diff --git a/app/[lang]/(live)/(public)/hotelreservation/(standard)/select-rate/page.tsx b/app/[lang]/(live)/(public)/hotelreservation/(standard)/select-rate/page.tsx
index fd9db4d6c..f8632f938 100644
--- a/app/[lang]/(live)/(public)/hotelreservation/(standard)/select-rate/page.tsx
+++ b/app/[lang]/(live)/(public)/hotelreservation/(standard)/select-rate/page.tsx
@@ -108,7 +108,7 @@ export default async function SelectRatePage({
         roomsAvailability={roomsAvailability}
         roomCategories={roomCategories ?? []}
         user={user}
-        packages={packages ?? []}
+        availablePackages={packages ?? []}
       />
     </>
   )
diff --git a/components/HotelReservation/SelectRate/RoomFilter/index.tsx b/components/HotelReservation/SelectRate/RoomFilter/index.tsx
index a07e8353f..48c73cac2 100644
--- a/components/HotelReservation/SelectRate/RoomFilter/index.tsx
+++ b/components/HotelReservation/SelectRate/RoomFilter/index.tsx
@@ -99,11 +99,13 @@ export default function RoomFilter({
         <form onSubmit={handleSubmit(submitFilter)}>
           <div className={styles.roomsFilter}>
             {filterOptions.map((option) => {
-              const { code, description } = option
+              const { code, description, itemCode } = option
               const isPetRoom = code === RoomPackageCodeEnum.PET_ROOM
               const isAllergyRoom = code === RoomPackageCodeEnum.ALLERGY_ROOM
               const isDisabled =
-                (isAllergyRoom && petFriendly) || (isPetRoom && allergyFriendly)
+                (isAllergyRoom && petFriendly) ||
+                (isPetRoom && allergyFriendly) ||
+                !itemCode
 
               const checkboxChip = (
                 <CheckboxChip
diff --git a/components/HotelReservation/SelectRate/RoomSelection/index.tsx b/components/HotelReservation/SelectRate/RoomSelection/index.tsx
index b3624552f..75759459f 100644
--- a/components/HotelReservation/SelectRate/RoomSelection/index.tsx
+++ b/components/HotelReservation/SelectRate/RoomSelection/index.tsx
@@ -14,7 +14,7 @@ export default function RoomSelection({
   roomsAvailability,
   roomCategories,
   user,
-  packages,
+  availablePackages,
   selectedPackages,
   setRateSummary,
   rateSummary,
@@ -72,7 +72,7 @@ export default function RoomSelection({
                 roomCategories={roomCategories}
                 handleSelectRate={setRateSummary}
                 selectedPackages={selectedPackages}
-                packages={packages}
+                packages={availablePackages}
               />
             </li>
           ))}
@@ -81,7 +81,7 @@ export default function RoomSelection({
           <RateSummary
             rateSummary={rateSummary}
             isUserLoggedIn={isUserLoggedIn}
-            packages={packages}
+            packages={availablePackages}
             roomsAvailability={roomsAvailability}
           />
         )}
diff --git a/components/HotelReservation/SelectRate/Rooms/index.tsx b/components/HotelReservation/SelectRate/Rooms/index.tsx
index 626664988..2c3570a95 100644
--- a/components/HotelReservation/SelectRate/Rooms/index.tsx
+++ b/components/HotelReservation/SelectRate/Rooms/index.tsx
@@ -11,6 +11,7 @@ import { filterDuplicateRoomTypesByLowestPrice } from "./utils"
 import styles from "./rooms.module.css"
 
 import {
+  DefaultFilterOptions,
   RoomPackageCodeEnum,
   type RoomPackageCodes,
 } from "@/types/components/hotelReservation/selectRate/roomFilter"
@@ -25,7 +26,7 @@ export default function Rooms({
   roomsAvailability,
   roomCategories = [],
   user,
-  packages,
+  availablePackages,
 }: SelectRateProps) {
   const visibleRooms: RoomConfiguration[] =
     filterDuplicateRoomTypesByLowestPrice(roomsAvailability.roomConfigurations)
@@ -47,6 +48,30 @@ export default function Rooms({
     (state) => state.setRoomsAvailable
   )
 
