Agent: I'm sorry, we have no mid-size available at the moment.
Jerry: I don't understand, I made a reservation, do you have my reservation?
Agent: Yes, we do, unfortunately we ran out of cars.
Jerry: But the reservation keeps the car here. That's why you have the reservation.
Agent: I know why we have reservations.
Jerry: I don't think you do. If you did, I'd have a car. See, you know how to take the reservation, you just don't know how to *hold* the reservation and that's really the most important part of the reservation, the holding. Anybody
can just take them.
Unfortunately, some hotels do this type of thing to avoid underselling their hotels, much like airlines do. When I ran a chain hotel I never did that and trained my staff not to because I didn't want to deal with the unpleasantness that arises. I also didn't want to upset or disappoint my guests and be forced to try frantically to find them a hotel elsewhere.
The most they usually have to provide is a free room in a "comparable" hotel, a free phone call to whomever you would need to notify of the change in accomodations and a complimentary taxi ride to the hotel, if you need one.
Reactions like yours' are the norm and it's why I didn't do it. Why take a chance that your guest would never patronize your chain again because of not saving a room?
Better luck next time. Sorry that happened to it. It's extremely inconvenient and upsetting.