Late hotel cancellation policy can hit the business tourism budget

Published on : Tuesday, July 18, 2017

marriottLast-minute business travel changes can be now a costly affair for the corporate groups, as more hotels will impose 48-hour minimums for cancelling a stay without penalty.


Marriott International, which recently acquired Starwood Hotels and Resorts, was the first to apply this new policy. Last month, it put into effect a 48-hour cancellation policy for new bookings within the Marriott and Starwood brand families in the United States, Canada, the Caribbean and Latin America. Hilton Worldwide in the United States and Canada adopted a similar policy.


However, there are exceptions. Marriott’s policy does not include its Design Hotels or its time-share properties, and Hilton says franchised hotels can opt out of the policy if they choose. Some other, however, might need 72 hours’ notice to cancel and is more applicable in busy cities or resort areas.


In their favour, the hotels say that they have to shield themselves from the travellers who try to manipulate with the booking system. They cancel on short notice in the hope of being able to quickly rebook at a cheaper last-minute rate. This has become a growing issue with the proliferation of sites and apps because booking has become nearly effortless.


The new policies, hotels say, will increase the availability of rooms in locations like New York City, where occupancy is high and rooms can be scarce. However, according to some business travel experts and managers, the new policy will effectively punish them for circumstances outside their control.


Industry experts predict that other brands will consider their own 48-hour cancellation windows — if they haven’t already.


The proliferation of third-party booking tools had made hotels’ jobs more complicated. Since hotels have to contend with a rising number of cancellations, they have to depend on the third-party sites or apps, and sometimes at considerable expense.


Industry experts say big companies will try to negotiate more flexible terms for their travellers when their contracts come up for renewal. (Existing corporate contracts supersede the new policies.) However, entrepreneurs and smaller businesses have less recourse.

Related Posts

Tags: , ,

One Response to Late hotel cancellation policy can hit the business tourism budget

  1. Working mostly with Group Bookings, I was recently commenting that this last minute cancellation policy without penalties is making the industry un-balanced.

    We assist retreat leaders book venues in Bali….and they have deadlines to make payments. But their participants are getting spoiled and don’t realize the pressure that is on the retreat leader.

    Eventually the whole Terms and Conditions policy is going to need to be updated, so it works across the board.

arrow2Follow TTW
facebook-logo  twitter-logo  LinkedIn_logo  rss_logo 
ttw_blogger_logo  ttw_blogger_logo


  • 02 ITB asia 2020
  • 11 Aviation Festival Asia 2020
  • 12 ITE Hong Kong 2020
  • 13 IMEX 20
  • 15 Digital Travel EU 2020
  • 15 Routes Asia 2020
  • 16 G&A 2020
  • 16 TAAPE 2020
  • 17 AAA-banner 2020
  • 18 WCTIE 2020
  • 20 GWS-2020
  • 23 emitt 21
  • 30 PATA


    1. BTL 2020

      May 27 - May 31

      June 9 - June 11
    3. HOTELEX 2020

      June 15 - June 18
    4. B-TRAVEL 2020

      June 19 - June 21
    5. Forum de l’Investissement Hôtelier Africain

      July 7 - July 9
Get our toolbar!
Review on