Jack Taras and his friends thought they would be checking in to the Occidental Grand hotel on the Dominican Republic’s postcard-perfect Eastern shore for Spring Break. But when Taras, a 19-year-old sophomore from Providence College, arrived at the resort, he was greeted with the hotel industry’s latest trick: he was walked down.
“They were sent to hotel that wasn’t as nice,” says his father, John Taras. He phoned his son’s online travel agency, Cheaptickets.com, and asked about the downgrade, which lasted the full five nights of Jack’s stay. It deferred to the hotel, which offered an apology and a vague explanation of a “computer mishap” that resulted in an overbooking.
“Walking” is a practice that’s as old as the hotel industry. When a resort is overbooked, it typically sends a guest to a comparable property, covering the cost of transportation, a phone call and accommodations. But somewhere along the way — probably at the start of the current recession — the word “comparable” was conveniently dropped, and hotels quietly began sending guests to lesser properties.
That’s not supposed to happen, according to Joseph McInerney, president and CEO of the American Hotel & Lodging Association, a trade group. “It’s most often the hotel’s policy that guests are provided accommodations in a facility of equal quality,” he told me. “The last thing that a property wants to happen is to compound the problem by sending the guest to an unacceptable facility.”
But problems are being compounded. That’s the bad news. There’s also some good news: Walking doesn’t happen as often as it did before the economy started going soft. The latest lodging industry forecasts predict more empty rooms in the months ahead, in an historic downturn that a recent PKF Hospitality Research study predicted would be “deeper and last longer” than previously thought. “With lower occupancy rates, I’m sure hotels are not having to walk as many guests,” says Robert Mandelbaum, PKF’s director of research information services.
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