Hotel cancels booking, who is responsible?

Hotel - Photo 1.

Screenshot of a successful booking at City Convenience Hotel (Guiyang Expressway North Station Branch), with a preferential price confirmed before the holiday - Photo: The Paper

A successful booking, clearly confirmed two months ago, was canceled just before check-in due to a “system error”. That was the reality that two Chinese tourists encountered during the May Day holiday this year.

The issue goes beyond skyrocketing room rates to a larger one: trust in online booking systems.

Many orders were canceled due to “system error”

In mid-April, Ms. Tieu Dinh, a university student, shared her unwanted experience on social media.

She and her friend booked a room at City Convenience Hotel (Guiyang Expressway North Station Branch) for the May 1 holiday through the Qunar platform two months ago.

The room rate when booked was only about 125 yuan/night. But just 10 days before check-in date, they suddenly received a cancellation notice, with the reason being “system error causing price deviation”.

When Xiao Ding contacted the hotel, she was asked to rebook the room at a new price four times higher: more than 500 yuan/night. “The platform asked us to cancel the booking because the hotel increased the price, completely disregarding the interests of consumers,” she said indignantly.

Initially, Qunar offered to compensate her with 199 yuan in cash and 100 yuan in system credits, but after much negotiation, Xiao Ding received a “one-for-three” refund. However, her friend who booked the room with her is still waiting for the settlement.

Whose responsibility is it?

In response to user backlash, Qunar insisted that the fault lay with the hotel, not the platform. In Xiao Ding’s case, Qunar advanced compensation and helped her book an alternative hotel. In her friend’s case, the platform said there was a discrepancy in progress because each order was handled by different staff.

Qunar pledged to punish hotels that violated the law and called on authorities to increase supervision. Hotel representatives said the low prices were due to a lack of time to adjust prices in the system, and pledged that if negotiations failed, they would still provide accommodation at the original price or give it away for free.

Dong Thanh Group - the hotel franchisee - confirmed that the relevant branch has the right to set its own prices within the permitted range and will continue to verify the incident if there is an official complaint.

Hotel - Photo 2.

The current room rate at this hotel has increased to 560 yuan/night during the holiday, many times higher than the original price - Photo: The Paper

Experts warn of breach of contract

Lawyer Thieu Ban of Bac Hoa Han Thuong Law Office (Shanghai) emphasized: After a successful booking, a contractual relationship between the hotel and the consumer has been established.

A hotel unilaterally cancelling a booking simply because of a price increase is a breach of contract. The consumer has the right to demand that the agreement be continued or to seek compensation.

If the hotel uses the excuse of “no rooms available” or “system error” without clear basis, this behavior can be considered consumer fraud.

In addition, according to China's E-Commerce Law, if the platform cooperates with the hotel in arbitrarily canceling orders, both parties may be held jointly liable.

Attorney Thieu Ban recommends that consumers who encounter problems should take a photo of the booking, keep proof of payment and exchange, and firmly maintain their stance of not agreeing to cancel.

If necessary, consumers can file complaints with the market management agency or the culture and tourism industry for support and protection of their rights.