Hotwire.com (Expedia) Holding Funds for No Service

It is a common practice for various businesses, particularly financial institutions such as banks, to place an authorization hold on your credit or debit card when you make a payment. This procedure is especially prevalent at gas stations, where the process is designed to ensure that funds are available to cover the cost of the fuel you intend to purchase. When you swipe your card at the pump, the gas station may initiate an authorization hold that temporarily reserves a certain amount of money on your account, which can often be higher than the actual price of the gas you pump. This is done as a precautionary measure to safeguard against potential discrepancies in the transaction amount, as gas prices can fluctuate and vary with different pump selections. However, once the transaction is completed and you have filled your tank, the holds are typically released immediately, and you are charged only for the amount of gas you actually pumped. But that is not the case potentially if you use Hotwire.com. It happened to us. We got a booking error at check out, but they still charged our card. (See screen shot in article). We called Hotwire and they did not do anything except tell us the charge will fall off after 2 hours. Bad customer service. They simply do not care by their actions. Actions always speak louder than words.

Holiday Inn Express Hotel Room - Photo: © RoadTour.Net

The practice of placing holds on funds can lead to significant inconvenience, especially if the hold amount is substantial and affects the customer's available balance. It is particularly unacceptable to continue holding funds when a service has not been provided or when the actual transaction amount is significantly lower than the initial hold. Customers may find themselves in a difficult financial situation if they rely on those funds for other essential purchases or bills. In recent years, there has been a growing call for greater transparency and fairness in how authorization holds are managed. Many consumers believe that businesses should implement more customer-friendly practices that ensure funds are only held for the necessary duration and that customers are promptly informed about any holds being placed on their accounts. As the financial landscape continues to evolve, it is crucial for businesses to adapt their practices to enhance customer satisfaction while maintaining security and efficiency in payment processing.

Merchants like Hotwire have the ability to release authorization holds. It might not be in a businesses operational procedure for Hotwire, but it can be done. So why doesn't Hotwire do this? Why doesn't Hotwire make sure their customers are not out money for no service. Their terrible business practice of authorization holds needs to change. For customers who may not have a lot of money, you are potentially putting them in a bad financial situation while they are traveling. There's no doubt that this has happened before to people. And you know customers have complained about it, but they don't fix the problem.

We recommend not using Hotwire or any of Expedia sites (Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, Hotwire, CheapTickets, Trivago). By choosing to avoid these services, we can send a clear message to these companies regarding our dissatisfaction with their business practices. If they experience a noticeable drop in revenue due to decreased patronage, it may prompt them to reconsider and potentially alter their approaches to customer service, policies, and overall user experience. This collective action can lead to a more favorable environment for travelers, where their needs and expectations are prioritized, ultimately fostering a more competitive and better marketplace.

Hotwire (Expedia) has been added to our Most Hated Businesses List.