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I made the hotel reservations in Spain and the Netherlands, I received the visa.
I recently found a better deal on internet, in that case can I cancel the booking I presented in the Itinerary provided for visa and are the hotels in the Netherlands and Spain liable to inform embassy in case of hotel booking cancellation ?

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    Will you be adhering more or less to the itinerary you provided with the application, apart from the change of accommodation? Hotels are under no obligation to report cancellations, that would be unworkable.
    – Traveller
    Aug 4, 2019 at 14:36
  • Yes the entry and exit point is the same , I am just planning to change the hotel and explore the cities nearby .. hence the change
    – Jay
    Aug 5, 2019 at 11:46

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You can make any changes you wish to your travel plans, with these caveats:

  • You still need to adhere to the conditions of your visa, with respect to number of entries, days of stay and visa expiry.
  • For your first use of the visa, your main destination should still be the country which issued the visa.
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  • If you had (hopefully cancellable) bookings at €200/night on your application, and arrived with bookings in hostels would this be a red flag?
    – simon at rcl
    Aug 5, 2019 at 14:08
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We have anecdotal reports that some Schengen countries -- Czechia in particular comes to mind -- appear to have a policy of revoking visas after the traveler cancels the original hotel booking. (It doesn't look like Czech hotels have a duty to report cancellations, rather that the Czech consulates let themselves be used as a way for hoteliers to retaliate for the cancellation).

However, this doesn't seem to be usual for either Spain or the Netherlands.

The common Schengen rules allow a visa to be revoked "where it becomes evident that the conditions for issuing it are no longer met". But the rules do not specify in particular which facts can be interpreted in that way, so it is up to each member state's own procedures and administrative traditions how to implement that in practice.

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  • Most Schengen states interpret "conditions" here to mean financial subsistence, intention to leave, not a threat to public policy, etc., i.e. exactly the conditions one must fulfil to receive the visa. It's quite unusual to revoke a visa for simply changing a hotel booking. It might not even be legal in national law; there could even be some underhanded deal going on between the hotels and the consulate involved.
    – Michael Hampton
    Aug 5, 2019 at 18:47

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