12
votes

The Scam Called Hotwire.com

posted November 12, 2008 - 12:34pm
The Scam Called Hotwire.com

Hotwire.com is a website that let's you book hotels by star ratings and locations at a discount price. You don't get to see the actual name of the hotel, but you are provided a list of amenities and the quality of the hotel through pre-approved star ratings. I've been a big fan of Hotwire for at least 5 years, but recently I have decided that this site is allowing hotels to scam their customers.

When you use Hotwire.com you simply input your location that you want to stay and then review the different hotels by star ratings and prices that are using Hotwire. When you find a hotel that you want to stay at you have to pay and reserve your stay before they will tell you what the hotel is. This is fine because 90% of the time their star ratings are dead on and in the past you used to be able to save 30-50 bucks a night.

Nowadays, the site is at best worthless or at worse a scam. Hotels now charge you hidden fees on top of the regular price you get from Hotwire. This past weekend we booked a 4 and 1/2 star at Gaylords Palm in Orlando for $95 for Sunday night. Little did we know that by Monday morning they charged us almost $30 in mandatory fees. Half of which was parking the other half was for a "resort" fee that they will not remove. So the hotel ended up costing us around $130 before taxes. This practice is completely unfair and possibly false advertising. We used Hotwire on our trip through the west coast only to keep running into these hidden fees. From now on we will only use Hotels.com until Hotwire can run a fair business.

I wrote and reported my feelings to Hotwire, but as of yet I have not heard from them. I'm not sure of the legalities of this, but as a business owner myself who travels a couple of times a month I am disgusted with their business practices.

I would go as far to say in many cases Hotwire.com is taking advantage of middle-class Americans who are suffering through hard economic times so they can make a few extra dollars. They need to either show the fees upfront or not allow hotels to charge hidden fees.

I will gladly use Hotwire again when/if they adjust their business practices to foster a fair environment.

I urge you to try other sites such as Expedia.com, Hotels.com or others and stay away from Hotwire.com.



Comments

Go Get Em!

In the UK you are obliged to reveal hidden costs. Also in the UK (methinks abroad too) to "hotwire" is a technique used mainly to rob cars. Given this - sort of warning you should have "steered" (geddit?) clear. And another thing too: I like to select my hotels according to location. My next hotel stay will be on the Isle of Wight, overlooking Tennyson Down, The Needles and next to Dimbola Lodge (the once home of a ground-breaking composite photographer and nowadays an interesting Art gallery)on a cliff's edge with a sea view. It won'e be cheap nor should I imagine will it be offered by hotwire - Apart from anything else the hotel in the old home of the poet Alfred (Lord) Tennyson. I only mention this to show the type of hotels I myself frequent and to illustrate the additional pleasures finding such gems for yourself. Much better than the hit and miss website you mention. I also mention this because you claim (probably correctly) that you own Xomba and I am a creep. Tee hee.

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I would also write a letter

I would also write a letter to a manager at the hotel and tell them what happened. If they care anything about customers, they will try to rectify the situation--however, you probably don't want to return to the same hotel anyway and the way they usually try to make things better is with cheaper rooms or an upgrade. http://www.xomba.com/user/chris_crow

That's why

Priceline went thru so many problems. People were finding out that they were not getting necessarily the best deal (again priceline was paying less so there were better prices then what they were charging you) and the fee issue. People were getting to destination just as you and paying through the wazoo for fees. Most of these people were extremely budget conscious are railed against priceline and the hotels. People quit using them and hotels quit selling to them. But isn't the Gaylord an amazing property - I love it! You will have to go back for ICE! It is amazing!

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I just won't be using Expedia anymore

Pretty simple. I don't need to use them.

Only if

if they charge you to park there or to use their carts or bags. They get around it by just what you said - the room cost what they told you - fees are different. Nobody told you had to bring a car and the resort fees are not techincally part of the room rate. It would be like walking into the grocery store and them having free newspapers, free drinks and free whatever else and then charging you a fee for that. You'll say I didn't use it and they'll say you could've but chose not to, it was available but it has nothing to do with that can of sardines you were buying with your coupon from the Sunday paper. I agree with you. I have always thought it was a slimy practice but it is so part of the business that I don't see it going away. So I guess you're right they only way to go is after the wholesalers to charge for staying at the hotel and not just the room - if that makes any sense in my hotel speak.

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Hotwire

I'm talking about States investigating Hotwire for false advertising. Hotels can charge whatever fees they want. However, if I buy a room through hotwire then I shouldn't be expected to pay any hidden fees after the purchase. That's like buying groceries and then as you are leaving the store them charging you a fee.

