A canceled room, but no refund

Question: I recently made a reservation on the Days Inn Web site for six nights at the Days Inn Barnwell, SC. My American Express card was charged $415.

Because of a death in my family that required me to travel to Oklahoma to attend the funeral, I called Days Inn and requested that my reservation be canceled. I was informed that online reservations could not be canceled and that my credit card would be charged — the reason for the cancellation request notwithstanding.

I sent an email to the corporate office using the Web site’s “Contact Us” feature, requesting a review. My Amex card was charged a few days later, and I received a call from a Days Inn customer service agent shortly after that, who informed me that nothing could be done to reverse the charge. Can you help me get a refund? — Art Wallace, Miami Beach, Fla.

Answer: Days Inn should have given you a refund, or at least allowed you to apply your $415 credit toward a future stay. But its “take-it-or-leave-it” attitude just doesn’t work for me.

Days Inn should have clearly disclosed that the online rate you were quoted was nonrefundable. I’m sure if you went back to the booking screen, you would see the terms. But were they adequately disclosed? If you learned about them for the first time when you called Days Inn to cancel, then the answer is “no.”

Even airlines, which have some of the most restrictive and customer-hostile policies in the travel industry, allow you to rebook another flight when you cancel. And air carriers frequently offer full refunds when there’s a death in the family. Why is Days Inn being so difficult?

I believe the answer is that Days Inn franchisees don’t want to give the money back. And why should they? From the hotel owners’ perspective, they offered a lower rate in exchange for a commitment from you to show up on the day of your reservation. If you don’t check in, they get to keep the money. You’re essentially stuck between Days Inn corporate and a group of independent owners. Not a very good place to be, if you ask me.

Maybe it’s time to clarify some of Days Inn’s refund rules. When a room is booked online, can it be canceled – and if so, under what circumstances? Can the hotel issue credit that can be reused later, like an airline?

You might have complained to someone higher up at Days Inn, which is owned by Wyndham Worldwide. But in this case, I think that applying steady pressure by way of the Better Business Bureau and South Carolina’s attorney general (who you should have copied on your correspondence) you might have shaken something loose.

Contacting me wasn’t a bad idea, either. I got in touch with the corporate Days Inn office and asked it to review your case. The company apologized for the difficulty you had in making a cancellation and agreed to a full refund. Days Inn is also working to modify some of its policies to make it easier for customers to deal with an unforeseen cancellation.

  • Justin

    @ Chris.

    Nice work. Unfortunately, I think most consumers get stuck talking to the lackey who doesn’t care and decides to be static with company policy. Attorney General is a great avenue. Used it myself on other things. Still, I am not sure they could have done much. If they disclosed it was nonrefundable, he probably would be out of luck, if they took that approach. That definitely doesn’t win you favors in customer service, but they would technically be accurate. Nonrefundable is just that word. Don’t show up, we keep your money. I am glad they took another look and you could help solve this dilemma for him.

  • http://www.angrymarks.com/ Kevin Fields

    Unless this reservation was for a specific event where rooms were limited and had to be guaranteed, there should be no excuse not to offer a refund for a cancellation. As a former Days Inn franchise employee, this would have been a no-brainer.

    If the only reason a franchise accepts online reservations is so that they can lock you into non-refundable charges, then it is a waste of their time and money when a simple call to their credit card company can reverse it. All it will do is discourage customers for using the supposed convenience that online reservations, and instead if they want to make a reservation they’ll tie up your sales and other staff. Or, they’ll just find an easier hotel chain to work with.

  • David Z

    But were they adequately disclosed? If you learned about them for the first time when you called Days Inn to cancel, then the answer is “no.”

    If the room was booked via Days Inn’s web site and the cancel rule below is essentially similar/same to Mr. Wallace’s reservation:

    Cancellation Policy: If you need to cancel, you must do so by 6:00 PM local hotel time on (date) or your credit card will be charged for one night’s stay.

    Then it looks adequately disclosed to me. If it was booked over the phone, that depends if the agent exactly stated that.

    Then again, it might also depend on how one defines “adequately disclosed.”

  • Josh

    When I pull up a date online for that Days Inn, there’s a choice of 2 rates — for example, for a “King Bed Room” it’s $70.12 with this policy:

    Cancellation Policy: There will be no credit or refund for early departures, cancellations, no shows, or changes in your reservation for any reason. Guests will not receive any refund or credit.

