We booked on the internet and inadvertedly got the wrong hotel, within minutes we contacted Travelocity and asked if we could change hotels. After a protacted conversation the phone person said they would contact the hotel to see if it would be possible, and we were to phone back the next day.
As were phoning back we received an email saying the booking was cancelled and the $500+ was non refundable. At no time did we say were were cancelling the booking, in fact we said if we could not change hotels we would stay at the one booked.
After doing some research this seems to be a common practice of Travelocity. My suggestion is to avoid them like the plague (which they are) and deal directly with the hotels.