They can be 10-20% lower than the base
The Ministry of Economic Development has proposed to legalize non-refundable rates in hotels. The text of the bill and the explanatory note, which RBC familiarized themselves with, refers to a lower price, but without the possibility of refund in case of cancellation.
The hotel business suffers losses due to tourists cancelling reservations a few days before or on the day of check-in. Therefore, a non-refundable rate will help reduce the risks for the hotel in the event of a cancellation. Such a rate will also be beneficial to the tourist – its cost may be 10-20% lower than the base. A non-refundable rate can be cancelled in case of illness or force majeure circumstances.
The draft law provides for the possibility of setting both refundable and non-refundable rates for hotels, and tourists will have the option to choose which tariff to use, the ministry’s press service said.
“We expect that the adoption of the bill will increase the availability of accommodation for guests thanks to the possibility of booking at lower prices, and will allow hotels to more effectively plan their activities and reduce costs,” the ministry’s press service added.
The changes are being made to the laws “On the Basics of Tourist Activities” and “On the Protection of Consumer Rights”, as well as to the first paragraph of article 782 of the Civil Code, as stated in the explanatory note. The legislative consolidation of the tariff was provided for in the ministry’s “roadmap” for tourism development until 2025. It is planned that the draft federal law will be submitted to the government in February 2024.