Hilton Hotel Demands $20,612 From A 5th Grade Class That Can’t Travel Due To Coronavirus

by Gary Leff

Hilton was early on the scene with a policy that non-refundable bookings could be cancelled and customers would get their money back during the coronavirus pandemic.

This policy, however, applies to individual reservations and not to groups – similar to how other chains have approached their travel waivers. We’ve already seen one Miami hotel that closed due to local restrictions refuse to return a $2.3 million deposit for a school trip, and a Marriott property demand $400,000 from a conference that was scheduled to be held at a time when it turned out to be illegal to have large gatherings.

Now comes a report of a Hilton property that demanded a $20,612 cancellation penalty from a fifth grade class.

But, once the virus was ravaging the nation, the school canceled the trip and tried to get a refund for about a month, from Homewood Suites by Hilton for their 30 rooms.

The Homewood Suites property responded outlining a “cancellation fee of $20,612…Since we already received payments of $17,931 [your] balance is $2,681. We will use the credit card we have on file unless noted otherwise.”

Ultimately instead of collecting an additional $2681 from the class, the hotel agreed to refund $7000 – and keep $10,931 of the class’s money.

Incarcerated rapper Kodak Black, in prison until October on gun charges, grew up near the school and has offered to pay for a future trip if Hilton refuses a refund. Black’s attorney is representing the school PTA as it seeks a full refund from the hotel.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. Demanding $20k is so much more petty – by an order of magnitude, literally – compared to demanding $200k like that Marriott in Florida.

    Being in the news for demanding either sum incurs a PR hit (however small, given consumers’ short memories). But one must assume a $200k payment is worth the hit and a $20k payment comes nowhere close.

  2. This happens to be unforeseen circumstances and big businesses should understand that and refund monies paid. BUT I can see where they will they use the old claim of an act of God for not refunding payments.

  3. There are several Homewood Suiites properties listed for Washington, D.C. Please identify the guilty one.

  5. Almost all commercial real estate is in deep trouble.
    CNBC just quoted a real estate broker saying Covid -19 is GREAT for commercial real estate because now tenants will need twice the space for social distancing.

    Real estate brokers can put a happy face on anything.

    Have you ever received an agent’s card with a picture of the person disheveled and scowling?

  6. @losingtrader no but I have met with commercial RE agents who were hungover and disheveled from a night of hardcore partying even though they were in their 40s. Idiots

  9. Tour company gave our high school kids a “break” by returning 70% of their summer Europe band trip travel funds instead of only 50%. I am pretty skeptical and it’s a hefty monetary loss for the kids – I think it’s moves like that that will lose bread and butter business arrangements in the future.

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