Don't know where to post this, but Hotels.com is ripping off FatWallet users! They're listed under "Cash Back Shopping" as providing 4% Cash Back. However, when you book a room and go through the CashBack link, the prices for their "taxes and service fees" are strangely almost 4% of the room rate higher than if you just go to Hotels.com. In other words, they're charging fatwallet customers 4% more for rooms, and then giving that 4% back to them months later, instead of actually taking 4% off of their prices. I've NEVER seen a CashBack offer that was higher than a non-CashBack price before, and hope to never see it again.
Here's the actual numbers: $59.49 room at the Hillsborough NJ Days in without CashBack, $6.84 "Tax recovery & service charge" for a total price of $66.33 WITH CashBack, $8.68 "Tax recovery & service charge" for a total price of $68.17
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The terms & conditions on the hotels.com cash back page explains: Tax recovery charges & service fees may be higher through Cash Back links, but likely not be as much higher as the Cash Back % offered.
I don't see how that would excuse them, it's still a BS policy. Thanks for the warning OP. I guess we need to be extremely very careful when dealing with Expedia, Hotels.com, Hotwire and everything else that Expedia owns.
Message edited by: makm on 2009-09-11 19:22:16 CDT
I think that borderlines dishonesty.... I mean they definitely give the illusion of a cheaper price through CashBack, but in reality they are not... I mean no disrespect by saying this (as I understand FW is a business also, and I am very grateful): but do I need to double check the prices from the FW link and regular link for all my shopping??? That would be a pretty big hassle... Is there a way to give us some type of heads up??? Maybe we can start a sticky like OP did....
From many things I've read, Hotels_com and other companies that Ex pedia owns have a history of doing things that just gets under people's skins. I don't believe all companies FW partners with are like that, just ones owned by Ex pedia, especially Hotels._com. I bet it's their way of discouraging us to use FW and go directly through them and not have to pay FW commission. If you're someone who doesn't agree with Hotels_com's tactics, like many of us, don't give them your money. If you still want to use them for whatever reason, then go through FW's CashBack anyway. The reason is because it gives FW more leverage to negotiate and shove a fire hydrant up their *$$ and pull it out of their tear ducts. I've met the FW staff when they were in SF, they are on our side.
Message edited by: makm on 2009-09-11 19:47:51 CDT
I remember the same thing with a coupon Hotels.com offered a year or two back. You had to go through a special link to get to it (there was no coupon entry field, just the URL) and it raised prices by 10% then deducted them back to normal prices.
Solipsist said:The terms & conditions on the hotels.com cash back page explains: Tax recovery charges & service fees may be higher through Cash Back links, but likely not be as much higher as the Cash Back % offered.
I am a big fan, and multiple time daily user of FatWallet, but defending this practice is wrong. I have not used Hotels.com through Fatwallet, and now I will just go directly to the site until Fatwallet makes them change this policy. I do use it to compare, but have not found a deal worth taking yet, not saying that I wont though.
makm said:I've met the FW staff when they were in SF, they are on our side.
I don't think FatWallet should do business like this. I know they want their cut, but I count on them to give me a discount through their site, not an illusion of a discount.
I guarantee that if majority of CashBack links has these kind of clauses then fatwallet will be closed and no body will be using it. FW should just not support these kind of practice. Solipsist said:The terms & conditions on the hotels.com cash back page explains: Tax recovery charges & service fees may be higher through Cash Back links, but likely not be as much higher as the Cash Back % offered.
From my quick reading of this thread, it appears that this practice gives FW a profit (their cut of the deal), but gives the customer no savings -- and perhaps a loss (due to the loss of time -- waiting for 2 or 3 months to get the 4% back, instead of saving it immediately by not being charged 4% extra in the first place). Not to mention the time cost to the customer of hassling with the CashBack box, being careful to make the clicks in the right order, checking the CashBack account within the 30 day window to see if the CashBack was reported correctly by the company, etc.
Putting something unusual like this in the small print might be technically above-board, but practically, it is sneaky.
This is the kind of thing that results in a company's losing "goodwill" from loyal customers/members.
To set up a deal whereby one profits oneself as the middleman while knowing that the customer will not be profiting (whilst knowing full well that the customer *believes* that he will be profiting), to give with one hand and take with the other (or to look the other way while someone else is treating the customer like that) -- that feels cheap - unnecessary - questionable - short-term thinking. One's long-term reputation is more valuable than that.
There are so many CashBack sites and promo-code sorts of sites now - any behavior that could push some of one's loyal custom their way is risky.
Users of FW expect fairness, real savings, and clearly-explained deviations from the norm.
---- Even though I don't use Hotels.com, I'm glad to know about this CashBack practice - I guess that I will have to start checking prices both with and without the CashBack link, at least for purchases of some value. I'm not going to squint through each store's T&C - it would be easier to just check each purchase in real-time, and know what I'm dealing with. For purchases of lower value, like eBay 1%, I usually don't go through FW because of the CashBack hassle anyway.
--- By the way, hardly anyone reads the travel forum - most site users won't be reading this, unfortunately.
Message edited by: NantucketSunrise on 2009-09-13 02:34:35 CDT
I've contacted the MOD's to see if there is better response then "read the TOC" to what value FW adds to this transaction if it is cheaper to go around FW.com. I have always know FW to stick up for its customers (us) and I faithfully expect it to answer these questions for us.
Okay, I just got off the phone with my supervisor, and I can definitely tell you this shouldn't be happening. There's a thread investigating similar problems with other problems with other travel merchants in the FatWallet forum. What we really need to do is to reproduce the problem. Can you guys provide some links to the Cash Back and non-Cash Back prices?
This might not be happening intentionally - or it may only be happening at certain times. Either way, we need to isolate and identify the problem if we're going to fix it.
Any help you guys can provide can go a long way to solving this.
Just like any deal, you need to know your bottom line and do your shopping to decide if the CashBack link is for you. It states clearly that the link may produce higher fees etc.... If its not the best deal for you then don't use it. There isn't anything wrong with FW providing this link, specials, or general offers to its member's.
The only downside is that it may keep you from using a different offer that is better for you, if you aren't paying attention. I agree its BS, but its up to you to use it.
Excalibur Hotel Casino, looked up directly at Hotels.com * Total Charges: $103.69 Wednesday, September 23, 2009 $41.00 Thursday, September 24, 2009 $51.00 Room Sub-total $92.00 Tax Recovery Charges & Service Fees $11.69
Same hotel through FW Cash Back 1. September 23, 2009 –– $41.00 USD 2. September 24, 2009 –– $51.00 USD Tax Recovery Charges and Service Fees $14.54 USD Total Charges $106.54 USD
Hotels.com charged $106.54-$103.69 = $2.85 for reservations made through the FW Cash Back. You are supposed to get 4% ($4.26 or $3.68 if it doesnt include the tax/fees) Cash Back, so in this case, you do still come out ahead.
Message edited by: pitflyer on 2009-09-13 19:24:55 CDT
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