Need to know
- The resolution to most accommodation issues will be decided by the business's own terms and conditions
- But consumer laws can override these if there's a serious disruption to your holiday plans or there's something wrong with your accommodation
- You have rights to a remedy if you are given the wrong room or get charged more than was advertised, for example
No one wants their hard-earned holidays ruined by hotel booking dramas or a room that doesn't pass muster. So what rights do you have if things don't go to plan with your holiday accommodation?
On this page:
Tips for hassle-free accommodation
- Look at the terms and conditions of the company you're booking with and find out if there are any penalties if you decide to cancel (see trouble-shooting guide below for more details).
- Paying by credit or debit card can provide you with added protection in the form of chargebacks, but be wary of additional fees.
- Book your travel insurance at the same time as you book your accommodation, as policies may cover unforeseen cancellations.
- Find out if there'll be any extra potential costs, such as if the business charges for Wi-Fi or for parking.
- Specify at the time of booking any additional requirements you may need, such as a quiet room or a cot for your child.
Paying by credit or debit card can provide you with added protection.
Your rights on holiday
When making a reservation to stay somewhere, most of your entitlements will be outlined in the accommodation business's terms and conditions.
But in all cases, the Australian Consumer Law (ACL) also backs you up with certain rights when you purchase goods and services like accommodation, and these can't be taken away by business contracts.
This law entitles you to remedies when something goes wrong with your accommodation, protects you against unfair contract terms and is applicable for travel within Australia or purchases made from businesses within Australia, such as a local travel agent.
Your ACL consumer guarantees require that accommodation services (including Airbnb) be provided:
- with due care and skill
- so that they are fit for any specified purpose
- within a reasonable period of time (if no time was set when booking).
In addition, the hotel or accommodation itself must:
- be safe and of acceptable quality
- match the description provided when you booked it
- be advertised in a manner that is not false or misleading.
Travelling overseas?
While the ACL protects you within Australia, if you're booking accommodation or travel with overseas companies, your entitlements will be dictated by the consumer regulations in that jurisdiction.
This list of resources from our sister consumer organisations in the UK, New Zealand and the US will tell you how to tackle common holiday hiccups and inform you of your rights in each country (luckily, most are similar to those we have here in Australia).
United Kingdom
How to complain about hotel accommodation
My self-catering accommodation isn't what was promised, what can I do?
Can I claim back a non-refundable deposit?
New Zealand
Your rights when travelling: Flights and accommodation
United States
How travellers can deal with customer service problems
Travelling made easier
Accommodation trouble-shooting guide
Hotels and accommodation providers have to be transparent about what they're planning to charge you and can't promote a price that leaves out some costs, unless the final expected price is also prominently featured on the same advertisement.
This total price needs to include all the components that the business plans to charge a client and can calculate when it's making representations to consumers.
For example, if a hotel advertises rooms at $150 a night plus booking and resort fees, a total quantifiable price which includes the booking and resort fees (which the hotel can calculate and fully expects to charge visitors at the time of making the ad) needs to be advertised just as prominently.
Therefore, if an accommodation provider slaps you with any extra costs that weren't included in the advertised total price (despite being foreseeable and quantifiable), you shouldn't have to pay them.
If there's an unavoidable extra cost that your provider can't put an exact dollar figure on when it's advertising its rates – for example, a hotel requires you to buy meals at its restaurant – it doesn't have to be included in the total price, but you should still be told it will incur an extra cost.
Your rights around cancelling a booking are subject to the accommodation provider's terms and conditions, unless a major failure or disruption has occurred.
You can't cancel your booking and expect a refund just because you've changed your plans – doing this will put you at the mercy of the provider's cancellation policy, which may require you to pay a cancellation fee or lose your deposit (if you paid one).
If there's been a major disruption and you can't follow through with your travel plans, such as a natural disaster cutting off access to the accommodation, this is considered a "frustrated contract".
In this instance, both you and the business are released from the booking agreement and you'll be entitled to a fee-free cancellation or a refund, but it may not be a full one because the business is allowed to hold onto reasonable expenses for services already provided.
If you make it to where you're staying, but there's a significant problem with your room that can't be quickly fixed, the ACL guarantees on major failures come into play. This means any terms and conditions are swept aside and you should be able to cancel your booking and receive a full refund.
The ACL says accommodation providers can't impose "excessive" cancellation fees and the amount should only reflect the "reasonable costs" already borne by the operator to facilitate your booking.
For example, if you cancel a long time in advance and there's a reasonable chance the accommodation provider can re-book the room, it'd be difficult for the business to argue for the imposition of a cancellation fee in excess of any costs associated with setting up your initial reservation.
If you've pre-paid for the room and need to cancel, the accommodation provider can usually only keep a deposit at most (the ACL guidelines suggest a fair deposit is 10%).
To cover yourself in all instances, it's a good idea to get travel insurance at the same time as you book your holiday. This means that, provided your travel insurer covers cancellations due to unforeseen circumstances, you won't be short-changed.
Accommodation service providers can't make any false or misleading representations about what they're offering. They also need to provide products and services that are fit for a specified purpose.
This means your room should match any representations made about it when you booked. Neither the text nor pictures used to represent the accommodation should mislead or deceive you with regard to price, the amenities available, view or location. For example, if it says "beach view room", the room needs to have views of the beach.
If the room is significantly different to what you booked or doesn't meet the needs you specified and the issue can't be fixed in a reasonable period of time, it's likely to be deemed a major failure.
This would entitle you to choose between a refund or continuing with the contract, accepting a different service and being compensated for any drop in value.
If the problem with the room is something minor that can be fixed within a reasonable time, you can't immediately cancel the service and demand a refund. Rather, you have to give the business a chance to fix the issue; for example, a cot you requested wasn't there on arrival, so you let staff fetch one for you.
If you've arrived at your accommodation to find the room you reserved isn't available, this counts as a major failure under the ACL because the result you've requested can't be delivered by the service (or lack thereof) the business is providing.
When a major failure like this happens, you should be able to cancel the booking and receive a full refund. You could also accept another service (a new room, for example), but you're entitled to compensation if this service is of lesser value (for example, if you can't check in straight away or if it's a cheaper room).
Most states and territories have legislation outlining the liability of accommodation providers if something happens to guests' personal belongings during their stay.
The amount the accommodation provider is liable for is usually limited (depending on the state or territory) unless the loss is as a result of a fault on the accommodation provider's part.
For example, in New South Wales and Victoria, accommodation businesses are only liable for $300 if an item you've left in your room is stolen or damaged, but the limit is much higher (or non-existent) if you had asked them to look after the item for you.
If you're staying overseas (where these laws don't apply) or travelling with expensive belongings, it's a good idea to consider travel insurance or stay in a room with a safe.
If a hotel or other accommodation service takes your credit card details for a booking, or at check-in, they need to inform you of any charges that may be placed on the card such as a cancellation fee. If you aren't advised, it may be considered an unauthorised transaction under ASIC's ePayments Code or an unfair contract term. If you have no luck sorting it out with the business, contact your bank.
As businesses that provide services to consumers, third-party booking sites and travel agents are accountable to the ACL. This means if there's a problem with a reservation you've made through these services, you should first try to resolve it with them.
To that end, you should always make sure whoever you book through is legitimate. One CHOICE member told us of losing their money when they reserved accommodation through a site called 'bookingcom.com', seemingly a scam ripoff of the legitimate established reservation service booking.com. If you've been scammed, you can request a card chargeback through your bank.
Stock images: Getty, unless otherwise stated.