But you can wait until you arrive.
Are you risking your reservation by doing so? Especially if you aren’t booking directly with the hotel? And what are the potential downsides to paying in advance?
Should You Prepay for a Hotel or Wait Until You Arrive?
I booked a hotel through a third party. If I wait to pay, is there a chance I’ll lose my reservation when I arrive?
That’s what a listener recently asked money expert Clark Howard.
Asked David in Ohio: "I recently booked a hotel during the week between Christmas and New Year's through Expedia. It gave me the option to pay upfront or pay when I show up.
"If I choose to pay when I show up, does that increase the likelihood that I could be turned away if they have overbooked the hotel? Should I pay upfront to better secure my reservation? Or doesn't it make a difference?"
It doesn’t make a difference. If you don’t prepay for a hotel reservation, you should still get your room. Why pay before the trip?
“Unless there’s some enormous increase in rewards or awards you’re going to get from Expedia by paying upfront, you don’t want to pay upfront,” Clark says.
“Remember, if you no-show for that hotel, they’re billing you for at least the first night anyway. There’s no meaningful difference between you prepaying or paying when you get there.
“My preference? Unless there’s something dangling out in front of you that’s just so worth it to pay up front, don’t do it.”
Clark’s Experience With Prepaying for a Hotel: How It Goes Wrong
Prepay for a hotel through a third-party site and you’re at risk of getting charged twice.
Clark experienced this after booking a Los Angeles hotel. He normally doesn’t prepay. But his booking service offered him a good deal.
“I was going two days later. So I was like, ‘Man, I’m going to take that deal,'” Clark says.
“I prepaid the deal. Get the hotel. They said we just need your card for incidentals because we see you’re prepaid. And then the next week I got billed by the hotel at what the price would’ve been regularly if I hadn’t had the prepayment.
“I went through so much hassle getting the hotel to credit me back it was unreal. No one would ever respond to an email, phone call. I finally tracked down what the corporate office was of the hotel. And finally, I got somebody to give me my money back. I mean, it was a terrible mess.”
Clark pointed out that his experience isn’t unique. He’s heard from a number of other travelers who have experienced the same scenario.
His story is also a reminder to pay for hotel reservations via a credit card. You'll enjoy much greater consumer protections than if you pay via a debit card. And you may be able to get a de facto discount in the way of credit card rewards points.
Final Thoughts
Travel sometimes induces anxiety. But you can relax if you’re booking a hotel but waiting to pay.
“I am not a fan of prepaying. Never prepay for a car rental [either],” Clark says.
The post Should I Prepay for a Hotel Reservation To Avoid Losing My Room? appeared first on Clark Howard.