Hilton evaluating experiment with cancellation fee

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Hilton evaluating experiment with cancellation fee
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Hilton Worldwide has completed a two-month trial in which a few of its hotels charged $50 for reservations canceled any time after they were booked.

The hotel company confirmed that its 60-day trial, which included 24 hotels, was conducted in November and December. Hilton declined to disclose further information about the trial, which was detailed in a New York Times report.

“This past November, we began testing a new cancellation policy at select hotels, given late cancellations have historically created challenges for both our guests and owners,” the company said in a statement. “At this time, we have collected the data we need from this test and have ended the trial to evaluate the results.”

The concept of hotels enacting cancellation fees similar to those of airlines has gained relevance with a proliferation of apps specializing in last-minute hotel deals, giving consumers ample opportunity to look for last-minute discounts then cancel their existing reservations.

Both Hilton and Marriott International addressed this issue at the beginning of last year by enacting a policy in which guests who cancel reservations the same day as the scheduled stay are charged for one night. Additionally, both hoteliers have looked to reduce cancellations by offering discounts on pre-paid, nonrefundable rooms at some of their hotels.

Hilton representatives declined to say whether its cancellation policies would be further altered, while Marriott representatives declined to respond to a request for comment from Travel Weekly.

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