What to Do If Your Sonder Reservation Is Canceled

Last week, a traveler arrived in Toronto, excited to check into The Slate, a boutique hotel managed by Sonder. Instead, she found locked doors and an eviction notice stating that Sonder had failed to pay rent, leading to a court-ordered eviction. This unfortunate scenario has unfolded for many Sonder guests recently, leaving them stranded and confused.

Sonder’s abrupt closures have left thousands of customers in a lurch, with misinformation swirling about the reasons behind the evictions. Many travelers, particularly Marriott Bonvoy members who booked through Marriott’s platform, are understandably frustrated by the lack of communication and the suddenness of the situation.

If you are one of the affected travelers, here’s what you need to know about securing refunds and finding alternative accommodations.

Understanding the Situation

Reports in the media have inaccurately suggested that Marriott was responsible for the evictions, implying that the termination of their licensing agreement with Sonder led to the bankruptcy. In reality, it was Sonder’s financial instability that resulted in the termination. On November 9, Sonder informed Marriott that it was filing for Chapter 7 bankruptcy and ceasing operations immediately. Consequently, Marriott had no choice but to terminate its agreement with Sonder to ensure the safety and well-being of affected guests.

The fallout from this situation has been significant. Many Sonder properties have been closed, leaving guests scrambling for new accommodations. If you find yourself in a similar situation, here are some steps to take.

Immediate Actions for Displaced Travelers

1. Seek Alternative Accommodations: If you are currently staying at a Sonder property, it’s crucial to find a new place to stay as soon as possible. While Marriott is working to assist impacted travelers, reports indicate long wait times and inconsistent support. Consider looking beyond Marriott’s offerings if you’re struggling to find a suitable replacement.

2. Document Your Expenses: Keep all receipts related to your travel, including accommodation, transportation, and any additional costs incurred due to the cancellation. This documentation will be essential if you seek compensation in the future.

3. Know Your Rights: If you prepaid for a reservation at a Sonder property, you may not receive an automatic refund due to the bankruptcy filing. Sonder is the merchant of record, meaning they are responsible for processing refunds. Unfortunately, as they are bankrupt, you will need to file a dispute with your credit card company to recover your funds.

4. File a Credit Card Dispute: Under the Fair Credit Billing Act (FCBA), you can dispute charges for services not rendered. Contact your credit card issuer and explain the situation to initiate the dispute process. This step is vital for recovering any prepaid amounts for canceled reservations.

Understanding Travel Insurance and Credit Card Protections

For those who purchased travel insurance, check your policy to see if it covers the insolvency of travel providers. Many policies have specific exclusions, so it’s essential to understand what is and isn’t covered. If your policy includes insolvency protection, you may be able to file a claim for nonrefundable expenses incurred due to the cancellation.

Credit card travel protections generally cover named perils, but bankruptcy is often not included. Reach out to your credit card provider to clarify what protections your card offers and how to proceed with claims.

Communication with Marriott

Marriott is working to assist affected guests, but responses and solutions have varied widely. Some travelers have reported receiving goodwill gestures, such as bonus points, while others have faced challenges in securing new accommodations. If you are a Marriott Bonvoy member, don’t hesitate to reach out and inquire about potential compensation or assistance.

Tips for Managing the Aftermath

1. Request Goodwill Compensation: If you’ve been affected, consider asking Marriott for points or other forms of compensation. While they are not legally obligated to assist, companies often respond positively to customer requests for goodwill gestures.

2. Stay Informed: Keep an eye on developments regarding Sonder’s bankruptcy and any updates from Marriott. The situation is fluid, and new information may emerge that could affect your options.

3. Reach Out for Help: If you’re struggling to navigate the situation, consider reaching out to consumer advocates or organizations that specialize in travel issues. They can provide guidance and support in resolving disputes.

Conclusion

The recent bankruptcy of Sonder has created a challenging situation for many travelers. By understanding your rights, documenting your expenses, and proactively seeking alternative accommodations, you can navigate this difficult time more effectively. Whether you are currently displaced or have upcoming reservations, staying informed and taking action will be key to minimizing the impact of this unfortunate situation.