Holiday Inn's Online Reservations Are Non-Refundable?
Make sure you read everything you click, warns reader Jason:
Just a tip to pass along that I am finding out the hard way...Make sure you read the fine print when it comes to making online reservations to a Holiday Inn through their website. I recently booked 4 days in a Washington, DC hotel late next month for a short vacation for my wife and I. Recent events in out life led us to have to cancel our vacation. When I called today to cancel my reservations, I was told that my purchase was "non-refundable" and they would be unable to return my payment. I then called the hotel i made my reservations with direct, and they too told me that they *could* cancel my reservation, but my payment was "non-refundable" since i booked online. Sure enough, when I went back to look at my online receipt, there at the bottom it tells me that if I cancel, my payment is non-refundable.
The worst part is that I am quite loyal to Holiday Inn and their other brands. I not only joined their Reward Club a few years back, but I *always* use them first when looking for a hotel, and rarely go anywhere else. Now, when I am in a jam, it turns out that brand loyalty does not mean much to them. Now, they are essentially charging me almost around $495 for canceling a reservation more than a month in advance.We clicked around the Holiday Inn website and saw that Holiday Inn's policy was to charge a cancellation fee of one night's stay for all the hotels we chose. We looked at two hotels in New York and one in Washington D.C.I plan on calling them again on Monday to try to get someone to help me out of this, but at the moment, things are not looking good for me. I've sent an e-mail appealing my case to as many addresses I could find, so hopefully that will help. If any of your users can offer me any hints on how to swing this in my favor, it would be much appreciated. Oh, and if anyone has Stevan Porter's contact or e-mail address that would be a huge bonus too.
The warning read:
Canceling your reservation after 6:00 PM (local hotel time) on 22 June, 2007, or failing to show, will result in a charge equal to the first night's stay per room to your credit card. Taxes may apply. Failing to call or show before check-out time after the first night of a reservation will result in cancellation of the remainder of your reservation.We assume that since you paid in advance, the story is different. Do the readers have any suggestions for Jason? —MEGHANN MARCO
(Photo: Ben Popken)
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Comments:
This doesn't sound right -- it sounds worse than dealing with the airlines. It doesn't seem like a customer who booked in advance should have his planning "rewarded" with having to pay for 4 night, when he didn't even stay one.
Is it possible he could do a chargeback for at least part of it?
I stayed at a Holiday Inn Express in February. I had reserved (not prepaid) for 3 nights, but at check-in I informed them that I'd only need the room for 2 nights. No problem -- I paid for 2 nights.
It was an overpriced dump, btw.
I take that back. When I search in D.C., the first hotel that comes up offers a cheap rate, but it says:
Room and Rate Information
Rate Type: Advance Purchase
Rate: $119.99 (USD) per room, per night CONVERT CURRENCY
View Estimated Total Price †
Rate Description: Special Savings! Reservations require full prepayment for the entire stay at time of booking. Fully non refundable. Prepayment is charged to credit card between time of booking and day of arrival and is non refundable. No refunds if cancelled or changed.
Deposit Required: A deposit for the entire stay is due at time of booking.
Tax: 14.5% per night not included in rate effective 29 June, 2007 thru 2 July, 2007
Daily Parking Fee: $25.00 (USD)
Room Type: 1 KING BED LEISURE NONSMOKING - 2 PERSON(S) MAX PER ROOM
Number of Rooms: 1
Number of Persons: 1 ADULT(S), 0 CHILD(REN)
Rate Rules: ADVANCE PURCHASE REQUIRED
MUST PURCHASE AT LEAST 7 DAYS IN ADVANCE.
Check-in Time: 03:00 PM
Check-out Time: 12:00 PM
Modify or Cancel Policy: Canceling your reservation or failing to show will result in a charge for the entire stay per room to your credit card. Taxes may apply.
* I understand that by selecting this checkbox, I have read and accept the reservation terms & conditions stated on this page. I certify that I am at least 18 years of age and at least as old as the minimum check-in age of the hotel at which I am making this reservation.
* I understand that by selecting the confirm reservation button, I am authorizing a charge to the credit card number provided for any specified deposit requirement and/or cancellation fee that may apply. Cancellation fees are non-refundable.
Looks like you may be out of luck on this one, unless the circumstances forcing you to cancel are really extreme.
