Hi @HeOZ , welcome to the community.
If they are disclosed at the time of booking and also attached to the booking confirmation, they are legal.
With Booking.com and other booking platforms, they only allow one payment and cancellation policy - which generally does not suit businesses which may have a standard (non-covid) cancellation/payment policy and a special covid cancellation/payment policy. We are a business which have both and we present only the standard (non-covid) cancellation policy as the booking T&Cs. On receipt of the booking, we then message the guest to advise of the special Covid-19 Cancellation Policy. It is a little frustrating that booking platforms only allow one cancellation policy - and it take time and effort to advise our guests of the second one special for Covid.
A special covid policy is one where travel can’t be made to fulfil the booking, due to circumstances outside the control of the guests. Example are border closures and lockdowns. Some business are also not taking payment until arrival to avoid messy refund processes (this is what we do for our own business).
It is possible that the business you have booked may have two different policies. You can message them through Booking.com to confirm their covid and non-covid policies.
Notwithstanding this, in relation to cancellations, a business can also use their discretion to waver a cancellation fee at an time. An example may be catastrophic event that causes the business or guest to cancel the booking (natural disaster, death etc).
The company won’t gain interest. Many business bank accounts don’t accrue interest, and it they do, current interest rates are so low that the return on having the money for 10 months will possible be less than the increase of the costs to provide the room to a guest.
Accommodation providers which use booking platforms can set their own policies within the framework allowed for by the platform. These are disclosed at the time of booking…however, it can be confusing if one has looked at a number of different accommodation options with different polices - as these will vary between providers.
If one is unsure, one can double check with the accommodation provider within the cancellation free period/payment policy and make a decision to continue with the booking. Note: if one does a last minute/late booking, this might be within the cancellation period where fees apply and therefore cancelling might not be possible without fees being paid/fee waivers at the discretion of the business.
Booking platforms are what could be called a ‘necessary evil’ and are now used by most consumers. They provide convenience and allow one to quickly look and compare at a range of accommodation options at the same location for the same dates. This convenience comes at a cost and commissions they make from a booking can be up to around 15-18% depending on the platform and the individual arrangements between the platform and the provider. These commissions are generally passed onto the consumer through higher prices.
Platforms also push for advertised pricing to be consistent with their competitors. If pricing isn’t they can penalise a provider which advertises the same room/service elsewhere cheaper.
BUT - this does not mean you can get a discount to advertised prices. Usually if one contacts a business directly, a business may provide a discount to the standard advertised rates as they avoid paying the commission. This way the guest wins (being cheaper) and the business as they upfront have a happier customer as they have received a discount.
The savings you have found could be that the local agent has dealt with the providers directly getting a discount and then passing this onto you.
