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pre-paying for room discount

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As I am planning for my spring trip to Lisbon I am finding many of the hotels I am researching offer a pre-paid discount. Is this a trend that is increasing thru out Europe or more of a Lisbon phenom? I don't remember encountering this option very often on many of the other trips I have planned (Paris, Barcelona, Italy etc.) Not sure I really want to pre-pay - the euro is headed down, down?! plus I always thought it was nice to be able to cancel 24hrs ahead without penalty - made the decision as to whether to get travel insurance a little easier. Have other posters been pre-paying the hotels to obtain a discount?

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