Sonder, one of the largest short-term property rentals outfit, has filed for bankruptcy, forcing thousands of guests to be suddenly ejected from their holiday locations. The latter is reflected in the company’s claims of thousands of rooms across more than 40 cities. Now, it has released intentions to pursue bankruptcy protection in each nation it operates in. This sudden change has led to substantial customer anger and misunderstanding, especially for customers who could not use their booked stays.
Founded in Montreal, Sonder has rapidly emerged as one of the most prominent brands in the hospitality industry’s new breed. It runs on the same Marriott Bonvoy booking and loyalty rewards system. Sonder interim chief executive Janice Sears made the company’s decision to liquidate public just days ago. This alarming announcement has caused panic across the industry and left customers scrambling.
“We are devastated to reach a point where a liquidation is the only viable path forward,” Sears stated regarding the company’s sudden financial collapse. With this comment, they’re highlighting how serious things have gotten and the struggle their firm has to go through.
In turn, many customers had inconvenient surprises upon arrival at their lodging. What they didn’t expect was to arrive at their destination and find out they couldn’t check in. In fact, reports indicate that many guests never got any notice at all about their canceled bookings. This was a recipe for disaster, leaving them scrambling to find alternative lodging. As one aggrieved visitor put it, not having a public transportation option was “creating a great deal of stress.”
Sonder’s partnership with Marriott Bonvoy, giving users access to in-app booking and rewards options, has faced recent criticism too. Some customers felt betrayed by Marriott’s association with Sonder, especially given that the participation in Marriott’s rewards system reportedly contributed to a sharp decline in Sonder’s revenue. Initially, Sonder’s poor communication only increased guests’ anxiety. Thousands turned to the company’s online contact channels for assistance, only to discover that it wasn’t working at all when it mattered most.
As the unexpected bankruptcy of Sonder does, we are left wondering what will happen to its ongoing operations and what will happen to its customers. Parent company of major concert promoter headed into bankruptcy liquidation. Unfortunately, those who relied on Sonder for their lodging experiences are left holding the bag with little clarity on what happens next.