Hotel prepayment

Hotel prepayment refers to the process of paying for a hotel stay in advance of the guest’s arrival, either partially or in full. 

This approach is often used by tour operators and corporate clients to secure reservations, guarantee availability, and sometimes obtain discounted rates. 

Prepayment is particularly common for high-demand periods, special events, group bookings, or promotional rates where room availability may be limited and securing a reservation early is advantageous for both the guest and the hotel.

Some hotels offer nonrefundable prepayment options, which provide the lowest rates but carry the risk that the traveler cannot cancel without forfeiting the payment.