Guaranteed hotel reservation

A guaranteed hotel reservation is a type of booking in which the hotel commits to holding a reserved room for a guest for the entire night of the scheduled arrival date, regardless of what time the guest arrives. 

Unlike nonguaranteed reservations, which may be released after a certain time if the guest has not checked in, a guaranteed reservation provides assurance that the accommodation will remain available. 

To secure this commitment, the guest typically provides a valid credit card number, prepayment, or a corporate billing arrangement at the time of booking. If the guest ultimately does not arrive and fails to cancel within the hotel’s cancellation policy, the hotel charges a no-show fee, usually equivalent to one night’s stay.

Travelers benefit because they can arrive late at night without worrying that their room might be reassigned, which is especially important when flights are delayed or arrival times are unpredictable. Hotels benefit by reducing revenue loss, since the financial guarantee compensates them if the guest does not show up.