SPG Cracks Down On Members ‘Exploiting’ Hotel Opening Delays

Chain hotels are notorious for pushing back the ‘grand opening date’ on new properties, sometimes by months or even years. Usually when this happens those with bookings receive a refund and also some form of compensation for the inconvenience. It looks like SPG is sick of members booking rooms at new hotels around the opening date in the hope of delays as they have sent out the following e-mail to some members (via OMaaT):

Dear SPG® Member,

If you are receiving this message, access to your account has been temporarily disabled as your account appears to be included in one or more of the emerging trends described below:

Confirm reservations for grand opening dates at SPG® participating hotels with an invalid guarantee method

While we greatly appreciate genuine interest in experiencing any Marriott property, there have been reports of invalid guarantee methods being used for rooms reserved at hotels that have announced their grand opening date. This is of great concern to us and the hotels as some of these reservations are either canceled late or not at all leaving the hotels with no recourse for recovering the lost revenue as the reserved rooms sit empty on opening day. This message serves as a reminder that any reservation confirmed with a credit card that will not authorize the forfeiture amount is subject to cancelation at any time and without notice. Hotels have been advised to preauthorize the late cancel penalty amount as soon as the reservations show active in their systems and to cancel any booking where the credit card declines.

Request compensation for delayed hotel opening

While our hotels will absolutely consider compensating any guest for genuine inconveniences or issues they determine they are responsible for, a pattern is developing which increases our concern as to the authenticity of some of these reservations.

Please understand we have placed your account on an alert list and are monitoring all pre-opening reservations at SPG® participating hotels.

Please reply acknowledging receipt and your understanding of this message so that we may reactivate your account.

Sincerely,
SPG® Member Account Integrity

From my reading of that e-mail the issue is two fold:

  • Members are making bookings in the hopes of receiving compensation for stays they have no plans to complete
  • Members are using payment methods that will fail if a no show or cancellation fee is charged

It seems people are being warned about the payment method situation even if they have used a valid credit card, so this is obviously a very general e-mail that is being sent out regardless of your exact circumstances. I can understand why SPG wants to cut down on this practice but I don’t think it’s as bad or widespread as this e-mail makes it look. Keep in mind that SPG isn’t exactly generous when a hotel has a delayed opening, most of the time members are offered nothing or a paltry 500 points for the inconvenience.

If your new hotels have reliably delayed grand openings, this says more about your inability to announce accurate completion dates than it does anything else. If SPG doesn’t want members to make speculative bookings, maybe they should stop making speculatively opening dates? Having a delayed opening can cause havoc to a trip so you’d expect SPG & other chains to announce conservative opening dates and as development progresses you can always push the opening date forward. SPG obviously doesn’t want to do this though as it would most likely leave them with a lot of open inventory if a hotel does open ‘on time’. My sympathy for SPG on this matter is at an all time low, especially when they are preemptively disabling accounts without first contacting members.

Hat tip to OMaaT

 

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11 Comments
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Steve
Steve (@guest_611259)
July 1, 2018 17:28

Somehow this is Trumps fault. Right?

NinjaX
NinjaX (@guest_611243)
July 1, 2018 16:25

this warning is so much better than a chase shutdown from nowhere. nobody should complain about such a “nice letter”. i wish all banks did that.

furthermore, everyone in this game knows if something can be exploited, it will be. thats why we play the CC game and its no different than flight bump seekers using algos getting shitload free flights.

besides, this guy booked new hotels and cancels reservations 95% of the time. so its pretty easy to see what he was up to. altho i guess he didnt use an invalid CC, but u could have legit reasons for that like limited use throwaway online CCs to protect urself from fraud.

MarcoPolo
MarcoPolo (@guest_611203)
July 1, 2018 15:12

RATs gone crazy now.

Robbie
Robbie (@guest_611148)
July 1, 2018 13:14

This can’t be a real thing. Never heard of it. And for 500 SPG points? No way. Besides, get your opening date straight.

Frank
Frank (@guest_611055)
July 1, 2018 11:02

The people using invalid payment methods are dicks and should be completely banned (obviously not on a first offense) but that’s BS by SPG to punish people for booking grand opening. If you are sick of compensating people then stop cancelling the grand openings

NinjaX
NinjaX (@guest_611240)
July 1, 2018 16:21

read the whole story. this guy books new hotels, and cancels reservations 95% of the time. its clear repeat behavior.

Hadley V. Baxendale
Hadley V. Baxendale (@guest_611028)
July 1, 2018 09:58

Sympathy ends when people use certain “tricks” like using expired credit card numbers, etc. as noted above — it is one thing to try to legitimately book new hotels, quite another to make speculative bookings in the hope that they don’t open on time and then demand compensation.

Larson
Larson (@guest_611009)
July 1, 2018 09:17

“My sympathy for SPG on this matter is at an all time low…” I actually had the completely opposite take. The letter recipient admitted to canceling 95% of their reservations. That’s ridiculous.

Maybe it’s becaise I work in construction so am a bit more understanding of delays, etc. If SPG is offering alternative housing in cases like this, damage to consumer seems minimal to me.