Hotel Disputes: Resolution Guide

Hotel disputes affect millions of travelers annually, ranging from overbooking nightmares to undisclosed resort fees and room condition complaints. The hotel industry generates over $200 billion in annual revenue in the United States alone, and with that scale comes frequent disputes. Understanding your rights under contract law, FTC consumer protection regulations, and credit card protections can help you recover when hotels fail to deliver promised services.

Common Hotel Disputes

Hotel disputes typically fall into several categories, each with different legal remedies:

Overbooking and "Walking" Guests

Hotels routinely overbook rooms anticipating cancellations. When too many guests show up, hotels "walk" customers to other properties. While legal in most jurisdictions, hotels generally owe you compensation:

• Comparable accommodations: A room at an equal or better hotel at no additional cost
• Transportation: Free ride to the alternate hotel
• Communication costs: Free phone calls to notify others of your changed location
• Rate difference: Some states require hotels to pay the difference if only a more expensive room is available
• Additional compensation: Many chains offer future stay credits, loyalty points, or cash compensation

Room Condition Problems

Hotels must provide rooms that are clean, safe, and as advertised. Common condition issues include:

• Cleanliness: Dirty linens, unsanitary bathrooms, evidence of pests
• Safety hazards: Broken locks, faulty fire equipment, mold, structural issues
• Amenity failures: No hot water, broken AC/heat, non-functioning TV or WiFi
• Misrepresentation: Room differs significantly from photos or description
• Noise: Construction, loud neighbors, elevator proximity not disclosed

Hidden Fees and Billing Disputes

The FTC has taken action against hotels for deceptive fee practices. Common billing disputes include:

• Resort fees: Mandatory daily charges (often $25-$50+) not included in advertised rates
• Parking fees: Undisclosed or higher-than-expected parking charges
• Minibar charges: Disputed consumption or sensor errors
• Incidental holds: Excessive or unreleased credit card holds
• Early departure fees: Charges for checking out before scheduled date

Cancellation and Refund Disputes

Cancellation policies vary widely and have become more complicated post-pandemic:

• Non-refundable rates: Lower prices in exchange for no cancellation rights
• Penalty periods: Fees for canceling within certain timeframes (often 24-72 hours)
• Third-party bookings: Different (often stricter) cancellation rules
• Force majeure: Natural disasters, pandemics, or emergencies affecting travel

Major Hotel Chain Policies

Understanding specific chain policies helps you negotiate disputes:

Hotel Chain	Cancellation Policy	Walk Compensation	Resort Fees
Marriott	Varies (typically 24-48 hrs)	Comparable room + $200 or 90K points	$15-$50+ at select properties
Hilton	Varies (typically 24-72 hrs)	Comparable room + compensation	$15-$60+ at select properties
Hyatt	Varies (typically 24-48 hrs)	Comparable room + compensation	$15-$45+ at select properties
IHG (Holiday Inn)	Varies (typically 24-48 hrs)	Comparable room + transportation	$10-$35+ at select properties
Wyndham	Varies (typically 24-48 hrs)	Comparable room + points	Less common
Best Western	Varies (typically 24-48 hrs)	Comparable room + transportation	Less common

Your Legal Rights

Multiple legal frameworks protect hotel guests:

Contract Law

Your hotel reservation creates a binding contract. When a hotel confirms your booking, they're legally obligated to provide:

• A room meeting the description and category booked
• All advertised amenities and services
• Safe and habitable accommodations
• Accurate billing based on confirmed rates

FTC Regulations on Pricing

The Federal Trade Commission Act (15 U.S.C. 45) prohibits unfair and deceptive practices. The FTC has specifically targeted hotel fee practices:

• Drip pricing: Showing a low initial price then adding mandatory fees later violates FTC guidelines
• Hidden fees: All mandatory charges must be clearly disclosed before booking
• Misrepresentation: Advertising amenities the hotel doesn't actually offer

State Consumer Protection Laws

State laws provide additional protections:

State	Law	Key Protections
California	Cal. Civ. Code 1750 (CLRA)	Prohibits false advertising; attorney's fees
New York	N.Y. Gen. Bus. Law 349	Deceptive practices; $50 minimum damages
Florida	Fla. Stat. 509 (Transient Establishments)	Specific hotel regulations; rate posting requirements
Nevada	NAC 651 (Transient Lodging)	Gaming Control Board oversight; strict regulations
Hawaii	HRS 486K (Transient Accommodations)	Registration requirements; consumer protections

Credit Card Protections

The Fair Credit Billing Act (15 U.S.C. 1666) provides powerful protections for hotel disputes:

• Billing error disputes: Dispute unauthorized charges, wrong amounts, or services not received
• 60-day window: Must dispute within 60 days of the statement with the error
• Charge reversal: Issuer must investigate and may reverse charges
• No payment required: You don't have to pay disputed amounts during investigation

Step-by-Step: Resolving Hotel Disputes

Follow this escalation path for best results:

Step 1: Resolve On-Site

Address problems immediately at the front desk:

• Remain calm and clearly explain the issue
• Request to speak with a manager if front desk can't help
• Document the problem (photos, videos, names of staff)
• Request a room change, upgrade, or on-the-spot compensation
• Get any promises in writing (email confirmation, printed note)

