Marriott implements 48-hour cancellation policies
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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


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?


Dominion holds Marriott International in its Global Trends Luxury Fund.

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