Legal Definitions - guaranteed reservation

A guaranteed reservation is a legally binding agreement between a customer and a business where the customer pays in advance to secure a specific service or item. This upfront payment obligates the business to hold that particular reservation for the customer, whether it's a hotel room, a rental vehicle, or a scheduled appointment.

If the business is unable to fulfill its promise and provide the reserved item or service, it is generally required to offer a comparable alternative. Furthermore, the business may be responsible for covering any reasonable additional costs (known as incidental damages) the customer incurs as a direct result of the business's failure to honor the reservation. For instance, if a customer had to pay a higher price for a last-minute replacement, the business might be liable for that difference. In situations where the reserved item or service is unique and cannot be easily replaced, the customer might be entitled to financial compensation for the loss. Additionally, if a business frequently fails to honor guaranteed reservations or engages in misleading practices, customers may have further legal remedies available under federal or state consumer protection laws.

Here are some examples illustrating a guaranteed reservation:

• Family Vacation Hotel Suite:

  Scenario: A family planning a special anniversary trip pays in full for a specific two-bedroom oceanfront suite at a popular resort six months in advance to ensure they have ample space and a desired view for their celebration.

  Explanation: This is a guaranteed reservation because the family made an upfront payment for a specific type of accommodation. If, upon their arrival, the resort informs them that the oceanfront suite is unavailable due to an internal error, the resort is legally obligated to provide a similar two-bedroom suite, perhaps in a different location within the resort or at a comparable nearby property, and cover any additional reasonable expenses the family incurs, such as transportation to an alternative hotel or the cost difference if the replacement is inferior.

• Specialized Rental Car:

  Scenario: A professional photographer pre-pays for a specific model of an all-wheel-drive SUV from a car rental agency for a week-long photoshoot in a remote, mountainous region, needing its specific capabilities for equipment transport and challenging terrain.

  Explanation: By paying in advance, the photographer has a guaranteed reservation for that particular class and capability of vehicle. If the rental agency only has a standard sedan or a smaller SUV available when the photographer arrives, they have breached the agreement. The agency would typically need to locate a comparable all-wheel-drive SUV from another branch or a competitor, and potentially reimburse the photographer for any delays or additional costs incurred, such as having to rent a more expensive vehicle elsewhere or missing part of their scheduled shoot.

• Exclusive Guided Tour:

  Scenario: A group of friends pays a non-refundable deposit to secure a specific morning time slot for a highly sought-after private guided tour of a historical landmark, which only accommodates a limited number of visitors per day.

  Explanation: This constitutes a guaranteed reservation because the group made an advance payment for a unique and time-sensitive experience. If the tour operator mistakenly overbooks or cancels their specific time slot without a valid reason, they are obligated to try and find a comparable tour (perhaps at a different time or with a different guide if available) or refund the deposit and potentially compensate the group for related expenses, such as non-refundable travel arrangements made specifically for that tour, especially since the specific experience is difficult to replicate on short notice.