Originally Posted by speedytimmy
Why is there a cash forfeiture instead of simply losing starpoints if one cancels after the cancellation deadline?
"If you cancel after specified time on specified date the forfeiture amount will be speficied amount"
The award is for a stay over the Christmas holiday and the cancellation deadline is early November (I'd be less interested if the cancellation deadline was same day or the day prior to arrival). The value per point is 16.9 cents so the cash forfeiture amount is really quite high.
Because it says so in the Terms and Conditions of Membership?
10. Credit cards may be required to guarantee a Hotel Award reservation. Standard guarantee policies apply for all Hotel Awards. Members who fail to cancel a guaranteed Award reservation within the permitted cancellation time will be charged the lowest business (COR) rate applicable on the arrival night as a cancellation fee and/or such no-show may result in a loss of the redeemed Starpoints.
If you are asking why it is in the Terms and Conditions of Membership, my best guess is that it is a decision that is revenue-driven. The hotel stands to make more money from your default than from SPG for the Starpoints redeemed.
That being said, the T&C's are written in a fashion so that the hotels have a choice to either take the Starpoints redemption from SPG or the money from you; however, we would not want to see them take both, so I may have to get the wording adjusted on this a bit.
Regardless, you are told of the possible worst-case scenario consequences in advance, which usually holds true in 99.9% of the cases I've seen.
Sincerely,
William R. Sanders
Customer Service Coordinator
Starwood Preferred Services
[email protected]