The Last-Minute Cancellation Problem

    In urban hotspots like New York City, where occupancy is sky-high and rooms are limited, more hotels are taking steps to prevent last-minute cancellations through increased fees and smaller cancellation windows. Hilton is the latest to announce a minimum penalty-free cancellation policy, following Marriott’s announcement of a 48-hour cancellation policy in June. The shift is, in part, a response to a trend that has grown with the rise of online booking sites—some travelers are taking advantage of lenient cancellation policies to book multiple rooms only to cancel last-minute in hopes of finding a cheaper deal online. Meanwhile, some hotels are willing to make exceptions to the penalties when presented with documentation of schedule changes or delays caused by weather, emergencies, or flight cancellations. Read more.

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