Understanding Holds vs. Charges
When you check into a hotel and hand over your card, the front desk doesn't just keep it on file. They place a temporary hold, also known as a pre-authorisation, on your account. This is not an actual charge but a freeze on a certain amount of funds to cover
potential costs. These costs, called incidentals, include anything from room service and minibar purchases to parking or potential damages. The hotel is essentially creating a safety net for itself. Think of it as a security deposit; it's a way for the hotel to ensure they can get paid for any extras you use or any damage you might cause during your stay. This hold is separate from your room rate, which is the actual charge for your accommodation.
How Much Should You Expect?
The amount a hotel holds can vary significantly. It often depends on the hotel's star rating, location, and policies. Budget hotels might hold a modest amount, perhaps $50 to $100 for the entire stay. Mid-range properties often hold between $100 and $200. Luxury hotels and resorts, with more amenities like spas and restaurants, can hold $200 to $500 or even more. Some hotels place a single, flat hold for the duration of your stay, while others calculate the hold on a per-night basis, which can add up quickly. A five-night stay with a $50 per-night hold means $250 of your funds will be temporarily unavailable.
The Debit Card Dilemma
While you can often use a debit card for a hotel hold, it comes with significant drawbacks. When a hotel places a hold on a credit card, it simply reduces your available credit limit. However, when a hold is placed on a debit card, it locks up actual cash from your bank account. This means the money is inaccessible to you until the hold is released. For travelers on a tight budget, this can be a major issue, potentially causing other payments to be declined or checks to bounce. Using a credit card provides a buffer and generally offers better fraud protection, making it the safer choice for hotel check-ins.
How to Prepare Before Your Trip
The best way to avoid a nasty surprise at the check-in desk is to be prepared. Before you even book, or at least well before you arrive, call the hotel directly and ask about their incidental hold policy. Ask for the specific amount and whether it's a flat fee or a per-night calculation. Reputable hotels often disclose this information during the booking process, but it's always wise to confirm. Once you know the amount, factor it into your travel budget. Ensure you have enough available credit or funds in your account to cover the hold without disrupting your spending plans for the rest of your trip.
Getting Your Money Back
After you check out, the hotel will release the hold. They will deduct any incidental charges you incurred from the hold amount or simply release the full amount if you didn't charge anything to your room. However, the release is not always instant. While the hotel may process it immediately, it can take your bank or credit card issuer several business days to make the funds available to you again. The typical timeframe is between three and ten business days. If the hold hasn't been released after a week, your first step should be to contact the hotel's accounting department to confirm they released it on their end. If they have, the next call is to your bank or credit card company to inquire about the delay.
