It always seems that when a disaster strikes, it is when we see how we really are. Instead of helping our fellow men, we fleece them for all that they may be worth. Sounds bad does it not? I have preached about what the outcome will be if you raise prices during a natural disaster. Why do stores, and hotels gouge people in their hour of most need? It only accomplishes one thing, it will annihilate customers from ever buying, or staying at your property or chain, for that matter. Yet during the Sandy storm, guess what stores, gas, and even the gas cans were sold for higher prices than normal, how low can one sink, is the monetary value worth the scorn and perhaps the retaliation from customers?
The Hotels Involved This Time
This is what concerns me the most; hoteliers are supposed to be hospitable towards their customers, and welcome them as if they were in their own homes. It seems that during a natural disaster, hospitality goes out the window, and let’s take these people for all that they are worth comes in to play. Here is a family displaced by the storm; they have lost most of their belongings and are seeking refuge at “your” property. I am not advocating free rent – I am advocating a fair price. I can’t in polite company, say what I would like to say concerning the following hotels that price gouged during that event. Homewood suites by Hilton (shame on Hilton) Extended stay America (shame on you) Howard Johnson (shame as well) — these properties are now making monetary restitution to the state of NJ for violating the law. So tell me what was gained by this?
Why?
When you search for a hotel online, the rates are visible, and they explain if there are seasonal rates, convention rates and special events. However, nowhere do I find disaster rates. Could you imagine disaster rates being 300% higher than the best rate? Would you book at this property? Why does the green monster of greed shows its head so deliberately during a disaster? This sort of behavior is absolutely uncalled for, especially for a hotelier. It gives a bad reputation to all of us, for customers will know that during a disaster their life savings will be used to seek shelter, whether it be for days, or weeks. I can only say this — if the owners of these properties issued the orders to increase rates, shame on them. However, if it was the GM, I personally would have him/her replaced. You have given the Industry a black eye. These properties are a disgrace to the industry. You would be furious if your property needed a plumber, and the plumber decided to increase the rate by 400.00 an hour. Well hoteliers, that is exactly what you did to your customers.
I just hope that the money that you will have to pay back is more than what each property took in. How about putting on your web site the following. “We gouge customers during disasters.”
I have a workshop coming up in September and this will be one of the topics for discussion. Again, shame on those that purposely gouge during a disaster.
About the Author
Alan Campbell has been in Las Vegas for over 30 years and has worked for the major strip hotels. He has spent some time in California, Los Angeles where he worked for the Radisson and Sheraton hotels. Alan considers the hospitality industry the best job in the world – it is the only place that both king's and Paupers will visit you.
The Hotel Guy
