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Consider this scenario: You book a hotel stay for two nights: May 1st through May 3rd, paying the full cost in advance. You end up missing a connecting flight and arrive at the hotel on the afternoon of May 2nd. What if the hotel were to tell you "since you didn't show up yesterday, we resold your room to a walk-in today, and now we're sold out", while also keeping your payment for both nights? Is it legal to double-dip like that, or would they have to refund your second night if you showed up after they resold your room?

Joseph Sible-Reinstate Monica
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2 Answers2

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This is answered there (in German):

https://passagierrechte.org/Anspr%C3%BCche_eines_Hotelgastes_bei_Nichtantritt_der_Buchung

To paraphrase the main points:

  • There is no special regulation, it is just contract law.

  • There is no unilateral right to withdraw from the contract.

  • If you don't fulfill your contractual obligation (show up and pay for the room at the agreed time), you need to pay the hotel for their loss.

  • Typically, terms and conditions detail standard cancellation fees.

  • The hotel cannot demand the full price (§ 537 I BGB) since costs are lower if you don't use the room (e.g., no maid service necessary).

  • You don't have to pay anything if you objectively cannot use the room, e.g., because the hotel is on fire or because the hotel rented the room to someone else.

  • If the hotel rents the room to someone else and you are not at fault (were there on time), you must be awarded damages (e.g., costs for a more expensive room).

So, in your hypothetical scenario: No, that is not legal. You might have to pay the full price for the first night if you didn't cancel. But you don't have to pay for the second night.

PS: If you can't make it, call the hotel, cancel for the first night and tell them that you will be there the second night.

Roland
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Maybe

It’s not unlawful for an accomodation contract to have terms allowing the vendor to cancel it. It would also not be unlawful for the vendor to be entitled to keep some or all of the money - providing the term was fair,

The Australian Consumer Law since November 2023 prohibits unfair terms in standard form contracts (which a hotel booking will almost surely be).

Under the provisions, a term is unfair if these three conditions are met:

  • if the contract term is one-sided and greatly favours the business over the consumer, and
  • there is no satisfactory commercial reason why the business needs such a term, and
  • the consumer will suffer financial loss, inconvenience or other disadvantage if the term is enforced, then it may be unfair.

There’s not enough information in the hypothetical to be sure one way or the other.

For example, if your booking was a time when there was a two night-minimum (say across New Years Eve or Christmas) and the contract was clear that if you didn’t show or notify them by a specific time that they could cancel, then it is probably fair. Whether they can resell the room or not is probably irrelevant.

Dale M
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