+  const defaultPackages: DefaultFilterOptions[] = [
+    {
+      code: RoomPackageCodeEnum.ACCESSIBILITY_ROOM,
+      description: "Accessible Room",
+      itemCode: availablePackages.find(
+        (pkg) => pkg.code === RoomPackageCodeEnum.ACCESSIBILITY_ROOM
+      )?.itemCode,
+    },
+    {
+      code: RoomPackageCodeEnum.ALLERGY_ROOM,
+      description: "Allergy Room",
+      itemCode: availablePackages.find(
+        (pkg) => pkg.code === RoomPackageCodeEnum.ALLERGY_ROOM
+      )?.itemCode,
+    },
+    {
+      code: RoomPackageCodeEnum.PET_ROOM,
+      description: "Pet Room",
+      itemCode: availablePackages.find(
+        (pkg) => pkg.code === RoomPackageCodeEnum.PET_ROOM
+      )?.itemCode,
+    },
+  ]
+
   const handleFilter = useCallback(
     (filter: Record<RoomPackageCodeEnum, boolean | undefined>) => {
       const filteredPackages = Object.keys(filter).filter(
@@ -80,20 +105,10 @@ export default function Rooms({
           room.features.some((feature) => feature.code === filteredPackage)
         )
       )
-      let notAvailableRooms = visibleRooms.filter((room) =>
-        filteredPackages.every(
-          (filteredPackage) =>
-            !room.features.some((feature) => feature.code === filteredPackage)
-        )
-      )
-      // Clone nested object to keep original object intact and not messup the room data
-      notAvailableRooms = JSON.parse(JSON.stringify(notAvailableRooms))
-      notAvailableRooms.forEach((room) => {
-        room.status = "NotAvailable"
-      })
+
       setRooms({
         ...roomsAvailability,
-        roomConfigurations: [...filteredRooms, ...notAvailableRooms],
+        roomConfigurations: [...filteredRooms],
       })
 
       if (filteredRooms.length == 0) {
@@ -104,7 +119,9 @@ export default function Rooms({
 
       const petRoomPackage =
         (filteredPackages.includes(RoomPackageCodeEnum.PET_ROOM) &&
-          packages.find((pkg) => pkg.code === RoomPackageCodeEnum.PET_ROOM)) ||
+          availablePackages.find(
+            (pkg) => pkg.code === RoomPackageCodeEnum.PET_ROOM
+          )) ||
         undefined
 
       const features = filteredRooms.find((room) =>
@@ -124,7 +141,7 @@ export default function Rooms({
       roomsAvailability,
       visibleRooms,
       rateSummary,
-      packages,
+      availablePackages,
       noRoomsAvailable,
       setNoRoomsAvailable,
       setRoomsAvailable,
@@ -136,13 +153,13 @@ export default function Rooms({
       <RoomFilter
         numberOfRooms={rooms.roomConfigurations.length}
         onFilter={handleFilter}
-        filterOptions={packages}
+        filterOptions={defaultPackages}
       />
       <RoomSelection
         roomsAvailability={rooms}
         roomCategories={roomCategories}
         user={user}
-        packages={packages}
+        availablePackages={availablePackages}
         selectedPackages={selectedPackages}
         setRateSummary={setRateSummary}
         rateSummary={rateSummary}
diff --git a/components/TempDesignSystem/Form/FilterChip/_Chip/chip.module.css b/components/TempDesignSystem/Form/FilterChip/_Chip/chip.module.css
index 44fa78a14..fa029bb47 100644
--- a/components/TempDesignSystem/Form/FilterChip/_Chip/chip.module.css
+++ b/components/TempDesignSystem/Form/FilterChip/_Chip/chip.module.css
@@ -2,11 +2,13 @@
   display: flex;
   align-items: center;
   gap: var(--Spacing-x-half);
-  padding: var(--Spacing-x1) var(--Spacing-x-one-and-half);
+  padding: calc(var(--Spacing-x1) - 2px) var(--Spacing-x-one-and-half);
   border: 1px solid var(--Base-Border-Subtle);
   border-radius: var(--Corner-radius-Small);
   background-color: var(--Base-Surface-Secondary-light-Normal);
   cursor: pointer;
+  height: 32px;
+  background-color: var(--Base-Surface-Secondary-light-Normal);
 }
 
