Ridiculous or not? Hotels can cancel your reservations anytime, and you’re outta luck

The email from the Hotel Solamar in San Diego came as a “complete shock” to Barb Staigerwald on a recent Saturday morning. Her reservations for a convention in July had suddenly been canceled without explanation.

Try as hard as she may, she couldn’t get her room back.

“I got on the phone right away,” she says. “The first person, a reservation agent, had no idea why it was cancelled or what happened. She told me I’d have to wait until Monday to speak to an in-house agent at the hotel. I tried to explain that this couldn’t wait and that if I need a new hotel, I need to get on this ASAP, since most hotels for that week are booked up. I then asked for a manager who pretty much told me the same thing. ”

Can hotel just cancel a reservation and leave you without a room? In a word, yes.

California’s lodging statutes, which go into great detail about the rights of an innkeeper, don’t specifically address situations like Staigerwald’s. In other words, the Solamar could cancel her room and she’s outta luck, as far as the Golden State’s hotel laws are concerned.

Other states have similarly vague laws, which allow hotels to cancel your reservations before you check in and leave you homeless.

I asked the Solamar what happened.

Vanessa Bortnick, a hotel spokeswoman, said the hotel didn’t call the whole thing off. “It looks like the cancellation happened through the online booking engine, but we are working on digging up more details,” she told me. “We are so sorry that we weren’t able to resolve it with Ms. Staigerwald.”

I worked with her over the weekend, and thanks to a little help from one of its executives, the reservation was reinstated by Sunday morning. But it doesn’t always end that way.

Steve Preston remembers having a reservation at a hotel in Florence, S.C., canceled shortly before his scheduled arrival. The reason? The property had been “re-flagged” (an industry term for switching brands) and went from being a Hampton to a Baymont. The owners were the same. “I was given one weeks notice that my reservation was canceled,” he remembers. “I was told, ‘tough luck’.”

Preston complained to Hilton, which owns the Hampton brand, and it offered him a room at another property.

Joe Grella had a reservation at an elegant seaside hotel in St. Tropez, France, but when he arrived, the doors were locked. “Fortunately, I had the phone number of the owner,” he recalls. “When he responded, he indicated that he had sent me an email a week prior that they needed to cancel the reservation because the hotel was being sold.”

Grella says the owner found a replacement room at a nearby chateau. “The place was beautiful,” he says. “However, we had prepared our luggage for a stay on the sea, in a beautiful city, and not far from civilization.”

The question is, should this apparent gap in lodging law be addressed? Some might say a reservation is a form of contract, and that the property breaches the contract when it arbitrarily cancels a reservation. But as a practical matter, who has the time and resources to file a lawsuit against a hotel for not honoring a reservation?

Hotels know this. They know they can get away with it.

Interestingly, the federal government just increased the required compensation for passengers who are denied boarding when their flights are overbooked. The new rule doubles the amount of money passengers are eligible to be compensated for in the event they are involuntarily bumped from an oversold flight.

Wouldn’t it be reasonable for hotels to be required to do something similar?

(Photo: Dan iel Ray/Flickr Creative Commons)

  • Carver

    Actually

    This is one case that doesn’t bother me. Re-flagging a hotel may fundamentally change the nature and character of the hotel such that the previous price structure may not make any sense.

    I believe though that the hotel should be forced to notify each guest about the rebranding and give them an opportunity to cancel, penalty free regardless of the terms and conditions of the original bookings.

  • Eric

    This is why I never stay in hotels anymore. When I go on vacation, I use a reputable real estate firm to lease a condo. Why anyone would want to stay in a hotel is beyond me. You’re more comfortable, it’s almost always quieter, and you have way less chance of bringing bed bugs home with you.

  • Anonymous

    I’ve seen some pretty interesting rates.

    Once I booked same-day (a Marriott-branded property BTW) and there was some special rate. It was near an outlet mall and it supposedly came with a special rate (for $20 more than the “last-minute” rate) that included $80 worth of gift cards. I called up the place and verified with a clerk if it was valid. I don’t know if it was a contract at that point when I booked, but I doubt it.

    I didn’t get the special. The manager was there when we checked in and said the website was in error. Something about a two-day stay required with one day at a $160/night rate. So pay $80 more for $80 worth of gift cards? It didn’t make sense without some sort of discount. He did adjust the rate to the last-minute rate though.

    I was checking out the rates the week before, and it was $20 more for the AAA rate than the later last-minute rate. I think the last minute rate was also theoretically OK to cancel before maybe 4-6 PM, but there wasn’t much time to cancel since the rate wasn’t available until the day before.

  • cjr

    Consumer advocacy win! :D

  • cjr

    Yes, it would probably depend on the hotel and situation as to whether cancellations are appropriate.

    One that bugs me, and we’ve had happen to us twice now, is a hotel loses it’s branding altogether. And while both times the chain contacted us to let us know, we never heard from the hotel itself either time.

