Why do hotels cancel confirmed reservations?
- Cancellations can occur when the booking is for a hotel that is new or undergoing renovations. If there has been a delay, the hotel can end up in a situation where they cannot accommodate guests on their travel dates and needs to cancel the booking.
- Hotels also cancel if there has been a change of circumstances. Perhaps a group wishes to hire the venue exclusively, or the hotel wishes to change the rate after a big sporting event is scheduled. Unfortunately, hotels will likely never confirm this is the reason behind the cancellation, and it is practically impossible to prove a booking has been annulled for financial gain.
- Like airlines, to keep occupancy rates high, hotels tend to take a gamble and overbook their rooms on the assumption that several guests will cancel before their check-in date or be a no-show on the day. On occasion this backfires, and hotels find themselves in the position of needing to cancel bookings. This practice is known as "walking" and, regrettably, is more common than you might think.