How Would You Like a Cheaper Room with Prepaid and Non-refundable Restrictions?

If you traveled to Canton during the Canton Fairs in the 80s and 90s, you are probably very familiar with the prepaid, non-refundable restrictions on hotel rooms. That was the time when hotels tripled its rack rate and required non-refundable deposit for all reservations because of high demands.

USA Today reported more hotels are now selling prepaid, non-refundable rooms with bigger discount in the U.S. due to the recession. More and more customers choose to pay in advance for a cheaper room. This alternative works well for those who plan ahead. Hoteliers just need to clearly state the “prepaid and non-refundable” restrictions to guests upon reservations. Then, guests can choose higher price with fewer restrictions or lower price with more restrictions. I don’t mind paying in advance for a cheaper room if (a) I am certain of my travel plan, (b) I don’t own any debts to credit card companies, and (c) the money I can save exceeds the opportunity cost of my deposit. We often pre-pay for our airline tickets anyway. Why can’t we pre-pay for our hotel stays?

References:
USA Today: http://tinyurl.com/linchikwok02232010
Picture was copied from http://tinyurl.com/linchikwok02232010p (Picture shows part of the Convention Center in Canton, China, the second largest convention center in the world).

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