Georgian hotels hit by rising losses as tourists exploit new refund fraud scheme

The Georgian Hotel Association has warned of mounting financial losses across the country’s hospitality sector due to a new tourist fraud scheme involving delayed refund claims.

According to the association’s founder, Ketevan Meladze, foreign guests book hotels in Georgia, pay in advance, stay at the property, use the services — and only weeks later file complaints with their banks or booking platforms alleging that no services were provided. The delayed timing makes it difficult for hotels to prove the stay actually took place, she told the BMG media platform, Caliber.Az reports via Georgian media.

“This is a new, well-thought-out scam,” Meladze said. “Tourists who use it do not demand a refund immediately, but after a few weeks, when it is difficult for the hotel to prove that the guest actually stayed at the property and used all the services.”

Meladze stressed that the fraud is not tied to any single booking platform, noting that cases have been reported across multiple online services. Similar issues have been observed abroad, she added, citing a recent case in which a German hotel association successfully challenged fraudulent claims involving Booking.com.

The Georgian Hotel Association is urging authorities and international booking platforms to strengthen verification mechanisms to protect hotels from what it describes as a growing and organised pattern of abuse.

By Sabina Mammadli