Priceline wins "resort fee" lawsuit
Apr 6, 2012, 9:07 am
#16
Join Date: Mar 2001
Location: Colorado Springs, CO
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I know there are different classes of rooms in a hotel. I get that. But this was blatant misrepresentation, imho. Priceline continued to allow them to sell these rooms as resort rate at a price that should have been half that. I get screwed and so do the other hotels in that area that are playing above board.
PRICELINE.COM MANDATES THE FOLLOWING FROM YOUR HOTEL:
Assign Priceline Room Type: You will ensure that all hotel rooms are guaranteed for double-occupancy with a preference for non-smoking.
Accommodate Special Requests: You will try to accommodate, to the best of your ability, any special needs requested directly by a Priceline guest (i.e., bedding, smoking, etc.).
Extend Valued Guest Treatment: You will place the Priceline guest in a room comparable to (or better than) your "best available" room assignment. You will welcome the Priceline guest just as you would welcome any other valued guest. (Remember this is your opportunity to "brand" that guest for a return visit.)
Apr 6, 2012, 11:53 am
#17
Join Date: Jul 2000
Posts: 3,746
No, the lawsuit was doomed because the California state courts have increasingly become anti-consumer.
If you read the decision, it was (in part) under California Business and Professions Code sections 17200 and following. 17200 prohibits:
any unlawful, unfair or fraudulent business act or practice
and unfair, deceptive, untrue or misleading advertising
Yes, the terms and conditions do say in the fine print that a resort fee can be levied. However, as stated in the court's decision, when you bid you see a figure labeled "total charges" which is your bid plus service charges and taxes, but not resort fees.
That sounds unfair, deceptive, untrue or misleading to me.
If you read the decision, it was (in part) under California Business and Professions Code sections 17200 and following. 17200 prohibits:
any unlawful, unfair or fraudulent business act or practice
and unfair, deceptive, untrue or misleading advertising
Yes, the terms and conditions do say in the fine print that a resort fee can be levied. However, as stated in the court's decision, when you bid you see a figure labeled "total charges" which is your bid plus service charges and taxes, but not resort fees.
That sounds unfair, deceptive, untrue or misleading to me.
Apr 6, 2012, 1:50 pm
#18
Flyertalk Evangelist and Moderator: Coupon Connection and Travel Products
Join Date: Jul 2000
Location: Milton, GA USA
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What did Priceline say when you complained?
I personally would not have accepted a room with broken A/C.... that is unacceptable. As is a stained bedspread.
I wonder if Priceline knows these thing happen at these rogue properties?
I personally would not have accepted a room with broken A/C.... that is unacceptable. As is a stained bedspread.
I wonder if Priceline knows these thing happen at these rogue properties?
I would have to concede that most likely that you right on the 'many' part. But I had two back to back instances where particular, unrenovated wings of hotels were reserved for priceline winners.
The first was the Sheraton Keahou in Kona. Manager even told me a particular unrenovated wing was reserved for winners like me. WOW. And you should have seen the rooms. Billed as a resort? Run down 2 star was more like it. Charged resort fee and parking, too. Sagging beds, stained carpet and bedspread, toilet from the seventies, like you see in a truck stop, bad ancient TV and broken A/C. Oh, and too, they offered to upgrade me to a renovated room at check-in. Insulting.
I know there are different classes of rooms in a hotel. I get that. But this was blatant misrepresentation, imho. Priceline continued to allow them to sell these rooms as resort rate at a price that should have been half that. I get screwed and so do the other hotels in that area that are playing above board.
And I blame Priceline. They are the ones that 'sold' me that room. If it ain't right they should either make it right or discontinue business with like hotels.
And even though I know what happened to me won't happen often, it is now a matter of principle. I won't go back.
The first was the Sheraton Keahou in Kona. Manager even told me a particular unrenovated wing was reserved for winners like me. WOW. And you should have seen the rooms. Billed as a resort? Run down 2 star was more like it. Charged resort fee and parking, too. Sagging beds, stained carpet and bedspread, toilet from the seventies, like you see in a truck stop, bad ancient TV and broken A/C. Oh, and too, they offered to upgrade me to a renovated room at check-in. Insulting.
I know there are different classes of rooms in a hotel. I get that. But this was blatant misrepresentation, imho. Priceline continued to allow them to sell these rooms as resort rate at a price that should have been half that. I get screwed and so do the other hotels in that area that are playing above board.
And I blame Priceline. They are the ones that 'sold' me that room. If it ain't right they should either make it right or discontinue business with like hotels.
And even though I know what happened to me won't happen often, it is now a matter of principle. I won't go back.
