Nonrefundable and nonchangeable hotel rates are on the rise
Hilton calls them “Value” rates. At Sofitel, they’re “Early Bird” rates. Marriott and Hyatt call them “Advance Purchase” rates.
Although they go by different names — and they often look enticing — they all have one thing in common: they are 100 percent nonrefundable and non-changeable.
Not just the first night. Your entire stay.
Travelers who use sites like Priceline are familiar with the concept of prepaid nonrefundable and non-changeable rates. But increasingly, these kinds of rates are showing up on hotel sites and in travel agent computers.
And while some rates displays are very upfront about their rules, others say simply “restricted” or “advance purchase” rates. Only the fine print discloses that these bookings must be prepaid and can’t be changed or canceled.
On a regular basis, I have clients asking if I can beat an online rate, and it is only when I go to the hotel site myself that I see the prepayment rules, which they haven’t noticed.
One hotel cheerfully noted “cancellations permitted but no refund will be given.”
And do they mean it? Yes, they do.
A client recently booked a hotel in Australia, had to cancel the entire trip due to a passport issue, and the hotel wouldn’t budge. Not to mention the fact that they won’t refund for more prosaic reasons like illness, delayed flights and just not liking the room. And whether the hotel is sold out or not is generally a non-issue.
In addition, these rates are also not necessarily that much cheaper. The Sofitel in New York for example, is offering nonrefundable rates in December that are only $30 a night cheaper than rates that can be canceled up to three days prior to arrival.
Granted, the hotels are trying to maximize revenue and decrease their risk, and clients — and travel agents — should be careful to read the rules before booking. And yes, this doesn’t mean that there is never a reason a hotel won’t waive the charges, especially for a repeat guest. But don’t count on it.
In these uncertain times, it’s just one more example of “buyer beware.”
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5 Responses to “Nonrefundable and nonchangeable hotel rates are on the rise”
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I have no issue with this practice, as long as the conditions are stated up front, and there is another option if the customer needs some flexibility.
I don’t have a problem with it in theory either….but a lot of these rates don’t make it obvious that you are completely on the hook for the entire stay. Mind you, consumers should read carefully everytime they plunk down a credit card. But in my experience, that doesn’t always happen.
It can be confusing because you typically have to provide a credit card to book a hotel whether prepaid or not. You really must read all the terms before clicking reserve.
Mike, when I am looking to book a room, in the description of the room rate it is very clear that it is advanced purchase, non refundable, whatever. Basically, its a discount for giving the hotel the money for the stay up front.
Personally, I’d rather have the flexibility of not booking one of these rates.
We traveled to Mexico in August 2008 so that my wife could take a one-month university extension course. We checked into the hostel recommended by her university professor and paid for the one-month stay as requested by the clerk, using our Bank of America Platinum Visa Card. We discovered after one night that there would be no way that we would get enough sleep for my wife to study and maintain her desired grades in her classes. The hostel did not maintain a staff member on-site at night as they had advertised. Some of the other guests and outside visitors made so much noise until four am. that we could not sleep. Also the common bathroom was in constant use and did not have sufficient hot water, which was also an advertised feature. We asked for a refund of our additional 30 nights the next morning and this was refused. I called Bank of America and asked for a cancellation of the VISA card charge. The bank placed a credit for the charge back on my statement and we moved to another hotel.
However, in late September 2008, Bank of America completed their investigation and placed the full charge of $754.34 back on my account and sent a letter with a copy of my charge slip showing my signature and stating that I had signed the slip and the charge was determined to be valid. The Bank of America letter stated “When a transaction is made in person, the consumer has the opportunity at that time to inspect or reject the merchandise. If the merchandise is later found to be unsatisfactory, defective, or incomplete, credit is at the merchant’s discretion. Without a credit slip, we are unable to assist your further.” Of course we did not know of the excessive noise, lack of nighttime staffing and the hot water shortage at the hostel until AFTER we paid for the room. So we were charged for 30 nights of stay without using the room.
Bank of America stated that they tried to contact us but there were no messages left on our home or cell phones and no e-mails were sent to our personal e-mail accounts or through the secure e-mail system on the Bank of America credit card web site.
I thought because the bank credited the charge back to my account after my initial phone call, that the situation was resolved. Later in September when the charge was again placed on my account, I immediately sent a registered dispute letter but was informed that “the dispute time frames have expired; therefore we cannot continue pursuing this inquiry.”
When I complained to VISA, I was informed that VISA is a membership association, and that the members make their own rules and regulations.
This is just outrageous. I am at the mercy of an unscrupulous merchant?