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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.
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.
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