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WE TRAVEL A LOT, so I try to read up on new places, new deals and what to watch out for. This year, I’ve made two new discoveries—not pleasant ones.
I admit it, I love hotel points. I know I’ve paid for those points, but seeing a “free” hotel bill makes me feel good.
Hotels started their rewards programs when I was traveling for business. I signed up right away. In fact, my rewards account number with one hotel chain starts with 000. My employer at the time let us keep the points we accumulated. Between the hotels and the airlines, my husband and I had some great trips.
We generally have our vacations planned out at least a year in advance. Now, I’m learning that—when you’re using points—planning ahead can have unintended consequences.
Taylor Swift performed in Philadelphia in May. A woman from another part of the country had reserved a room four months before the night of the concert using points from a hotel loyalty program. A month before the event, she received an email from the hotel informing her that it was canceling her room reservation due to “system availability.”
How can a hotel cancel a guaranteed reservation, especially one made so far in advance? If you prepaid for a room, the hotel is under contract to honor it. But it seems a confirmed reservation made with points doesn’t carry the same legal obligation. The Pennsylvania lodging laws were written in the 1950s, before points existed, so the hotel was able to cancel her reservation.
It seems obvious what happened here. Once the concert was announced, the hotel knew it could make much more from the room. You can read an account of the incident here. After the situation received some publicity, the hotel backtracked and reinstated the reservation.
That isn’t the only item that recently caught my attention. Whether you pay in points or not, check your bill before leaving the hotel. The Wall Street Journal reported on an incident at an Arizona resort. A man received an email receipt that included a $10 bellman gratuity, a $22 credit card processing fee and a $3 daily maid gratuity—all this after he’d left the maid a generous cash tip.
I’m taking my daughter to see Taylor Swift at Levi’s Stadium in Santa Clara (CA) at the end of this month. I booked our room at the Marriott that’s walking distance to the stadium as soon as the tour dates were announced. This made me glad that I’m paying cash rather than using points or a free night certificate. I have high status with Marriott, and I don’t THINK they would do me that way…but you never know.
Sonja,
I suggest you check out the Chase Sapphire Reserve card. Per the Points guy it is rated as the best card for travel for under $100 annual fee. We charge everything possible to the card and pay off monthly. We then use the points for plane tickets and hotels and can pick the ones that we deem are the best value.
PS I did get suckerd into the American Airlines credit card when flying last Memorial Day as the flight attendant said the points would cover two free tickets to anywhere in the continental US. Went to use it to book flight for the Holidays this winter and the points don’t even cover the cost for one!
You mean the Sapphire Preferred card. That’s the one that’s $95/year. I downgraded from the Reserve because the annual fee got so high I couldn’t justify it. I think it’s $550 now.
Yes, you are correct it is the Preferred card
The Chase Sapphire Reserve carries a $550 annual fee.
I believe the “cost” to redeem FF miles with American now varies with destination and date. I use mine to fly business class on long haul flights: I can’t imagine crossing the Pacific in economy again. They also get me onto any OneWorld carrier.
That cancellation sounds like bait and switch, I’m surprised it’s legal. And $22 for processing a credit card? Daylight robbery. I have been reading about hotels charging “resort fees” (even when they are in no way resorts) for some time, but enforced gratuities and processing fees? Aren’t airlines now required to disclose all fees before you click “buy”? Hotels should do the same.
I rarely stay in the kind of hotel that uses points, my credit cards either get me miles with American or cash back. I also rarely travel in the US. I am not a fan of AirBnB, they have been hollowing out cities abroad and I certainly wouldn’t want them in my apartment building, but I may have to consider them for the US. The fees are ridiculous, but at least they are disclosed before you buy.