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What is a prepaid reservation and why are Hot Rates Pre-paid?

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What is a prepaid reservation and why are Hot Rates Pre-paid?

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Pre-payment from guests allows hotels to extend their deepest discounts. The hotel room is charged to your credit card at the time of the booking. Hotels typically collect payment information separately for incidentals such as meals, movies, parking and phone calls. Cancellation terms and fees apply to pre-paid bookings. Prepaying your hotel room assures the deep discount rate is “locked in” and paid, so you will not be subject to room rate increases.

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