Gripe of the Week: Hotwire in Hot Water

By Dave Carroll
Founder, Gripevine.com

I'd like to share a gripe posted to Gripevine that serves as a great example of why frontline employees should be empowered and trained to resolve small problems at the outset. Instead Hotwire is standing behind policies that may cost them at least one customer and will decrease the likelihood that others will use their service. This one failure may be potentially damaging to the entire brand and with consumers having an amplified voice today, companies everywhere need to recognize the need to provide quick and cost effective customer service.


Hotwire Gripe on Gripevine

In this case a customer used Hotwire to book hotel accommodations at the three star level and upon being assigned a particular hotel the customers read reviews that indicated this place was rated less than three stars. Hotwire advertised that it had a restaurant on the property and it didn't. The customer refused to stay in that property and they were denied a refund by Hotwire but the company offered an upgrade if they were willing to pay the price. The customer upgraded and was told they would pay a certain price to change hotels and ultimately was charged more than promised.

It's clear to anyone who reads this gripe that the customer's expectations were unmet on several levels and because they could get no satisfaction from the company directly, they've decided to share the story publicly on Gripevine. Could the company have done something more to meet expectations? Absolutely! Should they have done something more? I think so.

While reviews about a property may or may not accurately reflect the true state of a hotel, it sounds like this particular hotel did not meet the three star standard. However if the information about the property having a restaurant is false then Hotwire is sharing false advertising with their customers. Because their whole service model is based upon giving consumers the ability to make informed choices on where they will stay and what they will pay, the fact they got this basic information wrong . Hotwire should have made this right from the outset.

Instead, the customer had to negotiate a solution they weren't happy with, pay more than they had expected, and now feel that they were lied to about the true cost of the property, which would have been less expensive through a competitor. Hotwire compelled this customer to do business with them on this one occasion but guess what the customer is likely to do the next time they are looking for hotels? It would seem, if this goes unresolved, that this customer will choose a competitor that may offer cheaper prices and bring others with them. Chalk one up for Expedia and Travelocity. Hotwire just facilitated a fist pump for the competition!

There are companies who stand behind policies and risk a customer backlash when there is a grey area to consider. That can be a dangerous game to play in the age of social media but when companies stand behind policies in the face of a clearly one-sided issue; it is simply reckless as the risks far outweigh the rewards.

Instead of people focusing on how great Hotwire is this gripe draws attention to its shortcomings. The comment from a reader is advising the customer to take legal action that would cost the company much more in dollars and the customer's time and energy. Why not solve it early and save time, money and your reputation?

Here's what Hotwire might have done in this case:

1) Apologize for not providing a hotel that met the three star standard
2) Refund the customer in full
3) Thank the customer for notifying them of the fact that there was misleading information on the Hotwire site
4) Possibly offer to help them choose a more appropriate property
5) Offer them a credit or coupon for helping to improve the Hotwire service
6) Take action to remove any misleading information about that hotel
7) Notify the customer by email that corrections have been made and thank them again (while simultaneously taking the opportunity to share a promotion or offer to encourage using the Hotwire platform again).

Doing the above would have exceeded the customer's expectations and converted their status from "dissatisfied" to "brand ambassador". Yes, Hotwire might not have earned the same profit on this single transaction but it would have ensured many future transactions. They had an opportunity to invest in future business through great customer service, but it appears, at least with this gripe, that they believe providing great customer service is a business cost that can be minimized at every turn. Maybe Hotwire will reconsider and try investing in this customer while there's still time to turn this into a win for all.



About Gripevine:
Gripevine connects customers and companies on a fair and level public playing field where they can come together to create win-win resolutions to common consumer complaints. Consumers can use Gripevine to leverage the power of social media to get their stories heard. Companies can use their Customer Satisfaction Index on Gripevine to show the world the quality of their customer service. By leveraging the power of social media, both groups of users can ultimately affect a company's Customer Satisfaction Index on Gripevine, which provides an effective scale for the quality of customer service.


About Dave Carroll:
Dave Carroll is an award winning singer-songwriter, professional speaker, author and social media innovator based in Halifax, Nova Scotia, Canada. He began his music career with his brother Don in the band Sons of Maxwell and has been enjoying success as a solo artist for the last four years. Known as a master storyteller, Dave's incredible talent was introduced to millions when his 2009 YouTube music video 'United Breaks Guitars' became a worldwide sensation. Dave is now co-founder of the consumer resolution complaint platform, Gripevine.com. Most recently, Dave published his first book: "United Breaks Guitars: The Power of One Voice in the Age of Social Media" and released his second album, "Raincoat in Vegas."