Booking.com Cancels Reservation and Quadruples Price: Is the Consumer Protected?

Formula 1 Reservation Cancellation: The Beginning of the Problem

Incident of Cancellation: Booking.com canceled a hotel reservation worth CAD 4,300 for a woman from Ontario who had booked in Montreal to attend the 2026 Formula 1 race, then offered her the same rooms for over CAD 17,000, four times the original price. This incident highlights the vulnerabilities of consumer protection in the face of digital platforms that often transfer risks and costs to travelers.

Original Booking Details: Ms. Erika Man, a resident of Oakville, Ontario, had booked a four-room hotel unit at the Holland Hotel in Montreal on May 25, to ensure a comfortable stay for her relatives coming from the Netherlands to watch the race. Weeks after confirming the reservation, she received news from the hotel and Booking.com that the original price was an error. The platform offered her two options: either cancel the reservation herself or pay the exorbitant new price of over CAD 17,000 for the same period.

Consequences of Cancellation: With Man refusing to pay the new price, Booking.com canceled her reservation. At that time, accommodation prices in Montreal were rapidly rising, and airline tickets had already been booked for her relatives.

Weakness of Consumer Protection in the Digital Age

Expert Analysis: David Fiore, an expert in digital rights, points out that such shocks have become common as travel sites and hotels rely on automated booking and pricing systems. Booking.com's policies allow for the cancellation of confirmed reservations if the company deems the original price a "manifest error," which puts consumers at risk, especially during periods of significant price increases associated with "event-based pricing."

Definition of Event-Based Pricing: Event-based pricing is a pricing strategy in which product or service prices are adjusted based on the occurrence of specific events, holidays, or seasons. This strategy is commonly used in industries such as travel, retail, and entertainment to reflect demand fluctuations and maximize revenue during periods of high demand. (Source: Priceva, FasterCapital, Publication Date: November 29, 2024).

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Platform and Hotel Justifications and Alternative Offers

Hotel and Platform Narrative: For its part, the Holland Hotel blamed a "synchronization error" with Booking.com, which allowed non-event-related prices to appear briefly. The hotel explained that its automated system updates prices via the Booking.com platform, meaning the hotel cannot manually override the displayed prices. Booking.com supported the hotel's stance, considering the published price an error. Although Booking.com offered Man alternative accommodation at a price similar to her original rate, it was in no way equivalent, being a one-room studio unsuitable for a group of adults.

Media Intervention and Rectification

Expert's Price Assessment: Fiore believes the original price was not a "manifest error," like a luxury suite offered for one dollar, but rather an offer Ms. Man found, and consumers should have benefited from it. He asserts that current consumer protection laws are weak in this regard.

Problem Resolution Through Media Intervention: After intervention by CBC's "Go Public" news program, Booking.com honored Man's original reservation and covered the price difference, allowing her to keep her four-bedroom unit at no additional cost. Although Man was relieved, she expressed regret that media intervention was necessary to obtain her rights.

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Tips for Protecting Future Travelers

Proactive Steps for Consumers: To protect future travelers, experts offer several tips:

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