I’ve written about the risk you run booking an award stay with Hyatt or Marriott, that if you cancel after the cancellation deadline (say, for instance, your flight is cancelled) you don’t lose your points – you lose a cash forfeiture amount instead.
And your cash penalty can be really high. I once helped a guest avoid a $7000 charge for an award stay they cancelled six months in advance. They booked the stay a year out but it was completely non-refundable, something that hadn’t been disclosed to them at the time of booking.
Most people think you lose your points if you make a points reservation and fail to cancel by the deadline. But that’s not how it works. Hyatt’s program terms say that the guest will be charged cash and their points will be returned if they fail to cancel a reservation by the hotel’s deadline,
If a Member does not follow the proper cancellation policy for the applicable hotel or resort or if a Member does not check into the hotel or resort when scheduled, the credit card provided with the Award Reservation will be charged in accordance with the hotel’s or resort’s cancellation or no-show policy and any points redeemed for the applicable Award Reservation will be returned to the Member’s account.
One Mile at a Time covers a customer with a death in the family who had to cancel an award trip inside the hotel’s 15 day cancel policy.
- He paid 63,000 points for a stay at The Grand Victoria Hotel in Lake Como.
- His father passed away, and the funeral conflicts with this stay.
- So he can’t go, and he’s been charged $5,500.
That’s how Hyatt’s (and Marriott’s) rule works. It’s also unacceptable. Most people assume that they’ll lose the points, not the cash, and that would be fair here.
However I do not see how on earth the charge is even enforceable because nowhere during the booking process are you ever told how much money the forfeiture will be. And even after booking, Hyatt’s confirmation emails do not tell you how much money is at risk.
On one confirmation I consulted I saw a cancel penalty of “50 PCT OF STAY” – but the cost of my ‘stay’ was 90,000 points, which certainly seemed to suggest the penalty would be 45,000 rather than thousands of dollars.
Cash forfeiture for cancelling too close to arrival, or for missing a trip for reasons beyond your control, is both an unnecessarily customer-unfriendly policy and the amount is never even disclosed up front.
Starwood Preferred Guest used to have a friendlier feature where you’d choose the cash forfeiture or just to lose the points you used to book the stay (you could choose). Both Hyatt’s and Marriott’s programs are run by ex-Starwood people.
If you’re ever in this position you’re better off keeping the stay, call and see if the hotel will be flexible. I’ve had a hotel waive their penalty. They were happy to get the room back to sell for cash instead of taking the points compensation. A hotel might also be willing to let you reschedule, if not completely cancel.
However if the hotel isn’t flexible, and you’re going to be charged for cancellation, don’t cancel! You might be able to find someone to take the reservation off of your hands. Just add them as a second guest name on the reservation. And if you can’t find someone to stay at the property, you might be able to pay someone less than the forfeiture amount to check in for you, avoiding the need to mortgage your home.
At a minimum, at the end, press to be shown where you ever agreed to the specific amount of the charge? In the meantime, until this rule changes, be careful where you redeem your Hyatt or Marriott points. You need to be able to afford a rack rate penalty if you have a last minute emergency or your flights get cancelled and you don’t make the trip.
Get travel insurance- problem solved
I’ve heard about this before and almost had the same thing happen during Southwest’s epic meltdown last year. It was during Xmas week at vail Hyatt. Luckily we found alternate plane flights. This year I bought travel insurance as the Hyatt centric park city has the same policy (no cancellation allowed ever!). .
Always move to a date in the future where there is a no penalty, and then cancel online. Never tell them you are “cancelling.” Both steps are allowed by the terms,.
Agree with JL100. If you are unable to push the dates, what’s to stop someone from just checking in online (from home) and just never actually go there? Then check out at your normal checkout, or even earlier, since there is no rule against checking out early. I doubt the maid service (if there even is any, since many hotels now want you to ask specifically for it) would ever report, “hey the room is clean and I don’t see anyone’s luggage here.” You could always say, “I checked in, didn’t really like your property, so I left.”
Lawsuit worthy.