You should put a stop payment one the credit card, or contest the payment with your credit card company. either way should work. I once got away from spending 1200 to a mariott villa b/c the room was a bit damaged after we left, they wanted to charge us for damages and and an extra night that we were not going to stay. I put stop payment and contested the charge. Hotels are so scummy.
@FatLynn:
Oh, well then that makes sense. Sucks for Jason, but underscores why it's important to read the fine print before clicking. :-(
I make HIE reservations all the time for work and pleasure travel. They could not make it any more clear that some rates are non-refundable. The rate type is called "advance purchase," and as shown above, they make you click a check-box that indicates you understand that this particular rate is non-refundable.
All of there other rates are 100% refundable if you cancel even as late as 5:59pm on the day of the reservation.
This was a case of a consumering not reading the boxes he was checking and agreeing to.
I've been using Holiday Inn for years, and am a Priority Club member as well.
Cancellation policies vary from hotel to hotel, and depend upon the rate you choose. I reserve and cancel hotels all the time with no problem. Some hotels do require you to cancel a few days in advance to get a refund. Others will only refund all but a nights stay. These hotels are by far in the minority. Most will not charge you as long as you cancel prior to 6pm the day of check-in.
There are "advanced purchase" rates that you can get that are really cheap, but have a no cancelation policy. I have always found these as well marked. The cancelation policy is even printed in red just above the "submit" button. You also have to check a box that says you read and agree to the rate information.
I'd say its always wise to read the rate information before booking any rooms.
This is the same policy as booking with any extranet site (hotels.com, expedia, etc.)
It is how hotels are able to offer lower rates, but continue to keep strong cash flow and booking pace.
If you do not get your money back I would call them and tell them you are coming. Call them each day of your reservation and tell them you were "delayed" but you will be coming the next day.
If you are forced to pay for a room you cannot use you should at least make sure that the room is sitting empty and not sold again.
I make 1500 hotel reservations a year for myself and my employees and this kind of thing is becoming more and more common.
Days Inn did the same thing for (to?) me last time I reserved a room online. They let me know this is an "online special" rate and that the rate would be different if I called to reserve (which it wasn't) and that it was an absolutely non-refundable reservation if I reserved online. They didn't present any alternative for a refundable reservation at all other than to call that hotel location directly and reserve. Of course, naturally, the girl at the front desk there told me I could reserve online. Anyway, I didn't have to cancel, fortunately... I would say you gotta read the fine print, but in the case of the Days Inn site, it's extremely 100% in bold clear that it's non-refundable.
The major pitfall is that if he does cancel the reservation but is charged the entire amount he is effectively paying for no service rendered, which is illegal (just like the credit repair services). So if you can cancel the reservation at the hotel then he may have a leg to stand on and possibly dispute it through the credit card company.
And yes I know it's a buyer beware world we live in, but isn't anyone else just getting a little tired with these tyranical service fees on the internet masking as a "convienence"?
- T
You are probably out of luck with a charge back. But most places that offer "non-refundable" booking, will offer you a credit that you can use on future reservations. See if they will offer you that. Since you always book with Holiday Inn, you shouldn't have a problem using the credit up in the future.
@Tylas:
No he won't. As someone within hospitality finance, any charge backs will be met from the hotel with a copy of the policy the client agreed to when making the online reservation. This "click" = a "signature" according to the Visa/MC merchant agreement. The OP will loose if the hotel can provide a copy of the original reservation, contact information, and the aforementioned policy.
This is not the case with AMEX, this language is different in most AMEX merchant agreements; and the "click" agreement policy is very hard to validate from the merchant side when dealing with an AMEX chargeback.
Report CC as stolen. Get replacement card with new account number.
That is credit card fraud.
I bet you're the first one in line to complain about new "fees."
I don't know why he didn't know that. I have booked using the lower pre-paid rate at Holiday Inn before. They make this perfectly clear when you're reserving the room: You're being offered a lower rate -- the catch is, it's non-refundable.
So if you want to pay in advance and get the lower rate, great, but don't whine about it if you have to cancel. If your plans aren't definite, reserve the room at the extra 10% or whatever. I don't think this qualifies as "fine print." They're quite up front about it, actually.
Do your best to write that letter explaining that you were confused and that you wish the website were more clear about it (though it seems like they might be fairly clear). Ask them to give you a break this one time and that you'll stay loyal to them. From what I've seen on hotel sites lately, the discount isn't worth the risk of the prepay.
