I don’t buy the argument that €10 per night is too cheap to be true. I can buy a bus ticket for $1 from DC to NY. How is an American supposed to know what pricing schemes are popular in France?

  • Carver

    @Jasper

    How is an American supposed to know what pricing schemes are popular in France?
    ———————————
    Internet
    Friends
    Newspapers
    Travel agents
    Guide books

    enough?