SECAUCUS, N.J. — According to a recent article from Travel Weekly, last-minute cancellation charges are not the most effective way to sway guests from abandoning a reservation. Hoteliers have been finding consumers’ interest in prepaid, non-refundable bookings piques when they are rewarded with discounted prices.
Hilton Worldwide and Marriott International — which tend to have heavier cancellation penalties — have found little to no improvement in reducing last-minute cancellations or altering consumer behaviour, in general.
A more effective strategy implemented by hotel brands such as the Intercontinental Hotels Group (IHG), is to incentivize prepaid, non-refundable bookings.
Currently, the Marriott Marquis New York is offering a 15 per cent discount on prepaid, non-refundable rooms for September weekend dates. The property gives customers a one-day grace period after the booking date before imposing its no-refund policy.
Other properties, such as the Hilton Los Angeles/Universal City, are embracing a similar strategy with various discounted rates being applied to prepaid, non-refundable bookings.