Canceling Hotel Points Bookings Can Be Expensive

Canceling Hotel Points Bookings Can Be Expensive

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OMAAT reader Steve emailed me about a frustrating situation he’s dealing with for an upcoming points booking, adding stress to an already difficult situation. I wanted to highlight that, because I think it’s something that many people don’t realize when they make a points booking.

Hotels may charge cash when canceling points bookings

It’s always exciting to be able to redeem points for a stay at a luxury hotel that may cost over $1,000 per night if paying cash. What many people don’t realize is that if you need to cancel after the cancelation deadline, it could cost you an arm and a leg.

You’d assume that if you cancel a hotel booking after the cancelation deadline, at worst you’d forfeit the points that you spent. But that’s not the case. With both Marriott Bonvoy and World of Hyatt, it’s common that if you cancel after the cancelation deadline, you’ll be refunded your points, and you’ll be charged the cash cost of your stay.

What’s the logic for this? It would appear the issue is that the hotel loyalty programs don’t reimburse hotels for award stays if you don’t actually stay. So therefore the hotel’s only other option to be reimbursed if you cancel within the deadline is to charge you the cash cost of a stay.

I’ve written about this policy before, including how your five night award stay at the St. Regis Aspen could cost you $13,000 if you need to cancel within 60 days, for whatever reason.

The St. Regis Aspen’s award night cancelation policy

A reader’s situation with canceling a points booking

Last year, reader Steve made a three night award booking at the Grand Victoria Hotel in Lake Como for 63,000 World of Hyatt points, though Hyatt’s Small Luxury Hotels of the World collaboration. The hotel has a 15-day cancelation policy.

Tragically, Steve’s father recently passed away, and his service is now planned over the same dates where he’s supposed to vacation in Italy. Obviously Steve is going to attend his dad’s service over going on vacation, and since it’s within 15 days, he’ll have to forfeit his reservation.

Steve thought he’d just lose the 63,000 World of Hyatt points he redeemed, but he instead received an email from the hotel, informing him that his credit card on file will be charged €4,800, and his credit card has already been charged.

Steve has reached out both to the hotel to explain his circumstances, and to his World of Hyatt Globalist concierge. He realizes the hotel may not be able to resell the room last minute, and would like for either just the points to be pulled, or to be able to reschedule for other dates.

As Steve tells me:

This reservation was made with Hyatt points. The circumstances around my cancellation are completely out of my control. The fact that the hotel immediately charges a cash rate based on a points reservation cancellation not only feels wrong but frankly criminal. I understand they may not be able to fill the room and would expect my points to be forfeited. However, this is an extremely disappointing policy that has a real impact financially.  It has made a very stressful time more stressful as I am facing a $5200 USD charge for a hotel reservation I can’t use for a very real reason.

Hotel Grand Victoria Lake Como

I totally understand the frustration here…

First and foremost, I’m really sorry for Steve’s loss, as I can only imagine how tough all of this is on him. Regarding the issue of canceling hotel points stays and having to pay cash, let’s discuss that more broadly, and then more specifically to this situation.

Generally speaking:

  • I think hotel groups need to do a better job explicitly disclosing that you’ll be charged cash if you cancel a points booking within the deadline; for example, Hyatt terms typically state you’ll be charged 100% of the cost of a stay if you cancel within X days, but it doesn’t clarify that it’s 100% of the cost in cash, rather than points
  • It’s possible for something to both technically be the rule, and to still feel wrong; the concept of being charged in a currency other than what you paid with when canceling simply makes no sense to the average consumer
  • Seemingly this issue exists simply because of how reimbursement works between hotel groups and individual hotels when guests don’t actually complete their stays; this is a matter that should be worked out internally to be less punitive

More specific to this situation:

  • You would hope that a hotel would have some compassion in a situation like this, where someone isn’t able to complete a hotel stay due to the loss of a parent
  • I’m sure hotels would argue that you should just always buy travel insurance for situations like this, but that’s not something a vast majority of consumers are going to do, since you’re not going to come out ahead that way in the long term
  • Short of a hotel showing some compassion, I think this is an important factor to keep in mind if you’re booking a luxury hotel with points with a strict cancelation policy, especially if paying the cash cost of a stay would have a meaningful impact on you financially

Usually we pride ourselves in getting as many cents per point as possible with redemptions. In this case, Steve getting over eight cents of value per World of Hyatt point is very much working against him. I hope that the hotel and Hyatt can work with him.

