Universal Hotels has skilfully negotiated a PR minefield, after an error in pricing prompted an angry social media post to go viral and a flood of negative reviews.
The Oxford Hotel is an icon of Sydney’s colourful Oxford Street, and one of many in the Universal stable navigating a post-pandemic and lockout-affected landscape.
But recently one patron discovered they had paid $24.36 for a jug of beer around 9:20pm, and then $33.50 for the same item at 10:30, being an increase of more than 37 per cent.
Less than impressed, the customer asked a staff member, who informed them of the late-night surcharge after 10pm. Stating in his post he had “never heard of” such a thing, he alleged there was no notification for patrons of the time-based increase.
The pub subsequently received multiple one-star reviews on Google referencing the surcharge, some calling it “theft” or a “scam”, and describing the move as “appalling”.
But surcharges, often known as “tiered” pricing, are common practise at many venues.
NSW regulations state venues can charge a surcharge on specific days, notably weekends and public holidays. The increase is typically five to 10 per cent.
The total price (with surcharge) is not required to be included in the price displayed, but where a surcharge is being employed, menus should feature somewhere the disclaimer that “A surcharge of [percentage] applies on [day or days].” This text must be at least as prominent as the most prominent price, according to the ACCC (Australian Competition & Consumer Commission).
Soon after the viral post, the Oxford Hotel responded last week on social media, explaining that by necessity pricing does increase in line with increased operating expenses.
The pub noted how it provides free entertainment six days per week, including DJs, drag performers and sound and lighting technicians, as well as employing security and paying staff late-night penalty rates.
As for the product in question, “we acknowledge this was an error” came the reply, clarifying that the additional charge was supposed to have been eight per cent, and noting that not only this has since been rectified, but amends were to be made.
“We are grateful to the customer for bringing this to our attention – we are reducing the price of beer this weekend as a result.”
Thankfully some duly accepted the outcome, noting that expecting any business to maintain pricing under the current weight of inflation was “ludicrous”.
“The fact that you’re here explaining yourselves (which in my view is unnecessary when you haven’t done anything wrong) show great care for your clientele.”
The Kospetas family’s Universal Hotels has amassed a collection of pubs in central Sydney and Oxford Street, purchasing the landmark Oxford in 2017.