Lawsuit worthy… This is NOT the way to treat your loyal customers… I hardly can believe but they are acting like CROOKS… Undiscloved amount to be paid… I would call a homeless shelter and give me room to 4 homeless people… See if they want to negotiate ???
I threatened once but didn’t have the guts to pull it off. I’m still ticked off at that San Francisco airport hotel and ticked off at me…..
Call the local homeless shelter and volunteer the room up for the stay. Tell him to bring some friends. I bet they blink…
Some hotel chains are getting “too big for their britches.”
I conclude that the policy of billing the no-show hotel guest the price of a room for using earned points borders on dishonesty.
Countless hotel guests miss reservations because of airline delays or weather issues or other matters beyong their control.
I have never been warned in advance of this “guest unfriendly policy” when I made various reservations. Fortunately, I never missed a “points” hotel reservation.
As already noted above by a different poster, having travel insurance should take care of this borderline dishonest maneuver done by certain hotel chains.
SteveH says:
August 17, 2023 at 3:53 pm
You could always say, “I checked in, didn’t really like your property, so I left.”
Would not work. Each time a key is placed against the lock or if the hotel room door opens, a record is made. If you did not open the door, the hotel would know.
Checking in online doesn’t work outside of the US.
Travel insurance won’t work as you didn’t book a cash rate.
You’d have to sue the hotel in the country/state where it is. Ultimately will cost more than the amount you’re out (even if it’s say 10K).
@dmg9: So if I book this hotel using points, show up at the desk, check in and get my key, but something happens to me (I get kidnapped) or I get a call to urgently return home, if I don’t actually open the door with the key, they will charge me cash?
I very highly doubt any travel insurance policy is going to pay off $5500 or $7000 or even a fraction of that with 10 pages of exclusions and limitations baked in. Who are you kidding but yourself?
I had a stay last winter at a property with same egregious cancellation policies for points. Did a lot of research and AGI Travel Guard’s policy covers this situation as long as your coverage is for the total potential cash penalty.
@John Steiner Bengals – not “lawsuit worthy”. First of all jurisdiction is an issue (this was in Italy). Secondly Lucky explain the reason – if someone cancels a points stay or no-shows the chain doesn’t pay the hotel anything. Therefore they charge the guest. Clearly spelled out in rules and, while not a good look, I understand the rationale. Blame the chain, not the hotel
Sadly, checking in online without physically showing up doesn’t always work.
I’ve had it happen before where I check in on the Hyatt app, and get a notification saying that my room is ready but I still must stop by the desk to complete checkin, even at hotels that have the digital key feature enabled.
I’ve also had it happen where I check in on the Hyatt app and it shows that checkin was completed – even gives me a room number and everything – but I’m arriving very late at night, say at like 3 or 4 am. I get there and check the app, and I’m no longer checked in, and have to “re-check-in” at the front desk so as to not get charged as a no-show. (And this was at a basic cat-1 Hyatt Place at a midsized midwestern airport.) My assumption is that their system knew I had never actually physically opened my door (as dmg9 noted), and was programmed to “no-show” anyone who hadn’t physically shown up (either at the desk or at their door) by the time audit was rolled overnight.
Hopefully the airlines don’t decide this is a good idea. Can you imagine booking a ticket on miles, not showing up for the flight and having the airline give you back your miles and charge you full cash price on your cc?
Where are the lawsuits?
@ AC,
The penalty isn’t disclosed. What if it was $53,000 instead of $5,300.
I wonder what happens if you say:
I have Covid, but I am within the cancellation period so I am coming anyway.
SteveH says:
August 17, 2023 at 4:39 pm
@dmg9: So if I book this hotel using points – – – – –
You are using an entire different senario.
_________________________________________________________
Bottom line, if you check in on-line with your phone and do not open the hotel door, the hotel computer will know that the door was not opened.
What the hotel will do is something I do not know. In my opinion, this policy used by hotels clearly equates to dishonesty.
If this happens with frequency in large penalties, a class action suit might be in order.
