Originally Posted by USCGamecock
I have to call BS on that. Either the room is guaranteed by cc, or it is free to let. If the hotel knowingly re-sells a room that is paid for, this is fraud. I am surprised there isn't some legislation against that practice.
Call BS all you want. I speak what I know.
That's why a card is only used to guarantee, and is not charged

nor are you charged for the room should you be walked... and if the reservation required a deposit, it's refunded.
I've been in this industry since I was 16, worked anything from Bellman to Front Desk Supervisor to Marketing Program Manager and beyond, and not once have I seen or heard of a hotel be succesfully sued, or even taken to court over a walk.
When in a walking situation, and a hotel will know when, if they prepare properly, wholesale bookings, prepaid reservations, and loyalty program members are the last to get walked (so, if you're a member of the program, make sure your number is in there. Years ago I had to walk an IC Royal Ambassador because they failed to have the number in the res).
However, in the end... if you prepaid, the hotel will refund you, or contact the consolidator that charged you, for the nights spent at another property.
Now for fraud. Fraud is quoting you $100/nt and charging you $1000/nt. Fraud is telling you a 1 bedroom suite sleeps 8 when it sleeps 2.
Fraud is intentional. Walking revenue away is not intentional.