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Hotel Bumping?

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This is going to sound like a complaint, and really it's not, it all worked out fine, but a recent experience left me with several questions.

Background: I had made a reservation (as I have done many times with absolutely no problems) though one of the major e-booking sites, booking the flight mainly, and happened then to also book through them for a hotel room for part of the stay (going to a family reunion), about 2 months ahead, everything went fine. But about 3 weeks ahead I received a note+phone call saying the reservation for the hotel was no good, there was no really solid reason given, but it sounded like the hotel was overbooked. The site was very nice about it, offered to rebook, etc., I ended up doing it myself, just easier to do it on a web site myself, and the person on the phone was not a native speaker, etc. And I do very much appreciate that they took the time to call, I get so much e-mail, I might have missed it otherwise. It was a bit tricky, a big event in town at the time, but I found something reasonable, and we'd wanted to try a new hotel there anyway. So it all worked out.

So now my questions:

1. Is Hotel Bumping something that's common?
2. When you book through a non-Hotel web-site, is the booking as good as the Hotels?
3. Do I have any travelers type rights if I do end up bumped, if it were to be last minute?

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