By way of contrast, and to show that some companies still value their customers.
Booked IOM to LGW then LHR to HKG; IOM flight cancelled due to ash cloud. Called the HK hotel with which I had a booking with a 48 hour cancelation period. Explained that I couldn't fly from IOM to get my LHR flight because of volcano, that I needed to cancel my reservation, and that I knew I was in for the no show penalty. She asked me to repeat the bit about the volcano (I'm sure that news of it's activities could not have reached HK by that time as only the north of England had beed shut down). I was asked to send her an email relating the circumstances which she would pass to her revenue manager, to see whether the penalty might be waived.
I didn't ask for this, but I was polite etc when telling the tale.
Shortly after my email was sent I received a reply for the revenue manager advising that no penalty would be sought.
I had stayed with this hotel a few times before, and I have stayed several times since. It is now my hotel of choice in HK and I happily recommend it whenever the opportunity arrises.
Customer service does still exist. In Asia.