Why Hotel-Room Cancellations Disappeared

Hotel cancellation policies have transformed over the past seven years. Travelers once could cancel reservations up until the day before check-in without penalty. That flexibility has largely vanished.

The shift began around 2018 when third-party travel-booking sites deployed 'cancel-rebook' strategies, the Atlantic writes. These platforms would monitor hotel rates after securing initial reservations. When prices dropped, the sites automatically canceled existing bookings and rebooked customers at lower rates. Hotels lost already-booked revenue whenever they reduced prices to fill empty rooms.

Hotels responded by introducing tiered pricing structures. Travelers now encounter prepaid non-refundable rates at the lowest price point, mid-range rates with two- or three-day cancellation deadlines, and higher rates for same-day cancellation flexibility. The cancel-rebook sites could still swap reservations until deadlines arrived, but the damage to hotels diminished.

Christopher Anderson, a professor at Cornell University's Nolan School of Hotel Administration, told the outlet that hotel cancellations differ from airline cancellations. Most hotels operate as franchises rather than centrally-owned properties. A canceled Ithaca Marriott reservation cannot be converted to credit at a New York Marriott Marquis because different owners operate each location. Anderson suggests travelers call hotels directly to request exceptions. Hilton confirmed it evaluates cancellation waivers case-by-case and extends broad waivers during natural disasters or major disruptions.

Read more of this story at Slashdot.