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Published Wednesday, April 8, 2020
Hotels deem “unfeasible” to reimburse advanced payments
By the A.M. Costa Rica staff
The Costa Rican Hotels Chamber, CCH, announced on Tuesday that it is unfeasible to proceed with full refunds to its guests due to booking cancellations.
According to the Chamber, paying back the money will become an aggravating situation for the tourist economic sector already affected by the coronavirus covid-19 crisis.
This week the Ministry of Economy reported that consumers, because of the global pandemic have the right to a full refund for cancellation of reservations in hotels, tourist centers, car rentals or any other services paid in advance.
According to the Chamber, the tourism sector is one of the most affected by the crisis caused by the pandemic. And given the current context, as there are no tourists, tourism entrepreneurs present financial problems in their businesses.
Also, the cancellation of hotel reservations have increased, worsening the situation in the tourism sector especially now with refunds, said the Chamber
"I respectfully inform that, we (hotels), are not in the possibility of reimbursing the money, our companies are going through serious cash flow issues because income is nil. So a measure of this type (returning the reimbursing money) is unfeasible and it does hurt more to the sector (referring tourism economic sector),” said Javier Pacheco, president of the Chamber.
Pacheco calls on hotel owners to make their reservation and cancellation policies as flexible as possible and to offer their clients other alternatives, such as rescheduling reservation dates without extra penalty charges.
"That is the slightest harmful option, however, it is only a recommendation that we make from the Chamber, of course, each business has its cancellation policies and may apply as they consider necessary," Pacheco said.
Most of the hotels in the country have suspended or reduced to a minimum its operations, maintaining a part of their employees and applying the reduction of working hours, as the last option, said the Chamber in its statement.
“Our main interest is to minimize the consequences of our employees and their families, that is why it is essential to maintain cash flow in our businesses to be able to support it, but a measure of this type (referring to the reimbursed), causes serious damage,” Pacheco said.
Last week the Ministry of Economy reported the majority of airlines, hotels and tourist centers have had to suspend its operations due to the control measures imposed by the government to prevent the spread of the coronavirus covid-19 in the country.
If people paid in advance for flights, hotel reservations, local transportation or local tours, the Ministry of the Economy gave a series of recommendations for claiming money previously paid.
According to the ministry, all consumers have the right to get the reimbursement of what was paid in advance or the option of rescheduling the service without penalty.
That rule applies to all types of payment for tourist services locally or internationally, said the ministry.
Authorities provided the following recommendations for the process of a reimbursement claim:
- Before making an advance payment, always read the contract terms. All companies must provide the contract before the client makes the payment.
- Before making a claim, check the company's websites for updates or restrictions on reimbursements.
- Some companies offer to reschedule the trip. In that case, make sure to receive the new contract for the new reservation to use within a reasonable period.
- Most of the tourist service companies are establishing flexible policies for cancellation or rescheduling. These policies must be informed in a contract.
- If you have not yet made a reservation for your trip during 2020, but you are interested in doing so, it is recommended to take account of national and international alerts in case the coronavirus pandemic may extend for several more months.
Before paying for tourist services, such as flights, hotel booking, or local transportation, look for providers with flexible cancellation policies. Also, pay for travel insurance to cover any issues during the pandemic.
According to the ministry, the information related to the coronavirus covid-19 is constantly changing for that reason consumers should be informed regarding the regulations in the country that may affect future vacation plans.
If the company does not provide reimbursement or reprogramming of the service previously paid, the ministry started a phone line for complaints and inquiries, 800-266 7866.
The country is facing a quarantine due to the increase of patients infected with coronavirus covid-19 which has greatly affected tourism.
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