I wonder if there was a special event going on in DC at the time he needed a hotel. A lot of hotels catch wind of special events (graduations, concerts, conventions) and change their reservation policies accordingly. Marriott showed a pre-paid nonrefundable rate when I went to my sister's graduation. But it was clearly marked alongside the quoted rate.
I can see why they do this. It prevents people from shopping around and booking rooms at every hotel just to see if the rates drop at the last minute. So, blame yourselves for this policy :)
This is just NOT what a chargeback is for. Chargebacks are not for when you fail to read fineprint and feel you deserve your money back.
Almost every hotel booking site now offers "Internet only" rates that are non refundable and non cancelable. It sucks the poster lost his money, and that he fell for the trap that hotels have set, but this sadly isn't one of those cases where he could just do a chargeback.
The only (and best) suggestion so far is to plead with the hotel to let him stay at a different time. Don't expect money back, or to be able to stay at a different hotel, the hotel itself loads this rate and money went right to the hotel, not corporate.
And next time, make sure to read the fineprint...
If a refund cannot be coerced from the corporate office, Jason should simply call the hotel back and tell them that the room will be used and not cancel it. Then call a homeless shelter and tell them that there is a nice room available at the Holiday Inn for 4 nights. The Holiday Inn will love you and so will the shelter... Well, at least the shelter will...
The worst part, in my opinion, is that these advance-payment non-refundable hotel rates are also often non-transferable. So you can't sell the reservation on craigslist, or let a friend take the reservation instead. Plus you can't leave after a night (and pay for just that one night) if the hotel room turns out to be unacceptable, or if the hotel amenities aren't as described, or for any reason that you would normally switch to a new hotel the next day.
I almost (stress ALMOST) got caught on this once myself, but since I am extremely sensitive to any service that I must pay in advance I opted for the (only slightly) higher non-prepaid rate. I have since avoided Holiday Inn and their affiliated since then and I ONLY book where my reservation is guaranteed by my card and NOT paid in advance
I had prepaid for a hotel room for a college football weekend. You had to cancel an month in advance to get a refund. Sadly, a member of our party was called up for deployment 2 weeks before the game and suddenly no one wanted to tailgate. (Tailgating in the south is a professional sport for those who are unaware.) I called the hotel. I told them that if my money was not refunded (as the room would likely be sold again) I would be offering it up to one of the area radio stations as a give away cos if it's paid for with my money I can use the room however I want.
I image the threat of a bunch of unsupervised teenagers was a significantly motivating factor in my refund.
What you should do is call up the manager of the hotel and explain that since the room is non-refundable you'll be subletting to another guest, taking out an ad on craigslist perhaps.
You probably don't actually want to do this as you'll be on the hook if any damages occur to the room, but if might make them consider just refunding your money just to get rid of you.
As a last resort, do four separate chargbacks, one for each night. When a cardholder files a chargeback, the merchant is out $25-$50 regardless of the outcome of the chargeback request.
This is so completely wrong.
For game day weekends in the south, rooms must be reserved about 10 months in advance. (Tailgating is a professional sport here in the south) We've done this on multiple occasions. The last time we had to cancel 2 weeks before the game day. One of our party was called up for deployment and priorities changed. The hotel required a months notice for cancellation to get a refund. Well, I informed them that I was sure they'd sell the room and I could have my money back, but if they didn't, I'd be sure to offer it up to the local radio station the day before the game as a giveaway.
If I've bought the room, I get to use it as I see fit. I'm sure the threat of unsupervised teens in their hotel had something to do with my refund arrive the day prior.
@bostonmike: If the hotel is really sub-par, you can do a chargeback, but you would have to have a very specific and verifiable complaint, i.e. you take pictures of roaches running around your bed, or they advertise a pool and there isn't one.
Chargeback might not go through if they fight it and send their policy to the credit card company and show them how you are trying to circumvent it.
Always read the fineprint and my 9 rules of capitalism before making any purchase.
One o the rules mentions why people would be "nice" to you aka the "loyalty" program, which basically means that if they sell your information to everyone, then youll get a tiny discount.
Banks call it free checking.....
Hotels and stores call it rewards zone or loyalty club
Credit card companies call it rewards or miles...or whatever
Computer manufactures call it trialware...
