Marriott implements 48-hour cancellation policies
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Marriott implements 48-hour cancellation policies

In an effort to protect its revenue in a world of changing travel-booking conventions, Marriott International has started implementing a 48-hour cancellation policy in the U.S. and Canada. This means that if you decide to cancel your booking with a Marriott hotel, you have to let them know 48 hours in advance, or pay the full amount for your first night. The policy took effect from June this year, and Hilton has recently copied it. Between the two of them, these hoteliers account for 26% of all U.S. hotel rooms.

Marriott’s share price has risen by 46% over the last twelve months

mariott2607

SOURCE: Yahoo Finance

A Marriott spokesperson has commented on the decision, saying: “hotels whose policy is to allow guests to cancel their room reservations on the day before arrival without incurring a fee are faced with a significant number of unsold rooms due to last minute cancellations.”

Robert Mandelbaum, director of research information services at CBRE Hotels’ Americas Research, says: “People now are trained to make multiple reservations and search for the lowest rate at the last minute. But when people cancel at the last minute, it costs hosts. There’s a high degree of variable expenses, linens, personnel, food, etc. And if I’m stuck with a bunch of rooms, I’ve got to discount to make up for those rooms.”

Despite these concerns, the U.S. hotel industry recently reported its 88th consecutive month of RevPar growth (Revenue per Room – a key metric in measuring the profitability of the hospitality industry). Can 48-hour cancellation policies help that increase even more?

Disclosure

Dominion holds Marriott International in its Global Trends Luxury Fund.


If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.