Hotel guests using short-term rental firm Sonder have been kicked out of their rooms mid-trip after the company collapsed into bankruptcy.
It has left people scrambling for new accommodation, while those with upcoming trips are unaware if they’ll get their money back.
Although Sonder is an American company, it serves customers across nine countries, including the UK and across Europe, meaning some British holidaymakers could be left out of pocket.
We look at how you can claim a refund if you’ve booked with Sonder.
Left in the lurch: Marriott ended its agreement with short-term rental firm Sonder, which has filed for bankruptcy – meaning guests have had their stays cancelled
Why did Sonder file for bankruptcy?
Sonder launched in 2014 and was once hailed as a rival to Airbnb. It offers premium apartments and boutique hotels to travellers.
The company, which is listed on the Nasdaq stock exchange, partnered with the hotel chain Marriott last year, allowing it to list rooms on Marriott’s website.
The two companies reportedly struggled to integrate their booking systems, with Sonder executives saying there had been a ‘sharp decline in revenue’.
On Sunday, Marriott announced it had ended its licensing agreement with Sonder and a bankruptcy filing followed soon after.
‘We are devastated to reach a point where a liquidation is the only viable path forward,’ said Janice Sears, interim CEO at Sonder.
‘Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system.’
How do I claim a refund?
Guests were reportedly blindsided when Marriott and Sonder ordered them to leave properties on Sunday, with some halfway through their stays.
Plenty of travellers will also have upcoming trips and non-refundable bookings, meaning they will have to splash out on new accommodation.
Sonder has not issued any guidance on refunds, but there are some ways to get your money back.
If you booked on a credit card
If you booked your trip on a credit card, you can ask for a refund using Section 75 of the Consumer Credit Act, as long as you paid more than £100 and no more than £30,000.
This doesn’t cover payments made through a buy now, pay later provider such as Klarna or Clearpay, however.
It’s better to raise a dispute on the provider’s website if you paid via a platform such as this.
You can also request a chargeback, which is where the debit or credit card provider tries to claw the money back from the company it was paid to – in this case Sonder.
However, there’s no guarantee your credit or debit card provider will agree to do it. This normally has to be done within 120 days of the payment being made, but in the case of hotel stays the clock starts on the day you were supposed to arrive.
If you booked on a debit card
If you used a debit card, you aren’t protected by Section 75 but you could try to lodge a chargeback. It is advised to contact your bank to discuss your options.
What about travel insurance?
The next step is to check the terms and conditions of your travel insurance.
Situations such as this are why it is vital to take out travel insurance as soon as you book a holiday, instead of shortly before you travel.
If you are mid-trip and need to book a new hotel, your insurer might cover you – although you will probably need to pay out of pocket in the first instance and make a claim to get it back later.
Many insurers will also cover you if your accommodation falls through ahead of your holiday. Whether it is covered, and the amount it will pay, will depend on how much cover you agreed to when you took the policy out.
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