"No Show," Cancellation, Early Departure, and Late Check-out Fees In Hotels
o increase their revenues and control their inventory, many hotels have begun cracking down on guests who do not show up as promised, who cancel their reservations late, or who leave the hotel earlier than expected.
In the past, the rule of thumb to avoid "no show" and cancellation penalties was contacting the hotel by 6 p.m. on the day of arrival. According to an August 2002 survey, that remains the policy of 31 percent of U.S. hotels. However, another 30 percent -- particularly downtown hotels and popular resorts in cities like Orlando and Las Vegas -- now require notice 24 hours before the expected arrival, and almost 10 percent will charge at least the first night's room rate if you do not cancel 48 hours to 72 hours ahead of time.
If you reserve a stay of several nights at a hotel (especially the major chains), but you decide to depart earlier than expected, you may be assessed an "early departure" fee of $50-$100 because you did not stay for the entire length of reserved time. About 15 percent of U.S. hotels (mostly hotel chain properties in larger cities) now charge this type of fee.
If you leave your room after the posted check-out time (typically 12 noon to 3 p.m.), some chains like Hyatt, Starwood, and Wyndham may charge up to 50 percent of the daily room rate as a "late check-out" fee.
These policies depend sometimes on the type of room rate you have booked. Heavily discounted rates offered on travel Web sites often carry the most onerous cancellation penalties.
Always ask your travel agent or the hotel for its current policies on cancellations and early departures (and request a written copy for added peace of mind). These rules may vary greatly depending on the travel season, and two hotels in the same chain may enforce very different policies.