Bookings from October onwards: Deposit charged by operators must not exceed 30% of total room price

▲Starting October, when individual travelers book rooms with tourist hotels, hotels, or homestay operators, the deposit charged by the operator must not exceed 30% of the room price. (Photo / Reporter You t
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Tourism Center / Comprehensive Report

Many accommodation providers often require guests to pay a deposit equivalent to 30% to the full room price, and confiscate the deposit if the booking is cancelled, which frequently leads to consumer disputes. The Ministry of Transportation and Communications recently announced that starting October, when individual travelers book rooms with tourist hotels, hotels, or homestay operators, the deposit charged by the operator must not exceed 30% of the room price.

The Ministry of Transportation and Communications announced on August 1 the “Standardized Contract Terms for Direct Room Bookings by Individual Travelers with Tourist Hotels, Hotels, and Homestays – Mandatory and Prohibited Clauses,” stipulating that the deposit charged for accommodation must not exceed 30% of the total room price, applicable to both regular days and holiday periods. If a traveler cancels the contract for a valid reason, a certain proportion of the deposit will be refunded based on the notice period: full refund if cancelled 14 days in advance, 70% refund if cancelled 10–13 days in advance, 50% refund if cancelled 7–9 days in advance, 20% refund if cancelled 1 day in advance, and no refund if cancelled on the day of check-in.

Additionally, the standardized contract also requires operators to clearly list relevant information, including whether toiletries are provided, whether breakfast, lunch, and dinner are included, whether airport or station transfers are available, and whether there is wireless internet in the room.

If accommodation providers violate these regulations, the competent authorities may order them to make corrections and, in accordance with the amended draft of the Consumer Protection Act, impose consecutive fines ranging from NT$20,000 to NT$200,000. However, the new penalty clauses are currently still under review by the Legislative Yuan. If the new regulations take effect in October but the bill has not yet been passed, the Ministry of Transportation and Communications stated that penalties cannot be enforced in the short term, and only advisory improvements can be given.