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Should I pay my hotel bill?

January 10, 2003

Q: I booked a hotel in San Francisco through Expedia. I was quoted and paid a rate of $179 per night for the first two nights, $146 for the third night, and got the fourth night free. Including tax and service fees, I paid Expedia $584.51. I thought that was a pretty good deal, but when I checked out, the hotel provided a statement which showed a rate of $134 for the first two nights, $109 for the third night and the fourth night free. Which bill should I pay?

– Ray Crockett

A: The hotel inadvertently showed you its “net” rate – the price per room Expedia pays it. The extra $155 you are charged represents Expedia’s profit. Expedia spokesman Mitch Robinson regrets that you saw the price, since that’s typically the kind of information that a hotel and travel agency keep between themselves. “But Mr. Crockett still got a great deal – better than he probably could have received anywhere else,” he added.

Like other travel agencies that offer discounted hotel rooms, Expedia buys large blocks of rooms at a net price, and it often pays for them up front. If you’d care to do the same thing, I’m sure the hotel would have offered you a similar deal.

Ultimately, it isn’t Expedia’s fault for clueing you in on its behind-the-scenes price, but the hotel’s. It shouldn’t have given you an invoice with the net rate. Expedia ought to contact the property to make sure it shows you, or any other guest, the correct bill.

You should pay the first bill, obviously. I know that’s not what you want to hear, because there’s nothing as frustrating as finding out someone paid less for your hotel room. However, there are a few things you can do to make sure you really do get the lowest price next time.

Check around with other Web sites that sell hotel rooms – Travelocity, Orbitz, Hotels.com – and make sure the rate you’re getting is as low as possible. Call a travel agent. Often, an honest-to-goodness travel counselor can get the price down even further.

Finally, call the hotel directly to see if they can’t sweeten the offer. Remember, when you book directly through the hotel, it cuts out the middleman or the computer reservations system, which lessens the hotel’s cost.

Robinson is right – you got a good deal. Could you have done better? Maybe. Is Expedia to blame for trying to turn a profit? Absolutely not.

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.

3 comments

  • http://www.ffocus.org MrBadExample

    I have a simple rule when dealing with travel companies.

    I make the mistake I pay. Example being buyin a non refundable ticket and having to change it. The change fee is on me pure and simple

    Travel Company makes the mistake, THEY PAY. If it were me I’d pay the lower net price and when somebody catches the mistake we negotiate a compromise that makes them Pay for their errors.

    It’s the only way to stop the shenanigans.

  • Carver Farrow

    Shenanigans?

    What shenanigans? Both Expedia and the hotel acted honorably and correctly. Expedia is entitled to make a profit for its services which Ray used.

    Chris correctly stated the only ethical response, which is to pay the first bill.

  • James Blair

    I just booked a vacation with Cheap Caribean.com and saved over $700 from Apple Vacations for the same Hotel, better time NS flights from the same airports, private transfers at the destination airport, with trip Ins.. It’s an All Inclusive 7 day stay in a Nuevo Vallarta Hotel.

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