On the other hand, if the hotel warns the guest in advance (IN WRITING) of the abominable policy, I think you are out of luck unless if you have travel insurance.
Getting travel insurance is the best solution to beat the disgusting policy. That way, you have huge insurance companies to challenge the hotel and its outlandish policy.
I have to make allowances for, articles about injustice are a form of clickbait, or that complaints get posted more than positive experiences. Nevertheless, I find myself questioning why I would want to travel at all. The airlines are awful and the hotels are worse. Even if you make it there, the locals are out to scam you, if you don’t get gunned down by the narco-trafficantes first.
Might be a good idea to store a virtual credit card with a low credit limit in our hotel account profiles for the purpose of making reservations and switch to the real card only at check in. They can’t charge what’s not there…
By the way, it takes only 40 plaintiffs (40 people in the U.S. being cheated by this absurd scheme) to file a class action law suit.
A good class action attorney would not have any trouble finding a mere 40 plaintiff’s in the U.S. who have been cheated by hotels penalizing people who did not or could not cancel their hotel reservation timely.
Wouldn’t the hotels scream if hit with a class action for their greed over their points/no show scheme?
Just something to think about for those who do not have travel insurance.
@TLU:
Along the same lines, many credit cards allow you to temporarily freeze your card via their online interface.
I’m not saying I’ve done this before… But hypothetically, you could freeze the card you have on file (provided it’s a card you don’t use for other things on a daily basis), then cancel after the deadline, wait until a few days after your original arrival date, and unfreeze your card. Like you said: can’t charge what’s not there!
Wouldn’t it be a shame if nobody booked a room at the Grand Victoria for, say, 5 years?
@dmg9 – it is a published cancellation policy (you can clearly read the cancellation policy before booking the room if you bother to look) and if you ask you can find out the penalty. No basis for a suit and doubt any reputable lawyer would waste the time. Just because something may not seem right doesn’t make it illegal and the stupid American response to “sue someone” is pathetic
@TLU has the right idea. Get a low-limit Visa or Amex (like the kind for $5.95 at the grocery store display) and then fill it with a couple hundred dollars. Contact Hyatt and give the new credit card number to replace the one currently in use to hold. If questioned, tell them the one they have on file has been closed down due to fraud, and you want to replace with the new (low-limit) card.
And if you really need to, report the one on file with Hyatt as lost and request a replacement, but don’t give the new # to Hyatt.
These businesses that want to screw the consumer – screw them!
The points and miles game is not for those who don’t read the fine print, ask questions if you don’t understand, and review it often. This kind of thing should be illegal, but as long as they disclose it, the consumer’s the one who pays. The internet is not your friend, you must be hyper-aware of what you’re doing. Hit that big red BUY button prematurely, and you lose.
This the hotel that Nick at frequent miler and Dave at Milestalk stayed at in July and gave it a great review.
Wait, Bonvoy is run by ex-Starwood people? What did they do, hunt for any that hated loyalty members? SPG was a magnificent program and Bonvoy is… well let’s be extremely kind here and say very much not.
Covid is usually the best one. Anytime I’ve had a points or cash booking and used the I tested positive for covid. Also for stays I’m not 100% I have bullshit credit card numbers in my profile for all three major chains amd I just select that and since they aren’t actually charging it at time of reservation it works. Now I have had a call at noon of day of checkin from the hotel saying they need any updated number to hold the room for that dayand if actually staying I will give it to them.
One hotel did actually warn me with an email prior to the cutoff for cancellation. The day before my cancel deadline the Tribe Hotel in Nairobi sent an email letting me know that after the next day I could not cancel without losing both points and being charged the associated room rate on top. This should be the policy with all, as well making it clear at booking that you will be charged for both.
Aside from that it’s a horrible policy. A real disconnect between the brands and hotels in how to manage this. It’s completely senseless.
Hi @Nathan,
I recently stayed at a Marriott property in Frankfurt. The day before my arrival Marriott sent me an email inviting me to check in online.
