Accommodation

Travel plans cancelled or disrupted? Find out what rights you have to cancellation, refunds and misleading advertising in New Zealand and overseas.

Your rights

In New Zealand

When you book accommodation in New Zealand, it’s covered by the Consumer Guarantees Act(external link) (CGA) and the Fair Trading Act(external link) (FTA) – this usually includes people who offer houses or baches for rent, including those through booking sites.

These acts mean that accommodation providers must carry out their services, including the booking process and the facilities and experience at the accommodation, with reasonable skill and care. The services must also be fit for purpose, and they must not mislead you about what the accommodation will be like or the facilities that will be included.

If these guarantees are found to be breached, you are entitled to damages for the amount of your loss – this may include things like the additional cost of alternative accommodation or alternative travel. In some cases, you will also be entitled to a refund.

If you have to cancel booked accommodation, whether or not you can get a refund is generally determined by the terms and conditions of the original sale.

Overseas

When you book accommodation overseas, your rights if something goes wrong depend on the laws of the country you're travelling to.

In most cases, you can only get a refund if you cancel booked accommodation if the terms and conditions of the original sale allow it.

Consumer rights when booking accommodation in Europe(external link) — European Consumer Centres Network

Holiday accommodation and your rights(external link) — CHOICE Australia

Essential things to check and organise before booking accommodation

1. Check the terms and conditions

Always check the terms and conditions before booking accommodation.

The terms and conditions will tell you:

how you can change or cancel your booking
when you can cancel without forfeiting part or all of your payment (this is usually a set period of time before the date of your booking)
whether you can get a refund or a credit if you cancel
the cost of the room, and whether you need to pay in advance or once you arrive
what facilities will be provided – for example, a bathtub or washing machine, access to a swimming pool, or any included meals
rules about the booking – for example if children or pets are allowed, how many people can stay in the room, or whether guests can visit while you’re staying
information about checking in and checking out – for example what to do if you arrive late at night or where to collect the keys.

The terms and conditions must be disclosed to you before you book for them to be legally binding. A provider is likely to be breaching the Fair Trading Act if they try to provide you with new terms, or show you their terms for the first time, when you contact them to cancel or change a booking.

2. Check the currency you’re being charged in

If you’re booking accommodation on an international site, always double-check the currency you’re being charged in.

You do not have the right to cancel or ask for a chargeback just because you didn’t realise the amount was not in New Zealand dollars.

3. Read the fine print

The picture on the website is not always the room you’re booking — before you book, read the description of the room and facilities carefully to make sure it will meet your needs.

The FTA prevents providers from making misleading claims, so if you get to the accommodation and it isn’t as advertised, you have grounds to seek compensation.

A term may be unfair if it:

causes a significant imbalance in the rights and obligations between you and the accommodation provider
isn’t reasonably necessary to protect the interests of the accommodation provider, and
would cause you detriment if it was enforced.

If you think that a term may be unfair you can complain to the Commerce Commission.

Booking tips

Using a third-party site like Expedia, booking.com or AirBnB to find accommodation can give you lots of options, and show you the range of prices and rooms available in the area you’re travelling to — but booking accommodation directly with the provider can be cheaper but can limit consumer protection.

It might be worth doing your research on a third-party site and then checking the website or calling a provider directly before you book to see if they can give you a better rate. However, your right to cancellations and refunds depends on the terms and conditions you agree to when you book — so booking through a third-party site like AirBnB may give you more protection if your plans change.

These days where disrupts are happening with regularity booking through a travel agent can give you greater flexibility and more protections. If you book directly, and something does go wrong, any disruptions would need to be handled by you.

Other things to check and organise before booking overseas

Organise travel insurance

If you're travelling overseas, you need travel insurance. Most comprehensive policies cover non-refundable travel and accommodation costs if something happens (like an illness or accident) that means you need to cancel or cut your trip short.

Your policy may also provide cover for alternative transport or extra costs if you suffer an unavoidable delay – for example a cancelled flight or missed connection.

It's best to buy travel insurance as soon as you make your first booking – this ensures you're covered if you need to change or cancel any of your plans before your departure date.

Can a provider cancel accommodation booking?

If the provider cancels accommodation you’ve booked and paid for due to something out of anyone’s control, like a flood then your remedy will be determined by terms and conditions.

If the cancellation is within their control, you’re entitled to a full refund. The provider might give you the option of transferring your payment to another property, but you don’t have to accept this offer.

If you can’t go because of something that’s out of anyone’s control

If you can’t travel because of an event that no one could have predicted, like a storm or pandemic that closes roads or airports, check the terms and conditions you agreed to when you booked. Look for a clause that uses the words “act of God” or “force majeure”.

For accommodation in New Zealand:

the cancellation terms must be fair. If a term is found to be unfair by the Commerce Commission the provider may be breaching the Fair Trading Act
if the circumstances are not covered in the terms and conditions, then the Contract and Commercial Law Act (CCLA) applies. The CCLA applies when a contract is “frustrated”, meaning it can’t be fulfilled due to events outside of both parties’ control. It gives you the right to request a refund and limits what the company can charge to its reasonable administration costs.

