Question for hotel-knowledgeable folks

[MaggieTheCat]

I made a reservation a couple of weeks ago for a two-night stay in May. I booked online and there was a disclaimer stating that there is a 1 night room + tax deposit and that if I cancel within 72 hours of the booked dates, I will lose the deposit. Is it normal for the hotel to actually charge my card that amount at the time of the booking? I've never had that happen before. Usually there is a hold put on the card to see if the funds are available but I've never actually been charged until the date of the reservation, and now I have a $120+ charge on my card from the hotel.

[csquared]

Yes. You booked a super saver that requires advance payment. They are becoming quite common.

[Slayer]

Yup, sounds right. I've come across that lots of time. Doesn't even have to be an advanced discount plan as I've had some fancier places require 50% at booking.

It's their way of ensuring that clients actually pay the deposit if they cancel (they wouldn't bill it after the fact).

[BroSCFischer]

Yeah, more and more hotels are doing this. One of the many reasons is that people have a tendency to use a debit card to hold the room, and rather than cancel the reservation, they just drain the account so the card can't be charged.

Another one of those situations where the bad few ruin it for everyone.

SC

[Moirae]

I made a reservation a couple of weeks ago for a two-night stay in May. I booked online and there was a disclaimer stating that there is a 1 night room + tax deposit and that if I cancel within 72 hours of the booked dates, I will lose the deposit. Is it normal for the hotel to actually charge my card that amount at the time of the booking? I've never had that happen before. Usually there is a hold put on the card to see if the funds are available but I've never actually been charged until the date of the reservation, and now I have a $120+ charge on my card from the hotel.

Oh yes, very common. In fact, it's standard practice in New Orleans. My hotel charges 1 nights deposit and has a 7 day cancel for standard (in most hotels 1 nights deposit and 72 hour cancel is the most common), and 50% deposit and 30 day cancel for special events (like Mardi Gras and Jazz Fest). I've even seen "full prepayment, non-refundable" depending on the location and event they're booking for.

There's a reason hotels do it. People are less likely to cancel if they have already been charged any amount of money. Plus, the hotels make more money. Not to mention that check cards can allow people to use their cards as a credit card so they just empty their accounts when it comes time to pay and this makes sure the hotel is paid the full amount.

Many hotels also won't accept a reservation without a valid credit card on file and they will often take an authorization (the debit machine tells the credit card company to set a certain amount of money aside for a few days to make sure they will get paid no matter what).

Most hotels in my area also charge the remaining full amount for the entire stay on check in, and then take the incidentals on check out. It ensures they get paid.

[taxguykarl]

Yes, quite common. I had a similar deal last fall.