Business

Marriott and Hilton Announce Penalty for Last-Minute Cancellations

Portland Marriott Downtown Waterfront is shown Wednesday, April 20, 2011, in Portland, Ore. (AP Photo)
Portland Marriott Downtown Waterfront is shown Wednesday, April 20, 2011, in Portland, Ore. (AP Photo)

 

(New York Times) – In recent years, the airline industry has generated billions in revenue by charging fees on top of base fares. Now the hotel industry seems to be having the same idea.

Two worldwide hotel companies, Marriott and Hilton, recently announced that they would increase their fee revenue by tightening rules on last-minute reservation cancellations. Business travelers have long been accustomed to being able to cancel a reservation at many hotels, without charge, as late as 6 p.m. on the day of arrival.

Effective Jan. 1, those days are gone at the two chains. The companies say that if you don’t cancel your reservation by the day before your scheduled arrival, you’ll be charged a penalty of one night’s room rate.

“We’re making this change so we can provide you with a more consistent booking process and make more rooms available for when you need last-minute travel accommodations,” Hilton said in a statement. Marriott did not respond to requests for comment.

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