Disputed Credit Card Charge Against Priceline

June 26, 2007 by TFB

When I go on vacation, I usually use Priceline's Name Your Price™ service for a hotel room. You specify an area in the city, a quality level (3-star, 4-star, etc.), the dates, and the price you want to pay. Priceline tries to find a hotel for you at that price. If it accepts your bid, your reservation becomes final and non-refundable. You have to use the hotel Priceline picks for you. I usually bid for 3-star hotels and I get good deals at Marriott or Hilton. I don't necessarily save absolute dollars because I otherwise would stay at a Comfort Inn or Best Western for the same amount of money. For the same price, I stay at a better quality hotel through Priceline. I just have to wait until the last minute making sure that my plans won't change, and then enter my bid.

It has worked well, except this last trip. I bid for a 3-star hotel and paid more than what I usually pay. When I got to the hotel, the quality was not as I expected at all. Everything was at least 30 years old, from desk lamps to bathroom sink, from furniture to air conditioner, you name it. For a 3-star hotel, I got a 13-inch TV. The hallway smelled worse than a cheap motel. Because I already paid and it was not refundable (sunk cost), I had to stay there. Fortunately it was just one night.

Priceline let me down. It didn't honor its end of the bargain. I bid for a 3-star but the hotel it gave me was clearly not a 3-star. I called them and asked for a refund but they didn't listen. Now I will have to see if my credit card really protects me against a bad transaction. I filed a dispute with my credit card. Too bad I didn't use an American Express card for my charge. I heard American Express is more friendly to their cardholders (not sure if it's true). I will have to see how Visa and MBNA, now Bank of America, work for me. Maybe the so called consumer protection is just perception, something the credit card companies advertise but don't really stand behind. I will see if it's real. If I have to venture a guess now, I'd say I probably won't win.

Have you ever filed a dispute with your credit card company for product quality issues? Did you win?

[Update on August 10, 2007]: My dispute was denied. See Credit Card Dispute Against Priceline.

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Comments

6 Comments on Disputed Credit Card Charge Against Priceline

  1. indexfundfan on June 26, 2007 | permalink
    2.  

    Let us know how the dispute works out…

  2. Anonymous on June 27, 2007 | permalink
    3.  

    Is "bidded" correct? I don't think that is a word.

  3. TFB on June 27, 2007 | permalink
    4.  

    You are right. "bidded" is not the correct form. Corrected. Thank you!

  4. Anonymous on June 28, 2007 | permalink
    5.  

    The timing of your post is coincident with a quasi-related experience I'm having.

    I booked a room at a (known) hotel via Hotels.com. though I never received a confirmation e-mail.

    When I called the hotel, itself, I learned that they had no reservation on file.

    Calling Hotels.com's customer service line was quite frustrating. I experienced about 6 disconnects (after being on hold about 5 minutes each time), and ultimately was told that they didn't have the 'booking number' on file – even though I had printed it and was reading from that print out.

    2+ hours later, they 'believe' the reservation has now been made. I'll find out tomorrow night.

    There is something to be said for saving money using aggregation booking services, but, if it's important, it might be worthwhile to pay more (to be assured that you're getting what you expect).

  5. Ted Valentine on June 29, 2007 | permalink
    6.  

    Too bad. Hope you get your money back. I've always had a good experience with Priceline for hotels.

  6. Slim999 on July 7, 2007 | permalink
    7.  

    You won't get your money back, because Priceline doesn't actually guarantee anything about the quality of the hotel they are going to put you in.

    "3-star" is a subjective assessment. Your idea of 3-star and my idea of 3-star can be totally different while at the same time both of us are being genuine.

    Priceline knows this. It makes its profit on the hotel rooms where it can get away with promising you a 3-star hotel, but actually delivering a 1-star for the price of a 3-star.

    Many won't complain, or don't know how. Some will, but won't get anywhere with Priceline. Even fewer will dispute the charge. And Visa could care less whether the hallways smelled like pee. Visa has its fee already, paid to them by Priceline.

    Who is a better Visa customer (as measured in total annual revenue): you, or Priceline?

    VISA also measures for "bad customers." If you request too many refunds, they'll just cancel your card by claiming they just "can't meet your needs."

    That's my prediction.

    Something similar happened to me at a Red Sox game. I was invited to the 407 club, where they tacked on a 19% gratuity to my check. When I complained to the management that I wasn't happy with the service, and would they please remove the "tip" they refused.

    VISA also refused to remove it from my charge.

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