That’s an excellent question, and it’s a common point of confusion.
The short answer is: You pay Expedia, and then Expedia pays the hotel.
Here’s a more detailed breakdown of how it works and what it means for you:
The Payment Flow
- You Book & Pay Expedia: When you make a reservation on Expedia (or similar online travel agencies like Booking.com, Hotels.com), you enter your payment details and complete the transaction with Expedia.
- Expedia Holds/Processes the Payment: Expedia collects your money. They may charge you immediately (for a non-refundable “Pay Now” rate) or place an authorization/hold on your card (for a “Pay at Hotel” or flexible rate).
- Expedia Pays the Hotel: Later, usually after your stay, Expedia sends a bulk payment to the hotel for all the bookings they facilitated, minus their commission. You do not have a direct financial transaction with the hotel for the room rate you booked through Expedia.
Important Implications for You:
- Customer Service & Changes: For any changes, cancellations, or issues with your booking before or during your stay, you must contact Expedia first, not the hotel. The hotel’s front desk often cannot modify a third-party reservation or issue a refund directly, as they didn’t process your payment.
- Billing Issues: If there’s a problem with your bill (e.g., a double charge, wrong amount), you’ll need to resolve it through Expedia’s customer service.
- Hotel Loyalty Points: Most hotels will not award loyalty points