New cancellation penalty for non-HH members?
#16
Join Date: Sep 2012
Location: Amsterdam, Asia, UK
Programs: IHG RA (Spire), HH Diamond, MR Platinum, SQ Gold, KLM Gold, BAEC Gold
Posts: 5,072
SO you can't cancel&rebook without $50 penalty from your flex rate BUT you can cancel and move without penalty to a different hotel which could be another competitor chain.
This is never going to work!
If hotel is at low percent occupancy in the area/hotel 1-2 weeks out and drops rates, then that is half the point of booking flex rates. If hotels do this blocking rebook to cheaper flex, we will simply cancel and book in a different nearby hotel so hotels will be worse and not better off
Booking a reservation at 9-11 months out for a popular hotel is sometimes a must, even is not a seasonal high usage date like eg thanksgiving, Easter etc
We all book flex then as plans may change, and also know that as hotel are unsure of demand that far ahead, these early flex rates are often higher than they could be and I find hotels set more realistic flex rates about 4months out, at which time I look to check and rebook
In fact even if plan 11months is firm, eg anniversary stay, even ADR/BAR rates could be set unreal usually high, so I ignore , use flex and look to switch about 3-4 months out when the hotel properly sets rates for my date
Further having locked in a "maximum" cost a year ahead, 2-3 weeks out if prices are adavantageous I cancel flex and book cheaper BAR/ADR non-cancel rate
AND if as article says if will cost $ 50 to cancel a flex rate, on possibly a $100 room, then no one will book flex months ahead anymore, which gives hotels no idea of occupancy on the night, and will force hotel to lower rates to fill their undercooked inventory making booking early flex even less likely by guests
This is never going to work!
If hotel is at low percent occupancy in the area/hotel 1-2 weeks out and drops rates, then that is half the point of booking flex rates. If hotels do this blocking rebook to cheaper flex, we will simply cancel and book in a different nearby hotel so hotels will be worse and not better off
Booking a reservation at 9-11 months out for a popular hotel is sometimes a must, even is not a seasonal high usage date like eg thanksgiving, Easter etc
We all book flex then as plans may change, and also know that as hotel are unsure of demand that far ahead, these early flex rates are often higher than they could be and I find hotels set more realistic flex rates about 4months out, at which time I look to check and rebook
In fact even if plan 11months is firm, eg anniversary stay, even ADR/BAR rates could be set unreal usually high, so I ignore , use flex and look to switch about 3-4 months out when the hotel properly sets rates for my date
Further having locked in a "maximum" cost a year ahead, 2-3 weeks out if prices are adavantageous I cancel flex and book cheaper BAR/ADR non-cancel rate
AND if as article says if will cost $ 50 to cancel a flex rate, on possibly a $100 room, then no one will book flex months ahead anymore, which gives hotels no idea of occupancy on the night, and will force hotel to lower rates to fill their undercooked inventory making booking early flex even less likely by guests
Last edited by scubaccr; Nov 20, 2015 at 11:58 pm
#17
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Join Date: Aug 2002
Programs: UALifetimePremierGold, Marriott LifetimeTitanium
Posts: 71,113
Just curious - do many people check the rate of the hotel they're staying at 24-hours out & cancel/rebook? If I'm reading the OP correctly, the $50 fee applies to those who are not HHmembers who cancel less than 24 hours out. I know a # of folk who cancel/rebook when rates drop but it's normally farther out than the day before they check in.
Cheers. Sharon
Cheers. Sharon
#18
FlyerTalk Evangelist
Join Date: Dec 2003
Location: LAX
Posts: 10,909
Just curious - do many people check the rate of the hotel they're staying at 24-hours out & cancel/rebook? If I'm reading the OP correctly, the $50 fee applies to those who are not HHmembers who cancel less than 24 hours out. I know a # of folk who cancel/rebook when rates drop but it's normally farther out than the day before they check in.
Cheers. Sharon
Cheers. Sharon
Its $50 penalty for cancelation up to 24 hr - an utter nonsense for BAR.
Cant imagine it taking hold - my company by default prohibits booking anything with cancelation penalty.