Apr 6, 2012, 11:34 pm
#19
Join Date: May 2007
Location: DFW
Programs: WN A+, AA, HYATT DIAMOND, SPG
Posts: 1,125
I took pictures of every one of my complaints. I refused on principle to pay the upgrade price. And so after we got home, when I explained my situation to Priceline, they refused to do anything about it because we decided to stay. They are fully aware that the Sheraton Keahou made a practice of reserving special rooms for Priceline winners. I informed them more than once and I believe so did others; I even gave them the managers name who told me thus.
My disdain for Priceline came from this sort of incident. Too, I abhor the practice of allowing resort fees to be charged - and other ancillary fees - because an honest transaction in an opaque booking situation should be based on specific price for a specific hotel rating. Being allowed to add fees afterward undermines the fairness of the process, both for the competing hotels and most importantly, the customer.
I bid on the 3.5 star. They 'graciously' upgraded me to a resort. I DID NOT WANT A FREAKIN RESORT. Because with that most likely comes a special fee or two or three. And with that my bid was no longer my bid. To stay at that property just became much more expensive. Properties like this one are in the Resort category so anyone who even bids on a 4 star in that area is likely to get what I got. This is a very bad practice by both the hotel and Priceline .. that is allowing rogue properties to game the system at the expense of the customer. It cost Priceline many, many thousands of dollars or bookings since then. I simply don't use them anymore. 50k in bookings? Quite likely.
Oh you don't like your room? of course you don't. Here, just pay us another xxx per night and we'll give you a room that is in line with the 3.5 star you bid on.
Priceline did nothing on my behalf even though I provided pictures and a detailed commentary from a specific manager - whose name and phone number I gave them - regarding this BS. I gave P'line all the info they needed, that is, if they cared. IMHO? They didn't.
WRONG, WRONG, WRONG.
Apr 7, 2012, 8:34 am
#20
Join Date: Feb 2003
Posts: 1,254
The big print says something like we've found a hotel which agreed to your price. The big print tells us the total taxes and fees. The small print says a hotel might decide to charge a resort fee. The small print says the resort fee isn't one of the fees included in the total taxes and fees. We have no idea if we're going to wind up with a resort, unrequested upgrade and we have no idea what that fee will be. What's worse a hotel without a resort fee might have "accepted" a bid higher then what it took to win a resort fee hotel but lower then the total cost including a resort fee. Hotels at all * levels are now charging a resort fee.
No question the practice is deceptive. California has said the practice isn't illegal. The terms and conditions don't clarify an issue, it contradicts it.
With a conventional reservation I have the option of including the resort fee in my cost before I decide to book.
No question the practice is deceptive. California has said the practice isn't illegal. The terms and conditions don't clarify an issue, it contradicts it.
With a conventional reservation I have the option of including the resort fee in my cost before I decide to book.
Apr 7, 2012, 1:18 pm
#22
Join Date: Feb 2003
Posts: 1,254
Some hotels are offering lower rates in exchange for a pre-paid non-refundable reservation. The rate isn't quite as low as a PL rate but that's the equivalent to what you're suggesting.
Apr 7, 2012, 1:24 pm
#23
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Join Date: Aug 2005
Location: BOS
Posts: 15,027
A hotel doesn't have to match prices offered through opaque channels such as Priceline and Hotwire.
Some hotels are offering lower rates in exchange for a pre-paid non-refundable reservation. The rate isn't quite as low as a PL rate but that's the equivalent to what you're suggesting.
Some hotels are offering lower rates in exchange for a pre-paid non-refundable reservation. The rate isn't quite as low as a PL rate but that's the equivalent to what you're suggesting.
The question was: why do hotels accept the "Priceline rate" which is well below their own lowest best rate (e.g. a pre-paid non-refundable rate)?
Apr 7, 2012, 5:45 pm
#24
Join Date: Feb 2003
Posts: 1,254
The theory is a hotel is making money, as long as the price is higher then the incremental costs (washing towels and sheets) if the room would otherwise be empty and if the customer would otherwise stay at a different property.
Apr 7, 2012, 6:51 pm
#25
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Location: BOS
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They have to match an internet rate when the hotel has a policy of matching any internet rate. They offer lower rates to PL and Hotwire because the booking is opaque. The customer isn't booking a specific hotel. The hotel isn't obligated to honor a "price match" policy when the identity of the hotel isn't known in advance.
The theory is a hotel is making money, as long as the price is higher then the incremental costs (washing towels and sheets) if the room would otherwise be empty and if the customer would otherwise stay at a different property.
The theory is a hotel is making money, as long as the price is higher then the incremental costs (washing towels and sheets) if the room would otherwise be empty and if the customer would otherwise stay at a different property.
