The Marriott-Sonder crisis: A lesson in crisis management gone wrong
The recent fallout between Marriott and Sonder has caused significant travel disruptions and a loss of trust in the Marriott brand, according to public relations experts. This incident highlights the importance of effective crisis management and the potential consequences of mishandling a crisis.
The Marriott-Sonder partnership ended on Sunday, leading to chaos for guests at Sonder properties. Within a day, Sonder announced its intention to file for Chapter 7 bankruptcy, leaving guests with little time to find alternative accommodations. This sudden change caused guests to feel abandoned and temporarily homeless, resulting in widespread reputational damage.
PR experts emphasize that Marriott's biggest mistake was losing control of the narrative. As soon as guests began sharing their stories online, Marriott's crisis messaging became scattered and ineffective. The company's call centers were unable to provide accurate information, and guests were being moved out while outdated details were still being disseminated.
The lack of accountability from Marriott further exacerbated the situation. Initially, the company promised full refunds for customers who booked through its channels. However, this stance was reversed a few days later, causing confusion and mixed signals. The experts argue that Marriott's change in credit card guidance made it seem like the company was sidestepping accountability, which is crucial during a crisis.
Despite the challenges, Sonder's announcement of bankruptcy was seen as a transparent move. The experts agree that acknowledging the severity of the situation is better than pretending the business is still operational. However, the execution of this announcement could have been better, as clarity delivered late can be indistinguishable from chaos.
To improve crisis communication, the experts suggest that Marriott should have taken several proactive steps. These include setting up a dedicated 24-hour call center for Sonder guests, offering immediate refunds, and covering transportation costs to other Marriott properties. Additional gestures, such as upgrades and spa bookings, would have helped mitigate the impact. However, these measures may have been costly in the short term but would have been the right thing to do to retain customer trust.
The incident has left a lasting impact on guests like Lenny Coynault, who plans to delete the Marriott app and end his relationship with the brand after the incident. The experts predict that regaining customer trust will be a significant challenge for Marriott, as trust is the currency of hospitality. A poor response to a crisis can have long-lasting effects, but with effective preparation and planning, companies can navigate such situations more successfully.
