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Subscribe to our
bi-monthly
HPASA newsletter. |
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June 2011
NOW IS
THE TIME TO ADJUST YOUR CANCELLATION
POLICY |
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The provisions of the Consumer Protection
Act (the Act) finds extensive application
in the hospitality industry as members of
the industry provide a service to the general
public, i.e. the everyday user of the various
facilities offered by this industry.
Canceling Reservations or Bookings
Consumers are expressly granted the right
to cancel any advance reservation or booking
and a service provider can therefore not
disallow a consumer the right to exercise
this right. The service provider may require
that a deposit is paid upfront and may,
in addition, impose a reasonable charge
for the cancellation (except where the cancellation
occurs as a result of death or hospitalisation).
Erroneous Bookings
The Act determines, in addition, that
where an establishment cancels a booking
(maybe as a result of an erroneous
double booking), the consumer may
claim accommodation of equal or better
standard from the establishment and,
if the other booking is at a higher
price, then the service provider will
have to pay the difference.
Exception
The only exception from liability
under this provision of the Act is
when the failure to provide the service
was as a result of factors beyond
the establishment’s control,
such as flooding, storm damage, and
other natural disasters.
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Amount of Penalty
In determining the reasonableness of a penalty
charged to a consumer who cancels a booking,
the Consumer Commissioner must take into
account the relevant practice in the industry,
nature of the service, length of cancellation
given, and the like.
Aligning
your Cancellation Policy
It is therefore necessary to align your
cancellation policy with the Act and to
devise a penalty schedule that will work
reasonably in the circumstances of your
business. This policy must also be written
in plain and understandable language and
must be made available to all consumers
so that they are au fait with the terms
and conditions of the booking made with
the establishment.
Sourced from STBB |
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