I believe we have touched on this topic before, but always good to bring others perspective here.
I think that this 'pre-pay' plan could work in the right enviroment whether it be the type of place (a truely unique place) or if it was for the right time of year - a special event etc. In general, I do not really think it will catch on to be the norm, and especially much in advance.
I have made only one pre-paid stay and that was due to the fact I would have to have been dead not to go on that trip and it was a special time frame and rooms were hard to find. Normally, I would not even think of it for a casual trip.
I have mentioned before about my deposit policies and in a way this topic goes hand in hand with the pre-payment topic here. During normal times, I take a deposit of 1 night's stay the day after the last day to cancel. (I do it this way because I do not want to have a big slush fund for deposits that may need to be returned nor do I enjoy the refund fee by my merchant service.) If the card does not go through, they get a call before I open the room.
For event periods I do have a 30 day cancellation policy and at that time I do require payment in full and charge their card the entire amount - so in essence pre-paid. This is due to my events being very busy. Starting this weekend for 5 day period is a good expample... I have only 5 rooms, if someone cancels it could be a chunk if I do not do it this way since this event does draw the young or young at heart we would be wondering about them until arrival if we did not have this policy for it. This year, has been one of the busiest as in last minute (within 1 week) calls for stays, due to the out come of last weeks major event, but I have been full for awhile. Still placed them on the wait list, just incase someone had to cancel, but I think even the weather won't stop this crowd this year..
This was in today's Frommer's newsletter. Even the big chains have trouble with their prepay for a discount rooms. Of course we're very different than a big chain, and it hurts us more, but even if a B&B went to a prepay, no cancellation policy there would still be people wanting their money back.
http://www.frommers.com/articles/6624.html
I found the individual comments to the article interesting. Some people really get it and other's don't.
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Well, I tired to logon and respond but it kept bouncing my login id.
I'm in agreement with the folks who said that you book the cheap rate at your own discretion. It's a crapshoot and this guy should not have gone to bat for the writer, Days Inn should have stuck to their policies and the whole thing makes it hard for an honest person to make an honest living.
And, really, "$415 is a drop in the bucket"? What the hell is that supposed to mean? If it were a couple of thousand Days Inn would have been entitled to keep it? But it's a measly $415 so give it back to the guy? 6 nights, $415??? That's less than $65/night if the cost included the tax. Give me strength, is no one responsible for anything anymore?
And this is what online reviews are bringing things to. Don't like being treated fairly? Complain online and try to ruin a company's reputation. It's BS the lot of it.
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