Time was when a call to a hotel before 6 p.m. the day of arrival was enough to cancel a hotel reservation without penalty. Not so in today's wired world.
Canceling a hotel reservation these days often comes at a cost, whether the reservation is made with an online travel agency such as Expedia or Travelocity or directly through a hotel's Web site or phone reservations line. And if you are hoping to cancel a room reservation made with an opaque travel site such as Hotwire or Priceline, you can pretty much forget it.
Rates for the same hotel room on the same Web site can vary depending on the cancellation policy.
"Many of the Internet-only rates are non-refundable or only partially refundable," said Henry Harteveldt, senior analyst for travel research firm Forrester Research. "And it varies from hotel to hotel."
The cancellation policies can vary even between different hotel properties in the same chain, said Harteveldt, often affected by the type of property such as urban (more restrictive) versus suburban (less restrictive) or by local government regulations.
I took a look at Sheraton's Web site, which has typical cancellation policies for a large chain. I did a search for a room in New York in early June and the lowest rate I found was $309 per night at the Sheraton New York Hotel and Towers (rates are for comparing cancellation policies only and may no longer be available).
The so-called "Internet only" rate required full payment in advance and could be canceled 72 hours in advance of arrival, but the penalty would cost the equivalent of one night's stay. Cancel after that and the entire pre-paid amount is forfeited, a pretty hefty penalty.
But for only $20 more per night for the same room on the same nights, a traveler buys a lot more breathing room. That rate allows cancellation up to 24 hours in advance of arrival with no penalty and a one-night penalty for cancellations after that.
"The more money you pay for the same category hotel room, generally the more convenience you have," said Harteveldt. "It's a matter of trade-offs. Travelers have to make an intelligent trade-off based on whatever makes the most sense for them."
The bigger the trade-off, the better the rate, which is why the name-your-own-price model on Hotwire and Priceline can offer such great deals. In addition to not knowing the exact hotel you will be staying in prior to confirming your pre-paid reservation, there is no refund for cancellations.
But as the numerous flight cancellations this winter and spring attest, sometimes it is just not possible to get to your hotel for reasons beyond your control. Harteveldt recommends getting on the phone and calling. If you booked a room through an online travel agency like Expedia or Priceline, call them first. If you booked directly with a hotel's Web site, try the toll-free number or calling the hotel directly to inform them of your situation.
Sometimes even when you think you've canceled in the correct manner, things can go awry.
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Source - Chicago Tribune
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