What occurs if an airline or hotel cannot fulfill the stay or flight you reserved

When you secure a flight or book a hotel, you expect to receive the services you paid for. However, this isn't always the case.

For instance, the airline might adjust its schedule, shifting your departure or arrival to an inconvenient time. In worse scenarios, the airline might cancel the route you selected or stop operations altogether. Typically, the airline will either rebook you on another flight or issue a refund.

But what if you truly relied on the original route and schedule? If your carrier offers no suitable alternatives, you might have to request a refund and book with a competitor. Yet, in some cases, there may be no other options available, or rebooking could be significantly pricier.

And this issue isn't limited to flights. Hotels may also close down or change their loyalty programs. Occasionally, you might be given the option to stay at the same rate or a discounted price. However, often, you'll simply receive a refund of your deposit and need to make a new reservation. Regrettably, prices and availability could be even less favorable by the time you try to rebook.

Obligations of travel providers

We have shared insights on airline passenger rights during travel disruptions, but let's explore what you can anticipate if your travel provider modifies or cancels your reservation weeks or months prior to your journey.

Accommodations

Hotel reservations are most frequently impacted when a property leaves a loyalty program, shuts down, or fails to open (or reopen) as anticipated. If a hotel does not open as planned or stops operating, customers with existing reservations are generally contacted and offered a refund or an alternative lodging option. When a hotel departs from a loyalty program, paid bookings are typically honored. Occasionally, award reservations may also be recognized, but you will likely miss out on any elite perks or rewards you expected when you made the booking.

If a hotel is unable to accommodate you at the last moment, you'll be walked from the hotel and typically offered an alternative place to stay. Let's examine how some major hotel loyalty programs respond if changes or cancellations occur well in advance of your stay.

Marriott Bonvoy offers an Ultimate Reservation Guarantee, which applies only to arrivals at participating properties that are open and operational but cannot accommodate you. If a property leaves the program, the Marriott Bonvoy terms and conditions specify:

3.2.k. Exit of Participating Property. If a Participating Property exits the Loyalty Program for any reason after a Member has made an Award Redemption Stay reservation but before the Member's stay, the Company will make reasonable efforts to ensure that the former Participating Property honors the reservation or assists in arranging equivalent accommodations nearby; however, the Company cannot guarantee that any Awards, upgrades, or other benefits a Member may earn under the Loyalty Program will be honored.

The Hilton Honors terms and conditions do not mention a reservation guarantee and simply state the following regarding the exit of a property from the program:

If a hotel is no longer part of the Hilton Portfolio, all stays after that date will not qualify for Hilton Honors Points, regardless of when the reservation was made.

In the meantime, the World of Hyatt terms and conditions outline the following (where a Point Property refers to a participating property within an eligible Hyatt brand):

If a property stops functioning as a Point Property, points will not be awarded for nights spent at that property after its closure, and points cannot be redeemed for awards at that property after the termination date, even if the relevant reservation was made prior to that date.

Lastly, the IHG One Rewards program terms do not specifically cover this situation, but they do grant IHG the right to modify its program at any time, a provision that is common among various brands.

Therefore, with most hotel loyalty programs, you are not guaranteed much when a property leaves a loyalty program, stops operations, or fails to open as planned. However, reaching out to the loyalty program may result in a more favorable resolution, especially if you inquire directly.

Airlines

Similar to hotels, you accept specific terms when booking a flight. You’re likely to receive better assistance if a change or cancellation occurs shortly before your departure. However, if that’s not the case, here’s what to expect from various major airlines.

According to Delta Air Lines' cancel or refund your flight page:

In the event of a flight cancellation or significant delay (greater than 120 minutes), you will be rebooked on a different flight, or your ticket will be converted into an eCredit for future travel...If we have rebooked you on a new flight or your original flight has been significantly delayed (greater than 120 minutes) and you wish to cancel and request a refund, please do so within My Trips.

If you booked with American Airlines, the airline's frequently asked questions page indicates that you can request a refund to your original payment method if there is a schedule change exceeding four hours (or a change of 90 minutes or more within 72 hours of your scheduled departure).

The website does not specify the airline's policies on rebooking passengers, but in practice, American Airlines typically rebooks passengers automatically when schedule changes happen in the weeks or months leading up to a flight. However, if the system fails to rebook you automatically, you may need to either call American Airlines or wait for a representative to contact you. If American Airlines halts a route, your choices will usually be limited to taking the first flight available when the route resumes or opting for a refund.

Lastly, United Airlines' schedule change policies page mentions:

If your flight schedule changes by more than 30 minutes, you can book another United or United Express® flight at no additional cost. Your new flight must depart from the same airport within 24 hours of your original flight time...If the scheduled departure or arrival times change significantly, or if we are unable to seat you in the same cabin, you can request a refund.