Canceling a points booking can be very costly

Bottom line

It’s important to remember that canceling a hotel points booking past the cancelation deadline can be very, very expensive. Rather than forfeiting the points you redeemed, you can be charged the cash cost of a stay. For those of us who are good at maximizing points, that can be really costly.

A reader is facing this very tough reality at the moment, after losing his father. He can no longer complete his stay, and is learning that rather than forfeiting his 63,000 World of Hyatt points, he’s being charged €4,800.

What do you make of the way hotel groups handle canceled points bookings?

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  1. Tom Miller Guest

    I just booked into a similar situation. I am told of, $24,750.00 cancellation within 45 days / no show fee. Points used for reservation would be returned in full, since they can not use them if I am not physically checked in. I want to secure travel insurance, but am not able to find a company that offers it, since the reservation is paid in points, and the dollar amount, cancellation cost, is not yet...

    I just booked into a similar situation. I am told of, $24,750.00 cancellation within 45 days / no show fee. Points used for reservation would be returned in full, since they can not use them if I am not physically checked in. I want to secure travel insurance, but am not able to find a company that offers it, since the reservation is paid in points, and the dollar amount, cancellation cost, is not yet paid, since it is a fee that only will be charged after it is too late to retain travel insurance. What a mess.

  2. Jim Napier Guest

    Just last month I flew BUF to CPH and spent 56000 on a 2 day stay at a nice Best Western. My flight was delayed a day, and I totally forgot to tell the hotel. I thought for sure they would take my 56000 points. But they actually refunded my points back, and never charged me! Now that's customer service!

  3. Alan Guest

    I don't understand, why wouldn't you have travel insurance? Seems an obvious and basic thing to do when travelling! Also the cash loss would actually be easier to claim vs points.

  4. Agile.Travel Guest

    Should this happen again, you CAN convert a points booking to a guest of honor IF your globalist. This would allow another frequent traveler take your reservation and use points as currency.

  5. Ben Hughes Guest

    This has to be the most patently ridiculous thing in the entire miles and points world. There needs to be some high-profile lawsuit where the hotel chains get completely eviscerated on this. There are plenty of examples where the cash rate of the hotel is some large multiple of a points-value equivalent metric, and it's simply not right that you are paying with one currency with X (actually paying - the points are deducted at...

    This has to be the most patently ridiculous thing in the entire miles and points world. There needs to be some high-profile lawsuit where the hotel chains get completely eviscerated on this. There are plenty of examples where the cash rate of the hotel is some large multiple of a points-value equivalent metric, and it's simply not right that you are paying with one currency with X (actually paying - the points are deducted at booking!), and then if for some reason you can't physically present your body at the hotel check in desk, you're charged Y in a completely separate currency. That is just utterly absurd. It should not survive a cursory analysis by any court in any country.

    Because it's a thing, everyone booking on points is in an incredibly precarious position, and should be more aware of this. I'm not sure what can be done other than a virtual credit card number, denied transaction, and the hotel getting destroyed in small claims court if they try to litigate.

    To the extent this is some technical issue at World of Hyatt - that cost should be on them to bear, and ultimately fix. Don't pass it to the consumers.

  6. Marsha Guest

    I think this policy applies regardless of where the hotel is located, domestically or internationally. Am I correct?

  7. Mattt Guest

    Never cancel. Tell them you're checking in late due to late arriving flight. Freeze the card on file while trying to get someone else to check in for you (add them as second guest on Rez). Worst case, you no show and they try to charge the card but it doesn't go through and you lose your points only.

    I've had to do this several times. Best case is they'll offer a credit on another date or simply keep the points.

  8. OhHai Member

    Just had this happen to me a few months ago.

    Booked a stay at the Hyatt Centric in Tokyo, but had to cancel at the last moment due to a family member's health emergency (it wasn't an immediate family member so it wasn't covered under any existing policies). I was expecting to lose at least the first night's points but I could live with that.

    But instead they refunded all the points and a charge...

    Just had this happen to me a few months ago.

