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No cheapo hotel: fees double price of “discounted” hotel room

June 26, 2009

If this isn’t a bait-and-switch, I don’t know what is. Jonathan Yarmis thought he was getting a $375 a night room rate at the Hotel Bauer in Venice, marked down from $537.

But the Web site offering the deal, Cheapostay.com, wasn’t telling the whole story. It waited until the end — the final booking screen — to reveal the true price.

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Yarmis isn’t happy.

Talk about hidden fees! The fees are more than the cost of the room.

I thought I’d call Cheapo just to see what’s going on. After over 45 minutes on hold, they dropped the call.

Shouldn’t this kind of pricing be illegal?

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

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15 comments

  • Aaron

    At least he caught it before he completed the reservation.

  • deborah

    Indeed, at least he didn’t have fast fingers on the keyboard. Buyer beware…..

  • Bill

    We all think this is pretty scary – now book an airline ticket and see what it adds up to once they add the taxes and fees…same thing!

    I’m not saying it is right….it is downright annoying.

  • Joe R

    But they were nice enough to knock off $10…

  • Sebastian

    This happens with airfare all of the time. Most of my tickets have taxes that are anywhere from 2-5 times the price of the actual ticket.

  • Jon

    How is this any different from every airline’s taxes and fees? Should it be illegal to advertise $149* round trips from NY to London?

    * $524.30 with taxes and fees

  • LeeAnne

    Thanks for this article. I will now ensure that I NEVER use Cheapostay.com. The only way we can fight unethical business practices like this is with our wallets…don’t givve them our business or money, and they’ll go away. Unfortunately, there are probably less internet-savvy folks who will fall for this scam…and it IS a scam. Shame on them.

  • http://www.Quikbook.com Brian Hendricks

    And when you read the fine print on most of these sites they say things like “…includes a fee we charge and retain in exchange for the services we provide in facilitating your transaction” or “…and the facilitation fee retained by XYZ.com to compensate us for our services.” So, you’re paying extra for their fine *service*

    Of course, I’m chiming in so I can trumpet the fact that there are no service fees here at Quikbook.com. Book one of our QuikPik hotels and the rate you see is the rate you pay the hotel directly at checkout. We don’t charge you a thing for our service and the taxes are calculated and paid at the hotel. Plus: you can change or cancel your res with us with no penalties or fees.

    If you have any issues when booking with us, contact me directly: 800-789-9887 ext 3045 or bhendricks at quikbook.com or on Twitter @Quikbook

  • David Z

    Uh, Chris, I think Mr. Booker mentioned something like that happening to them in your previous interview:

    http://www.elliott.org/first-person/hotels-coms-booker-adding-new-fees-would-be-a-tricky-thing-to-pull-off-right-now/

    No doubt lots of people want this practice to become illegal…only to complain later on why it’s sooooooooooo darn expensive?

  • Andrew deLivron

    I tried their web site and compared it to Radison’s own web site. CheapO is definitely a RIPOFF-0 cost abut $29.00 more on a one night stay with out the assistance of AARP or AAA discounts from Radison.

  • Jerry Bonanno

    What is sorely needed is federal regulation that would require all transportation companies, lodging providers, and booking agencies to quote the total price of the ticket up front including all taxes, fees and extras.

    No surprises at the end of the transaction. Particularly when you have already provided your CC number.

    .

  • Fred

    The pricing isn’t illegal. The base rate is for 2 adults.

    Did any of you even think that part of the charges and fees cover the extra adults in the room? I can’t defend how Cheapostay.com has the breakout on their website, but if you go to Expedia, you’ll see that the rate is $375.36/night with EXTRA GUEST charges of $425.74 per night and Taxes & service fees: $80.11 per night.

    Nothing to see here. Do some research.

  • Jason

    This IS the epitome of bait and switch. These types of tactics should not have to be tolerated by anybody with any company. There are literall hundreds of third-party intermeidaries (TPIs) like this in the travel agency…and all consumers are at risk of falling prey to something like this.

    THE best thing you, as a consumer, can do to protect yourself, is to DEAL WITH THE HOTEL DIRECTLY…either by calling the property itself and speaking with someone onsite, or going directly to their branded website. Not only do most reputable hotel brands have some type of “Lowest Rate Guarantee” available on their direct website; but in the event something goes wrong, you have much more recourse dealing directly with the actual hotel, than you ever will with a 3rd party.

  • tylerzmum

    Buyer beware….anything with “Cheap-O” in the name should be your first clue….

  • Nancy

    OK… I was in a hurry, and not paying enough attention — but why in the world would I pay for a service to book a cheap hotel when there are so many free ones out there: Expedia, Priceline, etc. They do NOT describe themselves as a travel agent. Lesson learned: read the fine print! But happy to have this chance to say I will never use this service again, and will badmouth them when ever I have opportunity (it was a cheap hotel, so the fees weren’t that high and listed with taxes, so I assumed that it was a high-tax state.) I received no service — could have just as easily booked directly with hotel for same price.

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