Problem: $4,934 Discount on Alitalia?
The Italian national airline, Alitalia, was charging more than $5,000 for trans-Atlantic, round-trip, business class airfares in 2006, but by mistake a fare was briefly listed online at $66.00. About the same time, Marriott was offering rooms at a New York City hotel for $24.90 when the intended price was $249.00. Alitalia honored 509 reservations at an expected cost of about $2.6 million. Marriott, however, raised the $24.90 rate to the intended $249.00. Errors of this kind happen with some frequency in the travel industry.
Questions
1. As a matter of business practice, how would you have dealt with your company's error had you been in charge at Alitalia or Marriott?
2. As a matter of law, was Alitalia or Marriott obligated to honor the low prices?