In the hospitality industry, room reservations are primarily categorized into Guaranteed and Non-Guaranteed bookings. A Guaranteed Reservation is a legally binding agreement where the hotel ensures a room will be held for the guest regardless of their arrival time, provided the guest has provided a form of prepayment or a valid credit card authorization. If the guest fails to show up (a "no-show"), the hotel typically charges a penalty, usually equivalent to one night's stay. This provides security for both the traveler and the business. Conversely, a Non-Guaranteed Reservation is a more casual arrangement where the hotel agrees to hold a room only until a specific "release time," which is traditionally 4:00 PM or 6:00 PM on the day of arrival. If the guest has not arrived or contacted the hotel by that cut-off point, the reservation is automatically cancelled, and the room is released back into the inventory for sale to walk-in guests. In 2026, most online travel agencies (OTAs) and high-demand resorts almost exclusively use guaranteed bookings to minimize lost revenue from cancellations.