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-   -   Prepaid but Refundable Rate (https://www.flyertalk.com/forum/marriott-marriott-bonvoy/1990483-prepaid-but-refundable-rate.html)

MaxFlyer Oct 8, 2019 8:49 am

Prepaid but Refundable Rate
 
I’ve been noticing a trend over the past few months where a rate is advertised as prepaid/non refundable but under the cancellation policy it states that you can cancel x days prior to arrival without any charge.

This reads like an oxymoron to me and I’m not sure if these rates are refundable or not.

For example, Sheraton TriBeCa New York, 11-12 January 2020.

I’ve seen this for hotels in a number of countries and is very frustrating. I wish the terms would be clear and simple as it seems like the user is trying to be tripped up.

Any ideas / experiences?

Thanks

MePlatPremier Oct 8, 2019 9:21 am

I’ve seen a trend of cancellable/refundable rates that require a partial or full prepayment, especially at resorts.

I’m just not in the mood of advancing $6k or $7k for a reservation months ahead, mostly because I’m pretty sure that in the event I do end up cancelling getting the deposit back would be a major hassle.

MaxFlyer Oct 8, 2019 9:38 am

I’ve seen those too but the rate I’m referring to says prepayment/non refundable but then says you can cancel without any charge.

escapefromphl Oct 8, 2019 11:11 am


Originally Posted by MePlatPremier (Post 31605580)
I’ve seen a trend of cancellable/refundable rates that require a partial or full prepayment, especially at resorts.

I’m just not in the mood of advancing $6k or $7k for a reservation months ahead, mostly because I’m pretty sure that in the event I do end up cancelling getting the deposit back would be a major hassle.

I’ve seen some resorts that take a deposit on all paid rates. I assume it’s just to curtail speculative booking.

nexusCFX Oct 8, 2019 11:36 am

These rates are becoming more common. My only experiences with them are having BRGs denied because the lowest rate is this kind of prepaid but refundable rate which has no equivalent on OTAs.

MePlatPremier Oct 8, 2019 3:50 pm


Originally Posted by escapefromphl (Post 31606023)
I’ve seen some resorts that take a deposit on all paid rates. I assume it’s just to curtail speculative booking.

when they do that with all their public cash rates, properties are allowed to (and often do) require full prepayment (of the cancellation penalty) on award bookings as well.

mahasamatman Oct 8, 2019 6:57 pm


Originally Posted by MaxFlyer (Post 31605641)
the rate I’m referring to says prepayment/non refundable but then says you can cancel without any charge.

I would run away from any property that can't get its terms straight, but one of the basic tenets of contract law is that any ambiguity resolves in favour of the party that didn't draft the contract. Based on that, it would be refundable.

eyeball1 Oct 8, 2019 8:00 pm


Originally Posted by escapefromphl (Post 31606023)
I’ve seen some resorts that take a deposit on all paid rates. I assume it’s just to curtail speculative booking.

This is becoming more common. I hate it though because if I cancel it then means I have to make sure the the refund has been processed back to my credit card, which is a hassle.

MaxFlyer Oct 9, 2019 6:31 am


Originally Posted by mahasamatman (Post 31607499)
I would run away from any property that can't get its terms straight, but one of the basic tenets of contract law is that any ambiguity resolves in favour of the party that didn't draft the contract. Based on that, it would be refundable.

Well it looks like I’ll have to give this a go as one of my hotels which I cancelled has charged me. Customer Service has reached out to the hotel for a response. If it goes nowhere then I’ll ask my credit card company to dispute it.

thetaxman Oct 9, 2019 7:49 am

I'm with the OP on this - last three bookings have all had exactly the same conflicting terms. I think the reason is that they only have a limited number of "headers" for the rate categories - Standard, Deals & Package and Pre-Pay & Save - and that within that last category are rates that are both refundable and non-refundable depending on the specific property, dates etc. This was the language that seems to be at the heart of the issue from a dummy booking I just did and this seems to be where the confusion is - the first and second bullet points seem to be at odds with each other.