Admittedly, I was busy and didn’t try to check in online, but I suspect that if online check-in wasn’t an option Marriott wouldn’t have sent the email.
Although, these days with people getting Bonvoyed, who knows…
Jason Wong:
Nope. Online checkin won’t work in Frankfurt (I travel to Germany a few times a year). That’s an automated email from the Marriott system. Not from the individual franchise in Frankfurt.
The policy is horrible and hotels like Grand Victoria Como are disgusting with their clients.
I am in Como now and would never consider staying at that hotel after reading this.
In any case I do not book any hotels with points unless I am already in the country where I will stay and very close to check in date. Not worth the risk.
The travel insurance suggestion if it works is noteworthy but I am not sure the cost is justified.
They are literally trying to extort their most loyal customers… SHAME on them and I do HOPE that 40 people SUE THEM…
They always put a nice smile on in person but they are VICIOUS and HYPROCITES. As soon as you’re vulnerable and trust them they stick you with $7000 and MORE… WTH. Incredible! They should get PENALIZED BAD and should be rules against such deceptive tactics to extort us.
@John Brewer – almost certain no basis for a suit. People may not like it but a small number of hotels have this policy. It is up to the consumer to understand the cancellation policy. I assure you when the reservation was made it stated the cancellation policy. If it mentioned a “market rate” a simple call would have gotten that info. May not like it but it is legal.
Also understood why they do this. Chains do not compensate a hotel for a no show or cancellation. Therefore, especially during peak season, the hotel charges the person that booked the reservation since they otherwise May not get any revenue. Blame the game, not the player
@AC – It’s the second time you answer the same thing… You work for them? Your there attorney for now? Or one of these hotel owners? Either way, pretty nasty way to get rid of most loyal customers and turning a NET profit without even cleaning any sheets as they resell the rooms also!!! Grrrrr!
@John Brewer – yea responded twice because someone (you in this case) posted the same comment that isn’t relevant (class action lawsuit). Sure you can file a suit but it will get dismissed (and good luck finding an ambulance chaser willing to spend the time).
No I don’t work for them and agree it is a bad policy but it is their policy and documented. Have to be an informed consumer and understand what you are getting into and live with the consequences. Similar to the daily post on Reddit along the lines of “I bought a Basic Economy ticket and how can I get a refund”.
BTW for person in this situation (understand not on this thread) if anyone they know will be there just add them to the reservation and let them check in – problem solved
I recently missed out on status by ONE NIGHT because I returned home due to an illness caused by eating a salad at a Hyatt. I am no longer a Hyatt customer. They are unforgiving and stingy. Besides the hotels I stayed at on a five-day swing through San Diego and Palm Springs were either too noisy to sleep at (Andaz downtown San Diego) or filthy (Hyatt Palm Springs).
Exact same thing is happening to me but with the Canaves Oia Boutique hotel in Santorini. I reboked for next year due to my baby getting horrible sick, they sent me an email last week ( a month after) stating they’re charging me 1800+ euros (a little over $2k). Booked with points for 2 nights. Called and spoke with Hyatt, they’re escalating it so we’ll see what happens.
@dmg9 You actually don’t need 40 people for a class action. All you need is the existence of 40 similarly situated people in the USA who were subjected to the same illegal act or practice, and a single person to file a class action lawsuit willing to represent the others.
I can think of many reasons why this might be illegal and hope the person I question consults with a plaintiffs’ class action lawyer.
the message is clear.
dont book award stays with hyatt especially at high end hotels until you are actually in the country already. better to take the risk of booking last minute
or pay for insurance which will cover you.
i have been following this practice for the past year
A good reason not to book expensive Hyatt or Marriott properties on points. For some, that’s a main reason for chasing hotel points, and in that case it makes sense to switch loyalties to somewhere else. How can you ever be fully certain you’ll make it there? Things happen. If it’s not a father dying, it’s a flight canceled. I’ve complained about airline policies often enough, but here the airlines are ridiculously more consumer friendly than hotels.
How about avoid Hyatt and Marriott like a bad plague?