    Booked a stay at the Hyatt Centric in Tokyo, but had to cancel at the last moment due to a family member's health emergency (it wasn't an immediate family member so it wasn't covered under any existing policies). I was expecting to lose at least the first night's points but I could live with that.

    But instead they refunded all the points and a charge for nearly $700 showed up on my credit card (it was the high season in Japan). Which is actually higher than the cash rate would have been at time of booking.

  9. Luke Guest

    Risk can be mitigated by using a prepaid gift card with limited balance to make the award reservation (Not sure they will pursue a court case if cant collect the full amount).

    Did this sometime back on award stay at Marriott Wailea Maui Resort where cash price on my 5 night points booking was going for almost 10k for cheapest room!

    1. Todd Guest

      This is my standard booking approach. Sometimes they somehow catch it and force me to give them a different card or they will cancel my reservation but that is rare. All in all this is a great approach.

  10. Oliver Guest

    What if I don't cancel, I just don't show up at the hotel? Then the points are gone and I have to pay the additional fees, but not the high cancellation fees?

  11. John Guest

    My problem with this is they don't disclose the cash rate which will be charged if you cancel post deadline.

    I find that misleading.

  12. iamhere Guest

    I do not think hotels need to do a better job at disclosing it. When you book the reservation before you confirm it, the cancelation policy is clearly mentioned. This can be different from property to property. Most Marriott brands do say how much you will lose even if you used points. I think the reader in this situation should reach out to a decision maker at the hotel itself regarding a possible solution. The...

    I do not think hotels need to do a better job at disclosing it. When you book the reservation before you confirm it, the cancelation policy is clearly mentioned. This can be different from property to property. Most Marriott brands do say how much you will lose even if you used points. I think the reader in this situation should reach out to a decision maker at the hotel itself regarding a possible solution. The hotel is just going according to the rules they set in place and they do not know about his specific situation.

    1. OCTinPHL Diamond

      “When you book the reservation before you confirm it, the cancelation policy is clearly mentioned.”

      Did you actually read the post before commenting? Nowhere did the cancellation policy say he would be charged CASH.

  13. BBK Diamond

    If only he had a Venezuelan friend :) he should have used a Venezuelan Credit Card as a backup on that booking!. LOL

  14. XPL Diamond

    This story, in comparison with the recent story about Ryanair charging a couple £110, illustrate how expectations differ according to the service provider. On the one hand, we have an LCC airline that goes out of its way to emphasize what their rules are and that they are strictly enforced. You get what you pay for. On the other hand, we have a luxury property booked by a loyal member of a luxury rewards program....

    This story, in comparison with the recent story about Ryanair charging a couple £110, illustrate how expectations differ according to the service provider. On the one hand, we have an LCC airline that goes out of its way to emphasize what their rules are and that they are strictly enforced. You get what you pay for. On the other hand, we have a luxury property booked by a loyal member of a luxury rewards program. One does expect greater consideration from the latter.

  15. Khattak Guest

    What will happen if I dont cancel the booking and just no show up?
    Secondly, I am confused by the logic. If I stay at the hotel, they will be reimbursed with the value of the points, so then if I cancel my booking they can still be reimbursed with the same points. What extra hotel is losing that I am being penalized for?

  16. Zach Guest

    Ben - if the card that the hotel charged has trip cancellation insurance, can he file a claim there?

    1. Ethan Guest

      The usual trip cancellation policy came with premium credit cards don't nearly cover this price here.

  17. Tom R Guest

    How do you even know what the cash rate is that you'd be on the hook for? It changes from day to day and you're not booking paying cash. For example I had a recent stay at a Hyatt property, 15k points for a night but the room rate varied from $250/nt to nearly $500/nt depending on how far in advance it was. If I booked for $250 cash I'd know that's what I'd lose,...

    How do you even know what the cash rate is that you'd be on the hook for? It changes from day to day and you're not booking paying cash. For example I had a recent stay at a Hyatt property, 15k points for a night but the room rate varied from $250/nt to nearly $500/nt depending on how far in advance it was. If I booked for $250 cash I'd know that's what I'd lose, I also assumed (wrongly it seems) that if I cancelled my points booking I'd lose 15k points as that's what I "paid" for 1 night.

