Unethical Business Practices
Individual Work Week 1
Nicole Chase
Small Business Management
Instructor Aileen Journey
Everest University
July 17th, 2013
According to big class action most consumers have the right to the best goods and services at the lowest prices. The competitive process works the best when the prices are set honestly and independently. Price fixing occurs when an agreement among competitors to raise or fix the prices of their goods and services. (Bigclassaction.com) I have had a personal experience when this had happen to me. My husband and I decided to go on vacation; we decided to use Expedia to book our hotel room. The price of our room was $ 375 for a week’s stay. We made the reservations and paid for the room. Once we arrived at the hotel the desk clerk stated the cost of the room was $475.
We asked to speak to the manager. When the hotel manager came out she explained to us that sometimes the actual price changes. We found a different hotel to stay in, once we were in our room we decided that her explanation did not make sense. After many hours of research on the internet I discovered that Expedia uses third party companies to buy unsold rooms and sell them at a higher price. This type of arrangement can be considered price fixing. Once we returned home we filed a complaint against Expedia.
I feel that in this situation Expedia should not use third party companies to price fix their rooms. Also the manger of the hotel should have been honest on how they sell rooms. If they were honest about the third party companies selling rooms on their behalf. As well as explaining that there could be extra charges involved. I would have paid the $475 for the room. I would not file a complaint against Expedia.
References: (n.d.). Retrieved from Bigclassaction.com.
Longenecker G. Justin, P. W. (2012). Small
Nicole Chase
Small Business Management
Instructor Aileen Journey
Everest University
July 17th, 2013
According to big class action most consumers have the right to the best goods and services at the lowest prices. The competitive process works the best when the prices are set honestly and independently. Price fixing occurs when an agreement among competitors to raise or fix the prices of their goods and services. (Bigclassaction.com) I have had a personal experience when this had happen to me. My husband and I decided to go on vacation; we decided to use Expedia to book our hotel room. The price of our room was $ 375 for a week’s stay. We made the reservations and paid for the room. Once we arrived at the hotel the desk clerk stated the cost of the room was $475.
We asked to speak to the manager. When the hotel manager came out she explained to us that sometimes the actual price changes. We found a different hotel to stay in, once we were in our room we decided that her explanation did not make sense. After many hours of research on the internet I discovered that Expedia uses third party companies to buy unsold rooms and sell them at a higher price. This type of arrangement can be considered price fixing. Once we returned home we filed a complaint against Expedia.
I feel that in this situation Expedia should not use third party companies to price fix their rooms. Also the manger of the hotel should have been honest on how they sell rooms. If they were honest about the third party companies selling rooms on their behalf. As well as explaining that there could be extra charges involved. I would have paid the $475 for the room. I would not file a complaint against Expedia.
References: (n.d.). Retrieved from Bigclassaction.com.
Longenecker G. Justin, P. W. (2012). Small
References: (n.d.). Retrieved from Bigclassaction.com. Longenecker G. Justin, P. W. (2012). Small Business Management: Launching & Growing Entrepreneural Ventures. Mason OH: South Western Cengage - Learning.