“The part of the opposite party (hotel) in cancelling the confirmed hotel booking despite taking the complete rent charges in advance is highly unprofessional, and if such action on the part of the opposite party is allowed to go scot-free, then it will create a very unhealthy business practice/model,” the September 7 order read.
Trip to attend Coldplay concert
The man claimed that he had planned a trip to Ahmedabad from January 24, 2025 to January 26, 2025 to attend Coldplay’s concert scheduled for January 26 and had bought tickets for the event.
The complainant said that he booked hotel accommodation on November 16, 2024, for two nights from January 24, 2025 to January 26, 3025 for Rs 17,365, and the booking was confirmed by the hotel.
However, on December 24, 2024, he received an email from the hotel informing him that his reservation had been cancelled. The man said no reason was given for the cancellation, causing him distress and forcing him to look for alternative accommodation.
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He further said that he was surprised to find that the same hotel room for the same dates was being offered at Rs 46,472. He also pointed out that the refund of the amount he had paid was made only on January 5, 2025, 12 days after the cancellation.
Aggrieved, the man moved the commission alleging deficiency in service and seeking compensation for mental agony and harassment. He was represented by advocate Krishnagopal Abhay.
‘Totally unprofessional’
The commission found that Coldplay’s performance in Ahmedabad on January 26, 2025 had generated “enormous public demand” for concert tickets as well as hotel bookings in the city.
It held that the hotel’s action was an “unfair trade practice” and “totally unprofessional” conduct, noting that the booking was cancelled without any reason and the room was subsequently available at a higher price.
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The commission also noted that the hotel did not appear before it and proceeded ex parte. It mentioned that the said hotel is a renowned business entity in the field of hospitality and indulging in such conduct sets a “very bad professional/business example”, and people will lose “faith” in the hotel industry.
The commission directed the hotel to pay 12 per cent annual interest on Rs 17,365 for the period from November 16, 2024 to January 4, 2025. It also ordered the hotel to pay Rs 15,000 as compensation for mental agony and harassment and Rs 10,000 towards litigation costs. The hotel was directed to comply with the order within 30 days of receiving the judgment.
Takeaway
The ruling highlights that cancelling a confirmed hotel booking without reason and then making the same room available at a higher price can amount to an unfair trade practice.
For consumer-related grievances, individuals may contact the consumer helpline in their respective states (Delhi: 1800-11-4000) or call the National Consumer Helpline at 1915 for assistance.
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