By Vanessa Pratley
Investigative Journalist | Kaipūrongo Whakatewhatewha
We tell you your booking rights if you’re impacted by a natural disaster such as flooding, landslides or a cyclone.
I had a booking, but I can’t make it because of a natural disaster. Can I cancel my accommodation?
Check the terms and conditions of your booking if your accommodation has been impacted because of a natural disaster. These should have been provided to you at the time you made your booking.
The terms will usually set out your rights if the accommodation can’t be used due to something outside the control of the parties, such as a natural disaster.
The relevant clauses sometimes use the words ‘act of God’ or ‘force majeure’.
The company needs to make sure any cancellation terms that apply in these situations are fair. Otherwise, it risks breaching the Fair Trading Act.
In our view, a term that lets the company keep a sizable chunk or all of your money is likely to be unfair and open to challenge.
If the terms entitle you to a refund but your accommodation provider refuses, contact your bank to ask about a chargeback (a refund to your card) if you paid by credit or debit card.
What do I do if the terms and conditions don’t mention natural disasters?
If there’s nothing in the terms that state what happens in the event of a natural disaster such as flooding, then you can rely on the Contract and Commercial Law Act (CCLA).
This act applies where a contract is “frustrated” – that is, it can’t be fulfilled due to events outside the parties’ control. Events outside of parties’ control include natural disasters such as flooding, cyclones and earthquakes.
The CCLA gives you the right to request a refund and limits what the company can charge to its reasonable administration costs.
The same applies for your rental car, too.
Do I have to pay a cancellation fee if I cancel my accommodation because of a natural disaster?
An accommodation provider can only charge a cancellation fee if the terms and conditions allow for this – and the terms are fair.
Companies can’t just charge whatever they like. A term allowing a company to charge a steep cancellation fee in this type of situation risks being unfair and breaching the Fair Trading Act.
The same would apply if the contract allowed the company to cancel at any time without penalty but imposed a fee on the consumer for doing so.
Excessive fees may also be considered penalties under contract law and open to legal challenge.
If you’ve been unfairly stung, you may be able to get a chargeback from your bank. Alternatively, you could lodge a claim in the Disputes Tribunal for a refund.
Consider making a complaint to the Commerce Commission too.
Do I have to pay an extra fee for changing my booking to another day?
The company can only charge extra to change the date of your booking if the terms and conditions allow for this (and they are fair).
You’ve got the right to question any additional charges that you weren’t told about when you booked.
I was never shown any terms and conditions when I booked, do they apply?
Terms and conditions only form part of the deal if they were shown to you prior to making the booking.
Providers can’t just make up terms to suit themselves when circumstances change. The terms need to have been in place at the time the contract is made. Any attempt to impose new terms on a consumer is likely to breach the Fair Trading Act.
What happens if the owner cancels my booking because of a natural disaster?
You’re entitled to a full refund. Some sites give you the option of transferring your payment to another property, but you don’t have to accept this offer.
We know your rights
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