Generator Hostel London - Help!

exceemuk

Hello MSE Community, 

I hope you can help me which in turn will also help many other travellers in my situation from looking online

I made a booking for a stay on the 25th January 2020 for a 8 berth room at the Generator London for a Stag Do. At the time I booked an advanced rate and was non refundable. 

The country then went into lockdown and I decided to ring the Generator for advice at the beginning of June asking to possibly rearrange the booking as it didn't look as if we were going to be able to attend. The gentlemen at the time said there is nothing he could do and that I would lose my money anyway as I booked a non-refundable rate.

Nearing the end of June I wrote them again asking if I could rearrange the booking or cancel so I can book at a later date. The management's reply to me was "Unfortunately since your reservation is for arriving the 11th July, we are unable to make an exception. Our standard terms and conditions need to be applied, and your rate is non refundable." This statement was made before the government actually gave the go ahead for the reopening on the 4th of July.

The group of us were from 7 different households therefore going against the government rules and would have made it illegal for us to attend and be in the same dorm room. Not to mention us feeling very uncomfortable using shared facilities in a hostel environment.

I feel it is incredibly wrong that they did not allow us to move my booking or receive a booking. Big chains and small B&B's are all doing their bit to help customers at this time. Why are they an exception?

I took advice from Citizens Advice and they also believe this is really wrong and should be investigated. 

They pointed me to a page on the .GOV website - "CMA Guidance - The Coronavirus (COVID-19) pandemic, consumer contracts, cancellation and refunds"

It clearly states here:

Non-refundable payments and fees

In the CMA’s view, the above rights to a refund will usually apply even where the consumer has paid what the business says is a non-refundable deposit or advance payment.

The CMA also considers that businesses should not charge an admin fee (or equivalent) for processing refunds in the above circumstances.

With a bit of detective work I tracked down the CEO and COO's email address. Their reply was:

Dear Miles

Thanks for your patience. Whilst the hotel was open for the date you initially booked for I understand the difficulty in travel and as such would be happy for you to rebook in London at any time before the end of the year. There will be no rebooking fee however there may be a rate difference.

If you could let me have a future date option I can get this booked for you.

I hope this helps and look forward to hearing from you. 

Thanks and best

Edward

I replied back:

Dear Edward

Thank you for your reply, I appreciate the offer however I would like a refund please instead as we no longer wish to stay in a hostel for the foreseeable future and are looking to book elsewhere in the countryside.

Kind regards,

Miles 

I then didn't hear back again for a week and replied again asking for an update, their reply was:

Hi Miles 

We have had another investigation and I am afraid that I am unable to offer a refund for your booking. Our property was open and travel in the UK was also not restricted earlier this month. 

As previously mentioned we are happy for you to rebook if you wish. 

Could I also suggest you speak to your travel insurance provider? 

Best 

Edward

What should I do now? I feel this is so wrong?
Thank you for your help.
Miles

bradders1983

It is no concern of the hostel how many households your booking was for. If it was open and you didnt go, you waive any right to a refund.

bagand96

You booked a non-refundable rate. 

The hostel was open on 11th July therefore the product you paid for was available as advertised. The company have gone above and beyond by offering a date change. They didn't even have to do that. 

I do appreciate your situation and it's frustrating. Covid-19, and the government restrictions aren't your fault. But they aren't the fault of the hostel operator either. 

When you book a non-refundable non-changeable rate you are taking on a degree of risk. 

exceemuk

bagand96 said:

You booked a non-refundable rate. 

The hostel was open on 11th July therefore the product you paid for was available as advertised. The company have gone above and beyond by offering a date change. They didn't even have to do that. 

I do appreciate your situation and it's frustrating. Covid-19, and the government restrictions aren't your fault. But they aren't the fault of the hostel operator either. 

When you book a non-refundable non-changeable rate you are taking on a degree of risk. 

I appreciate that but we all couldn't of shared the room? That's my point. I booked way before any of this happened. I feel they should of refunded so I could book at a later date. Not give me the ultimatum of "by the end of the year". Also you mentioned "The company have gone above and beyond by offering a date change." I had to track down the CEO to get that offer....

bagand96

exceemuk said:

I appreciate that but we all couldn't of shared the room? That's my point. I booked way before any of this happened.

Yes I do appreciate that, but why should that be the hostel's responsibility to suffer the loss any more than it should be yours. It's no more their fault than it is yours?

