Your Hotel Reservation Gets Cancelled, What Should You Do?

In the age of super-cheap airline tickets, we have become familiar with the concept of flight overbooking. The fear of getting stuck due to a cancellation is one that affects 42% of American travelers, according to a recent study by Talker Research. Luckily, there are customer-facing online services such as AirHelp or ClaimCompass ready to step in and defend your rights when it comes to airline hurdles. But what can you do if your hotel reservation gets cancelled?

Unfortunately, hotels are not regulated the same way as flights. While the Department of Transportation (DOT) oversees aviation-related matters, including crew training and upholding customer standards, accommodation providers, whether they are simple hotels or fancy resorts, operate in somewhat of a limbo. That means that, should a cancellation occur, external help is infrequent (and often costly), and by and large, you are left with the task of sorting it out on your own.

There are several possible reasons hotels will cancel on you. Some hotels that are either new or undergoing renovation can be prone to it, so a way to stay ahead of the game is by generally avoiding hotels under construction until they're back to business as usual. Another reason, which is becoming increasingly common, is related to dynamic pricing. A way for hotels to boost their revenue, dynamic pricing means the price the customer sees is influenced in real-time by occupancy, competitor prices, and even events that are happening in town. A recent example was the much-awaited UK reunion by Britpop band Oasis, which caused hotels in Manchester to cancel existing customer reservations and increase prices up to 400%. Other (more innocent) reasons for hotels to forfeit reservations may have to do with weather and other unexpected circumstances. While you can't plan for those, maybe you should consider packing a tent for your next out-of-town concert... just in case.

Jokes aside, there are steps you can take when a hotel cancellation happens. In most cases, you will have to be proactive and act as soon as you get your cancellation email – whether that's weeks, days, or hours before your booking kicks in. If you don't find the terms and conditions at the bottom of the email, try searching on the accommodation's website. That is where you will find any possible entitlement, whether that's a full reimbursement or a room at a twin hotel of the same chain. The latter is a common fix by big chains like Marriott or Premier Inn, so it's worth considering while you are still planning your trip, whether booking with a large chain will make you feel more at ease.

If you don't have access to the physical reception desk (hopefully the cancellation has landed in your inbox weeks in advance), call or email the hotel company to ask about your options. Most places will offer compensation or a refund, but in many cases, you need to take the first step and contact them to ask for it explicitly. Though less common, some hotels may offer points or a future discount in lieu of a cash refund, or even place you free of charge into a new accommodation not affiliated with them in order to limit disruption.

Lastly, another way to tackle hotel cancellations is by trying to leverage any loyalty programs you may have. While it's been reported that loyalty card holders – for example, those using Choice Hotels – may get preferential treatment when the hotel is experiencing overbooking and needs to bump customers, being a member is no guarantee that this will happen. In any case, make sure you always book with a credit card wherever possible, as that's often the best way, should all else fail, to get your money back.