Cancelling Your Reservation

  • Changes to your reservation are not permitted. Please note that you may cancel your reservation for no charge until October 10, 2019.
  • Please note that your prepayment for this special rate is non-refundable

JohnneeO Oct 9, 2019 9:52 am


Originally Posted by thetaxman (Post 31609087)
I'm with the OP on this - last three bookings have all had exactly the same conflicting terms. I think the reason is that they only have a limited number of "headers" for the rate categories - Standard, Deals & Package and Pre-Pay & Save - and that within that last category are rates that are both refundable and non-refundable depending on the specific property, dates etc. This was the language that seems to be at the heart of the issue from a dummy booking I just did and this seems to be where the confusion is - the first and second bullet points seem to be at odds with each other.

Cancelling Your Reservation

  • Changes to your reservation are not permitted. Please note that you may cancel your reservation for no charge until October 10, 2019.
  • Please note that your prepayment for this special rate is non-refundable

It seems like there are two separate things here. One is cancellation, meaning there is no charge to back out of your reservation. The second is that your prepayment is non-refundable. In other words, you won't be charged any additional fees to back out of your reservation at the time you cancel, but you will forfeit any prepayment.

I don't think that these are conflicting terms. I would view these terms as fully non-refundable.

KRSW Oct 9, 2019 12:50 pm

Here's an interesting variation of the above which I came across last night:

Rate Details

AAA Advance Purchase Rate, AAA card required required, see Rate details




Holding Your Reservation

  • We will need a credit card number to reserve your room.

Cancelling Your Reservation

  • You may cancel your reservation for no charge until November 25, 2019 (2 day[s] before arrival).
  • Please note that we will assess a fee of 94.50 USD if you must cancel after this deadline. If you have made a prepayment, we will retain all or part of your prepayment. If not, we will charge your credit card.


MaxFlyer Oct 9, 2019 3:36 pm


Originally Posted by KRSW (Post 31610201)
Here's an interesting variation of the above which I came across last night:


Rate Details

AAA Advance Purchase Rate, AAA card required required, see Rate details



Holding Your Reservation

  • We will need a credit card number to reserve your room.

Cancelling Your Reservation

  • You may cancel your reservation for no charge until November 25, 2019 (2 day[s] before arrival).
  • Please note that we will assess a fee of 94.50 USD if you must cancel after this deadline. If you have made a prepayment, we will retain all or part of your prepayment. If not, we will charge your credit card.

I see this a lot and it’s how I’ve just been tripped up and charged for a cancellation.

thetaxman Oct 10, 2019 11:28 am


Originally Posted by JohnneeO (Post 31609515)
It seems like there are two separate things here. One is cancellation, meaning there is no charge to back out of your reservation. The second is that your prepayment is non-refundable. In other words, you won't be charged any additional fees to back out of your reservation at the time you cancel, but you will forfeit any prepayment.

I don't think that these are conflicting terms. I would view these terms as fully non-refundable.

Yep. I can see that as well. Totally valid point and having just spoken with Marriott this is how they see it. No complaints if I make a mistake now.

dtremit Oct 12, 2019 12:15 pm

Non-refundable AND free cancellation?
 
Currently looking at some options for a trip in January, and am running across some very strange rates. Here are the terms and conditions for one of them.

On the main page, it says:


Member Rate Advance Purchase, prepay in full, non-refundable if cancelled less than 1 day before arrival, no changes, see Rate details
The rate details add:


Holding Your Reservation
We will need a credit card prepayment to reserve your room. To ensure that you receive this special rate, we will charge your credit card a prepayment of 1160.67 USD when you make your reservation.

Cancelling Your Reservation
Changes to your reservation are not permitted. Please note that you may cancel your reservation for no charge until January 4, 2020.
Please note that your prepayment for this special rate is non-refundable.
($1160.67 is the total for the stay, and 1/4 is the day before check-in.)

Not clear to me how you can simultaneously "cancel...for no charge" and have the full prepayment be non-refundable? Who writes this stuff? :confused:


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