Hotel Industry

5 Things That Nobody Told You About Hotel Payments

Hotel Payment

Paying for a hotel room may prove to be a very intricate transaction. The various modes of payment available and the terms and policies hidden behind each mode of payment just makes it more complicated. You may also get baffled to find a lot of hidden charges even after finding a great Hotel deal.

Here are the few questions answers answered before you pay for your next hotel stay:

Why do Hotels need Deposit?

At the time of Check-In, you may be asked to pay an amount along with document verification. This is considered an incidental deposit as a collateral against damages and safe proof against scammers who leave without paying for room services and usage of minibars in their room. Once you check-out this amount will be returned to you.

Sometimes hotels, at the time of booking ask for an advance deposit where you are asked to prepay an amount of your stay which is usually one night’s tariff. This is a measure taken by the hotels to compensate the losses for the last minute cancellations which results in hotel rooms being left empty. In case of late cancellation the deposit is considered cancellation fee.

What is the difference between Hotel Guarantee and Hotel Deposit?

This is a topic which has muddled with people’s mind for a long time. Guarantee is basically a policy in which the hotel has to hold the room for the person making the booking irrespective of his time of arrival and not giving the room away for another booking. This is done by acquiring credit card details at the time of booking but no charge is made to it. In an event of late cancellation, the credit card will be charged one night’s tariff to recover losses due to vacant room.

This is different from deposit where payment is already made at the time of booking regardless if the guest will arrive or not. Similar policy of credit card guarantee is also implemented instead of incidental deposit for damages.

Should you pay by debit card?

It is not advisable to pay by debit card. But when you don’t have another option, make sure you have enough money on your account. The reason for this is you will not be able to give a credit card guarantee to keep advance and incidental charges on hold. So you will be forced to pay this as a deposit and wait for the hotel to refund the deposit back which might take few days after check out. Taxes charged at the time of paying deposit may not be refunded. This also has a high chance of your account going void of funds. Also keeping security in mind credit cards are more safeguarded against fraud.

How to avoid paying unnecessary fees and charges?

Just when you thought you enjoyed a really good deal for your stay, you might be surprised and disappointed to find the final tariff at the time of check out. Some hotels have a lot of hidden and unnecessary charges like Guaranteed Room Type, Early Check-In, Vehicle Parking Charges and Cloak Room Charges for holding checked

Luggages. Some hotels also consider Resort Fee as a separate fee and it doesn’t show up at the time of booking. There are websites where you can check the charges asked by hotels by entering its name and city and make a wise choice while booking.


Booking a hotel may seem a simple task but one must have knowledge of all the terms and conditions involved. Enquiry about cancellation policies, modes of payment available, the amount for credit card guarantee, etc. must be the primary concern. A little prior research about your hotel before booking will help you save a lot of cash by preventing you from paying unnecessary fees.