Booking accommodation – your consumer rights

From holiday homes, hostels, hotels, to self-catered apartments, campgrounds, and campervans, booking accommodation is an important part of your holiday – but what are your rights?

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Cancellations and refunds

Before paying for any part of your trip, check whether you can get a refund in case you need to cancel. You should also check if there is a cancellation fee by reading the terms and conditions.

If you have already booked your trip, check the terms and conditions of your contract with the accommodation provider. These terms and conditions determine your options when it comes to your right or the provider’s right to cancel.

When do I have the right to cancel?

If your accommodation does not meet one or more consumer guarantees, you may have the right to cancel without any cancellation fee and receive a refund. Learn more about consumer guarantees and refunds.

If no consumer guarantee is breached, check the terms and conditions of your contract with the accommodation provider. These will determine your options when it comes to your right to cancel.

In some cases, you may not be able to receive a full refund if you have already begun your stay at the accommodation. In this case, you may need to pay a reasonable amount for the time you spent there.

Example of a partial refund

Emma books a holiday home for four days and pays upfront. Two days into her stay, a pipe bursts and the water floods the bedrooms. They can no longer be slept in, and the water is turned off for the rest of the stay.

Emma and her family are forced to leave the holiday home two days early and she requests a full refund. Emma’s accommodation provider may choose to only refund her half of the amount, as she and her family did stay the first two days.

Example of a full refund

Thomas books a holiday home for four days and pays upfront. The day before he and his family are due to arrive, the owner texts Thomas and lets him know that a pipe has burst and the water will be off for two days during his stay.

Thomas has the right to cancel and get a full refund because he has yet to begin his stay and the service he paid for, a holiday home, is no longer fit for the purpose he and the owner agreed to (a comfortable stay with the use of water).

Does my accommodation provider have the right to cancel?

An accommodation provider is legally allowed to cancel if they have included the right to cancel within the terms and conditions of the contract you agreed on when you made the purchase. These terms must be clear and cannot be changed at a later date.

They are also allowed to cancel if they are no longer able to deliver the service for unforeseeable reasons beyond their control, like a natural disaster.

Example of a valid right to cancel

Mark books a campground for a camping trip with friends. When he is booking, he agrees the campground provider has the right to cancel the booking at any time up to 48 hours before the booking start date. Mark can also cancel this booking any time up to 48 hours before the booking.

Mark receives an email 72 hours before he is due to go on his trip that the campground has cancelled his booking. As Mark agreed to these terms when he made the booking, his accommodation provider has the right to cancel.

What if my accommodation provider doesn’t have the right to cancel?

A business, including an accommodation provider, is in breach of contract if the product or service doesn’t meet consumer guarantees or there is no term for cancellation in the terms and conditions.

If the accommodation provider breaches the terms and conditions of your contract, you may have a right to claim a solution, which can include a refund.

Learn more about when you are entitled to a refund.

If you are entitled to a refund, the accommodation provider must:

  • make sure any refund is paid within a reasonable timeframe
  • offer the refund first, before they can offer any other alternatives, such as credit vouchers
  • take steps to get back money from suppliers and, where they are due, return the money as soon as possible
  • communicate regularly with you about the timing of the refund and the steps being taken.

Is my accommodation provider allowed to charge me a cancellation fee?

Your accommodation provider is legally allowed to charge you a cancellation fee for reasonable costs they have incurred, if this is in the terms and conditions of the contract you agreed to at the time of purchase. However, they cannot change the terms of the contract or unfairly penalise you in the event of a cancellation.

Any cancellation fees should:

  • be made clear in the contract at the time of purchase
  • not be excessive, otherwise it may be regarded as an unfair contract term
  • not be increased at a later date, they must be the same as the fee set out in the contract.

Example of a valid cancellation fee

Jai books a hotel in Sydney for a weekend to go to a concert. At the time of booking, Jai agrees to a cancellation fee of $250 if he cancels within 48 hours of the booking arrival date.

The day before the concert, and 24 hours before Jai is due at the hotel, the performer cancels the concert. Jai no longer wants to travel to Sydney, so cancels his hotel booking and gets charged $250 as per the terms and conditions.

Example of an invalid cancellation fee

Michelle books a hotel in Sydney for a weekend to go to a concert. At the time of booking, Michelle agrees to a cancellation fee of $250 if she cancels within 48 hours of the booking arrival date.

The day before the concert, and 24 hours before Michelle is due at the hotel, the performer cancels the concert. Michelle no longer wants to travel to Sydney, so cancels her hotel booking and gets charged $400.

The hotel has increased the cancellation fee by $150, without Michelle agreeing to the new terms. Michelle can dispute the increase in fee because this is not what she agreed to at the time of booking.

Are you entitled to compensation?

If a problem with an accommodation causes you to experience loss or damage, you may have a right to compensation.

Compensation helps cover any costs you paid because of the problem with the product or service. It should put you back in the position you would have been in if the problem hadn’t happened.

Compensation can be given in addition to a product or service replacement or refund.

Example of compensation for a customer

An accommodation provider made a booking error and cancelled Joe's accommodation. The accommodation provider was unable to provide alternative accommodation within a reasonable time and Joe was required to book new accommodation with an alternative host. The new accommodation cost $300.00 more than the original purchase. Joe may be able to seek compensation for the cost of the new accommodation or the difference paid for the new accommodation.