 .label[data-selected="true"],
@@ -21,8 +23,9 @@
 }
 
 .label[data-disabled="true"] {
-  background-color: var(--Base-Button-Primary-Fill-Disabled);
-  border-color: var(--Base-Button-Primary-Fill-Disabled);
+  background-color: var(--UI-Input-Controls-Surface-Disabled);
+  border-color: var(--UI-Input-Controls-Border-Disabled);
+  color: var(--Base-Text-Disabled);
   cursor: not-allowed;
 }
 
diff --git a/server/routers/hotels/output.ts b/server/routers/hotels/output.ts
index d383d5628..f9a5710de 100644
--- a/server/routers/hotels/output.ts
+++ b/server/routers/hotels/output.ts
@@ -864,22 +864,24 @@ export const packagesSchema = z.object({
 
 export const getRoomPackagesSchema = z
   .object({
-    data: z.object({
-      attributes: z.object({
-        hotelId: z.number(),
-        packages: z.array(packagesSchema).optional().default([]),
-      }),
-      relationships: z
-        .object({
-          links: z.array(
-            z.object({
-              url: z.string(),
-              type: z.string(),
-            })
-          ),
-        })
-        .optional(),
-      type: z.string(),
-    }),
+    data: z
+      .object({
+        attributes: z.object({
+          hotelId: z.number(),
+          packages: z.array(packagesSchema).optional().default([]),
+        }),
+        relationships: z
+          .object({
+            links: z.array(
+              z.object({
+                url: z.string(),
+                type: z.string(),
+              })
+            ),
+          })
+          .optional(),
+        type: z.string(),
+      })
+      .optional(),
   })
-  .transform((data) => data.data.attributes.packages)
+  .transform((data) => data.data?.attributes?.packages ?? [])
diff --git a/server/routers/hotels/query.ts b/server/routers/hotels/query.ts
index 34a1b3722..eb31aacb6 100644
--- a/server/routers/hotels/query.ts
+++ b/server/routers/hotels/query.ts
@@ -939,12 +939,10 @@ export const hotelQueryRouter = router({
             "api.hotels.packages error",
             JSON.stringify({ query: { hotelId, params } })
           )
-          throw serverErrorByStatus(apiResponse.status, apiResponse)
         }
 
         const apiJson = await apiResponse.json()
         const validatedPackagesData = getRoomPackagesSchema.safeParse(apiJson)
-
         if (!validatedPackagesData.success) {
           getHotelFailCounter.add(1, {
             hotelId,
diff --git a/types/components/hotelReservation/selectRate/roomFilter.ts b/types/components/hotelReservation/selectRate/roomFilter.ts
index f895ed73a..2bdd501b1 100644
--- a/types/components/hotelReservation/selectRate/roomFilter.ts
+++ b/types/components/hotelReservation/selectRate/roomFilter.ts
@@ -1,19 +1,22 @@
 import { z } from "zod"
 
-import {
-  getRoomPackagesSchema,
-  packagesSchema,
-} from "@/server/routers/hotels/output"
+import { packagesSchema } from "@/server/routers/hotels/output"
 
 export enum RoomPackageCodeEnum {
   PET_ROOM = "PETR",
   ALLERGY_ROOM = "ALLG",
   ACCESSIBILITY_ROOM = "ACCE",
 }
+
+export interface DefaultFilterOptions {
+  code: RoomPackageCodeEnum
+  description: string
+  itemCode: string | undefined
+}
 export interface RoomFilterProps {
   numberOfRooms: number
   onFilter: (filter: Record<string, boolean | undefined>) => void
-  filterOptions: RoomPackageData
+  filterOptions: DefaultFilterOptions[]
 }
 
 export type RoomPackage = z.output<typeof packagesSchema>
diff --git a/types/components/hotelReservation/selectRate/roomSelection.ts b/types/components/hotelReservation/selectRate/roomSelection.ts
index 163bfd6fa..cd1e48775 100644
--- a/types/components/hotelReservation/selectRate/roomSelection.ts
+++ b/types/components/hotelReservation/selectRate/roomSelection.ts
@@ -8,7 +8,7 @@ export interface RoomSelectionProps {
   roomsAvailability: RoomsAvailability
   roomCategories: RoomData[]
   user: SafeUser
-  packages: RoomPackageData | undefined
+  availablePackages: RoomPackageData | undefined
   selectedPackages: RoomPackageCodes[]
   setRateSummary: (rateSummary: Rate) => void
   rateSummary: Rate | null
@@ -18,5 +18,5 @@ export interface SelectRateProps {
   roomsAvailability: RoomsAvailability
   roomCategories: RoomData[]
   user: SafeUser
-  packages: RoomPackageData
+  availablePackages: RoomPackageData
 }