Hotel CEOs Discuss Recent Cancellation Policy Changes and Hint at More to Come
Photo Credit: Marriott CEO Arne Sorenson, speaking at last year's Skift Global Forum. Sorenson said response to Marriott's new 48-hour cancellation policy in the U.S. and Canada has been "encouraging." Skift / Skift
Skift Take
As hotels tighten up their revenue management practices, expect more of these cancellation policy changes to take place in the near future.
Marriott and then Hilton made a lot of news in the past two months when they both announced changes to their cancellation policies, shortening the amount of time to cancel a reservation to 48 hours prior to check in, instead of the industry standard of just 24 hours.
Marriott was first, announcing on June 15 a new policy that impacts its hotels in the Americas across all brands with the exception of Design Hotels and Marriott Vacations Worldwide. Hilton followed suit on July 31 with a new policy impacting its hotels in the U.S. and Canada, implementing 48-hour and, in some cases, 72-hour cancellation policies for its hotels.
Initial reaction expressed major concern, especially among the corporate travel community, but some said the new policies won't hurt corporate travelers or their companies as much as originally thought.
Soon after Marriott and Hilton announced their changes, InterContinental Hotels Group (IHG) announced its new 24-hour cancellation policy.
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