Good Luck

The only time I've seen any kinda of fee successfully challenged was when hotels in Fl tried to hit guests with "Impact Fees" related to energy usage. As fuel prices went up hotels naturally were trying to find a way to pass that cost to the consumer. Well since room rates are very price sensitive they decided to make it a fee. A bunch of lawyers got ahold of it and basically the hotels were told to suck it and had to give out all kinda rebates. No one has successfully sued for Resort or parkings fees as a whole yet. Maybe going after the Wholesalers would work so that they would have to press the hotels for all their hidden fees (hotels of course will tell you there not hidden but they are not easy to find either - again hotels are well aware that people are price senstive - they wait to you get there and whammy!). The Fees are listed in what info they give the Wholesalers and usually are their websites.

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Hidden fees and Hotwire

The problem is that if I see a sign to a gas pump that shows the amount per gallon and then get to the pump only to see a $4 fee for pumping gas. I believe that is false advertising. I smell a possible lawsuit brewing. Like I said I am not sure the legalities, but you should not be allowed to say something costs something only to have you purchase it and realize it actually costs more. Fees are one thing, but you can't sell me something and when I come to pick it up demand more money. That's illegal.

I gots news for you

That's every hotel - its got nothing to do with Hotwire. That's not to say that Hotwire can't make hotels pony up what they are really charging guests. I used to be a manager at the Gaylord Palms(and many. many other hotels) so I would know. Gaylord will give Hotwire (the wholesaler) a monthly alotment (a block) of rooms at a certain contracted price. Hotwire has to pick-up their block or they get charged a fee (attrition), usually around 50% of the contracted price. So, it is in Hotwire's best interest to pick-up their block. Gaylord (or any hotel for that matter) has nothing to do with what Hotwire charges you. (The other sites work in much the same way except you pay the hotel directly and the rate is much higher) For instance Gaylord would charge Hotwire $50 per room. Hotwire may charge you $75 thus making a $25 profit (priceline works the same way). orbitz will get a price of $100 from Gaylord and you pay that directly to them and they charge Gaylord a nominal fee. Now what Gaylord and all other hotels will not tell Hotwire (other than maybe in an information sheet)is all the other charges. Most hotels taxes are incredibly high - the state will get their normal sales tax (7% in Fl.) plus an impact tax (4% in Fl) plus if the county or local government decide to tax the tourist as well. So expect a minimum 11% tax in FL. on hotel rooms. Next is parking - all hotels around Disney are now charging for parking - Usually around $10 a night - don't bring a car unless you have to - most hotels have transporation to and from the parks in Orlando. Resort Fees are also a very popular charge - it was usually something a management company can charge to a guest that the ownership of the hotel gets no part of (that's the way it started anyway - now everyone does it) so it was free money for the management company. It was started in the industry with good intentions - instead of charging a guest for coffee, newspaper, internet access, fitness center, etc someone had the bright idea just to charge one lump sum. Now though it is just a revenue maker so try to use everything you can for free because its not free its in the resort fee. Now what to do about it. First when making a res call the hotel and ask what there fees are - they will tell you - doesn't mean they won't charge you but at least you'll be aware. Second, DO NOT COMPLAIN TO THE FRONT DESK PERSON - most of the time when it comes to fees they will not help - other stuff yes, fees no. Ask to see a manager and leave the poor little hourly person alone. Try not to see an "Asst Manager" again they have very little power over fees - you need a Front Office Manager, a Director of Operations or a General Manager. (GMs are usually the best but are very hard to see - that's why they have all these little manager beneath them). Be nice but persisent - do not take no for answer - just keep moving up the chain - again be nice but stand your ground. The higher up you go the more likely you are to get what you want. Resort fees will be the hardest to get off - don't try the "I didn't use any of that stuff" line they will be waiting for you. Just say you think it is unresonable or something to that effect. Don't expect anything to get done at night. None of the top managers are usually there at night so your chances go way down at night. Try and wait for the light of day. No weekends either if it can be avoided. If someone tells you there is no one higher than them - they are usually telling you the truth at that moment - wait for the next day. If all else fails write a letter to the GM and the Ownership Group. This will of course take place after the trip but will usually result in a comp stay at minimum if you have a legit beef. Don't be fooled - alot of hotels are franchises and the last thing the Ownership Group wants is to hear from guests so the Management Company (who runs the hotel) is reluctant to give out such info - they will but begrudgily(?). The Owners only want $ - use that to your advantage. Hotwire may get back in contact with you but I doubt it - go straight to the hotel.

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Thanks For The Info

Didn't know that about Hotwire. Will definitely stay away from them.

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