    And $82.49 with this:

    Cancellation Policy: If you need to cancel, you must do so by 6:00 PM local hotel time on February 23, 2010 [the arrival date I tried] or your credit card will be charged for one night’s stay.

    And $415 / 6 nights is clearly the first type of rate. Looks quite adequately disclosed, and for $12 more a night you get full flexibility. I really don’t have a problem with that (I usually book the higher rate unless it’s within a couple days of the trip and I’m 100% sure of the plans and willing to eat the cost of an emergency arises).

    So while I do believe there’s room to make exceptions for truly extenuating (and verifiable) circmstances, I can understand why they would stand fast given the discount given for the nonrefundable choice in the first place.

  • Zally

    I’m with Josh on this one… You can’t chose the rate with the tighter restrictions and then be disappointed when the company enforces the rules.

  • MeanMeosh

    @Zally – I don’t think the issue here is the nonrefundable nature of the room, per se. It’s more about Days Inn honoring a reasonable request for a cancellation. If the traveler just had “buyer’s remorse” and wanted to cancel, that’s one thing. But even the airlines allow either refunds or credits for a future flight, often without penalty, in the event of a death or serious illness in the family, as long as you’re able to provide documentation. Days should surely be willing to do that.

  • Carver Farrow

    I”m with MeanMeosh

    If it were just buyer’s remorse that the OP would be SOL. But I believe that business should be flexible, when the are unexpected, extenuating circumstances. Particularly if the flexibility doesn’t hurt the business. If the hotel was full and had to turn away other potentially paying guests, then I would agree with the hotel. But absent such a situation, I think that the hotel should refund the money.

  • Josh

    @MeanMeosh — the difference is that the “nonrefundable” airline tickets often have the conditions for changes, vouchers, even refunds in circumstances such as death spelled out, with costs ($150 change fee, etc) listed. That’s true in the US — many European carriers have truly non-refundable, non-changeable tickets; you miss your flight for any reason and you buy a whole new ticket. And the price for a truly flexible airline ticket is often many times the price, so it’s not reasonable to say “well, you should have gotten a changeable fare” every time.

    On the other hand, the cost difference for flexible hotel bookings is usually small ($12 per day in this case). Think of it as insurance — pay $12/day to cover trip changes, or self-insure and cover the loss yourself. In this case, if you cancel less than 20% of the time, you’d be ahead with the lower price and risk of covering your own cancellation.

    Because the flexible reservation usually isn’t charged immediately, you can often play it both ways, too — book flexible weeks/months out, and a check back a day or two before (when there’s less risk of cancelling); if the nonrefundable price is available, book it and cancel the other.

    While the hotel may be able to re-sell the cancelled room, they may not be able to, and may have turned away other reservations before. So it’s not unreasonable for them to seek some guarantee.

    I’m not usually a defender of the travel industry; they do many bad things, but I don’t have a problem with this type of booking structure, as long as it remains optional (i.e. a reasonable upcharge for a real “flexible” rate)

  • Kevin M

    The other complicating factor in Days Inn’s (or the property’s) favor: where do you draw the line on special exemptions like this?

    For a death: whose deaths count? Your parent, child, sibling? Of course. Uncle or aunt? Second cousin? Your late uncle’s wife’s second husband? How about your parents’ former housekeeper who raised you and is closer than most actual relatives, but to whom you aren’t really related at all? And as you get into those additional categories, how do you “prove” them – even obituaries rarely list the names of more than immediate next of kin any more.

    Does it have to be a death? Would, say, a serious injury to a close family member trigger the exception where a death to a more distant one would not?

    What if a couple or family books the rooms as a vacation but the person’s employer requires him to cancel his vacation plans and work? What if it’s the employer of the booker’s spouse? Her domestic partner’s employer? The boss of the booker’s best friend who was going to join him? It’s a very slippery slope.

    On the flip side – the $12 difference in the room rates is roughly 15%. You can almost always get at least 10% off the “general” published rates for being a AAA member, an AARP member, or whatever. I don’t think this sort of restriction to save an additional 5% is worth it. Now, if you were getting a really substantial discount- say, 40% – for booking with these restrictions, then I’d say (a) it’s worth the risk and (b) a no exceptions policy would be fairly easily defensible.

  • Arizona Road Warrior

    @ MeanMeosh and Carver Farrow: How can a hotel know if the reason given was true given that so many people will use the excuse of “a death or illness in the family” or get a family doctor to sign something to get out of a reservation?

