When it comes to hotel bookings, I usually either pay in full upon booking to take advantage of advance purchase rates, or I select a rate where I pay on arrival. Recently I booked a room and the hotel took a one night deposit, which is unusual.
Having not seen this before, I was curious as to whether it’s something common or if it’s appeared due to Coronavirus. It’s not something I have come across before, personally.
One Night Deposit
Apparently Hawaii is red hot right now among US citizens and even I am getting in on the act, heading over next year. When booking my boutique hotel, a one night deposit was required to access the advance purchase rate.
Initially I was a bit reluctant to go with it, but upon reflection, it’s actually better this way. I would rather pay one night than the entire thing, as it is less of my cash tied up in advance.
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- The terms I was presented with at the booking stage.
At the same time, it is possible to cancel up to 72 hours before arrival, which is extremely flexible. Any cancellation would be done by me well in advance of this date, so this is good.
The saving for the advance purchase was not substantial but also a decent chunk of change over a five day stay. It makes little sense to me to be booking the flexible rate in these circumstances.
Overall Thoughts
I like paying a one night deposit for an advance purchase rate rather than the entire amount. There was no option to pay for the entire stay in advance and save even more, so that was also the only choice I had.
With the flexible cancellation fees, this is actually a very good thing. I’ll be curious to see if it becomes a thing or whether it’s just a temporary thing to protect the potential cash outflows thanks to the pandemic. Either way, I’m a fan!
What do you think of hotels taking a one night deposit for advance purchase instead of the entire amount? Have you seen this before and is it common? Thank you for reading and if you have any comments or questions, please leave them below.
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Most conferences/large group mtgs ask for a one night deposit that I have experienced. It makes sense to me that the hotel would only want to hold onto one night deposit if a refund is to be given for cancellation instead of the full amount. Also, it is the penalty amount for cancelling short notice, so there would be no partial refunds.
Thanks for that information, it’s good to know. I agree that it works for the hotel and both parties really, as it’s also simple to deal with, rather than a cancellation requiring a larger refund less some portion and all the rest of it. Appreciate the comment.
In my humble “slice of pie” experience, “one night deposits” are less common in most areas for most hotels. However, “one night deposits” are somewhat common for certain cities or certain high demand hotels or special events or conventions. For example, I do find that many of the better Las Vegas hotels demand a deposit even for their refundable rates. That has been my experience. I am not an expert, but, before the pandemic I would travel over 200 nights per year for most of the last 30 plus years. I am Ambassador with Marriott, Diamond with Hilton and at… Read more »
You absolutely have more experience in this area than I do, and I’d say you’re right on the mark here. I’m staying on Waikiki Beach in Honolulu, so perhaps as that is such a high demand area, that is why they are asking for the deposit. Though I haven’t been to Las Vegas, I’d say it would be similar – a popular holiday destination where cancellations can happen. Thanks very much for the comment, I appreciate it!
This should not be only during pandemics but also for normal days. Still, now we can enjoy this service, So it’s ok…
Indeed, thanks for the comment!