Key Takeaways
- Online travel sites and hotels rely on automated booking and pricing systems, which can lead to price errors and cancellations.
- Consumers are often left exposed, especially during big events, due to a lack of consumer protection laws and policies that favor hotels and booking platforms.
- To protect themselves, travellers should take steps such as taking screenshots of bookings, confirming reservations with hotels, and using credit cards with strong dispute policies.
- Digital law experts argue that consumer protection statutes are needed to protect travellers from surge pricing and after-the-fact event pricing.
Introduction to the Problem
The issue of online travel sites and hotels relying on automated booking and pricing systems has become a growing concern for consumers. A recent case involving Erika Mann, who booked a hotel for the 2026 Formula One Grand Prix in Montreal, highlights the problems that can arise when these systems fail. Mann booked a four-room unit on Booking.com at the Holland Hotel, but weeks later, both the hotel and Booking.com told her that the price was a mistake and that she would need to pay four times the original amount to keep the reservation.
The Case of Erika Mann
Mann had booked the accommodations early, covering her bases by reserving the same four-bedroom unit for two possible weekends in May 2026, both with free cancellation. Once the official dates were announced, she cancelled the extra booking, in line with Booking.com rules. However, weeks later, she received a call from the hotel saying that the price was wrong and that she needed to cancel or pay the new rate. Despite her efforts to resolve the issue, Booking.com eventually cancelled her reservation, leaving her to find alternative accommodations at a much higher price.
The Role of Automated Booking and Pricing Systems
Digital rights expert David Fewer argues that shocks like Mann’s experience are becoming more common as online travel sites and hotels rely on automated booking and pricing systems. These systems can lead to price errors and cancellations, leaving consumers exposed, especially during big events. Fewer notes that Booking.com’s policies allow confirmed reservations to be cancelled if the company decides the original rate was an error, leaving consumers with little recourse.
The Hotel’s Perspective
The Holland Hotel, where Mann had booked, blames a "synchronization error" with Booking.com for the issue, allowing non-event pricing to briefly appear for two units at the property. The hotel says that an automated software updates prices through Booking.com’s system, which means that the hotel cannot manually override the rates shown on the platform. The hotel argues that the system should have automatically adjusted the prices to "event pricing" once the Formula One organizers confirmed the 2026 Montreal Grand Prix dates.
Booking.com’s Response
After Go Public contacted Booking.com, the company took another look at Mann’s case and eventually decided to honour her original booking and cover the price difference. However, Fewer argues that this outcome is not typical and that consumers are often left to fend for themselves. He notes that booking platforms have policies that don’t protect customers, and consumer protection laws haven’t caught up with the rapidly changing online travel industry.
Protecting Consumers
Fewer recommends that travellers booking accommodations during major events take steps to protect themselves, such as taking screenshots of bookings, confirming reservations with hotels, and using credit cards with strong dispute policies. Mann, who had done everything right, including booking early and documenting everything, still ended up fighting for almost two months to get what she paid for. Her experience highlights the need for stronger consumer protection laws and policies that favor consumers, rather than hotels and booking platforms.
Conclusion
The case of Erika Mann highlights the problems that can arise when online travel sites and hotels rely on automated booking and pricing systems. Consumers are often left exposed, especially during big events, due to a lack of consumer protection laws and policies that favor hotels and booking platforms. To protect themselves, travellers must take steps to document their bookings and confirm reservations with hotels. Ultimately, stronger consumer protection laws and policies are needed to protect travellers from surge pricing and after-the-fact event pricing.
