The simple reason you should always book the flexible rate: You can end up saving money that way.
Some years ago, I booked a hotel on an advance purchase rate. Unfortunately, there was an unexpected trip interruption which caused the remainder of the trip to get cancelled. The hotel offered no flexibility because it was an advance purchase rate. I have not booked an advance purchase rate ever since.
Why Pay More?
I always book hotel nights on a flexible rate, even when it costs more than the advance rate. This seems counter-intuitive but it can actually work to your advantage in terms of savings. Because the rate is flexible, you have the flexibility to change or cancel the reservation if plans change. If the nightly rate drops at the same hotel (or other nearby hotels), you can take advantage of the lower rates.
Case in point:
I have an upcoming reservation which has a nightly rate of $224 per night, for a 4 nights stay.
I booked it a couple of months back, and I wanted to stay at this specific property. Recently, I checked the rate again and noticed the rate had actually gone down. After re-pricing the reservation, I got a better price.
I would not be able to get the savings if I had booked the advance rate.
No Downside
I see no downside to booking the flexible rate, except the price may be marginally more than the advance purchase rate. In return, you get the flexibility and the potential to save more if the rate drops. I definitely value the flexibility over the savings from the advance purchase rate. That is not to say that I would never book an advance purchase rate. I’d consider it if my plan is firm (i.e. there is a need in a matter of days) and the advance rate is significantly cheaper than the flexible rate.
Do you always book the flexible rate, or do you always just book whichever rate is the cheapest?
It is rare that a travel blog post makes me completely rethink how I do things, but this made me realize I’m doing it wrong, and driven home by the fact that I could have saved about $150 if I had done this on my upcoming trip. I’ve been penny wise and pound foolish. Thanks for the tip.
I wouldn’t say you’re doing it wrong — after all, there isn’t *any* guarantee that a rate would drop. I learned a lesson the expensive way, so if the tip can help anyone else, then all the better. Thanks for reading and for the kind words.
I totally agree. I’ve been burned a couple of times by thinking I was saving money by booking a non-refundable rate, then got frustrated when I checked later and found a better deal… lower price, participating in a promo, or even finding a better property for the same or less money.
Some of the AAA rates are both lower and can be cancelled/flexible. This is my experience on SPG and Hilton. It varies at the hotel level so can take some digging.
Indeed. In my example above, I should have stated that I went from a regular “flexible” rate to a AAA “flexible” rate. That rate was listed on the hotel website and it’s a fully cancellable rate. You’re absolutely right that it takes some digging, usually at the hotel level to see what sort of options are offered, but it’s usually worth it (and it doesn’t take too long).
Thanks for the feedback!
Every chain also has different interpretations of advance purchase rates. For Example, a 4 night booking with the Hilton chain on an Advance Purchase rate will charge for 1 night on a “no show” but Club Carlson will charge for all 4 nights.
Well said. Generally, there is typically some sort of “penalty” on the advance rate, even if different hotel chain treats the ‘penalty’ on the advance purchase rate differently. Sometimes it’s not a total loss.
Do you know of a tool that monitors hotel rates automatically so that one would need to check manually every few days?
Unfortunately, I don’t…
After a quick search, it seems like there are services that would track prices: https://www.hotels.com/deals/pricewatch/
I haven’t used it personally myself, so I can’t really vouch for whether it works (or works well), but at some point, I should put it to the test. 🙂
Thanks for reading and for the great question!