By Christopher Elliott | Travel Troubleshooter
Q: My husband and I reserved a room in the Layla Guesthouse in Puerto Morelos, Mexico, earlier this year but had to cancel for personal reasons. We canceled within the required time frame and requested a refund (minus a 6 percent cancellation fee) but have yet to receive it, despite assurances from the guesthouse that it was being processed. Can you help us? — Betsy Webster, La Grange Park, Ill.
A: You should have received your refund by now. But I think I know the reason for your delay.
The Layla Guesthouse is a six-room boutique hotel that was in the process of turning itself into longer-stay apartments when you contacted me. Your refund may have gotten lost in the shuffle.
The guesthouse applies a cancellation policy that’s similar to one of a cruise line or tour operator. If you cancel within 20 days of arrival or more, you’ll get 94 percent of your entire stay refunded. (The 6 percent cancellation fee covers the credit-card swipe fee and currency conversion.) If you cancel between 19 and 14 days before your arrival date, you’ll get 70 percent back. If you’re between 7 and 1 day, it goes down to 25 percent.
You knew about these fees and agreed to them. In some ways, they are more generous than what you would have gotten with Airbnb and Vrbo. In other ways, they are not. For example, none of the other platforms charge you 6 percent cancellation fees.
I would normally say that you could have avoided this problem by using one of the vacation rental platforms, but I’ve seen more than a few refund problems with Airbnb and Vrbo. Companies are quick to take your money and slow to return it, regardless of company size.
It looks like you canceled your reservation by email well in advance of your stay and received confirmation that the cancellation was being processed. You followed up several times, only to be told by the guesthouse that they were experiencing technical difficulties, then that your refund was being processed. However, you never received the money.
If a business promises you a refund in writing but doesn’t deliver, you may be able to talk to your bank about a credit card dispute. A chargeback under the Fair Credit Billing Act would help you recover all of your money. A dispute department will view your email from the hotel confirming a refund is being processed as a credit memo and claw back the money.
After months of waiting, you contacted me for help. My team contacted Layla Guesthouse on your behalf. You also followed up with the guesthouse to press your case. Eventually, a guesthouse representative reviewed your case and issued a full refund.
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Your experience illustrates the importance of persistence and following up. It also shows the value of a paper trail. By keeping a record of your correspondence with the guesthouse, you were able to prove that you had canceled your reservation and were entitled to a refund. In the end, your patience and determination paid off.
Christopher Elliott is the founder of Elliott Advocacy (https://elliottadvocacy.org), a nonprofit organization that helps consumers solve their problems. Email him at [email protected] or get help by contacting him at https://elliottadvocacy.org/help/