Is it normal for a hotel to ask for a deposit?

So why do hotels require a deposit in the first place? It's all about risk management. Hotels want to ensure that they don't lose money if a guest cancels their reservation or incurs any damages or charges during their stay. By requiring a deposit, hotels can offset some of that risk and protect their bottom line.



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A credit card hold is an insurance policy for the hotel. Specifically, the hold covers incidentals such as damage to the room, room service and dips into the minibar. Depending on the hotel, this hold could be a charge for your entire stay or charged each night.

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Most hotels hold $50 - $200 per night on your credit card for incidentals, on top of the room price. A credit card hold should be removed within 24 hours after you check out.

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Most hotels no longer take a deposit for a check-in. They now process a pre-authorization of a fixed amount to your nominated credit card, usually at check-in. This will not be billed to your account and in most instances is reversed when you check-out from the hotel.

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Typically, if you cancel your reservation within a set timeframe (usually 24-48 hours before check-in), you can receive a full refund of your deposit. If you cancel after the set timeframe, the hotel may keep a portion of your deposit or charge you a cancellation fee.

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A deposit. Guests pay a certain amount up front, usually by bank transfer, which they'll get back if they cancel within the free (flexible) cancellation period.

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Credit cards are by far the most widely accepted payment method in the hotel industry. They offer convenience and security for both the guests and the hotel. When you book a hotel room with a credit card, the hotel will typically charge a hold on your card to secure the reservation.

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If you have a loyalty status with the chain then yes, it's probably cheaper to book directly. Also, sometimes hotel offer discounts to incentivize people to reserve with them in order to avoid paying fees to a 3rd party platform like Booking.com. But the reverse can also happen. So just check both and compare.

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The later in the day, the better. After 4 p.m., hotels know the odds of selling a room are pretty slim, so you're more likely to get an even lower rate. On average, the same-day rate of a hotel room is 10% cheaper than booking in advance.

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No, hotels are not allowed to charge a credit card without your signature. This is because it is against the law for any business to process a payment without the customer's authorization.

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Each hotel will have its own specific hold amount, generally $50-$200, on top of your room rate (including taxes and fees). While the hotel won't officially charge you until after you check out, the issuer will put aside the hold amount in the interim to ensure you are able to cover a potential charge.

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