    Also in this case that hotel must have a pretty nasty cancel policy, many places it's just 1 night cost you forfeit not the entire cost of the stay!

  18. Alan Guest

    Surely he has a clear travel insurance claim here so actually being charged cash is much better as he'll just get that refunded, whereas it would have been much more complicated trying to recoup points.

  19. sara Guest

    what if they had travel insurance, would that cover it?

  20. Dilly Guest

    Dude cancel the credit card

    1. iamhere Guest

      Even if you cancel a card you still owe the balance

  21. glenn t Diamond

    This is what travel insurance is for.
    If you can't afford travel insurance you can't afford to travel.

    1. Dr disrespect Guest

      It depends on whether the travel insurance covers cancellationa due to such personal matters. They person CAN travel, it's just that they CHOSE not to

    2. Alan Guest

      I've not yet had a travel insurance policy that DOESN'T include death or serious illness in an immediate family member.

  22. Omar Guest

    Hint: just cancel online and you won’t be charged. Too late if you informed the hotel though.

    1. Mishas Guest

      Don’t think so, I cancelled a Hyatt points reservation in the app, and was later charged the cash rate.

    2. Omar Guest

      I said “most of the time” YMMV.

    3. Cam Guest

      No, you actually didn’t.

  23. Steve Guest

    Sue for unjust enrichment. The hotel is trying to come out better than if you had executed on the agreement. Throw in fraud and fraud in the inducement for not disclosing the amount of the cash fee.

    Copy your State Attorney General on the lawsuit (required in Oregon when asserting fraud).

    1. OCTinPHL Diamond

      Did you read the post? The hotel is in Italy. There is a little problem of jurisdiction.

    2. Chad Guest

      Italy is a modern nation with a functioning court system and consumer protections.

  24. Mac Guest

    Not just Hyatt and Marriott. Booked Kimpton GCM last winter and was sweating bullets hoping we wouldn't be snowed in or cancelled leaving the Northeast. Had 2 rooms booked for 5-nights w/ points and that hotel has a punitive 30 day cancel policy. Had we somehow not made it the out-of-pocket would have been around $15k!

    Tried to be smart and booked alternate air routings that we could have done and arrived on time just...

    Not just Hyatt and Marriott. Booked Kimpton GCM last winter and was sweating bullets hoping we wouldn't be snowed in or cancelled leaving the Northeast. Had 2 rooms booked for 5-nights w/ points and that hotel has a punitive 30 day cancel policy. Had we somehow not made it the out-of-pocket would have been around $15k!

    Tried to be smart and booked alternate air routings that we could have done and arrived on time just in case and watched the weather, but definitely not for the faint of heart.

    If you are looking for a real extreme example of this look up the retail rates for the Trident (Hyatt property) in Jamaica. Something like an insane $15k/night - imagine no-showing that one.

  25. Ash P Guest

    From an owner of multiple hotels, I can.l tell you that is all BS! The hotel can easily just not cancel the reservation and check the guest in for the duration of his stay and then submit back to Hyatt for their cash reimbursement of the points stay. That way they are not losing anything at all whether the guest stayed or not and they don't have to worry about selling the room last minute....

    From an owner of multiple hotels, I can.l tell you that is all BS! The hotel can easily just not cancel the reservation and check the guest in for the duration of his stay and then submit back to Hyatt for their cash reimbursement of the points stay. That way they are not losing anything at all whether the guest stayed or not and they don't have to worry about selling the room last minute.

    Furthermore, Steve should monitor their site during his dates and see if they had any rooms available in the exact same room type he had reserved. If he finds they dont have rooms available for the course of his stay, he should screenshot all that and let the hotel know that they actually did resell his room and hence shouldn't be charged.

    1. Luke Guest

      "they don't have to worry about selling the room last minute."

      Its a double win for the hotel if they get to charge full cash for the cancelled reservation and then it gets re-booked by someone else!

      "They dont lose anything at all" for sure even if the room ends up vacant after winning the lottery on cancelled award booking!

  26. JetSetFly Guest

    Talk about getting kick in the balls while down. I'm guessing maybe the best thing to do is put it on flyertalk and give the room away for free thus out of points but not out of cash?

    1. Erica T Member

      In the US that could maybe work if they have a digital key option.

