Home > Uncategorized > 1800hotels Bites the Dust?

1800hotels Bites the Dust?

Watching failure is never good for the soul. I was around in the 1998-2000 dot-com period and saw some good ideas and a lot of bad ones go down. Word is breaking on the internet here in Ireland (and on national radio) that one of Ireland’s internet successes, 1800hotels, is in trouble. I have been trying to verify that, and boards.ie is going mad with comments about lost hotel bookings and fees. 1800hotels had some negative word of mouth over the years mainly about their after sales service.

They were moving into the US market and in only March this year awarded  French/West/Vaughan (FWV), one of the US’s largest independent public relations, public affairs and brand communications agencies, the worldwide agency for its $11 million integrated marketing account.

What went wrong? We may never know. It was still being led by its founder who, according to the founder myth that many successful start-ups have (think eBay and Pez dispensers), created it with Eur 5,000, a laptop and a phone (having worked in eBookers prior to this and taking some clients with him probably didn’t hurt either). The company had a turn-over in the tens of millions just a couple of years ago, now their website won’t even load and their Twitter account hasn’t been updated in about six days.

It seems there are some legal goings-on which may be an attempt to save the company, as non-payment by 1800hotels is being identified as the reason for todays crisis. I guess there is always a deal to be done in these cases and plenty of other companies have hit the wall and survived long-term. We will watch in (morbid) fascination.

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  1. Insider
    August 3, 2010 at 16:12

    1800Hotels has been struggling for over a year now. Management problems, a lack of knowledge, or care, for US market laws and regulations, poor online business acumen, inexperienced stakeholders, and simple greed are the major factors. The owner and board members’ goal was to make as much money as quickly as possible and then hope to be bought out by a larger player. There has been a lot of internal maneuverings as managers vied for a percentage ownership stake in the business in hopes of the large buyout windfall. In the process, backstabbing and hard feelings occurred creating an inefficient business. It was only a matter of time.

  2. bernadette clarke
    August 15, 2010 at 15:53

    What are people who paid for their holidays by cash, laser card, bank draft etc doing about trying to get their money back? Surely to god there has got to be some way or some place that can help? Especially if 1800hotels knew they were struggling for a year, why were we not informed by them prior to balance of payment for our holiday which was paid 21.6.2010? I think it is an absolute disgrace how people are treated and suggest it is time all of us who were affected by 1800hotel collapse stand up and do something together to get our money back.

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