Some links to products and partners on this website will earn an affiliate commission.

As 2017 draws to a close, I thought it worthwhile to remind our readers that some of the major hotels chains have quietly devalued their best flexible rates. Hyatt is the latest major chain to have announced that they will change from a 24-hour cancellation policy on flexible bookings to a 48-hour cancellation requirement. Only World of Hyatt Explorist, Globalist and Lifetime Globalist members can continue to cancel without penalty 24 hours in advance. The new cancellation rules apply for all reservations made or modified on or after 1 January 2018. Here’s Hyatt’s press release:

Hyatt is not alone in tightening cancellation deadlines on flexible bookings. Earlier this year, IHG (the chain behind Intercontinental, Crowne Plaza, Holiday Inn, etc.) shifted from a same-day cancellation policy to 24-hour deadline for all bookings in Europe and the Americas. Hilton, Marriott, Starwood all require 24 hours’ notice on flexible booking in Europe; and 48 hours’ notice in North America.

The only major chains I am aware of that still offer free cancellation on the day of check-in are Accor (Sofitel, Novotel, Pullman, Ibis, etc.) and Club Carlson (Radisson Blu, Park Plaza, Park Inn, etc).

Bottom line

The move to more stringent cancellation deadlines on flexible bookings is definitely a devaluation. With most chains, you can no longer book a hotel room just in case you need it if your meeting overruns, for example, and cancel in the late afternoon on the day of check-in. Whether the new cancellation rules are a problem obviously depends on your individual travel pattern.

I don’t buy the argument that the new cancellation rules will allow hotels to better manage guest room availability. Will hotels stop overbooking now? I doubt it. Will hotels grant late check-out benefits more often as a result? Perhaps. But unless this is guaranteed, it’s not a much of a benefit. These tighter cancellation policies are simply a way of generating revenue from guests whose plans change at short notice.

Regular readers will remember my affinity for Accor. I will definitely shift my business to Accor for all flexible rates I book because I can still cancel without penalty by 4pm on the day of check-in. Perhaps it is only a matter of time before Accor will follow in the footsteps of the other chains though…

Hat-tip: loyaltlylobby.com