Holiday Inn's website is very clear about this. I've booked non-refundable rooms through them before, but when there is any uncertainty, I opt for the higher, refundable rate.
For those suggesting charge backs, that is credit card fraud. He agreed to accept a lower rate in exchange for not being able to cancel (whether he was careful enough to read the words next to the rate or not). Holiday Inn is holding up its end of the bargain, so trying to abuse a charge back to recover his money is both unethical and fraudulent.
I reserved a room at Days Inn with a non-refundable internet rate a back in April for a convention in July.
I noticed that the room wasn't refundable, but 3 nights for $150 was pretty good, and I wasn't likely to bail out, so I took it. Sometimes you gotta run the risk for the reward. And yeah, the "fine print" is repeated and boldfaced a few times, so it's not exactly sneaky, even if it is a little unfair.
Now I just have to avoid life-upheaving events for the next 2 weeks, lest I should cancel my reservations...
@castlecraver: Right.
Because committing credit card fraud is a good idea.
Anyone for calling the FBI for the reward? Anyone?
Yes, they are clear, and if you want a great deal, then use it. I have, but not for more than one night if I am not certain. And reporting the cc stolen won't do jack unless you are claiming charge was fraudulent. Not sure why this whole thread exists frankly. None of this is new as far as hotels are concerned, they make it so obvious that you had to be half asleep to have missed it and we are talking Holiday Inn Express, so you are not talking that much money.
I stay with Holiday Inn Express all the time, and make all my reservations on the Priority Club website. As others have stated, it's explicitly stated that the charges are non-refundable. If you're not 100% sure you're going to use the room, wait until you ARE sure, then pay what they charge you then. The difference in price still will be less than paying a reduced rate for reservations you didn't actually use.
I like Holiday Inn Express. The ones I've stayed in have always been clean, comfortable, and staffed by helpful people. I never stay anywhere else. I don't work for them, but I am a very satisfied customer.
I am going have to side with Holiday Inn on this one. There was no 'fine print'. This was a case of just not paying attention.
In 100% of my business travel I just guarantee my room. But for personal travel, I might be tempting to pre-purchase a room, but I tend to just find the lowest rate. My work and life can affect my vacation plans, so I know better.
Count me on the Holiday Inn side as well. I have chosen the non-refundable rate for some stays (usually a one-nighter) and willingly paid a bit more when my plans were subject to change. For me, it's cheap travel insurance. And I am almost always pleased with Holiday Inn Express, more regularly than the more expensive Holiday Inn locations.
I travel for work all the time (200+ hotel nights last year) and have Platinum status at both HI and Marriott. I have had this same thing happen to me twice and since those times I never select the prepaid non-refundable rate (what was I thinking when work reimburses me anyway). Holiday Inn is the only chain I know of that sometimes offers these rates. Fortunately, both times I successfully asked the manager not the charge me as a courtesy to a Platinum member (50+ nights a year at Holiday Inns).
Am I missing something here? If I understand this correctly, the OP is cancelling his reservation, not going to use the service, and the hotel will still be paid as if he was occupying the room.
However, since he cancelled, the hotel management will know they have an open room, and can possibly rent it out to another person, at possibly higher rates (since it may not qualify for the early-bird rate).
So, not only can this hotel get paid twice for the same room, the amount of profit they can clear from it would be tremondous, since the costs of providing the room should essentially be covered by the OP's non-refundable reservation. Whatever they charge that person would be pure profit on top of the profit from the OP! There is something definitely wrong here.
Yes, non-refundable is non-refundable, and I understand that for items that cannot be reused nor resold, or with a time-value. However, with this much advance notice, in a tourist destination, during a busy period, I don't foresee that room remaining unoccupied. At minimum Holiday Inn should allow him to retain the credit (maybe with some minor cancellation fees). If the room is rented to another person, a full refund would be appropriate since they were still able to fill the room (and probably at higher rate). I don't believe that Holiday Inn should be allowed to double-dip. Good luck to you, OP. I really hope Holiday Inn reconsiders this strategy, as it will quickly alienate loyal customers (me included).












Chargeback. Plain and simple. You're being charged for a service you did not receive, and it's unreasonable to think the hotel incurred any expenses if you cancelled a month in advance.