Step 2: Contact Corporate Customer Service

If on-site resolution fails, escalate to the hotel chain's customer service:

• Call the loyalty program or corporate customer service line
• Submit a formal complaint through the chain's website
• Include your confirmation number, dates, and specific complaint
• Attach documentation (photos, receipts, correspondence)

Step 3: Dispute Credit Card Charges

For billing disputes, contact your credit card issuer:

• Call the number on the back of your card or use the app
• Explain the dispute clearly (service not rendered, unauthorized charge, etc.)
• Provide supporting documentation
• Follow up in writing within 60 days of the statement

Step 4: File Third-Party Complaints

External complaints often prompt faster resolution:

• Better Business Bureau: Hotels value their BBB rating and often respond quickly
• State Attorney General: Consumer protection division handles hotel complaints
• Local tourism board: Hotels in tourist areas depend on these relationships
• FTC: Report deceptive practices at reportfraud.ftc.gov

Step 5: Send a Formal Demand Letter

Before legal action, send a written demand to the hotel's legal department. Include:

• Complete timeline of events with dates
• Specific contract terms violated (confirmation details, advertised amenities)
• Applicable laws (cite state consumer protection statutes)
• Total amount demanded with itemized breakdown
• Deadline for response (typically 14-30 days)

Calculating Your Damages

When pursuing a hotel dispute, you may recover:

Direct Damages

• Rate difference: If forced to book a more expensive room elsewhere
• Refund of charges: For services not received or misrepresented
• Fee reversals: Undisclosed resort fees, parking fees, etc.
• Transportation costs: If walked to another property

Consequential Damages

• Trip disruption: Missed events due to overbooking or check-in delays
• Additional travel costs: Uber/taxi fares, flight changes
• Lost prepaid expenses: If hotel problems caused you to miss non-refundable activities
• Medical expenses: If unsafe conditions caused illness or injury

Statutory Damages

Under state consumer protection laws:

• Minimum damages: Some states provide $50-$1,000 minimum recovery
• Attorney's fees: Available under most state consumer protection laws
• Treble damages: Up to 3x actual damages for willful violations in some states

Booking Platform Disputes

When you book through a third party, additional considerations apply:

Major Platform Policies

Platform	Customer Service	Rebooking Guarantee
Booking.com	24/7 phone and chat	Will rebook if property can't accommodate
Expedia	24/7 phone and app	Price difference refund for eligible issues
Hotels.com	24/7 phone	Will assist with rebooking
Priceline	24/7 phone	Limited for Express Deals
Airbnb	24/7 phone and app	AirCover: rebooking or full refund within 72 hrs

Third-Party Booking Strategy

• Contact both the hotel AND the booking platform
• Get the hotel's denial or inability to help in writing first
• Then escalate to the platform with documentation
• If neither helps, pursue credit card chargeback

Special Circumstances

Force Majeure and Travel Disruptions

Natural disasters, pandemics, and other emergencies create complex refund situations:

• Check your booking for force majeure or cancellation clauses
• Government-mandated closures typically require full refunds
• Voluntary cancellations may only get credits
• Travel insurance may cover non-refundable bookings

Bed Bugs and Health Hazards

Pest infestations and health hazards require special handling:

• Document everything with photos and video immediately
• Request a medical incident report from the hotel
• See a doctor if you have bites or health symptoms
• Keep all affected clothing and luggage for evidence
• Report to local health department
• Damages may include medical costs, replacement items, and emotional distress

Frequently Asked Questions

Can a hotel refuse to refund a "non-refundable" booking?

Generally yes, but with exceptions. If the hotel fails to provide the room type booked, has unsafe conditions, or materially misrepresented the property, contract law may override the "non-refundable" term. Credit card chargebacks are also available if services were not delivered as promised.

What if the hotel walks me and the only alternative is far from my destination?

You can refuse unreasonable alternatives. If the hotel can't provide comparable accommodations within a reasonable distance (typically same area/neighborhood), you may be entitled to a full refund plus damages for the inconvenience and any additional costs incurred booking elsewhere.

Are resort fees legal?

Currently yes in most states, but disclosure requirements exist. The FTC considers hidden or poorly-disclosed resort fees deceptive. If resort fees weren't clearly shown before you completed your booking, you have grounds to dispute them via chargeback or complaint.

Can I dispute a charge if I was unhappy with my stay but used the room?

Partial disputes are possible. If the room had significant problems (no AC during summer, no hot water, etc.) but you stayed anyway, you can pursue a partial refund for the diminished value. Document the problems and your complaints to management during the stay.

How long does a credit card chargeback take?

Typically 30-90 days. You must file within 60 days of the statement date. The bank investigates and may issue provisional credit. The merchant (hotel) can respond, and the bank makes a final decision. Complex cases can take several months.

What if my hotel was acquired or rebranded during my dispute?

The new owner typically assumes liability for existing bookings. However, pursue your claim quickly as ownership changes can complicate collections. Focus on the parent company (e.g., Marriott, Hilton) if applicable, as they usually retain responsibility for franchised properties.

Resources

• FTC Complaint: reportfraud.ftc.gov
• Better Business Bureau: bbb.org
• State Attorney General: Search "[your state] attorney general consumer complaint"
• Local Tourism Board: Search "[city] tourism board complaint"
• Credit Card Disputes: Call the number on the back of your card