Hotel nonrefundable rates are proliferating, and getting sneakier…

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It’s been several years since hotel chains started figuring out they could take a page from the airlines’ book and offer nonrefundable rates.

In most cases, nonrefundable hotel rates are far more restrictive than nonrefundable airfares. In general there aren’t even change fees. If you can’t go on the dates you’ve booked, you forfeit the money. Period.

For clients who are certain of their plans, these rates can be a reasonable tradeoff, although the few times I have had clients cancel, they generally are surprised that the hotel really means it. And that illness or a canceled business trip is not considered an excuse.

An issue, now, however, is how increasingly non-obvious these nonrefundable deals are.

Here is a case in point. The Sofitel in Washington DC, a very nice hotel, usually offers an “early prepaid nonrefundable rate,” which usually comes up at the top of their display in agent computers. Then they list rates requiring a one to three day advance cancellation, a higher rate that is “fully flexible,” and then a number of packages, senior, AAA and other specials.

Buried in the the middle of this list of over 30 rates is one simply listed as “promotional.” And it is lower than most rates, but not as low as the “early prepaid nonrefundable rate.” Which still sounds like a good deal, until you read deep into the fine print and see that it too is nonrefundable and non-changeable.

To make matters worse, the Sofitel “promotional rate” reservation form only asks that the credit card be entered in a “guarantee” rather than “deposit” format. (This may seem like a trivial issue, but it makes potential mistakes less obvious.) Guarantee suggests to many that the rate can be canceled.

Other hotel chains have similar nonrefundable rates and many of them are not immediately obvious. Intercontinental has “Advance purchase no refunds” right up front, but Fairmont simply calls their rates “Fairmont Savers.” W Hotels calls them “Reserve and Relax” rates, though the chain notes up front that the rates must be “fully prepaid” and are nonchangeable.

Another tricky example is Sheraton’s “Beat the Timer” rates, where rates are only available on the site for a limited time. And while the reservation process does inform a traveler that there are “special conditions,” it requires an additional click on “terms and details” to see that the rate must be prepaid and locked in.

Some chains are usually more straightforward. Marriott and Hilton generally call them “Advance Purchase or AP Rates.” In Hilton’s case, the chain used to call such rates “Value Rates,” so the “Advance Purchase” is an improvement.

These are only examples and no doubt there are many other rate titles and promotions out there. (Readers who have seen either good or bad examples are encouraged to add them in comments. Every little bit helps in keeping others from making mistakes.) And yes, travelers and agents alike should carefully read all the fine print before making any reservation.

The less obvious rates may be designed to help the hotels’ bottom line. But from a customer service point of view, it wouldn’t hurt for hotels to make the system as clear, simple and user-friendly as possible.

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