      In Europe you're required to check in with a passport so it wouldn't work.

    2. Todd Guest

      Its pretty simple to add another person to a res!

  27. uptown Guest

    I have read all of Ben's articles on this and it's still one of the most bizarre technicalities i have every read in the points and miles space. I'm completely shocked in 2023 that this is still a thing - especially the no-show! Someone posted on another OMAT article about moving/changing a resy, and then cancelling -- any history with doing this?

  28. FNT Delta Diamond Guest

    I’m not sure this would EVER survive a small claims lawsuit or a state consumer protection office/attorney general complaint because, as Gary Leff reported, the fee is not actually disclosed. The problem is very few people sue the hotels or franchisees for their deceptive practices.

  29. Jswede Guest

    Just don’t cancel and lose the points.

    1. David Diamond

      No show is often treated the same as a cancellation.

  30. AC Guest

    Lucky, I disagree that buying travel insurance doesn’t make sense. Maybe not for domestic trips but I ALWAYS buy a policy for international trips. Usually $200 or less and covers a variety of things including medical costs if required (US insurance and Medicare typically don’t apply). Just makes sense IMHO to make a small investment to protect a major International vacation.

  31. Andrew Guest

    So as someone with a Hyatt points booking with a 24hr cxl policy, what am I supposed to do if my flight cancels and I can't make it for the first night? Purchase an arbitrary amount of travel insurance to cover 1 night's worth of cost? Although I can't figure that amount out since it would be BAR for the missed night at the time of the check-in.

  32. Samo Guest

    I can't imagine how this could be possibly legal in Europe. Particularly since the guest isn't informed about the cancellation penalty when entering the contract (even if T&Cs state that there's a cash penalty, there needs to be an exact amount somewhere, which doesn't seem to be the case). Not to mention it likely being covered by unfair practices clause.

    I'd definitely contact a lawyer with this one.

  33. AP Guest

    The problem is no cash rate is disclosed at the time of booking — how is a rate determined in hindsight?

  34. Jr Guest

    The galling thing to me is that corporate does not reimburse anywhere near full price on a points stay. So the local hotel is almost certainly coming out way ahead. The very least they could do is just charge the discount price they would have received

    1. Chris_W Diamond

      For the record, I used to work at an IHG property (almost 10 years ago), and if we were more than 95% full, we were reimbursed for points stays at our full ADR for the night. (Though if we were less than 95% - even if it was 94% - it was something like $25 a room.) Not sure if Hyatt's similar.

      This, of course, is still no excuse for egregious cancellation penalties like the one in this post. Should be points or nothing.

    2. Erica T Member

      Thank you for the data, and I think it reinforces how ridiculous the policy is. Either the hotel is out a small amount like $25 or they can resell the room if it's that occupied.

  35. Jim Guest

    What if he just changed to reservation to some date far in the future?

    1. SW Guest

      This is what I do with cash bookings at Marriott properties that require cancellation 14 days in advance.

      Move your booking 3 months down (doesn't matter if the room is more expensive, as you're canceling anyway) and when that change is confirmed, cancel the room without penalty. You can do all this through the app.

    2. Todd Guest

      In my experience, they will insist on canceling and re-booking so they can charge the cancellation fee

  36. Mend Guest

    For the future:

    Don’t cancel the booking! Let it be a no show and your credit card should not be charged.

    It has happened to me several times. Usually you can also call the hotel directly and ask them to cancel the booking on their end, I’ve had several hotels do that for me without any penalty.

    Perhaps you can even post on some groups about free hotel stay and let someone stay in the room instead of you.

  37. Anthony Diamond

    Honestly, it seems to me that if one is in the habit of making points redemptions at high end hotels with punitive cancellation policies that one should have a low limit credit card (like a $500 chase freedom or something) just for the purpose of making such hotel reservations. When you check in, just use the card you really intend to use. I know someone said below that you may get your loyalty program membership...

    Honestly, it seems to me that if one is in the habit of making points redemptions at high end hotels with punitive cancellation policies that one should have a low limit credit card (like a $500 chase freedom or something) just for the purpose of making such hotel reservations. When you check in, just use the card you really intend to use. I know someone said below that you may get your loyalty program membership cancelled, but I would think that would be a very low probability in this circumstance.

