Marriott-Sonder guests are scrambling for refunds — expert explains how to get your money back
In a shocking turn of events, Marriott International’s recent termination of its partnership with Sonder, a short-term rental company, has left many travelers in disarray. Sonder, which had positioned itself as a competitor to Airbnb by offering stylish, apartment-style accommodations, announced it would file for Chapter 7 bankruptcy following Marriott’s decision. This abrupt collapse has resulted in canceled reservations for numerous guests who had booked stays through Marriott’s Bonvoy platform, leaving them scrambling for alternative accommodations and wondering when, or if, they will receive their refunds.
The fallout from this partnership dissolution has created a cascade of issues for affected travelers. Guests report feeling stranded, facing unexpected out-of-pocket expenses, and experiencing significant delays in receiving refunds. As Marriott updated its FAQs to direct customers to their credit card companies for reimbursement, consumer experts like Fabio Fernandes from the Consumer Choice Center have strongly advised guests to act quickly by filing chargebacks with their credit card issuers. This proactive step is crucial, as customers who prepaid for their stays may find themselves at the back of the line as unsecured creditors in the bankruptcy process, potentially waiting years for a resolution that could yield little to no compensation. Fernandes emphasizes the importance of keeping documentation and filing disputes promptly, as banks are required to respond within a set timeframe.
Amid the chaos, individual stories have emerged that highlight the challenges faced by guests. For instance, Janna Reeves from San Antonio had booked a stay at Sonder Welborn in Orlando, only to receive last-minute cancellation emails from both Sonder and Marriott. Despite the frustration, Reeves managed to secure a refund and additional Bonvoy points after persistent follow-up. Conversely, Diane Gendry from France found herself in a more precarious situation, having to pay for a new hotel while waiting for a refund that remains uncertain. Her experience reflects the broader confusion and lack of communication from both companies, as many guests are left without clear answers regarding their financial recourse. As the dust settles, travelers are left to navigate the complexities of refunds and future bookings, with experts urging caution and diligence in their financial dealings.
Marriott guests said they were left stranded, overcharged, and some ignored after Sonder’s sudden collapse.
Smith Collection/Gado/Getty Images
Marriott ended its partnership with Sonder, leaving guests with canceled reservations.
Travelers face refund delays and confusion after Sonder’s abrupt shutdown and bankruptcy filing.
An expert advises filing credit card chargebacks quickly to get refunds.
Marriott-Sonder guests are describing
chaos, confusion, and out-of-pocket expenses
after Sonder — a short-term rental company once billed as an Airbnb rival — abruptly shut down this week.
Sonder, which said it will file for Chapter 7 bankruptcy after
Marriott terminated its partnership
on Sunday, had been operating thousands of apartment-style units around the world through Marriott’s Bonvoy platform.
The sudden breakup has left some guests with
canceled reservations
and uncertainty about when they’ll see their money again. On Tuesday, Marriott updated its FAQs to advise customers to contact their
credit card companies
for refunds.
Fabio Fernandes, head of communications at consumer watchdog Consumer Choice Center, told Business Insider that affected guests shouldn’t wait for the bankruptcy process to play out, but instead should file chargebacks.
“Consumers shouldn’t wait on a bankruptcy administrator to make them whole,” he said.
“If a stay was canceled or never delivered, the fastest, most reliable path is a credit-card dispute for ‘services not provided.’ Do it now, keep your paperwork, and escalate if your bank drags its feet,” Fernandes said.
In a US Chapter 7 liquidation, customers with prepaid stays become unsecured creditors near the back of the line, he said — meaning refunds through the courts could take years and may amount to little or nothing.
That’s why filing a chargeback quickly is critical, he said, adding that cardholders should send a written dispute within 60 days of their statement.
Banks are required to respond within 30 days and resolve the dispute within two billing cycles, or no later than 90 days, he said, adding that Visa and Mastercard generally allow disputes to be filed up to 120 days from the scheduled stay date.
Fernandes said travelers can also file a claim in the bankruptcy proceedings, but that process is “a slow, uncertain path.”
Booking through a major brand like Marriott doesn’t automatically guarantee reimbursement unless Marriott was the merchant of record— the company that actually processes the payment and appears on a customer’s credit card statement — which it says it was not in this case.
Neither Marriott nor Sonder immediately responded to BI’s requests for comments.
Staff at several properties affected by the Marriott-Sonder implosion said there was chaos and a lack of communication from the company.
Business Wire/AP
Key steps travelers should follow
Fernandes offered a simple playbook for avoiding future travel headaches:
Always pay by credit card, and prefer to pay at check-in whenever possible.
Know who the merchant of record is before booking, and only prepay if the discount is genuinely worth it.
Travelers should also look for “supplier failure” coverage in their insurance,
If the card issuer drags its feet, escalate complaints to the Consumer Financial Protection Bureau or a financial ombudsman.
‘Several phone calls and strongly worded emails’
Some Sonder customers have had success in securing refunds.
38-year-old Janna Reeves from San Antonio said she booked her Orlando stay at Sonder Welborn in December 2024. She planned to meet a friend in Florida for the Vans Warped Tour and possibly visit Disney World.
Four days before her November 13 check-in, Reeves received two emails — one from Sonder saying it could “no longer honor” her reservation after its partnership with Marriott ended, and another from Marriott confirming the cancellation. BI has viewed these emails.
She said Marriott told her she would receive a refund but would need to find and pay for new accommodations herself.
“Even that call center seemed to not know anything about this cancellation between Marriott and Sonder,” Reeves said. “Their only solution to me was to proceed with booking elsewhere.”
Reeves said she ended up spending about $800 more on a last-minute hotel during Orlando’s peak tourist season.
After “several phone calls and strongly worded emails,” she said Marriott agreed to issue a refund and 80,000 Bonvoy points — roughly matching her extra costs.
“I had to push them to help me,” she said. “It was not given willingly.”
‘No real explanation, no real solution’
But others have been less fortunate at securing their refunds.
Diane Gendry, a 65-year-old press officer from France had a reservation at The Henry hotel in London canceled for November 19
after Marriott ended its partnership with Sonder.
She received an email from Marriott on November 11 confirming the cancellation, but it offered little clarity on when — or if — she would be refunded.
“They remained vague on the refund,” she said in an email to BI. “I am surprised Marriott didn’t offer the opportunity to stay for the same price in one of their hotels in London.”
She said she has yet to receive any refund. In the meantime, she found another hotel across the street and paid €265 ($307)— less than her original stay — but until the refund comes through, she’s effectively paid for both.
Read the original article on
Business Insider
