Monday, June 11, 2012

Lack of Imagination

I was reading a case on the Consumerist website last week about someone who had booked a hotel through Hotels.com in Croatia, only to arrive at the address specified and find no trace of a hotel. By itself this wasn’t a complete business failure; the company does not own any of the hotels it offers to book for you, and their site has plenty of disclaimers about what happens if they book you into a hotel that is unavailable on the day you’re supposed to check in. Where the situation became truly farcical – and what led to the inevitable mockery by thousands of scruffy bloggers as well as everyone who visits the Consumerist site – is that when the failure was reported to them, Hotels.com had no procedure in place for verifying the existence of the hotel, getting the customer to a different property for the night, refunding the booking fees, or anything else that might have satisfied the customer and defused the situation…

As a result, the customer wound up being put on hold for hours at a time while the company insisted that the hotel in question really existed, even though no one there ever answers the phone. This would be asinine enough if the customer had just called in and questioned the transaction from home, but Hotels.com was actually doing this while their patron was standing in front of the abandoned building, reporting the lack of a hotel being present. And while the customer did eventually get their money back for the booking that didn’t exist, they had to spend hours fighting with the company, and have still not been compensated for the International cell phone call they made on the night of the dud booking when they were trying to find the non-existent hotel…

Now, I’m not suggesting that this one lost booking is going to hurt the company; it’s quite possible that even the Internet mockery that has resulted and all of the hundreds (or millions; it’s hard to tell) of net citizens who will never do business with Hotels.com will have no effect on the company’s fortunes. But if this sort of thing keeps happening it will eventually harm the company’s reputation beyond any hope of the new series of animated cartoons being able to gloss things over, and eventually the company will destroy itself (and all of the people who work for it, sell things to it or own it) simply because whoever is running operations is not only too lazy to verify that all properties listed not only exist but respond to their customers, but also too lazy to train the customer service personnel on how to handle such a crisis…

Consider, for example, the steps it would take to deal with this sort of situation. Assuming that a toll-free number that works all over the world is outside your budget, simply giving your customer service people the ability to call someone back – and the authority to do so – will cut off both the International on-hold problem and the attendant costs (and demand for reimbursement). Having a policy of checking on the existence and quality of hotels you work with would cut down on the number of non-existent properties you book; so would having contract language that specifies how long your business partners have to respond to your calls – and the penalties they will pay if they don’t. And it certainly wouldn’t take much to develop relationships with back-up and substitute properties, so that if all else fails you can divert abandoned customers to somewhere that does exist…

If none of those things are possible (or economically viable; I don’t know how much tourist traffic goes to Split, Croatia in a given year), then at the very least you could have warnings on your website and disclaimers in your contract language regarding hotels in parts of the world for which you can’t guarantee performance – or, in extreme cases, existence. This won’t stop the occasional problem from slipping through the cracks, or keep the occasional lazy or stupid customer from looking in the wrong place for their hotel property, but it will go a long way towards ending this type of mistake and its attendant Internet mockery…

Of course, the key measure to take is giving your customer service personnel the ability to handle such cases in the first place, as well as the tools to do so. But that’s a discussion for another day…

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