Accor Charging Me More for a Confirmed Stay

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The text of the email if anyone is interested.
What they are really saying is our revenue management team stuffed up and under estimated demand for NYE for some reason and we are fully booked already. We are now reviewing bookings that were made at a cheap rate and attempting a try-on to see if anyone will bite and let us jack up the price.

The "free night subject to availability anywhere in the next 12 months" is a real con - they want you to cancel so that they can resell the room for $700 more than the currnet booking - and they are offering something worth about half that.

I would suspect that they know (or soon will) that they don't have a leg to stand on under ACL, and are just hoping they don't get called, but will honour the bookings for those that stand firm. The NSW Consumer Affairs link that @MEL_Traveller provided includes a specific example of a right to compensation:

An accommodation provider made a booking error and cancelled Joe's accommodation. The accommodation provider was unable to provide alternative accommodation within a reasonable time and Joe was required to book new accommodation with an alternative host. The new accommodation cost $300.00 more than the original purchase. Joe may be able to seek compensation for the cost of the new accommodation or the difference paid for the new accommodation.
 
Might also be worth putting a review on TripAdvisor and Google Maps about this experience. Hotels seem to take those very seriously for some reason and frankly, they deserve some bad publicity for trying this stunt.

EDIT: Might also be worth posting to the r/Sydney Reddit. That often generates quite a bit of attention and media are often looking there to see what's going on around town that might be a worthwhile story. It's a shame the ABC's "The Checkout" isn't still running, this would have definitely been the sort of thing they'd be interested in covering.
 
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I would think that the options and expectations on both sides would be different if it was a prepaid non refundable booking vs a pay on arrival cancel a day prior booking.
 

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