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Red Cross Admits Error Over Unused Hotel Rooms

POSTED: 2:59 pm PDT March 20, 2008
UPDATED: 1:43 pm PDT March 21, 2008

A hotel employee risked her career to help the 10News I-Team break a story about unused hotel rooms booked by the American Red Cross.

"The rooms would be held by the Red Cross even though they stayed empty," she said. "People would only stay a couple of nights and the rooms were vacant the rest of the time."

The I-Team insider wondered why no one told the Red Cross about the 6,000 rooms that sat empty.

Bob Rauch, chairman of the County Hotel-Motel Association, said his hotel did but admitted other hotels did not play nice.

"I saw greed, the same kind when you book the Super Bowl," said Rauch.

Rauch pointed out the greedy hotels are in the minority.

"In fairness to the hotel community and restaurant industry, I saw a lot of guilt," said Rauch.

The bottom line is some hotels may have not been ethical, but the problem was caused by the National Red Cross.

The Red Cross admitted this, saying, "It was our mistake, we regret it…"

They said they will give back to the community "$688,000… the value of those (empty) room nights…" and added, "we know this is the right thing to do for San Diegans…"

The non-profit said when the disaster workers arrived, here is what went wrong.

The Red Cross did not "have computer systems and operational headquarters" set up in time.

That meant they "couldn't adequately assess the changing scope of the disaster."

Next time, when the volunteers and staff arrive at a major disaster, things will be different.

The company booking the rooms will actually have an "employee on the grounds to help Red Cross workers…"

That company, Corporate Lodging, consulates working out of Kansas City.

The company will also use better invoices to "show unused nights more clearly."

And the company will tell the National Red Cross "if the rooms go unoccupied after the 48 hours."

The money will be used for San Diego's wildfire recovery efforts.

The Red Cross said they will continue to talk to the hotels involved to "reduce the cost of the error."


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