What should the accommodation provider do?

An accommodation provider must pay for loss or damage that is:

  • reasonably foreseeable, that is not caused by something outside of human control, such as a pandemic
  • caused by the failure to meet a consumer guarantee.

An accommodation provider must not:

  • claim you have no right to compensation
  • deny responsibility for foreseeable losses you experienced from using the provider’s product or service.

How compensation is claimed

  1. Determine the amount of compensation required to return you to the financial position you were in before the problem happened
  2. Gather a receipt or proof of purchase
  3. Contact the accommodation provider, verbally or in writing, to explain the problem and ask for compensation
  4. You may also consider a refund, replacement or repair.

Find out more about rights as a consumer

Visit the repairs, replacements and refunds page for more information on your consumer rights if a product or service doesn’t meet the consumer guarantees.

Booking through a third-party

Online third-party booking platforms have their own terms and conditions for deposits, booking fees and cancellations. Sometimes these terms and conditions are different to the terms and conditions of the accommodation provider, but both provider’s terms and conditions will apply to you.

Make sure you check both the online booking provider and the accommodation provider. All terms and conditions should be easily available and on the booking website to avoid possible disputes.

Am I still entitled to a refund even though I booked through a third party?

You have the right to a repair, replacement or refund from the accommodation provider when the product or service you purchased does not meet the consumer guarantees. This applies to any accommodation booked through travel agents or online booking platforms operating in Australia or booked on an Australian website.

Example of a refund after booking through a third-party

Timothy books his accommodation in Adelaide through a third-party booking platform. The hotel cancels his stay. Timothy may be entitled to alternative accommodation, a room within a reasonable time or a refund from the booking platform. He can choose to request a refund through the booking platform or deal directly with the hotel. Timothy chooses to approach the hotel directly and requests a refund, as there are no alternative rooms available. The hotel agrees as they did not deliver the service he paid for and could not offer a solution.

How to resolve a dispute

Before contacting NSW Fair Trading, it is important you give the accommodation provider the opportunity to fix the problem.

Two steps to resolve a dispute

  1. Check your contract’s terms and conditions

    Before you talk to the accommodation provider about your problem, make sure you are clear on the contract’s terms and conditions. For example, the contract may tell you when you are entitled to a refund or solution.

  2. Talk to the accommodation provider

    Once you’ve checked your contract, contact the accommodation provider and explain the problem. If the matter is complicated and not urgent, you could write an email or letter. We have tips and sample letters to help you.

Frequently Asked Questions

Do you have a specific problem? Before you reach out, try our frequently asked questions below to see if we have the answer.

My hotel is overbooked and cancelled my reservation, now I have no place to stay and can’t go on my trip. Am I entitled to compensation for related expenses booked separately?

First check the terms and conditions of your contract with the accommodation provider. These terms and conditions determine your options. There may be terms and conditions related to the accommodation provider’s right to cancel.

Also check if you are covered under any travel insurance policy you have.

After you’ve reviewed the terms and conditions of your contract, contact the provider of those separate expenses to see if they are prepared to offer a replacement service, refund or credit voucher.

My accommodation I booked on a platform is not as advertised. Am I entitled a refund?

When you engage a business, including accommodation providers, for a service, you have the right to expect ‘acceptable quality’. This means services must be:

  • provided with due care or skill (taking all necessary steps to avoid loss and damage)
  • fit for any specified purpose (express or implied)
  • provided in a reasonable time (when no time is set).

Advertising can be a powerful means of persuasion, so it’s important it is truthful, accurate and easy to understand. You are protected from deceptive advertising claims and conduct, and businesses are not allowed to make false or misleading representations about their products or services.

If you believe your service was not ‘acceptable quality’ and that the advertising of their property was misleading, you should contact the business and explain the problem. The business should be given the opportunity to resolve the problem with you first (for example, offer you a refund).

If the business does not want to provide a solution, you should contact the booking platform and notify them of the problem with the business. The booking platform may take steps to resolve the problem for you.

If you are unable to come to a resolution with the owner, business or the booking platform, or if you think the business has breached Australian Consumer Law by engaging in misleading or deceptive conduct, promotion or advertising, contact us on 13 32 20 or make a complaint online.

Making a complaint 

When making a complaint, you should include:

  • details of the issues you are experiencing
  • copies of any correspondence that shows how you have tried to resolve the matter.

How NSW Fair Trading will handle your complaint

Your complaint will be reviewed to determine the most appropriate resolution. This may include:

  • providing you with information to help resolve your complaint
  • recording the complaint issues to assist in future compliance programs, or
  • contacting the other party to try and resolve the dispute.

You can lodge a complaint: 

Online

If you cannot resolve your matter, submit your complaint by using our form.

Make a complaint

By mail

Post your complaint form and documentation to: 

NSW Fair Trading

PO Box 972 

Parramatta NSW 2124 

Ask a question 

If you are unable to find the information you need, you can call us between 8:30am to 5pm on Monday to Friday. You can also use our form to make an enquiry. 

Make an enquiry
 

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