HotelsByCity Scam

Lou Gelfand, who writes the "Talking Ethics" column twice a month in the Business Section of the Minneapolis Star Tribune, wrote about my HotelsByCity.com scam in yesterday's newspaper:

When buying in person or online, shop around - and ask questions

Lou Gelfand, Star Tribune

... Norman Larson of Ellsworth, Wis., is a retired University of St. Thomas journalism professor. He says he searched the Internet for a hotel in Burnsville and found HotelsByCity.com, where he spotted this ad: "Burnsville Hotels, 110% low rate guaranteed."

Larson said, "My credit card was charged $84.24. ... But when I checked out, the receipt was $25 less than what I had already paid."

So Larson went back to the HotelsByCity.com site for an explanation. Included in a long response was this:

"Facilitation fee: We act as an intermediary between travel suppliers and consumers for the booking of a payment for travel accommodations. To facilitate the provision of travel accommodations to consumers, we enter into agreements with various travel suppliers which govern the booking of and payment for such accommodations through this website. The price listed for travel accommodations includes the amount(s) paid to the relevant travel supplier(s) in connection with facilitating your travel arrangements, as well as a service fee for facilitating such travel arrangements."

Translation: We get a commission paid for by the consumer.

The lesson is this: Whether you're shopping in person or on the Internet, "buyer beware" is still the best policy.