The Hindu : Karnataka / Bangalore News : Only partial refund for cancelled hotel bookings

Online edition of India's National Newspaper
Wednesday, Dec 29, 2004

Karnataka

Karnataka - Bangalore

Only partial refund for cancelled hotel bookings

By Divya Sreedharan

BANGALORE, DEC. 28. Lingamurthy of Jayanagar is in a dilemma. After cancelling plans to usher in the New Year at a resort in Kasaragod in Kerala, he found that the money already paid by him for the stay would not be fully refunded.

"We were supposed to go as an 18-member group, but after the tsunami disaster, we don't want to go anywhere near a beach. We were supposed to leave on Wednesday; so, I called up the travel agency on Monday. The agent says we will get back only 25 per cent of the money," Mr. Lingamurthy told The Hindu on Tuesday. His group paid about Rs. 30,000 for the four-day package.

Other Bangaloreans have similar tales to relate. Those who have booked over the Internet have suffered even more.

Most travel agencies, hotels and resorts have strict policies on refunds. Generally, if tours are cancelled a day before, they usually deduct over 50 per cent of the original signing amount.

Samrat, Senior Manager at India Tourism Development Corporation (ITDC), says the Government should act in such cases and direct travel agencies to refund the money to those who cancel tours. "In one way, the industry is justified. This is their peak season; so, most travel agents have to pay advance amounts of up to 50 per cent just to block rooms," he points out. He says that the ITDC charges nothing if there are cancellations in times of calamities.

An official at Karnataka Tourism says the department can help "if people want to cancel holidays in resorts within the State." Mr. Lingamurthy was supposed to go to Kerala; so, the department concerned has to help, he says.

"A friend wanted to cancel a trip to Chennai. I had to speak to the hotel owner before he agreed to refund the money," the official says.

Those in the travel and tourism trade believe that it will take at least a year before business attains normality in badly affected places such as beach and coastal resorts.

Girija of Hammock Holidays booked the trip for Mr. Lingamurthy's family. "The resort owner only agreed to return 25 per cent after I warned him that we would not send him any more clients," she explains.

According to her, agencies such as hers have no say in the matter of refunds. "We make it clear that the hotel/resort policy applies here." She knows that many people have lost money in this manner. "I have been fighting with another resort owner in Mahabalipuram near Chennai to get a client's money back. Why, even resorts in Phuket in Thailand are not giving refunds," she adds.

Mr. Lingamurthy's family now plans to welcome the New Year in Sakleshpur.

"Else, the children will be upset," he adds.

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