I know times are bad for the hotel industry, but what is the rationale for having a $500 cancellation penalty if the reservation is cancelled within two days of arrival? The last-minute cancellation penalty is nearly six times greater than the AAA room rate I reserved for the Westin Casuarina, Las Vegas.
The Westin Casuarina currently has prepaid, nonrefundable room rates at $85 for the dates of my stay. The AAA room rate at $84.95 per night is refundable up to 48 hours before arrival. The small print in the rate terms is the real shocker.
“If you cancel between 11/19/2008 and 06:00PM hotel time on (the date two days before arrival), there will be no forfeiture amount. If you cancel after 06:00PM hotel time on (the date two days before arrival), the forfeiture amount will be USD 499.95. There may be additional applicable charges and taxes.”
I think I will switch to the internet-only nonrefundable room rate with a maximum liability of $85 if I miss the reservation.
Is this a new revenue stream strategy for making profits with fewer guests?
Westin Casuarina, Las Vegas