However, be aware that you can typically only coordinate directly with most airlines regarding schedule changes or refunds if you booked directly with them. If you book through an online travel agency, you'll need to contact the OTA to modify your flight or obtain a refund.

What about pricing errors?

Mistake rates are in a league of their own. Typically, mistake fares or error fares happen when an airline incorrectly prices some tickets much lower than normal, but mistake rates can also occur when hotel rooms are offered at significantly reduced prices by mistake.

In 2011, the Department of Transportation began requiring airlines to honor mistake fares as part of their ban on raising airfare after purchase. However, in 2015, the Department introduced a new interim policy that allows airlines to cancel "mistaken fares" provided they follow these guidelines:

• Prove that the fare was indeed a mistake
• Reimburse all customers who bought a mistaken fare ticket for any out-of-pocket expenses incurred based on the ticket purchase
• Refund the ticket's purchase price

Interestingly, this interim policy remains in effect. Unfortunately, there are no clear rules on what defines a mistake fare or how long after purchase airlines have to decide to cancel these fares. Therefore, if you score an incredible deal on a flight, be aware that the airline might inform you weeks or months later that it has canceled your flight due to it being categorized as a mistake fare.

Sadly for travelers, there's even less protection when a hotel cancels a reservation that was priced incorrectly. The terms and conditions for IHG One Rewards clearly state, "In the event of an incorrectly published Reward Night point price, IHG One Rewards reserves the right to cancel the booking and refund the points. Members will be notified if this occurs."

How I envision travel providers should react

Ideally, we would witness traveler-friendly and reasonable treatment from airlines and hotels when they are unable to fulfill a booked service for a customer.

For instance, when the Selina Miami River hotel failed to open as planned, I received the following message from them:

Regrettably, Selina Miami is unable to host your stay... We sincerely apologize on behalf of Selina. However, it's not all negative news, as we've arranged an option to ensure your stay remains enjoyable... Your reservation cost will remain unchanged. Additionally, we would like to offer you a complimentary upgrade and breakfast during your next visit to our Selina Miami (once it is operational).

When IHG's Atwell Suites Miami Brickell failed to open as planned, I was not notified in advance, but I was placed at a sister hotel that shared the same lobby area.

Ideally, all hotels and loyalty programs would respond to a hotel's closure or delayed opening by accommodating their guests. Unfortunately, this is not always the case.

In situations where properties exit a loyalty program, travelers should ideally have the choice to cancel their stay, switch to a nearby property at the same price (preferably within the same program), or maintain their reservation at the property after it leaves the program (even if this means losing elite status benefits or earnings). Some travelers might have success by reaching out to the loyalty program to request a switch to a nearby property at the same rate, though this is often not an option unless explicitly asked for.

Most airlines will attempt to place you on alternate flights they operate if your flight is canceled or significantly rescheduled in a way that doesn't suit you. In some cases, they may even accommodate you on different airlines. If they cancel your flight and their other flights do not work for you, they will almost always provide a refund.

However, your choices may be constrained, particularly if you're on a tight timeline or traveling to or from a location with few flights available. In such instances, I believe more airlines should adopt sensible strategies to assist travelers in reaching their desired destinations around the original travel time. Suggestions include increasing award seat availability, allowing itinerary adjustments like adding or dropping legs, and permitting passengers to modify their departure or arrival locations.

Having elite status can also be advantageous, as customer service representatives may have more flexibility to assist those who have flown 100,000 miles with the airline or stayed 60 nights with a specific hotel program over the previous year.

This is where persistence can be beneficial as well.

For example, TPG's Nick Ewen recently experienced a major schedule adjustment on an Iberia-operated award flight booked using Avios. When he tried to switch his itinerary to a nearby airport, it took three separate phone calls over a week — each lasting more than an hour — before he finally found an agent willing to help. Unfortunately, he had to accept a downgrade from business class to economy on the short connecting flight, but this was a minor trade-off for a significantly better routing.

In conclusion

If you're a frequent traveler who books trips several months ahead, you've probably encountered changes to airline schedules or discovered that a hotel has exited your preferred loyalty program. Here are some strategies to navigate these changes and cancellations:

• Only accept a schedule change from an airline if the new flights meet your needs. Accepting a change may limit your ability to make further modifications or request a refund.
• Don't hesitate to reach out to the travel provider's customer service, especially if you have elite status. You might find alternative flight options or other accommodations if you inquire.
• Monitor your reservations closely to avoid missing any changes or cancellations.
• Consider booking directly with airlines or hotels to sidestep dealing with an OTA in case of schedule changes or cancellations.

It's wise to select flights and hotels that allow for easy cancellation with minimal fees until close to your departure. This approach provides you with flexibility to adjust your travel plans in case of cancellations. For instance, if you redeemed American Airlines miles to fly to a new Marriott hotel but then find out that the hotel won't open on schedule, you can cancel your award flights, reclaim your miles without penalty, and rebook for a later date once the hotel is ready to welcome guests.