Do you pay for a hotel when you check-in or out?

Understanding Hotel Payment Procedures: When Do You Pay?

When booking a hotel stay, it’s important to be aware of the payment procedures to avoid any surprises or inconveniences. Contrary to popular belief, the payment process typically involves two distinct stages: authorization and settlement.

Authorization Hold at Check-In

Upon check-in, guests are often required to provide a credit or debit card for an authorization hold. This hold typically covers the estimated cost of the entire stay, including any incidentals such as room service, parking, or late checkout fees.

The authorization hold reserves funds on the guest’s card but does not deduct them. It serves as a guarantee for the hotel against potential charges during the stay. The amount authorized may be higher than the actual stay cost to accommodate for unexpected expenses.

Final Charges at Checkout

At checkout, the hotel processes the final charges for the actual stay and any incurred incidentals. The authorization hold is then released, and the guest’s card is charged for the total amount owed.

Unused Incidental Hold

If no additional expenses were incurred during the stay, the unused portion of the incidental hold is released back to the guest’s card. This usually occurs within a few business days after checkout.

Benefits of the Authorization Hold

The authorization hold provides several benefits for both hotels and guests:

• Security for hotels: It ensures that guests have sufficient funds available to cover potential charges.
• Convenience for guests: It allows guests to enjoy their stay without having to worry about keeping track of expenses or using cash.
• Flexibility for hotels: The hold provides flexibility to cover any unexpected expenses, such as extended stays or late checkout penalties.

Conclusion

Understanding hotel payment procedures is essential for a smooth and hassle-free stay. While the payment process may vary slightly from one hotel to another, the general principles remain the same. Guests typically provide an authorization hold at check-in, which is finalized at checkout to cover the actual cost of the stay and any incidentals.