  38. Matt Guest

    What happens if you no-show, but don't cancel? Do they just keep the points, then?

    1. DLPTATL Diamond

      Matt, I had the same thought. Or taking it a bit further, what if you call the hotel and see if you can check-in over the phone. I'd much rather go through with the check-in, let the hotel collect on the points booking, and I forfeit the points. Looking at if from the hotel's perspective they're obviously much better off charging the cancellation fee, so I can see why they may not go for the phone check-in.

    2. NFSF Diamond

      I doubt you could check-in over the phone as a foreigner. They need to copy your passport, etc.

  39. Tim Guest

    This is not a difficult question with no good solution. The hotel group/loyalty program is the bad actor here, period. If you don't allow a customer to cancel with their points back, what justification do you have for not reimbursing the hotel? The hotel group has already made the business decision to accept the points and pay the hotel. It is not better or worse off when there is a no show. Instead, it simply...

    This is not a difficult question with no good solution. The hotel group/loyalty program is the bad actor here, period. If you don't allow a customer to cancel with their points back, what justification do you have for not reimbursing the hotel? The hotel group has already made the business decision to accept the points and pay the hotel. It is not better or worse off when there is a no show. Instead, it simply pocketed the points without paying and pits the hotel and customer against each other.

  40. Reyyan Diamond

    Maybe if it is possible to reinstate the booking and let me stay at the property :D Wouldn’t mind to pay some cash to stay at that property.

  41. Cy Guest

    I assume he’d have been treated the same if he just didn’t show up but didn’t bother to actually cancel?

  42. Kevin Guest

    Could you avoid this by checking in online (from home) and just never entering the room/hotel?

    1. Santastico Diamond

      Nope. In Europe, you need to check in at the hotel desk as they take copies of your passport. That had been the case with every hotel I visited in Europe for over 20 years. You may be able to check in online but it won’t be officially completed until they get your documents and hand you the keys.

    2. Samo Guest

      @Santastico - The European law doesn't cover this, thus it's not a universal policy across Europe. It varies by member state. I've had some stays where I was able to skip the check-in desk and go straight to my room (Netherlands and UK come to my mind as locations where this happened to me and thus seems to be legally possible).

    3. Santastico Diamond

      Good to know. It makes sense for UK but I remember even at the Sheraton at AMS airport them asking for passport at check in.

    4. NFSF Diamond

      Every hotel I have been to in the UK, Netherlands, France, Italy, Spain, etc takes a copy/scan of your passport.

    5. dee Guest

      Correct they always want to copy our passports... We do not do any such thing here in the US even if foreigners are checking in!!!aThe excuse in eU or ??? is we have to notify the police you are staying here>>>CANNOT imagine the Police need to know about the thousands of tourists that check into major cities and hotels daily there?? I am concerned about where our passport data goes--to whom and where>>>>???

    6. BBK Diamond

      @dee Europe in general surrendered the priceless Freedom a long time ago, in exchange for getting 'free' handouts from the unlimited power government. They claim 'quality of life' Yet every former employee and many friends of mine who fled from Venezuela to Europe didn't made anything en EU and are finally happy for making it to the USA.

  43. Santastico Diamond

    Somewhat similar situation I heard from a friend of mine yesterday. He and family were supposed to spend vacation in Taormina a few weeks ago. Yesterday we met and I asked him how was his trip to Taormina. Well, he didn’t go. He was at the gate to board his flight to Catania when they announced that due to a fire at the airport all flights to Catania were canceled. Well, Catania is in Sicily...

    Somewhat similar situation I heard from a friend of mine yesterday. He and family were supposed to spend vacation in Taormina a few weeks ago. Yesterday we met and I asked him how was his trip to Taormina. Well, he didn’t go. He was at the gate to board his flight to Catania when they announced that due to a fire at the airport all flights to Catania were canceled. Well, Catania is in Sicily which is an island so not great alternatives to fly to other than maybe Palermo and then drive over 4 hours to Taormina. Anyway, no flights at the last minute, rental car booked so he had to cancel his trip. Well, hotel didn’t budge and charged him for all nights. Lesson learned.

