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

About Ric Garrido

Ric Garrido of Monterey, California started Loyalty Traveler in 2006 for traveler education on hotel and air travel, primarily using frequent flyer and frequent guest loyalty programs for bargain travel. Loyalty Traveler joined in 2008.

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