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Customers Fume at Bankrupt 1800Hotels

Darrin T. Mish

Tax Attorney • 32+ Years Experience

I'm Darrin Mish. For 32 years I've practiced federal tax litigation — routine audits, Tax Court cases, and everything in between. If you're facing an IRS issue, here's what you need to know first.

1800Hotels.com is an online travel website that arranges hotel accommodations for customers.  But recently, thousands of its customers were left fuming at the travel company for cancelled reservations which they only discovered when they called their hotels before leaving or when they were checking in.

Apparently, the hotel bookings were cancelled by two wholesale hotel room suppliers, Tourico Holidays and Gulliver’s Travels.  The reason for their action was non-payment of commissions and fees by 1800Hotels to them.  The two room suppliers have a business relationship with 1800Hotels where they supply the rooms, customers pay 1800Hotels for the rooms and the suppliers pay the hotels for the rooms when customers check in, whether or nor 1800Hotels pay them.
Scores of disgruntled customers have expressed their extreme displeasure at 1800Hotels.com on travel websites such as TripAdvisor.  Their main grouse is that neither the company nor the suppliers like Tourico and Gulliver’s Travel had the courtesy of informing them about the canceled reservations.  More than 3,600 room bookings were cancelled by the two room suppliers over the last month.
It appears that 1800Hotels.com and its Irish parent, Happy Duck Ltd., filed for Chapter 11 bankruptcy protection in Tampa on July 13.  According to them, bankruptcy is the only means to protect customer reservations.  Bankruptcy records show that 1800Hotels.com and its Irish cousin, 1800Hotels.ie, had debts of about $4 million since July 1 and it would lose $30,000 to $50,000 a day if the judge blocked more cancellations.  Bankruptcy Judge Caryl Delano gave suppliers the green light to continue. The Irish website of the company state that the company filed for bankruptcy to protect their customers’ interests.  But 1800Hotels.com resumed business recently with a new hotel room wholesaler and different business arrangements.  Under the new arrangements, payments made by customers go straight to the room supplier.  This practice would eliminate any payment disputes or room cancellations.  The company would not the new room wholesaler.
Meanwhile, customers whose reservations were cancelled have been trying in vain to contact 1800Hotels.com, located at 215 N Howard Ave.  Their calls went unanswered.  Some like Dianne Osburn of Attleboro, Mass., managed to get other rooms at their hotels, but at a higher rate.  She claims that the company sent her a claim form to file with the U.S. Bankruptcy Court in Tampa.
Whether it is you as an individual or your company, if you are facing difficulties with your debts, choose bankruptcy as a way out.  Call us at (813) 200-4133 for a free consultation or visit http://tampabankruptcy.pro.

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