Starwood Hotels

A $500 cancellation penalty for Westin refundable AAA $85 room rate

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?

 

Las Vegas Westin Casuarina

 Westin Casuarina, Las Vegas

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