Dubai: The managers of two hotels confirmed that the ‘Book now and pay on arrival’ option does not exempt customers from the obligations associated with the booking.
They explained that this option allows postponing payment of the accommodation value until the arrival date, but it remains subject to the cancellation and no-show conditions that the customer agrees to when completing the booking.
They pointed out that providing bank card details guarantees the reservation, according to the applicable terms and conditions, and may allow the hotel to collect late cancellation or no-show fees, even if the customer has not paid for the stay in advance. They stressed the importance of reading the booking terms and conditions, checking the free cancellation period, and canceling the reservation within the specified period to avoid fees.
In detail, Carlton Hotels CEO Hosni Abdelhadi said that the ‘Pay on arrival’ option is a convenience for the customer, as it allows him/her to book the room without paying for the stay when making the reservation, but it does not mean that the reservation can be cancelled at any time and without cost.
He explained that “the customer who chooses this type of booking remains bound by the terms he agreed to,” noting that some bookings allow modification or cancellation, while other bookings are linked to different terms, making it essential to review the details before confirming the booking. He added that providing bank card details does not necessarily mean deducting the cost of the stay immediately, as this data may be used to guarantee the booking, according to the booking method and applicable terms.
Abdulhadi pointed out that “some customers book hotel rooms and then do not show up, which may cause losses for hotels, especially when the rooms are in demand or the occupancy rate is high, as the hotel keeps the room for the customer instead of making it available to another guest.”
He stressed that “non-attendance does not necessarily mean exempting the customer from fees,” explaining that card details are linked to the booking according to the terms he agreed to when completing it. He added that the importance of cancelling on time increases when travel plans change, to avoid potential fees and make the room available to other customers.
Abdulhadi said, “It is important to cancel the reservation within the specified period for free cancellation, which may be up to 24 hours before the arrival date in some reservations,” noting that this period is not uniform, but varies according to the terms of the reservation.
Direct booking vs third-party sites
For his part, Walid Al-Awa, General Manager of Tamani Marina Hotel, said that “hotel bookings are usually made in two ways, either directly from the hotel or through electronic booking platforms,” explaining that payment procedures and cancellation conditions vary depending on the booking provider and the chosen price.
He added that direct booking may require registering bank card details or reserving a security deposit, which allows for handling the fees due according to the agreed terms in case of cancellation.
Al-Awa pointed out that some reservations may incur fees equivalent to the value of one night upon cancellation, but this is not a general rule, as policies vary from one hotel to another, and may also change according to the season, demand levels, and the type of price chosen.
He explained that the terms of some bookings may allow for the collection of the full value of the stay, including taxes, in cases of late cancellation or no-show, while other bookings are satisfied with fees equivalent to one night, according to the terms specified at the time of booking.
He pointed out that the customer who books through an electronic platform agrees during the booking process to its terms and conditions, including the cancellation policy and potential fees, stressing the need to read these details and not be satisfied with the phrase ‘Pay upon arrival’.
Al-Awa said “postponing payment does not necessarily mean the possibility of cancelling the reservation for free, as some promotional prices may allow payment upon arrival, but they are non-cancellable according to the terms of the offer.”
Flexibility in payment
He stressed that the payment date and cancellation conditions are two separate matters, explaining that providing card details may be for the purpose of guaranteeing the reservation, with the possibility of using them to collect the fees due in cases of late cancellation or no-show, according to the approved terms and payment mechanism.
He added that paying on arrival may give some customers flexibility in choosing the currency of payment, as they can pay in the local currency of the destination where they are staying, which may be more convenient in some cases, depending on payment conditions and exchange rates.
A survey of the terms and conditions published on hotel booking websites and hotel group websites showed that the ‘Book now and pay on arrival’ option does not exempt the customer from late cancellation or no-show fees, as the booking conditions may allow the fees to be collected from the registered bank card, even if the accommodation has not been paid for in advance.
According to the survey, the value of the fees varies according to the booking policy, as it may be equivalent to the cost of one night, while in other cases it may reach the value of the entire stay, according to the terms and conditions agreed upon by the customer when completing the booking.
The free cancellation period also varies from booking to booking, depending on the hotel, rate type, and arrival date.