Planning a vacation takes time, effort and money. You might have noticed that hotels demand an advanced deposit when booking. Do all hotels require a deposit? The short answer is no.
Most hotels might charge you an advanced deposit in the name of security or damage, but a handful of hotels are available that don’t require a deposit while booking. You might have run out of time and missed a hotel that doesn’t need an advanced deposit.
And, you have to settle for a hotel whose website mentions advance deposits. Now, the question is whether you can waive that advance deposit claimed by the hotel. Let’s unveil the truth with this guide.
Do All Hotels Require a Deposit in Advance?
Online hotel bookings have made your trips more relaxing. You might always book a hotel with some advance deposit. Does every hotel need a deposit?
Well, most hotels support a reservation system that lets guests book a hotel room before they arrive at the hotel. This is convenient as guests can avoid unnecessary hassles by booking the hotel room before arrival. After all, securing a room during rush hours can be a hectic deal.
The corresponding hotel might charge you an advance deposit per the hotel norms. In most scenarios, the guest must pay the deposit using a credit card. Now, what does the advance deposit mean?
The advance deposit charged by any hotel can be equal to the fees per night stay. Why do hotels ask for this advance payment? Hotels usually ask for an advance deposit so the guest doesn’t cancel at the last minute.
The advance deposit is considered a security deposit by the hotel. For instance, you won’t cancel a hotel room if you have already paid for that unless there’s an emergency. On the other hand, the hotel can avoid losses with the security deposit.
For example, the hotel reserves the room you booked with an advance deposit, and you can’t arrive. So, the hotel can deduct a portion of the advance deposit and refund you the remaining balance. Thus, the advance deposit from guests acts as compensation for the loss.
Therefore, check a hotel’s advance deposit and cancellation policy before you book the hotel.
Is it Mandatory to Pay a Security Deposit While Booking a Hotel?
Basically, it depends from hotel to hotel. A hotel deposit is usually comprised of 2 common deposits: pre-authorisation and security deposit. Do all hotels require a security deposit?
Most hotels do because a security deposit covers expenses caused by any damage to the property or room. Fortunately, security deposits are refundable. However, the same is not true with pre-authorization. A pre-authorization refers to a temporary hold on your credit card that you used to pay the advance deposit to the hotel.
Additionally, a pre-authorization ensures payment for your stay at the hotel and other potential charges, such as:
- Indoor games
- Extra amenities you paid for, etc.
On the other hand, a hotel deposit can be 2 types in nature. They are refundable and non-refundable.
A refundable deposit indicates that you can get your money back if you have to cancel your reservation within a specific timeframe. Indeed, you can get your deposit back if you don’t damage the hotel room or property while enjoying your stay.
However, a non-refundable deposit means you won’t get the reservation deposit back, whether you stay at the hotel or not.
Many hotels consider the advance deposit as a security deposit. Therefore, discuss with the hotel authority whether you need to pay a security deposit as the advance deposit while reserving the room. Thus, you can get the funds back if you don’t incur accidental damage.
On a related note, you must opt for a hotel deposit on credit cards. Chances are that hotels deduct the security deposit from the debit card if you pay via a debit card. However, the security deposit will be on hold if you use a credit card.
The hotel can’t charge your credit card until you check out from the hotel after your stay. So, the deposited amount will be adjusted, and you will get a refund if applicable.
Why Do All Hotels Require a Deposit?
You may need to pay a hotel deposit while booking a hotel room. However, this guarantees that the hotel will reserve your room for the mentioned date and time. Apart from that, here are the justified reasons why most hotels demand a deposit:
Committed Words from Guests
A deposit works as a guarantee that guests won’t give up on the hotel reservation. Hotels can avoid the tendency of last-minute cancellations and no-shows by demanding an advance deposit.
Security Against Accidental Damages
Hotels require a security deposit to protect their rooms and other contents on the respective property. For example, stained sheets, broken lamps, scuffed walls, etc., can cost a considerable amount of money to a hotel. Therefore, hotels charge security deposits to cover the cost of potential damages caused by guests.
Beneficial for Both Guests and Hotels
Not to mention, guests find advance hotel deposits quite inconvenient. Still, the advance deposit ensures the hotel honours the reservation for the concerned guests, and guests can afford a seamless check-in and stay.
On the other hand, a hotel deposit on credit cards reduces the risk of financial loss for the hotel in question.
How Do Hotels Calculate Advance Deposits?
A hotel deposit is a variable amount the hotel asks you to deposit as an upfront payment. By the way, how do hotels calculate a particular sum of money as a deposit? Here are some quick and simple rules that hotels generally follow:
- The type of room you reserve for your stay decides the hotel deposit. For example, hotels can charge you more for luxurious suites and rooms.
- The longer you stay at the hotel, the more deposit you might have to pay.
- Additionally, hotels charge higher during peak travel seasons due to the uncertain availability of rooms. So, they may charge you more as they don’t want to lose money even on a single reservation.
- After all, the deposit sum depends on the hotel’s overall policy.
Tricks to Bypass a Hotel Deposit
Are deposits at hotels refundable? Chances are that they might not be. Hence, you may look for ways to ditch the hotel deposit concept while booking a room or suite. The following hacks might help you to waive the advance deposit at hotels:
- You can contact the available hotels and learn more about their deposit policies. We are sure you will get some hotels that don’t require a security or advance deposit. However, this plan only works if you have enough time to plan your vacation and stay at a hotel.
- Have you checked into the hotel? If yes, then this trick’s for you. As the hotel manager or representative, the official can adjust the hotel deposit with the overall hotel bill. Hotels may agree to your proposition to keep customers happy and satisfied.
- Numerous hotels charge a deposit for extra services such as bar, gym, and additional service charges. So, you can waive the hotel deposit after convincing the authority that you don’t require those add-ons. Now, the hotel authority will decide whether to spare your deposit.
- Do you own travel insurance? If yes, then you can waive the hotel deposit on credit cards. Many hotels consider travel insurance as a security deposit. The hotel can get compensation from the insurance company if you cause any damage to the hotel property or amenity.
Can You Get the Deposit Refunded?
This varies from hotel to hotel. If you cancel a room reservation within 24 to 48 hours before the check-in timeframe, you might get a full or partial refund from the hotel. Do all hotels need a deposit?
The best practice is to check out hotel policies. For example, you can look for hotel policies on the website that you use for booking. Otherwise, you can call the hotel and ask whatever you feel necessary before you confirm your reservation.