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Foundation urges hotels to set fair cancellation fee

消基會呼籲 旅館退房費應合理

Foundation urges hotels to set fair cancellation fee

Hotels have no right to refuse to allow customers to cancel online reservations, the Consumers Foundation said yesterday, and called on hotels to set a “reasonable”cancellation fees.


With many consumers making online hotel reservations ahead of the Lunar New Year holiday, the foundation conducted a survey of 58 hotels between December 20 last year and January 9 and found that five of them had a strict policy of not accepting cancellations.


Terry Huang, secretary-general of the foundation, said the no-cancellation policy is invalid because it conflicts with a law that gives consumers the right to cancel a contract.


The Consumer's Foundation also found that while some hotels do allow cancellations and delays after collecting “reasonable charges,”others tend to place consumers in an unfavorable situation.


The foundation stressed that hotels should give customers such important information up front.


In response to a query by the Tourism Bureau, most hotels said that they have not collected cancellation fees, except for credit card administration fees, since December 17 last year.


The foundation said it will urge the Cabinet to complete the draft law governing hotel room bookings as soon as possible and set up standards for hotels in handling cancellations of reservations.


Updated : 2021-05-14 18:46 GMT+08:00