#19
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Join Date: Aug 2007
Location: SEA, but up and down the coast a lot
Programs: Oceanic Airlines Gold Elite
Posts: 20,392
AND if as article says if will cost $ 50 to cancel a flex rate, on possibly a $100 room, then no one will book flex months ahead anymore, which gives hotels no idea of occupancy on the night, and will force hotel to lower rates to fill their undercooked inventory making booking early flex even less likely by guests
#20
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Join Date: Aug 2002
Programs: UALifetimePremierGold, Marriott LifetimeTitanium
Posts: 71,113
BTW - I do think the quote above where they mention the policy is for folk gaming the system yet the $50 penalty only applies to those who don't belong to HH is a bit silly. I'd bet $$ that Jane/Joe who doesn't travel enough to belong to a hotel chain's FF program is the least likely to "game the system". It just sounds like an additional money grab to me.
Cheers. Sharon
Cheers. Sharon
#21
Join Date: Jul 2015
Posts: 13
Interestingly I just made a reservation at Hilton Adelaide and the City Break rate allowed free cancellation up to 4pm day of arrival.
I made sure I took screen shot.
This rate included breakfast, valet parking and was cheaper than prepaid non-cancellable rate for room only. Can't work that out but won't complain.
I made sure I took screen shot.
This rate included breakfast, valet parking and was cheaper than prepaid non-cancellable rate for room only. Can't work that out but won't complain.
#22
Join Date: Nov 2014
Location: London
Programs: BAEC Silver, M&M, HHonors Gold
Posts: 1,223
I always monitor prices and change bookings in case of price drop. That's before cancellation deadline of my flexible reservation. Price drops can be quite significant in some hotels.
#23
Join Date: Jul 2014
Location: Madison, WI (MSN)
Programs: Delta Platinum, Hilton & Marriott Plastic Gold, Chick-fil-A Signature
Posts: 441
Corporate travel department said NO
Just hit this verbiage attempting to book at the Embassy Suites at SFO for a random Thursday in January. My company's travel department does not allow bookings with cancellation penalties and they had never seen this language before (nor had I until I saw it and then found this thread). Even though I'm an HHonors member, they didn't want to risk time and effort of potentially dealing with this if things went wrong. Corporate travel departments like straightforwardness and simplicity. I'm now booked elsewhere.
A change fee for this particular night is a real head-scratcher -- all the reputable SFO airport hotels are running $150 or less for the night in question, which from my experience indicates very soft demand.
(Edit: typos)
A change fee for this particular night is a real head-scratcher -- all the reputable SFO airport hotels are running $150 or less for the night in question, which from my experience indicates very soft demand.
(Edit: typos)
Last edited by kpbadger; Nov 23, 2015 at 11:25 am
#24
Join Date: Jun 1999
Location: NYC/LA
Programs: DL Plat, AA Plat Pro, Marriott Titanium, IHG Diamond Amb
Posts: 7,487
Just hit this verbiage attempting to book at the Embassy Suites at SFO for a random Thursday in January. My company's travel department does not allow bookings with cancellation penalties and they had never seen this language before (nor had I until I saw it and then found this thread). Even though I'm an HHonors member, they didn't want to risk time and effort of potentially dealing with this if things went wrong. Corporate travel departments like straightforwardness and simplicity. I'm now booked elsewhere.
#25
Join Date: Feb 2014
Posts: 921
A couple of days ago I cancelled an upcoming award stay at a Hilton property because the Marriott property I prefer in the area dropped its AAA rate to what I consider a reasonable level. Not dirt cheap, just reasonable. If Hilton doesn't want me to cancel then they need to provide a better value than the competition -- a carrot rather than a stick.
Hilton is simply saying "Make a decision dude!".
It can also be a reason to drive people to sign up for the hhonors program, which no doubt will promote the no-fee cancellation policy if such a policy was to be in effect for that hotel.
#26
Original Poster
Join Date: Oct 2000
Location: Seattle WA, USA
Programs: Hilton Diamond, Marriott LT Plat, AS Lounge
Posts: 3,478
If Hilton offers me a decent value they get my business. If they put in high rates initially for a future stay and then want to charge me $50 later when they drop down to the competition's new level then they shouldn't expect me to play their game. I don't see how this $50 fee will fly if the competition doesn't charge something similar.
