Russian hotels will be allowed non-refundable rates

Russia will introduce legal non-refundable rates in hotels and inns. The Ministry of Economic Development has published a draft government resolution, according to which hoteliers will have the right not to refund payments to customers who cancel their reservations or do not check in.

A full refund will only be possible if the client paid for the room at a special refundable rate, according to the draft of the new Rules for the Provision of Hotel Services. Officials propose to include in the terms of the non-refundable rate the possibility of returning part of the money - at the discretion of the owner of the hotel business. The Ministry of Economic Development stipulated that hoteliers are obliged to give people booking a room the opportunity to choose a rate.

“The consumer will be able to choose a non-refundable booking and save on accommodation or choose a refundable booking and protect themselves in the event of a trip cancellation,” the authors of the resolution explained in the explanatory note.

According to the document, a client who has chosen a non-refundable rate will be able to return the money in the event of their own illness or the illness of a loved one included in the booking, as well as if a relative who requires care falls ill. All this will have to be confirmed by medical certificates. The reason for returning the money will also be the death of a loved one, a contract with the Ministry of Defense or a call for mobilization, as well as "the introduction of a high alert regime or emergency situation throughout the territory of the Russian Federation."

In February, the Ministry of Economic Development prepared a bill on non-refundable rates for hotels. Since July, the project has been under consideration by the Ministry of Justice. According to this document, the division of hotel rates should appear in Russia on March 1, 2025.

The Union of Consumers of Russia spoke out against the innovation. The chairman of the Union, Petr Shchelishch, told Vedomosti that many hotels and inns would make their rates non-refundable, and would charge a much higher price for the right to use refundable ones. This is exactly what happened to airline tickets, according to Shchelishch, after “contrary to the law ‘On the Protection of Consumer Rights,’ air carriers were allowed to sell non-refundable tickets.”

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