If your hotel is closed, do you get compensation for your confirmed reservation?
Reader Questions are answered twice a week by TPG Senior Points & Miles Contributor Ethan Steinberg.
While many individual travelers are making the responsible choice and canceling their own plans in light of the rapid spread of the coronavirus, we're also seeing mass cancellations from the travel industry with thousands of planes grounded and many hotels closing indefinitely. TPG reader Bruce wants to know what to do if his hotel closes down before his reservation date ...
[pullquote source="TPG READER BRUCE"]I am a Marriott Ambassador elite. I had a reservation at the Moana Surfrider in Honolulu for the end of April, but the reservation was canceled without any notice. I emailed the Ambassador desk and was told that hotel was not taking any reservations until June 1. Question: If you have a confirmed reservation and it is canceled by hotel for whatever reason, shouldn't you be compensated in some way? Marriott has a policy that if you have a confirmed reservation and the hotel can't honor that reservation, it puts you up at another hotel and gives you $200 and 90,000 points per night. I understand that this may be due to coronavirus and Hawaii's 14-day quarantine policy. Should I be compensated?[/pullquote]
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Coronavirus-related hotel closures
"Should I be compensated" is often a tricky question, as it relies on the goodwill and good intention of employees in the travel industry to fix whatever went wrong. Very rarely are there any clear guidelines on when compensation is owed and what amount, but one notable exception is Marriott's elite benefits guarantee which Bruce alluded to.
Normally the "ultimate reservation guarantee" would entitle Bruce to $200 and 90,000 points if the hotel couldn't honor his reservation at the Moana Surfrider, a Westin property. Unfortunately, there's one large caveat in the Marriott terms and conditions that will prevent Bruce and many other travelers from claiming compensation here. Section 4.3.a.iii of the Marriott Bonvoy terms says the following:
"A Participating Property must be open and operational for the Ultimate Reservation Guarantee benefit/compensation to apply."
If Bruce's reservation is for the end of April, he's out of luck — the Moana Surfrider is closed through May 31, 2020 — so the ultimate reservation guarantee wouldn't apply. Clearly the intent of this guarantee was to deal with guests getting "walked" from an oversold hotel, not a pandemic-related closure of the entire property.
Related: The award traveler's guide to Marriott Bonvoy
Getting walked from a hotel
Hotels, just like airlines, try and oversell their rooms with the understanding that some guests are going to end up no-showing. Of course, if they sold more rooms than they have and everyone shows up, someone is going to end up getting "walked," or accommodated at a nearby and hopefully comparable hotel. While this should be a rare occurrence for a top-tier Ambassador elite like Bruce, it's certainly possible.
Related: What compensation are you owed when you're walked from a hotel?
Marriott Bonvoy is actually the only major hotel program to have a published policy on compensation for guests who are walked, but you can hope that if you have elite status with the chain and/or are staying at a more luxurious property, the hotel will do its best to take care of you even if they aren't under any written obligation to do so. It never hurts to ask for compensation, and if you're polite and not demanding (even under stressful circumstances) you're more likely to get what you asked for. Appropriate compensation could be some combination of points or cash, or even an upgrade or property credit at the hotel you're being moved to.
Bottom line
The coronavirus is forcing many travel companies to rewrite the rules in response to unprecedented cancellations and low booking volume. A penalty-free cancellation and full refund might need to suffice here, and I'd be shocked to see a hotel compensating guests for canceling reservations more than a month in advance, especially in a state that's imposing a mandatory quarantine on arriving visitors. In this case, I'd recommend Bruce reach out to his ambassador to assist with any compensation, as the property is likely swamped dealing with other guests and winding down operations.
Thanks for the question, Bruce, and if you're a TPG reader who'd like us to answer a question of your own, tweet us at @thepointsguy, message us on Facebook or email us at info@thepointsguy.com.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.