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Be Wary of Online Hotel Booking That Don’t Match Expectations Read Payment Terms Carefully & Avoid Making Hasty Transactions

  • 2017.08.15

"Individual travel" has become popular and many travellers opt for booking hotel accommodations online.  Although the booking procedure is fast and convenient, it is found that, based on complaints lodged with the Consumer Council, the methods of some booking websites for calculating exchange rates could be a mystery; some deleted negative reviews; meanwhile, some had coordination problems with the local agents, leaving travellers unable to check into their rooms.

The Council reminds consumers to give attention to terms and conditions cited on these hotel booking websites.  This is particularly important with regard to limitations of different payment methods, the terms and conditions of cancellation or changes of bookings and currency exchanges.  Consumers ought to give careful consideration prior to making reservations, to satisfy themselves that the terms are not unreasonable, regardless of how attractive the offerings may appear.  The following presents some common dispute situations:

Case one: Calculation mechanism of "Book Now, Pay Later" a mystery

The complainant made a hotel reservation through booking website X in July last year for a trip to Japan, on a "Book Now, Pay Later" plan.  The confirmation email stated the room rate was HK$2,899.58.  But it would be charged, based on the specific payment day's exchange rate, equivalent to 39,168 Japanese Yen.  When the consumer arrived at the hotel in January this year, the exchange rate on the Hong Kong Dollar had become more favourable, as the Yen had fallen from 0.073 on the date the booking was made, to 0.069 on the day of settlement.  However, when the complainant checked the credit card statement, the charge for the accommodation was HK$3,045, nearly HK$150 more than the amount stated at reservation.

The complainant made immediate enquiry to website X which declined to explain how the exchange rate was calculated, but only agreed to refund US$20 to resolve the dispute.  The complainant found this unacceptable and held that the payment arrangement under this "Book Now, Pay Later" plan was unreasonable, thus turned to the Council to request a follow up.

Website X explained to the Council that its collaborating partners charged different exchange rates, making it difficult to provide a specific source of exchange rate for customers' verification.  Furthermore, it was clearly stated in the terms and conditions that it has the final right in setting the exchange rate, and to address the dispute.  The US$20 refund had already addressed the additional charge levied on the customer by the credit card company.  The complainant did not request further assistance upon receiving the reply.

Case two: Lack of coordination between the booking website and the agent leaving the traveller stranded

The complainant booked two nights' accommodation at a Korean countryside hotel through website Y at a cost of HK$887.  Upon arrival, however, the consumer discovered that the hotel reception had no staff on duty, and no one answering the phone.  The complainant waited outdoor under extreme cold of -4°C to -5°C for about an hour, while seeking help from website Y through family members.  Website Y declined to assist, stating that the company would have to deal directly with the person who made the reservation and asking the complainant to call or email them directly.

The complainant then sent a follow up email to website Y but received no reply.  The stranded complainant turned to the local police for help.  The police finally were able to contact the responsible person of the hotel, who declared he had received no such reservation as described by the complainant, and therefore was unable to offer accommodation.  Subsequently, the police and the person from the hotel arranged accommodation for the complainant at a nearby hotel.

Website Y replied to the complainant only on the next day and passed the blame to the local agent in Korea.  Website Y made no mention of compensation arrangement, either.  After returning to Hong Kong, the complainant requested website Y to follow up and issue an apology.  The website kept on its procrastination tactic, forcing the complainant to turn to the Council to request for a refund.

Since website Y affiliates to a locally registered travel agency, the Council referred the case to the Travel Industry Council of Hong Kong (TIC).  Website Y at last, agreed to make a full refund, while continuing to insist that the hotel's responsible person in Korea had assisted in finding alternative accommodation for the complainant and shouldered the charges, thus, Website Y declined additional compensation.

Case three: Don't fully trust the high ratings on booking websites

The complainant made his trip arrangement to Taiwan only a week before the departure, and booked accommodation through website Z to a "3-star" rated hotel.  The complainant, upon arrival, was unable to find the hotel at the address shown on the website.  The traveller telephoned the hotel for directions and found that the hotel was located in a back alley and there were no building number or signs to indicate the hotel's location.

After returning to Hong Kong, the complainant posted true photographs of the hotel at the hotel review on website Z, hoping to alert other consumers. Soon thereafter, the complainant discovered that the review had soon been deleted.  The complainant contacted website Z, contending that such act was not appropriate.  Having failed to obtain satisfactory reply from Website Z, the complainant sought help from the Council, requesting a refund.

The complainant had also contacted the Taiwan Tourism Bureau which replied stating that the hotel did not have the required licence. Since website Z is a member of the TIC, the Council immediately referred the case for follow up.  The website agreed to a full refund at last.

Consumer tips:

1. The advantage of "Book Now, Pay Later" is its flexibility for allowing consumers to cancel or change their bookings at any time.  Consumers, however, are reminded that prices listed for "Book Now, Pay Later" are only estimates.  Actual room rates may rise, affected by exchange rate fluctuations, and handling charges applied by credit card companies.

On the contrary, the "Pay Now" option can ensure that payment matches the listed room rate, but customers should understand first the terms for cancelling or changing their reservations after they have made payment.

2. Although consumers have received confirmation of their reservations from a booking website, for whatever reason, the hotel could have missed those information.  To avoid being stranded upon arrival at their destination, consumers are advised to confirm their bookings directly with the hotel, before embarking on their journeys.  It is important that consumers retain proof and screenshot of payment throughout the booking process as evidence in case of dispute.

3. Consumers should not trust, unquestioningly, information about hotels and users' reviews posted on booking websites.  They would be better informed by going to the official websites of the hotel they are considering, seeking details as to the hotel's location, room specifications and rates.  Consumers should be wary of hotels having no official websites or those that fail to provide specific location map.  When in need, travellers can seek information about the accommodation address and details as well as whether the accommodations have obtained the required licence from the local authorities such as the tourism bureau.

The Consumer Council reserves all its right (including copyright) in respect of CHOICE magazine and Online CHOICE.