Are Hotels Allowed To Increase Rates After I Book A Room?

Generally speaking, once a hotel reservation is confirmed and paid for, the hotel is not allowed to increase the rate. The booking creates a contract between the hotel and the guest, and once the terms are agreed upon (including the price), those terms should be honored. However, there are a few situations where the rate might change, and it’s important to understand your rights in these cases.

1. Price Guarantee on Bookings

When you book a hotel room through a reliable platform (like the hotel’s own website, a third-party travel agency, or other booking websites), the price you see when you confirm the booking is usually guaranteed. This is because, once you make the reservation, you enter into a contract with the hotel. If the hotel tries to increase the rate after your reservation is confirmed, this is typically a breach of contract, and they must honor the original rate.

2. Exceptions – Dynamic Pricing

In some cases, hotels use dynamic pricing models, where room rates can fluctuate depending on factors like demand, seasonality, or local events. However, once you have booked and confirmed your reservation, the price should remain the same for you, even if rates increase due to these factors.

• Prepaid vs. Pay-at-Hotel: If you’ve prepaid for your booking, the hotel cannot charge you a higher rate than what was agreed upon. If you’re paying at the hotel upon check-in or check-out, they should charge you the confirmed rate unless you’ve agreed to different terms.

3. What Happens if a Hotel Increases the Rate After Booking

• Overbooking or System Error: Sometimes, hotels may accidentally overbook rooms, and in rare cases, they might contact guests to offer alternate accommodations at a higher rate or to move to a different property. This is generally considered an issue of customer service, and the hotel may offer you compensation, like a free upgrade or a discount, to make up for the inconvenience. If the hotel refuses to honor the original rate, this could be considered a breach of contract.
• Price Increase Due to Special Circumstances: If the price increase is due to a tax or service fee change, the hotel should clearly communicate this at the time of booking. If you’ve already made a reservation, they should not raise the base rate unless specified in the terms and conditions you agreed to at the time of booking (for example, if there is a flexible booking option that allows for price adjustments based on specific conditions).

4. What You Can Do if Rates Increase After Booking

• Check Your Booking Confirmation: Ensure the rate you were quoted was clearly stated in the confirmation email or document you received. If the rate was locked in and guaranteed, the hotel is legally obligated to honor it.
• Contact the Hotel Directly: If the hotel increases the rate after booking, contact the hotel’s customer service or the booking platform you used immediately. Explain that you’ve already confirmed your reservation at a set price and request that they honor it. Often, the hotel will work with you to resolve the issue.
• Escalate the Matter: If the hotel refuses to honor the original price or tries to charge you more without a valid reason, you can escalate the matter by filing a complaint with consumer protection agencies or the platform through which you booked the room. Many booking platforms (like Booking.com, Expedia, or Hotels.com) have customer support teams that can mediate the issue.
• Consider a Chargeback: If you prepaid for the booking and the hotel still increases the rate or tries to charge you more than agreed, you can dispute the charge with your credit card company. This is often referred to as a chargeback, where you can request a refund for services that were not provided as agreed upon.

5. Consumer Rights and Protections

In most countries, consumer protection laws state that once a price is agreed upon and a booking is confirmed, the seller (in this case, the hotel) is not allowed to change the price unilaterally. If a hotel does attempt to increase the rate after booking, you may have the right to cancel the reservation without penalty or receive compensation for the additional cost.

Example:

Imagine you book a hotel room for $150 per night, and you receive a confirmation email clearly stating the price. A few days later, you receive a call from the hotel informing you that the price has increased to $175 per night due to high demand. You are entitled to pay the original rate of $150, as the hotel cannot change the price after the booking was confirmed. If the hotel insists on charging the higher rate, you can escalate the issue with customer support or file a complaint with a consumer protection agency.

Conclusion

In conclusion, hotels are generally not allowed to increase rates after a booking is confirmed, especially if you have a guaranteed price. If this happens, you have several options, including contacting the hotel directly, escalating the issue to customer service, or filing a formal complaint. Always review your booking confirmation carefully and keep track of any communications with the hotel to protect your rights.