I'm not being unsympathetic, it's a difficult situation for all. But a lot of people are having a bit of an education in what non-refundable and non-flexible booking conditions mean. There's always a flexible rate available.

bradders1983

Well you could have shared it. Do you think the Police go round knocking on hotel and hostel doors? Its now at a stage where you do whatever you are comfortable with.

exceemuk

bagand96 said:

exceemuk said:

I appreciate that but we all couldn't of shared the room? That's my point. I booked way before any of this happened.

Yes I do appreciate that, but why should that be the hostel's responsibility to suffer the loss any more than it should be yours. It's no more their fault than it is yours?

I'm not being unsympathetic, it's a difficult situation for all. But a lot of people are having a bit of an education in what non-refundable and non-flexible booking conditions mean. There's always a flexible rate available.

Wow, how rude. I do know what non-refundable means thanks. I don't think anyone would have predicted the time we are living in at the moment. 

bradders1983

And neither could the hostel.

exceemuk

bradders1983 said:

Well you could have shared it. Do you think the Police go round knocking on hotel and hostel doors? Its now at a stage where you do whatever you are comfortable with.

What a ridiculous answer. What is this place? I thought it was a great community to get some solid answers. 
No I don't think the police would be "knocking on hotel doors" however the hostel should not allow us to if they are doing their job probably. Why should we be punished for trying to keep each other and everyone else safe?

bradders1983

You have been given some solid answers.

You chose not to go to an open hostel. Therefore it is your loss to bear.  Nothing more to be said tbh.

bagand96

exceemuk said:

bagand96 said:

exceemuk said:

I appreciate that but we all couldn't of shared the room? That's my point. I booked way before any of this happened.

Yes I do appreciate that, but why should that be the hostel's responsibility to suffer the loss any more than it should be yours. It's no more their fault than it is yours?
 
I'm not being unsympathetic, it's a difficult situation for all. But a lot of people are having a bit of an education in what non-refundable and non-flexible booking conditions mean. There's always a flexible rate available.

Wow, how rude. I do know what non-refundable means thanks. I don't think anyone would have predicted the time we are living in at the moment. 

I'm not trying to be rude, again I really do sympathise with your situation, you're especially unlucky given that the Government allowed hospitality to re-open so close to your travel date.

In terms of solid answers, I'd like to say there's a magic answer that can enable you to recover your losses, but I'm not sure there is.  What would usually be recommended is the following:

- Ask the company.  Which you've done and it would appear they wish to stick with the T&Cs of the contract.  Which they can do.  They've offered a good will gesture (I accept you had to push for that, but they've offered it nontheless)

- Credit/debit card chargeback or Section 75.  I don't think this will work in this case.  The supplier has not defaulted on the contract to provide the goods or services.

- Travel Insurance.  Would depend if you have any and what the terms are.  Most people don't have a policy for domestic UK travel.  Do you by chance have any with a bank account or credit card that may cover you?

- Small claims court.  I'm definitely no expert here - but again I'm not sure it would be successful.  Same reasons as the chargeback, the supplier have not defaulted on the contract.

The CMA advice is curious.  From the same document as the quote you posted says the following:

Where a contract is not performed as agreed, the CMA considers that consumer protection law will generally allow consumers to obtain a refund.

In particular, for most consumer contracts the CMA would expect a consumer to be offered a full refund where:

• a business has cancelled a contract without providing any of the promised goods or services;

• no service is provided by a business, for example because this is prevented by Government public health measures;

• a consumer cancels, or is prevented from receiving any services, because Government public health measures mean they are not allowed to use the services.

The problem is that it's all very vague "law will generally" as well as "the CMA would expect".    Well yes, the CMA might expect many things, but I've seen no evidence of any legislation, whereby the consumer would be entitled to a refund because they are prevented from receiving the services because of Government public health measures.  The CMA certainly don't refer to any such legislation and there's been no new emergency legislation passed to my knowledge.

You could potentially use such quotes in a small claims court case against the hostel.  Another angle that sometimes gets suggested is unfair contract clause..  But I have no in depth knowledge of consumer law, or the small claims process so I am most definitely not saying that's what you should do. 

I'm not trying to be unhelpful, I'm answering your question based on what I think is correct.  But at the end of the day I'm just an anonymous voice on the internet!