#27
Original Poster
Join Date: Oct 2000
Location: Seattle WA, USA
Programs: Hilton Diamond, Marriott LT Plat, AS Lounge
Posts: 3,478
Just hit this verbiage attempting to book at the Embassy Suites at SFO for a random Thursday in January. My company's travel department does not allow bookings with cancellation penalties and they had never seen this language before (nor had I until I saw it and then found this thread). Even though I'm an HHonors member, they didn't want to risk time and effort of potentially dealing with this if things went wrong. Corporate travel departments like straightforwardness and simplicity. I'm now booked elsewhere.
A change fee for this particular night is a real head-scratcher -- all the reputable SFO airport hotels are running $150 or less for the night in question, which from my experience indicates very soft demand.
(Edit: typos)
A change fee for this particular night is a real head-scratcher -- all the reputable SFO airport hotels are running $150 or less for the night in question, which from my experience indicates very soft demand.
(Edit: typos)
#28
Join Date: Feb 2005
Location: MD/DC
Programs: Hilton Diamond, IHG Platinum, Marriott Titanium, TK Gold
Posts: 1,536
As someone who does have travel plans many months in advance, and do have booking made many months in advance - this is going to hurt if implemented wildly. Usually I have several booking at several places I will consider to stay in and I monitor the prices regularly. If there is no extra ordinary demand the price always falls (2 months to 2 weeks prior to the stay).
That said, I guess I am the reason they implement such a change.
If they really want to be innovative, why don't just promise everyone on flex rate that they will receive the lowest rate the hotel will offer between the time of booking and the time of stay, and enforce a one night penalty for booking cancelled less than 24 hours from the stay (do as the Vegas hotels do - charge one night upfront). Of course that would mean that the revenue management department need to be smart - and of course that would never happen.
My prediction that the fee would become the norm in couple of years from now, which will make me shift my stay pattern considerably, if I cannot cancel a flex reservation without a fee.
That said, I guess I am the reason they implement such a change.
If they really want to be innovative, why don't just promise everyone on flex rate that they will receive the lowest rate the hotel will offer between the time of booking and the time of stay, and enforce a one night penalty for booking cancelled less than 24 hours from the stay (do as the Vegas hotels do - charge one night upfront). Of course that would mean that the revenue management department need to be smart - and of course that would never happen.
My prediction that the fee would become the norm in couple of years from now, which will make me shift my stay pattern considerably, if I cannot cancel a flex reservation without a fee.
#29
Join Date: Mar 2015
Posts: 1,989
Just a thought.
I noticed that this is for NON HHonors members?
Guess is that they can track cancellations by HHonors members and should a member 'abuse' the system, the membership can be revoked.
So.. Rooms are priced based on demand so more empty rooms, cheaper rates. This means if I intend to disrupt a hotel, I could fake a few bookings and cancel them later. Impact would be while I held the inventory under a few bogus reservations which I never intend to honor, the rate of that property goes up for those days in comparison to the neighboring properties making it less attractive. Fine if the rooms ended up consumed but disastrous if the property lost the original bookings and other subsequent potentials due to the increased rates. How bad is this, only the property and HHonors knows but apparently significant enough to merit them trying something.
I noticed that this is for NON HHonors members?
Guess is that they can track cancellations by HHonors members and should a member 'abuse' the system, the membership can be revoked.
So.. Rooms are priced based on demand so more empty rooms, cheaper rates. This means if I intend to disrupt a hotel, I could fake a few bookings and cancel them later. Impact would be while I held the inventory under a few bogus reservations which I never intend to honor, the rate of that property goes up for those days in comparison to the neighboring properties making it less attractive. Fine if the rooms ended up consumed but disastrous if the property lost the original bookings and other subsequent potentials due to the increased rates. How bad is this, only the property and HHonors knows but apparently significant enough to merit them trying something.
#30
Join Date: May 2006
Location: AUS
Programs: UA 1K, National Car EE, Hilton Lifetime Diamond, Marriott Platnium/Lifetime Silver
Posts: 224
Found another test hotel - Hilton Atlanta. Booked a Thurs-Mon stay for December and had the new cancellation terms. The rate is extremely low (under 100/night).