What to do if you suspect hotel price gouging
A winter storm in Texas has brought record-low temperatures, along with power outages, canceled flights and -- in at least one hotel's case -- what appeared to be price-gouging. Luckily, that didn't turn out to be the case.
Amid the low temperatures, social media users were appalled to see some hotels apparently jacking up their rates. One hotel, the two-star Ramada by Wyndham Austin South, offered rooms for a whopping $750 a night on Monday night -- before dropping back down to $99 a night for Wednesday. This was an anomaly among several hotels in the area, including other Wyndham properties.
TPG reached out to Wyndham Hotels and Resorts about the Ramada Inn pricing and received clarification. The hotel was in the process of zeroing out inventory and for a short duration, out-of-the-norm pricing was shown on a few online booking engines. However, those were not the prices the hotel was charging and no one booked or paid for a room at the inflated price. The glitch was solved quickly.
According to Wyndham:
"We do not tolerate price gouging and require that hotels comply with all local, state and federal laws. In speaking with the owner of this hotel, which is independently owned and operated as a franchise, it's our understanding that the temporary rate increases seen online were the result of the property working to close out its inventory as it managed the loss of power and other utilities.
We have since been assured that no guests were charged, nor was there any intent to charge, the rates shown. While the hotel is not accepting new reservations, guests currently staying at the property are being allowed to extend their stay at no additional cost while they wait for conditions to improve."
That's good news in this case. However, if you ever find yourself in a potential hotel price-gouging situation, here's what you can do.
Look at the maximum rate
To find the maximum rate a hotel can charge you during a natural disaster, all you have to do is look at your hotel room door.
Texas requires hotels to post a maximum room rate notice in all of their rooms, according to the Texas Hotel & Lodging Association, the trade association representing the lodging and tourism industry.
According to Texas Hotel & Lodging Association, "There is no specific 'maximum' amount that a hotel is limited to, but it should post a rate that is high enough to cover what the hotel would expect to rent the room for in your highest demand period, but not so unrealistically high that the property would never receive such a rate."
And if a disaster is declared, the association provides additional guidance on room rate pricing.
Call your state's attorney general -- then your credit card company
More than 4 million Texans woke up without power this morning, according to poweroutage.us, a site that tracks outages.
But price-gouging is illegal, according to Texas law. And businesses that engage in the practice can be prosecuted by the Office of the Attorney General after a disaster has been declared by the governor or president. The state of Texas urges residents to file a consumer complaint to report a suspected price-gouging incident.
However, the Office of the Attorney General noted that "high prices alone do not mean that price gouging has taken place," because businesses are generally allowed to determine the prices for their products.
In this case, it would be illegal because Governor Greg Abbott issued a disaster declaration on Friday, and the White House granted his request for a federal emergency declaration.
If you're not in Texas but have experienced price gouging, find the contact information for state attorneys general throughout the U.S.
Find out if your credit card's travel insurance will help
And if this pandemic has taught us anything, it's that everything we may have taken for granted before (our health, mobility and safety) is no longer a given.
But if you find yourself in a bind, your credit card might come in handy.
For instance, many travel rewards cards offer travel insurance when you use your card to purchase travel. Some cards, however, require you to pay for your entire trip with the card, while others will provide coverage even if you only pay taxes and fees on an award ticket.
See the links below for more information on these insurance types and the best cards for every kind of insurance.
- The best credit cards with travel insurance
- Credit cards with trip cancellation insurance
- Travel insurance versus credit card protections
Bottom line
Texas residents throughout the state have banded together to find shelter — not easy when so many customers are experiencing power outages. If you find yourself needing essentials, like shelter during a natural disaster, know that there are options. Contact your county and state's emergency management departments for assistance.
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
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- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
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- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.