If you booked through AirBnB and the host cancels within 30 days of your check-in date, you can contact AirBnB directly and they will help you find alternative accommodation.

Re-booking and Refund Policy(external link) — AirBnB

If you need to cancel

If you need to cancel, contact whoever you booked with. The terms and conditions you agreed to when you booked will tell you:

when you can cancel without losing part or all of your payment, and
whether you can get a refund or a credit if you cancel.

The provider can only keep all or part of your payment, or charge a cancellation fee, if that was in the terms you agreed to when you made the booking.

What to expect if things go wrong with accommodation

In New Zealand, the Consumer Guarantees Act means that accommodation must be provided using reasonable care and skill, and be fit for purpose. This includes things like:

the room must be available for the period you’ve booked
the property must be clean
the facilities that were listed in the booking must be available, for example a swimming pool, wheelchair access, a bathtub or cooking facilities.

The Fair Trading Act also prohibits traders from making misleading claims, meaning that the property must be as it was advertised to you when you booked.

In most cases, any issues with the property should be taken to the property owner – even if you booked through a third-party website.

Some companies, including AirBnB, allow you to contact them directly if you can’t solve a problem directly with the host. Airbnb can grant you a full refund if your situation qualifies under their guest refund policy. Review the information you were provided with when you booked, and the terms and conditions, to see whether it covers your issue.

Re-booking and Refund Policy(external link) — AirBnB

Compensation if your accommodation isn’t as advertised

You have grounds to seek compensation if the accommodation is not what was advertised and agreed to in the terms and conditions, including things like:

if the room is smaller than advertised – for example, you booked a two-bedroom apartment and are provided one bedroom and a sofa bed
if the room is in a different location or has different amenities than advertised – for example, you booked a room with a sea view or a room beside the pool and do not get it
if you booked an entire property and arrive to discover other guests or residents sharing the space
the accommodation has not been cleaned before your stay
there are health and safety issues, hazards, or pests in the room or property
the accommodation is double-booked or you cannot check in at the agreed time.

In most cases, any issues with the property should be taken to the property owner – even if you booked through a third-party website.

You are entitled to a room that’s at least as good or better than what you booked. If the room or property is unavailable or double-booked, under the CGA you are entitled to a refund and compensation for '"reasonable consequential losses". This might include compensation for:

having to book and travel to accommodation elsewhere at short notice – for example, if you had to take a taxi and pay $100 more for another hotel
anything you missed out on as a result of the booking issue – for example if you missed the theatre performance you were supposed to go to after checking in, and/or
stress and inconvenience.

You are entitled to cancel the booking and receive a refund if:

A misrepresentation substantially reduces the benefit to you, or substantially increases the cost to you, compared to what you were told and agreed to, or
the services substantially fail to meet the consumer guarantees around reasonable care and skill or fitness of purpose, and can’t be easily remedied.

Minor or easily fixed problems won’t give rise a right to cancel and receive a refund, but something major would.

Some booking companies, allow you to contact them directly if you can’t solve a problem directly with the host. They may be able to grant you a full refund if your situation qualifies under their guest refund policy. Check the website’s terms and conditions to find out what applies to you.

Take it further

The provider and/or the country the accommodation is located in may have their own dispute resolution processes you can follow.

Go to the Disputes Tribunal

If you’re unable to resolve an issue with the property owner or the booking website, you can make a claim through the Disputes Tribunal. This is quicker, cheaper and less formal than going to Court, but they can still issue binding decisions about disputes.

What the tribunal can help with(external link) — Disputes Tribunal

Request a chargeback

If you paid by credit or debit card and the accommodation was not provided due to a cancellation by the provider and you have been unfairly denied a refund or you where charged the wrong amount, contact your bank about a chargeback. Chargebacks are only available for a short time after you made the transaction — usually about 30 days. Ask your bank what their time limit is and how to apply .

Chargebacks(external link) — Banking Ombudsman

Make a complaint with the Commerce Commission

You can report the business to the Commerce Commission if:

you think you have been misled
a business has said something that is not true.

The Commerce Commission can't investigate every complaint, or solve your individual problem. But they can warn or prosecute the business. Your information helps them assess which consumer issues are causing the greatest harm.

Make a complaint(external link) — Commerce Commission

More help

Get support at any point from:

Citizens Advice Bureau (CAB) — a free, independent service, run by volunteers. CAB can advise you on your consumer rights and obligations, in person, by phone, or online.
Community Law Centre — offers free one-on-one legal advice to people with limited finances. The organisation has 24 community law centres throughout the country. You can find legal information and other resources on its website.

Find a CAB(external link) — Citizens Advice Bureau

Our law centres(external link) — Community Law Centres

For general enquiries please contact us

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