What happened
Justin Smerchanski, a Manitoba business traveller, booked a room at the Holiday Inn Express & Suites in Willmar, Minnesota that Expedia.ca listed at C$207.95. When he printed the receipt he found he had been charged $3,143.93 in 'taxes and fees' plus another $2,828.66 in 'property fees' — a total of $6,180.54 for one night. Staff at the hotel told him at least two other customers had also been charged thousands after booking through Expedia, and when CBC News test-booked the same hotel days later, its bill showed an extra $2,835 'daily property fee' — which vanished by the following day.
What turned a glitch into an ordeal was the response. 'Obviously I thought it was a mistake, and right away I called Expedia,' Smerchanski said — and was assured it would be cleared up. Instead he spent more than eight hours on the phone with at least half a dozen agents, collecting a new case number each time, told repeatedly that agents 'weren't able to authorize a credit for that amount.' His credit card company, which told him it had 'never ever seen anything like this', began contacting Expedia on his behalf.
Only after CBC News contacted Expedia for comment did the company act: it processed a full refund and offered a $200 voucher. 'In this particular instance, we do feel we could have resolved this issue in a quicker manner,' spokesperson Mary Zajac wrote. InterContinental Hotels Group, Holiday Inn's owner, said it was not involved in billing when customers book through third-party sites.
What it cost
$6,180.54 billed for a one-night stay; eight-plus hours on the phone across at least six agents, and no refund until media attention
Why it happened
The booking system attached thousands of dollars in fees to a room the site itself was showcasing as a 'featured property'.
Front-line agents could see the charge was absurd but had no authority to reverse it, so the customer collected case numbers instead of a refund.
Escalation ran on hold music: manager after manager 'can't help you with anything', as Smerchanski put it.
The refund only moved after a journalist started asking questions — the $200 voucher and full credit followed CBC's calls.
The lesson
When your system bills $6,200 for a $208 room, the failure is the exception handling: front-line agents must be able to reverse an obviously absurd charge on sight.
Aftermath
Expedia processed the refund in full and offered a $200 voucher, saying it regretted the experience and could have resolved it faster. CBC's follow-up test booking the next day showed normal taxes and fees of $22.83, suggesting the faulty fee had been fixed. Smerchanski, an Expedia gold member who had booked dozens of hotels through the site, said he would never use it again.
FOLLOW THE EVIDENCE