"In the past week, chaos ensued at short-term rental company Sonder's properties after Marriott ended their licensing agreement on Sunday. A day later, Sonder announced that it would file for Chapter 7 bankruptcy. Guests staying at Sonder properties were given notice at the eleventh hour to vacate their rooms, forcing them to book alternative accommodations at sometimes- exorbitant prices. A pair of crisis communications experts say Marriott's biggest mistake was losing control of the narrative."
"On Sunday, guests staying at Sonder properties began posting on platforms like X and TikTok about being forced to vacate their rooms. "Once people start describing themselves as temporarily homeless because of your brand, the reputational damage becomes hard to contain," Nierman said. Oliver Ellerton, the director of the Singapore-based public relations firm Ellerton & Co., said Marriott failed to get its messaging out quickly."
Marriott terminated its licensing agreement with Sonder, and Sonder filed for Chapter 7 bankruptcy the next day. Guests at Sonder properties received last-minute notices to vacate, forcing rapid rebooking at often exorbitant prices and creating travel chaos. Marriott failed to control public messaging as guests posted their experiences on platforms like X and TikTok, portraying themselves as temporarily homeless and amplifying reputational harm. Call centers provided outdated information while relocations occurred, compounding confusion. The sudden operational and communications breakdown produced significant trust erosion in the Marriott brand and demonstrated critical failures in crisis management.
Read at Business Insider
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