    As a person that travels for business (100 nights a year), I select rates that are flexible (i.e. can cancel up to 6:00 PM on the day of arrival) since my schedule can change.

  • Shari

    @ Josh and Zally – Are you guys serious? The circumstance was a death in the family, not buyer’s remorse, not random whim. Death in the family. And you’re saying the person should’ve just expected to suck it up, or have had the foreknowledge to know that a family member was going to die? I don’t know about you, but I don’t usually anticipate a death in the family. I also don’t click on every room type offered just to make sure that one rate is more fexible than another. Perhaps a season traveler checks every rate and compares the fine print – indeed, now that I know, I will, but until now, I didn’t know such a things existed – but the average traveler doesn’t necessarily know that different rates have different policies, and no one books a room anticipating a death in the family.

    I’m glad that there are still people out there who are able to see past the black and white, the binary of yes and no.

  • Carver Farrow

    @Arizona

    I think this is where theory and reality part company. Perhaps I am being naive, but I don’t think that many people would use the death in the family excuse to get out of a non-refundable reservation. It would strike me a creepy.

    @kevin

    No, I don’t think that drawing the line is that hard. Basically, if the death disrupts your travel plans then the person is sufficiently close to you, whether by blood, marriage, or just close friendship.

    Like I stated before, in the case of mere buyer’s remorse, the hotel’s decision to refund or not refund isn’t based on compassion, but rather a business decision. But if I can’t make it because of circumstances truly outside of my control, e.g. death, injury, flight cancellation, road closure, etc. then the hotel should allow a no penalty cancellation.

  • Joel Wechsler

    @Carver Farrow
    I’m afraid you are being a bit naive. The practice of using a death in the family as a way to get out of a non-refundable reservation is very old and ,unfortunately, all too common.
    You have no idea of the chaos that would ensue if reservations were cancelable for the death of anyone whose funeral you would like to attend. If this were to be the criterion then there might as well be no non-refudnable reservations.

  • Linda Snow

    Can’t speak for Days Inn specifically, but in my experience you can usually see the terms of your reservation when booking online – you just have to scroll down to the bottom once you choose the room and the rate. Quite often you have to pay a $10 or more higher rate in order to get the traditional “cancel by 6 p.m.” terms. And they usually are clearly disclosed – quite often in red. But don’t assume that a given hotel chain has the same rules for every location. Recently I took a short trip and planned to stay at two different Staybridge Suites locations. The first night had a cancel by 6 rule – no problem. The second location – a different city in the same state – required you to cancel by 6 p.m. the PREVIOUS DAY. I had to read it several times before I believed it. And it was the same regardless of which room and rate I chose. I didn’t make the reservation. Fortunately, since weather caused me to skip that city, and I would have been out of luck and $$$.

  • Carver Farrow

    @Joel

    Do you have any numbers to back any of that up?

    It seems as if there are two separate issues. The first: People lying about a death in order to get out of a non-refundable reservation. Joel suggests that this is widespread. I would hope that he is wrong.

    The second: Assuming that one is telling the truth about a death in the family, of a friend, or even colleague, should that be a good reason for a hotel to waive the cancellation penalties. On this one, I say a resounding YES. I reject the suggestion that people are attending so many funerals that the hotel industry would be in chaos if they routinely waived cancellation penalties because of a death.

  • Carl

    Joel is not wrong. You may find it creepy, but let me assure you many people do not. Ever been around a college campus at test time? Lots of dead grandmothers… Just talk to the profs if you want proof. People find it a very convenient excuse as long as it isn’t really true. It just depends on how well they can lie.

  • Carver Farrow

    @Carl

    Assuming for the moment that you are right, and that people are willingto lie aboutthe death of a loved one, still, it seems fairly easy to verify. I once called American to inquire about a bereavement fare. The rule was that on the return trip, you had to provide a death certificate. I got sick once and I had to postpone a trip. They airline required me to bring a letter from the hospital. So verification is easy if the hotel believes that it is warranted.

  • http://www.clarkecomputer.com Charles Clarke

    Although I’m a believer in giving up the flexibility if you want lower rates and can understand how the hotel is giving up revenue(if they aren’t full – if they are full and it isn’t last minute, they probably can fill that room), I think most good businesses find it is good policy to be compassionate.

