Lock in your access to hotel refunds as travel remains iffy

Worried you might need to cancel your hotel stay last-minute? If the pandemic taught us anything, it’s that nothing is for certain — not even the room you booked.

Sometimes the airline cancels your flight and can’t rebook you for at least another day, so you will arrive late and want a refund for your first night.

Maybe your upcoming international trip won't come to pass because another country shuts down in the midst of another surge in COVID cases.

Perhaps COVID-19 vaccine, booster, quarantine or test requirements make it challenging (or impossible) to travel.

In case your vacation plans get interrupted this year, know how to cancel your hotel reservation — and get your money back.

Avoid third-party platforms

Booking travel through a third party like Expedia might seem appealing if you find a deal. But it can become a headache if you need to cancel.

Cancellation policies for individual hotels don’t necessarily apply when booked through online travel agents. Many hotels eased up on strict cancellation policies during the pandemic by offering guests the option to cancel or rebook at no cost, or extending expiration dates of points and vouchers. However, most hotels explicitly state that those generous extensions specifically did not apply to rooms booked via online agents or other third parties.

Sometimes, canceling a part of a stay or a vacation package can entail more fees. For example, Costco Travel typically charges supplier fees for any changes made to your package reservation after the initial booking date.

Understand different room-rate policies

Many hotels offer the same physical room at a few different rates — and with a few key differences. At booking, it’s common to see the cheapest rate (or a requirement that you pay in full upfront) paired with a stringent cancellation policy, as well as a pricier rate with a generous cancellation policy.

These days, it might be better to opt for the more expensive rate. You will spend a bit more money on the booking, but you won't lose it all should you need to change or cancel.

Trip insurance helps

If you need to cancel your trip, having the right travel insurance can improve your refund odds.

You could book your stay on a travel credit card that offers trip insurance as a perk. Most premium travel credit cards do. If your trip is canceled or interrupted for a covered reason and was paid for with that card, you will typically be reimbursed for up to a certain amount of money.

While most premium travel credit cards charge hefty annual fees, they can be worth it for this one underrated perk alone.

Covered reasons vary by card, but typically include:

• Sickness experienced by you, a traveling companion or a family member.
• Severe weather that prevents or interrupts your trip.
• Financial insolvency of your travel supplier (in case your hotel goes out of business).

Purchase a policy

If you don’t have a credit card with built-in travel insurance, it might bring some peace of mind to purchase a separate travel insurance policy to counterbalance the unpredictability of travel these days.

Book at the last minute?

This advice isn’t necessarily good for everyone, as it comes with the risk that the hotel you want might be sold out by the time you book. But if you are willing to take the chance, then consider booking your hotel at the last minute. It can save you money beyond just a lost cost of a potentially-called-off, nonrefundable hotel stay.

A NerdWallet study of more than 2,500 hotel room rates across 2019, 2020 and the first half of 2021 found it was cheaper 66% of the time to book hotel rooms 15 days out versus four months out.

Sally French writes for NerdWallet. Email: sfrench@nerdwallet.com. Twitter: @SAFmedia.