  • David Z

    For arguably similar reasons others are able to cancel their contracts with other parties in other industries?

    While it sucks that some people can seemingly cancel for any reason, especially if it’s not paying enough, that same ability can allow you to choose whom to do business with and whom to avoid. It depends on each individual circumstances, though.

  • David Z

    IMHO, the cancel clause is a just-in-case one to protect the hotel from liability as much as possible. Other businesses in other industries have similar clauses, though they don’t necessarily just brandish it around if that happens.

    Besides, some (if not many or even all) will will work with you if (knock on wood) that happens.

  • David Z

    But is that, say, cheaper than renting a hotel room?

  • Sylviaguarino

    @ David Z…..vacation rentals (condo/cottage/cabin/house) will always be less expensive than hotel rooms if you are renting 2 or more rooms to accommodate a family. They may break even when renting just one room, but more than likely even there there will be a savings. There are lots of articles on line doing detailed comparisons and if you google “comparison of hotel room cost to vacation rental cost” you’ll pull some of these up with real dollar comparisons.

  • Carver

    Would you rather duplicate calls?

  • Arizona Road Warrior

    Was room type guaranteed? Some hotels do NOT guarantee the room type…they guarantee the room but states something like ‘we will make an effort to give you a room of your choice but there is no guarantee’.

    Chris Elliott is against frequent guest programs but one benefit of some frequent guest programs is room type guarantee. I receive cash if I don’t receive my room type from Marriott.

  • cjr

    Well, the contact from the chain was via e-mail, but there’s no guarantees that I won’t hear about it next time. So, yes, duplicate contacts would not bother me.

    Either way, the hotel certainly has no incentive for me to know that they’re no longer part of my preferred chain when it will cost me program points and cost them a reservation.

  • Steve

    Carver, I agree with you that rebranding a hotel, especially if significant renovations are involved, may make the price of existing reservations unreasonable. In the case I mentioned above, the motel went from a Super 8 to a Comfort Inn and after we stayed there, I can say it was definitely higher quality than any Super 8 I’ve ever seen. (And the price went from $75 to $115, though as I said the Comfort Inn honored our original rate as a goodwill gesture, which was very nice of them).

    So I agree that it may be appropriate to cancel existing reservations, but I think unless significant advance notice is given, it still amounts to penalizing the customer. In our case, if I hadn’t happened to look up the motel address for directions, we would have shown up that night very confused, without a reservation, and would likely have had to pay more than we had planned. (And I can hear people saying “well, you should have double-checked anyway,” but come on…I had a confirmation number and everything emailed to me when I made the reservation. That should be enough). Canceling reservations without any notice at all is clearly wrong.

    The other thing that bothered me, though I never followed up on it, is that it seemed to me like our reservation never should have been accepted in the first place. I reserved the room sometime in February for a late May stay; it was late April when I found out the property had changed over to a Comfort Inn. Assuming that renovations were done (which seemed pretty clear to me based on the good condition of the property), I find it very hard to believe that the plan to change branding was not in place when I made the reservation.

  • Anonymous

    Depends. Some condo rentals can be at a daily rate. There are a lot of condos with daily rentals in Hawaii; in many cases the complex has a management office that handles rental reservations. However, each one is furnished by the owner, so there may be some differences. It can be somewhat like a hotel though.

    There are also some timeshares that rent out at a daily or weekly rate. I stayed in one once. It felt like a condo but was immaculately cleaned. I think the timeshare owners probably feel the same way when they check in.

  • Anonymous

    Depends. Some condo rentals can be at a daily rate. There are a lot of condos with daily rentals in Hawaii; in many cases the complex has a management office that handles rental reservations. However, each one is furnished by the owner, so there may be some differences. It can be somewhat like a hotel though.

    There are also some timeshares that rent out at a daily or weekly rate. I stayed in one once. It felt like a condo but was immaculately cleaned. I think the timeshare owners probably feel the same way when they check in.

  • Anonymous

    On a road trip it might be harder to find a condo for a single night. Single night condo rentals are available in certain areas (Tahoe and Hawaii come to mind) but it might not be possible if you’re traveling the interstates.

    Strangely enough, there are condo and vacation home rentals in and around Yosemite. There are a few inholdings (Wawona and Foresta) that have rentals, as well as Yosemite West, which is a community right outside Yosemite National Park’s borders, but where the only roads in/out are through the park. I haven’t tried staying in one, but the photos I’ve seen are of luxury vacation homes that rent for anywhere from $300-800 a night.

  • Carver

    @7b07f3d15f45db6d2f8bc0d335c3b70e:disqus

    I agree that advance notice should be given. I’ve taken several internet reps at task because I find that is absolutely ridiculous that notice isn’t given. How hard would it be to send an e-mail to each registered guest about the re-flagging and reservation cancellation.

    I also think this notion of double checking is silly. Sure, if there is some special reason, e.g. a special event that strains the local hospitality infrastructure; inclement weather, etc. But if I have a confirmation, from the hotel provider, I see no reason why I should double check every reservation. Besides the reality is that the overwhelming majority of hotel, car, airline reservations go without a hitch.
    Obviously what happens in Elliott’s columns are the anomalous situations.

