Can a Hotel Cancel My Reservation?

Understanding the ins and outs of hotel cancellation policies is crucial for every traveler. But what if your hotel unexpectedly cancels on you? After a tiring day of travel, the last thing you want is a surprise at check-in. Below, find out why a hotel might cancel a guest’s reservation — and what to do if it happens to you.

Why Hotels Cancel Reservations

“Can a hotel cancel my reservation?” The answer is yes. When a hotel is unable to honor a guest’s reservation upon arrival, it’s called being “walked.” There are a few reasons why this might happen:

• Unforeseen circumstances, such as emergency repairs, severe weather, or a brand-new hotel not opening on time. The hotel has little control over this, but they should notify guests before they arrive.

• Circumstances within a hotel’s control, such as canceling reservations to accommodate large group events that may bring in more revenue for the hotel, such as weddings, corporate meetings, and even filming.

• For a similar reason, a hotel might cancel existing bookings and open up those rooms to new, more expensive bookings if a popular music tour or major sporting event is coming to town.

• Cancellations can also happen because some hotels overbook on purpose (similar to airlines) in anticipation of a small number of guests canceling before their check-in date. If a hotel is overbooked and no one cancels, anyone can run the risk of being bumped.

Unlike with airlines, there are no laws to protect hotel customers in this scenario. “Hotels legally can cancel on you. It’s not like an airline where they are governed by the Department of Transportation,” attorney George Finn explains. Due to the lack of policies and safety nets, travelers must learn how to advocate for themselves.

Your Hotel Canceled Your Reservation — Now What?

When a hotel cancels your reservation, you’ll often find that an immediate solution isn’t offered in your cancellation notification (e.g., a full refund or an upgraded room). That can leave travelers feeling powerless. To make matters worse, hotels are vague in their policies in an attempt to save money by not fully compensating travelers. 

If this is the case with your booking, read the terms and conditions in your confirmation email. You likely didn’t entirely read that long document during your online booking, but carefully looking over those terms now might help save you money if your compensation options are outlined. Most hotels and vacation rentals offer compensation if they cancel on you, especially if it’s last-minute, but you might have to ask for it.

“What a lot of hotels do in most circumstances is provide credits and points and refunds,” Finn explains. Short-term rental policies also vary. For example, if an Airbnb host cancels a reservation within 30 days of arrival, you can book a similar place or receive a refund. 

Types of Compensation

You might be wondering, “If a hotel cancels my reservation, do I get a refund?” Rest assured, you might have to contact the property directly and advocate for yourself to a manager or customer service representative to receive appropriate compensation. Typically, employees have guidelines to follow (which usually aren’t published publicly) in these situations, outlining what they can or cannot offer customers.

Here are a few types of compensation that can be offered:

• Often, if your room is canceled far in advance, you’ll receive a refund for any amount you already paid, but no extra perks. 

• The closer to the reservation date that the cancellation occurs, however, the more you’ll be compensated. On top of receiving a refund (if the reservation was prepaid or booked with a deposit), they might offer you points or help you book new accommodation.

• Some hotels will also compensate you for your first-night stay at a different hotel (whether it’s part of their brand or not). If this is the case, research the new hotel before they book it to ensure you’re receiving suitable accommodations. 

In such situations, it also helps to be an elite member of a hotel chain’s loyalty program. For example, Marriott publishes a room guarantee policy, outlining compensation based on the guest’s membership tier in the Bonvoy loyalty program. Depending on tier level, Marriott will pay for the first night’s stay at a nearby hotel and give you between $50 and $200 cash. Members also receive between 45,000 and 140,000 points for the inconvenience.

What Happens if You Aren’t Refunded?

If a hotel cancels your reservation and doesn’t refund your money, you have a few options:

• First, you can contact your credit card company to refute the charges. Explain the situation and provide relevant documentation, such as the cancellation notification and the hotel’s terms and conditions. The credit card company will then investigate the matter and may refund your money if they find that the hotel’s actions were unjust.

• Filing a complaint with the Better Business Bureau and writing an online review are important ways to ensure other customers aren’t affected by a hotel’s customer-unfriendly policies.

• Small claims court is usually a last resort due to the time and money required.

Ways To Prevent Cancellations

Though hotel cancellations can happen to anyone, there are a few things you can do to prevent it from happening to you:

• Try to avoid using third-party booking sites, which are often the first to be bumped if a hotel is oversold, and book direct. Signing up for the hotel’s free membership program can also afford you additional compensation if something happens to your reservation.

• If you plan on checking in late at night, inform the hotel beforehand. Rarely, a room will be given away if a guest hasn’t arrived yet and all other rooms are full, as hotel staff don’t want to turn a potential customer away if the original customers are no-shows. To mitigate this risk, contact the hotel the week before via email or phone and tell them what time you plan on checking in.

• Always ensure the credit card you booked your room with is active and working. If the hotel is oversold, staff might run credit card authorizations on all reservations. If your card doesn’t go through, they might cancel your reservation. However, they should notify you of any credit card issues.

• Lastly, check your bookings periodically before a trip. Some travelers have been sorely disappointed when arriving on vacation only to find out their booking was canceled without notification. Finding out that your reservation has been canceled three months out is much easier to fix than finding out after you arrive at your destination.