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How early should i book hotels

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Travelling in July 2016 to MADRID, ROME, VENICE, AMALFI COAST/LAKE CAMO AND PARIS. I have a couple of questions

1. What will be a reasonably good time to book hotels for July 2016

2. Many hotels offer cancellation very close to the arrival date, but they do Authorize your Credit card. So, will my credit card be billed immediately once they authorise the card?

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