    How close do you have to be? Close enough to get and be willing to pay for a death certificate sounds about right to me. When my dad died, we bought them in bulk to send to everyone who needed one. I think they were $4 instead of $6 each that way.

  • Will B Provided

    Nice work there on helping that guy get a refund?  I challenge you on this one:  Your success will save the local franchise owner from having to deal with the state attorney general office on this (re:”Consumer frauds)/

    Wanna try: in april 2011, was RESERVING 1 room 4 months in advance. I specifically CHOSE the higher rate even though the website offered a “Save 20%. 14 day advance booking. prepayment required”.  I clicked the HIGHER rate, and planned to “confirm” the stay at the 14 day window later on IF we were making the trip.   Their website changed my higher rate to the lower rate!…said “”Save 20%. 14 day advance etc. prepayment required.”  i did NOT want to prepay.and was no “BOOKING (confirming)” the room..so down lower on the screen, next to the now lower price, it said “canelc” or “reserve”. So, i KNOw i was only making a “reservation” (and not intending to guaranyty/confirm OR  prepay so i logically thought clicking on “RESERVE would make ONLY a reservation. 

    I was uncertain abuot the vague (VERY vague) wording on the screen whiwhich said “”any required prepayment will be charged immediately, otherwsie card will be charged at checkout.”   Well, since i knew I was only a “reservation” I was fine with “”will be charged at checkout….BUT..jus tto be safe..i typed in the comments section: “please confirm that this is a RESERVATION only and not a prepayment”.

    Guess what.? A week later, they charged my bank card. When i emailed to asky why, they replied “no refund”. I didnt even ask to cancel or for a refund yet….they evidently were anticpating it though.     I finall ywas able to convince the central rervations peole that my INTENT was clearly stated in the “comments” o nthe reservation screen…and i want the room cancelled.  Local franshise owner has now refused TWICE to refune the charges. Local manager told me that even though they DID see my question (and didnt answer it), they cited that THEIR internal policy “allows us” to charge the card immediately, regardless of what the customer puts in the “comments” section.  

    It was CLEAR that they changed the rate on the screen, then misled me intinto thining iwas making a reservation only..THEN, they CHOSE to ignore my question..so that they codl charge me immediately..even thugh i had clearl ysaid ” “reservation only..not prepaying”…AND i had clearly chosen the HIGHER cancellable, REFUNDALE rate.  This is a HUGE scam…
    and my “cover” is that I had asked for clarification BEFORE the transaction..yet they clearly chose to igonore at so they codl dip into m ybank account. and rip me off.

    want more details?  The state attorney general is next on this. Unles you want to give it a go.  ?  Oddly, i regulary stay at a Wingate hotel and never had a problem….but this days inn experience has me unraveled, and they have zero interest in refunding my $ even though THEY changed the whole transcation to the lower rate so they coould charge me.    They clearly know what they are doing on this: the wording is vague enough to dupe ANYONE into committing to a”reservation” while being unaware that its nonrefundable, noncancellable. IT says  any requred prepayment ill be charged immediately OR will be charged at checkout.” …Well, my INTENT was clearly stated NOTto prepay..that i was reservation only…and expected to be charged “at time of checkout”..

    wanna try this one ?

  • Will-B-PRovided

    yes you are correct there on “standing fast” but in my case, i chose the HIGHER rate because i wasnt sure of the date of stay. Their computer system literally changed the higher rate to a lower “save 20%. advance rate. “    I had no choice then, as my orignal choice (higher rate) was gone from the screen and replaced by the Lower rate that i had not asked for nor wanted.   I also typed in the “comments section” i wanted “reservation only, not prpaying”. 

    so its not like Days Inn is being fair at all. if a consumer CHOOSES the higher rate…days inn shuold not automatically make it a lower rate..and then put up VAGUE terms along with it. Example:” instead of “guarnty” or “prepay” the icon says “RESERVE”  I wanted a non-binding reservation..AND the higher price.

    so while i see yor point copletely…Days INN then COUNTERS the cusomter action on the reservation..and changes the cusomter choic to a 14 day advance rate…and catches the consumer off guard…  People click , thinkig its a nonbnding reservation. PLUs..i clearly stated o nthe comments section that i wanted a “reservation” not  aprepaymeyment..THEY IGNORED THE COMMENt..THAT’S BAD BUSINESS…as they CLEARLY could see that i was NOT interesed in the prpayment price..yet they charged me anyway.     NExt stop: attorney general office.