Holiday accommodation booking giant Bachcare is under scrutiny over its cancellation policy.
The Commerce Commission has opened an investigation after receiving a number of complaints about the platform in relation to its policy.
"As the investigation is ongoing, we cannot comment further at this time," a spokesperson said.
One complainant said they have lost their deposit on their booking in January, despite asking to cancel in October.
The spokesperson said the main factor that determines a consumer's rights, when travel cannot take place, is the terms and conditions agreed to at the time of the booking.
They say consumers should look for a clause that explains what happens when the contract is cancelled or when there are events beyond human control.
A spokesperson for Bachcare said they are dealing with many people affected by the situation New Zealand is in at the moment.
"We are doing our best in what is a challenging situation for all," they said.
Its cancellation policy was updated following the first lockdown last year to ensure it was fair for both the guests who book with them and the owners whose properties they represent.
"We need to ensure we get this balance right."
The spokesperson said it has a clause in its cancellation policy that states in situations where a guest elects to cancel, their standard terms apply.
"On those occasions where the cancellation is out of the control of both parties, we offer a credit to be used at a later time."