My hotel offered a room / meal package over New Years that required a deposit equal to the total package price, but some guests canceled the day of the event. Do I have to refund their deposit?
It is perfectly legal to require payment prior to providing services, even though that is not how we usually do business in the hotel industry. Theaters, cinemas, and amusement parks, however, are all examples of businesses that require payment before the guest receives their services. It is the right of hotels and restaurants to make full or partial pre-payment a condition of their contracts. It is the right of the guest, however, to refuse this contract offer and take their business elsewhere should they wish to do so. In your case, you must follow the agreement you made at the time you accepted the deposit. In addition, if you are a franchise property, your franchisor may have procedures you must follow. Hopefully, that agreement was in writing. It is never a good idea to let your sales or reservation staff accept and post a deposit unless it is accompanied by a signed contract spelling out your cancellation policy. Also, remember that while it may be perfectly legal for you to keep
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