Can I dispute hotel cancellation charges?

What's in this article? If you charge your customers no-show or cancellation fees when they fail to honour their reservation with you, please be aware that they are entitled to dispute these charges with their card issuers – and your customer's card issuers may resolve the dispute in their favour.



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Communicating effectively with the hotel
They may be willing to waive the fee if you give them enough notice. Be polite and explain your situation clearly, whether it's an emergency or a change in plans. If you're a frequent traveler or a member of a loyalty program, mention this as it may give you more leverage.

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Experts say most places will offer you a refund if you have a reasonable excuse. If you are stuck with a nonrefundable room, try changing the date of your reservation. Some hotels will let you move the date of your stay if you ask. You can also resell your room and get your money back that way.

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Technically you can dispute anything, but whomever billed you would receive correspondence from the credit card company and then have to provide proof that the charge is legitimate and the contract you likely signed agreeing to “no-show” charges if you don't show up.

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If a hotel refuses to refund customer payments, the Federal Trade Commission (FTC) may step in via an enforcement action.

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A typical hotel cancellation policy will have a set deadline by which you must cancel your reservation to avoid any fees. This deadline can vary from 24 hours to several weeks before your scheduled arrival date.

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Unfortunately, many hotels have cancellation policies that require you to pay a fee if you cancel within a certain timeframe. Keep in mind that these fees can vary depending on the hotel chain and the room rate. If you have paid for your reservation in advance, you may be eligible for a refund.

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For Protection A cancellation policy is a way to protect yourself from lost business and revenue. A good policy should have a fee or penalty for cancellation, and enough time built into the cancellation notice so you can re-book the spot.

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You can avoid this in most cases by calling in to reschedule your arrival for a couple of days later...and then calling in the next day and cancelling your reservation. Some hotels have caught onto this, but most aren't charging any type of change fee yet, or if so, it's bound to be less than the cancellation fee.

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Businesses or service providers are often not paid until “someone is in their chair,” so charging a cancellation fee is the only way to compensate for their losses in event cancellation.

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These practices are legal and are generally in place to ensure that the business doesn't lose money on no-shows or last-minute cancellations. Often, businesses or service employees are not paid unless “someone is in their chair so charging fees for cancellations are their only way to make up for the loss.

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