Apr 7, 2012, 8:50 pm
#26
Join Date: Feb 2003
Posts: 1,254
Some posters say yes. I guess it depends on the hotel. Probably also depends how far in advance you call. Day of stay. Late afternoon. Evening. Maybe yes. Weeks before maybe no.
Apr 8, 2012, 2:01 am
#27
Join Date: May 2003
Location: GEG
Programs: Motel 6 Club Avoir Le Cafard
Posts: 5,027
The California Court of Appeal, Second District, Division Three, had its erred. I hope the plaintiffs are successful in obtaining review by the California Supreme Court.
Unfortunately DOT doesn't regulate deceptive advertising by hotels/travel agents, FTC does (at least theoretically), and they're most emphatically not interested in the issue.
.
Priceline could, if they wanted to, require hotels to include the resort fee in the bid amount. For some reason, they don't want to. I would support a DOT regulation on this, similar to the recent one for airline price advertisements.
.
Last edited by mbstone; Apr 8, 2012 at 2:15 am
Apr 8, 2012, 7:59 am
#28
Join Date: May 2007
Location: DFW
Programs: WN A+, AA, HYATT DIAMOND, SPG
Posts: 1,125
Honestly, I'm not unhappy that I don't do biz with Priceline anymore.
I focus on point earning opportunities, Best Rate Guarantees and other means to reduce my cost on hotels.
Used to be Priceline's biggest cheerleader. Even called Shatner my daddy. Said if I ever became widowed I'd marry Priceline.
But I do better than Priceline now. It's just a little more work, but I used to put in quite a bit researching before I bid.
Priceline could add a feature for the bidder, if they wanted to, that excluded any hotel that charged a resort or any other ancillary and mandatory fee. I would return to Priceline in a limited way if that were the case. In other words make the opaque bid the final and true price. Hey, seems like such a novel idea. Kinda the way it used to be.
I focus on point earning opportunities, Best Rate Guarantees and other means to reduce my cost on hotels.
Used to be Priceline's biggest cheerleader. Even called Shatner my daddy. Said if I ever became widowed I'd marry Priceline.
But I do better than Priceline now. It's just a little more work, but I used to put in quite a bit researching before I bid.
Priceline could add a feature for the bidder, if they wanted to, that excluded any hotel that charged a resort or any other ancillary and mandatory fee. I would return to Priceline in a limited way if that were the case. In other words make the opaque bid the final and true price. Hey, seems like such a novel idea. Kinda the way it used to be.
Apr 16, 2012, 7:04 am
#29
Join Date: Oct 2007
Programs: AA, WN, UA, Bonvoy, Hertz
Posts: 2,491
I am a big Priceline fan, but the resort fee issue is a major loser. The primary city of issue is Las Vegas, but other areas are possible.
Hotwire did this right and tells you before you accept if there is a fee and how much it is likely to be.
Obviously, if consumers stopped using the site because of this, they would change, but Priceline is way too popular in Las Vegas.
Complaining does work, they made changed for opaque on Trump and I think one other south strip property, so it is possible if consumers make a decision based on their wallet if there are no upfront pricing laws.
Rasheed
Hotwire did this right and tells you before you accept if there is a fee and how much it is likely to be.
Obviously, if consumers stopped using the site because of this, they would change, but Priceline is way too popular in Las Vegas.
Complaining does work, they made changed for opaque on Trump and I think one other south strip property, so it is possible if consumers make a decision based on their wallet if there are no upfront pricing laws.
Rasheed
Apr 16, 2012, 8:44 am
#30
FlyerTalk Evangelist
Original Poster
Join Date: Mar 2000
Posts: 17,422
I am a big Priceline fan, but the resort fee issue is a major loser. The primary city of issue is Las Vegas, but other areas are possible.
Hotwire did this right and tells you before you accept if there is a fee and how much it is likely to be.
Obviously, if consumers stopped using the site because of this, they would change, but Priceline is way too popular in Las Vegas.
Complaining does work, they made changed for opaque on Trump and I think one other south strip property, so it is possible if consumers make a decision based on their wallet if there are no upfront pricing laws.
Rasheed
Hotwire did this right and tells you before you accept if there is a fee and how much it is likely to be.
Obviously, if consumers stopped using the site because of this, they would change, but Priceline is way too popular in Las Vegas.
Complaining does work, they made changed for opaque on Trump and I think one other south strip property, so it is possible if consumers make a decision based on their wallet if there are no upfront pricing laws.
Rasheed
I would ask that folks keep this thread limited to resort fee charges. There are a lot of other pros and cons to using the opaque bid sites, but the resort fee issue is a somewhat unique -- and particularly awful -- problem.