  • Carver

    Erik

    Unfortunately as attractive as it seems, none of those a viable options.

    1. Threatening to sue is the quickest way for the conversation to turn adversarial. More likely the hotel will simply refer it to counsel who will not be intimidate in the least as he/she knows that most threats to sue are empty

    2. Getting a judgment is part one. Afterwards you still have to collect which can be a beast. If its a default judgment in another state, its be come doubly hard to collect.

    3. Chains are unlikely to get involved particularly if its a franchise location. ffccccccccccccccccccccccccccccccccccccccccccccccccccccccc

  • Myblkvette99

    Hotels frequently overbook rooms, then have to walk guests to another hotel. Happens all of the time. Owners should be held accountable…no?

  • Myblkvette99

    Hotels frequently overbook rooms, then have to walk guests to another hotel. Happens all of the time. Owners should be held accountable…no?

  • Ralonzi

    Honestly. Who voted “yes” in this poll?
    Frits van Paasschen, Bill Marriott and Mark Hoplamazian?

  • Roland

    Especially if you book with Hotels.com, Orbitz, etc.

  • Pauletteb

    Not in resort areas! Some of their “very generous cancellation policies” require a deposit, which will only be partially refunded if the cancellation is made within a certain time frame, sometimes as long as a month in advance.

  • TM

    From the other side of the check-in counter, we promise not to cancel your reservation if you promise to honor it too. Too many non-guests try to weasel their way out of paying no-show fees and when they don’t get their way, they dispute it on their credit card.

  • John McBride

    I made a reservation at a Comfort Inn in Milwaukee and guaranteed the room with my credit card several years ago. As it happened, I arrived earlier than I expected at about 3:30 PM. When I went to check in I was told they were overbooked and my reservation was changed to another location across town.

    I complained that I guaranteed my reservation there but the receptionist
    told me that the location didn’t overbook, the central office did and she was just doing what they told her to remedy the situation. She gave me a phone to speak to the central office.

    I asked if I would receive any compensation. The representative at the central office said no. He told me that when I guarantee a room, I’m guaranteeing to pay whether I come or not. The Inn isn’t guaranteeing anything. I found another room myself. I checked later that the location I was being sent to had lower rates but they were not mentioned to me.

    Since then I have avoided the Comfort Inns and their affiliates.

    John

  • Royradeka

    I book a hotel in July 2010 for the following year in San Diego Ca. and gave my credit card info.  I booked with the hotels main website (not a third party like Expedia).  In June 2011, I received an E-mail notification of “Reservation Rate Changes” and my total cost now doubled.  Is a hotel allow to change reservation rates even after you have a confirmation?

  • http://elliott.org Christopher Elliott

    No, that’s not supposed to happen. Send me and I’ll do what I can to help.

  • Viktoria3

    I made a reservation with The Residence Inn Marriot in Downtown Sacramento through the reservation line on the phone and when i show up after midnight the room was sold out and the enire hotel. I had 2 kids in the care exhausted :(   What can I do?

  • Guest

    We made a reservation through our company travel agency and arrived at the hotel at 11.30pm only to find out that our rooms at the Homewood Suites in Decatur-Forsyth were not available.  We were told to go to another hotel 15 minutes away because all the other hotels close by were booked because of a conference.  Incidentally the other hotel we were referred to, Decatur Conference Center and Hotel, is owned by the same guy that owns the Homewood Suites, one Steve Horve.  The ratings and quality of the two hotels are very different with the Decatur Conference Center and Hotel far lower par than the original hotel.

  • Amber Marie

    I am the sole proprietor of a travel agency. I am a work at home mom. I have had hotels cancel my customers bookings because they booked through me, an outside source of an event that they were attending in the area. The hotel told me these customers must pay the convention pricing which is usually a lot more than I am offering for the property for the same dates. Which in my field of work is called price gauging. This is one unfair to small business’ trying to make a decent living, and two unfair to the traveler. Do we not have the right to choose how we conduct our business and with whom? What ever happened to free trade in America. Corporate companies are slowly monopolizing everything and America wonders why the economy is at an all time low.

  • Cheryl Sosa

    It is usually not the hotel but the third party. They are not supposed to sell the room at the rate but go throug with the deal because they know the responsibility and the negative image will fall to the hotel. I bet after this you booked through priceline again but never went back to that hotel.

  • Cheryl Sosa

    Yes, and every hotel will pay that first night and even help with transportation and even give fututre discounts. Immediately call and cancel with your credit card if they don’t, but I am positive every hotel will do this at least in the US.

  • Cheryl Sosa

    This is common when booking rooms because this is how people try to get out of paying the no show fee. Why didnt you just use a valid credit card? The loyalty program should have emailed you letting you know that your credit card is not valid anymore and your reservation should have not gone through.