  44. Lars Guest

    Shouldn't this be covered by the credit cards travel protection benefit?
    Hyatt's credit card website states the below:

    Trip Cancellation / Trip Interruption Insurance
    If your trip is canceled or cut short by sickness, severe weather and other covered situations, you can be reimbursed up to $5,000 per person and $10,000 per trip for your pre-paid, non-refundable travel expenses, including passenger fares, tours and hotels.

    1. breathesrain Gold

      There's no cash component to these bookings, so there's nothing a credit card could cover

    2. JB Guest

      Are there no taxes and fees? Like on airline award trips.

    3. jetset Diamond

      For hotels the points typically cover everything including taxes and fees so there truly is no charge at time of booking.

    4. JR Guest

      Not sure that’s true. He was charged a cash charge. The fact that his reservation was originally in points might not be relevant

    5. DLPTATL Diamond

      But isn't the cash component of the booking the past the cancellation deadline fee?

  45. Cameron Guest

    I feel like theres an arbitrage opportunity here, or even way to give the room away to someone who wants it. Steve really just needs someone to check in and it would avoid the whole problem.

    1. Erica T Member

      In Europe you have to check in with a passport.

    2. Cameron Guest

      Just add the second person as a fellow guest in the same room. Problem solved.

  46. Matt Guest

    This makes no sense for another reason. At least with a cash non-refundable booking you know exactly how much you would lose. With a points booking how do you know what crazy cash price the hotel will charge you for canceling? I don't agree that this policy is acceptable and would sue in small claims court. Unless the exact amount in $ is specified at booking, I don't see how this is legal.

  47. MildJuan Member

    Any recommendations on how to avoid? Perhaps use a virtual CC account number and close it before a cancel like this? Domestically you’d likely be sent to collections, but for a euro trip I highly doubt anything would happen.

    1. David Diamond

      You could very well lose your hotel loyalty program 9and your status + points).

    2. digital_notmad Diamond

      @David Theoretically yes, but is Hyatt really going to chase away one of its most loyal customers just to indulge the vindictiveness of a independently owned and operated property - one that isn't even a Hyatt, but rather a third party partner - particularly under circumstances like these? Remember, Hyatt hasn't lost any money here. Seems likely to me that they'd stay out of it.

    3. David Diamond

      @digital_notmad

      I think the issue hinges on what kind of contract the hotel has with Hyatt. Hyatt might very well be on the hook if the customer (booked direct through Hyatt) does not pay.

    4. digital_notmad Diamond

      I hear you but if that were the case here then presumably the property would have no problem just taking the points and accepting the reimbursement from WoH that it was expecting all along. The punitive cash forfeiture by the property suggests to me that Hyatt isn't on the hook for the no-show.

    5. Aardvark Guest

      I have a potential very expensive stay in a couple months (with a 30 day cancellation policy) that would involve transferring points into Hyatt (which I do not have status with). This approach seems tempting.

      (The real issue is there should be a way to “check you in” where the hotel still gets compensated and you just lose the points. This seems doable in the US — pay someone from taskrabbit or something. It’s...

      I have a potential very expensive stay in a couple months (with a 30 day cancellation policy) that would involve transferring points into Hyatt (which I do not have status with). This approach seems tempting.

      (The real issue is there should be a way to “check you in” where the hotel still gets compensated and you just lose the points. This seems doable in the US — pay someone from taskrabbit or something. It’s a problem in Europe or Asia because of how they settle up tabs.)

  48. John Guest

    As a globalist he presumably paid with his Chase Hyatt card. Would the chase travel insurance cover this? Or is there an issue with it being a points booking and since there was no initial transaction there is no insurance.

    Hum…what about if you book a cash rate and have to cancel within the window? Does CC cover it even if there was no initial transaction?

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Matt Guest

This makes no sense for another reason. At least with a cash non-refundable booking you know exactly how much you would lose. With a points booking how do you know what crazy cash price the hotel will charge you for canceling? I don't agree that this policy is acceptable and would sue in small claims court. Unless the exact amount in $ is specified at booking, I don't see how this is legal.

5
OCTinPHL Diamond

Did you read the post? The hotel is in Italy. There is a little problem of jurisdiction.

3
Mishas Guest

Don’t think so, I cancelled a Hyatt points reservation in the app, and was later charged the cash rate.

3
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