50% Downpayment?
#1
Original Poster
Joined: Jan 2004
Posts: 21
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50% Downpayment?
Hello, all. I recently sent an inquiry checking on room rates and avialability to a site called www.phangan.info. I got a quick response, but 1)the rate was 2 1/2 times the rate I saw on the website; 2)the hotel wanted 50% upfront; and 3) they wouldn't take credit card. I am supposed to Western Union the $ to them. Is this normal? It sure strikes me as odd. Is there a 50% cancellation penalty if my plans change? Sounds harsh. Thanks in advance for any input.
#2
Joined: Jan 2003
Posts: 6,749
Likes: 0
I would only suggest you you try some others and see what they come up with, I have no idea of the deposit/depends when you are traveling/ etc etc. I have no idea if these can give a better rate or whatever but give them a try, we use them all the time any never a hitch, they will check availability and everything then give you the offer then up to you. They have all the cheap places from about $8 up to the top places
http://www.r24.org/huahin.20m.com/kohphangan/hotels/
http://www.r24.org/huahin.20m.com/kohphangan/hotels/
#5
Joined: Jan 2003
Posts: 33,288
Likes: 0
I have prepaid hotels to get better rates or to reserve during a very busy time of the year. However, I would only do so with a credit card (gives you some protection) and with a hotel or website I knew was reliable. I've prepaid occasionally at www.asia-hotels.com (most of the time no prepayment is required). I wouldn't prepay with those restrictions (Western Union) and to a website I wasn't familiar with. I would also be suspicious that the rate was significantly higher than listed on the website.
#6
Joined: Jan 2003
Posts: 6,749
Likes: 0
I would add also that if the place is exactly what you are after, the price and accommodation is right, and the dates are what you want, then you risk 'loosing' what you idealy want if it is not guarenteed. I agree that I woukld sooner book with a c/card through a decent booking site than with a 'small' independent property on KPG by W/Union.
Just a little story to give some perspective on guarenteeing accommodation:-
A good friend of mine opened a very nice guesthouse in Chiang Mai some time ago. He had not been in the accommodation business before. He wanted to be as friendly and 'nice' to prospective guests to build up his business, so, he didn't ask for guarentee advance payment but everyone who booked he asked them 'kindly' to 'please' advise if they changed plans or didn't need the accommodation.
About 50% arrived as they said they would, no problems, the other 50% never 'appeared', and out of those only 2 or 3 ever bothered to email or fax him that they were not comming. He almost went bust! He had masses of empty rooms.
He then decided he would have to ask for at least 1 night deposit by c/card, this worked fairly ok but a few times people emailed 1 or 2 days before arriving to say they wouldn't come, he could easily have sold the rooms, so was left with emty rooms. Sure, he had 1 night's revenue, but that did not compensate for the loss of being able to have sold their rooms. 3 times he got complex emails via c/card companies as the prodpective guests refused to pay for the 1 night deposit although they had agreed to this when booking.
So he now asks for at least 50% pre-payment and during high season peak periods he asks for the balance at least 15 days in adavnce. Fortunately he now has a high % of return business and also gets business through tour agents.
Just a little of the 'other side of the coin'.
Just a little story to give some perspective on guarenteeing accommodation:-
A good friend of mine opened a very nice guesthouse in Chiang Mai some time ago. He had not been in the accommodation business before. He wanted to be as friendly and 'nice' to prospective guests to build up his business, so, he didn't ask for guarentee advance payment but everyone who booked he asked them 'kindly' to 'please' advise if they changed plans or didn't need the accommodation.
About 50% arrived as they said they would, no problems, the other 50% never 'appeared', and out of those only 2 or 3 ever bothered to email or fax him that they were not comming. He almost went bust! He had masses of empty rooms.
He then decided he would have to ask for at least 1 night deposit by c/card, this worked fairly ok but a few times people emailed 1 or 2 days before arriving to say they wouldn't come, he could easily have sold the rooms, so was left with emty rooms. Sure, he had 1 night's revenue, but that did not compensate for the loss of being able to have sold their rooms. 3 times he got complex emails via c/card companies as the prodpective guests refused to pay for the 1 night deposit although they had agreed to this when booking.
So he now asks for at least 50% pre-payment and during high season peak periods he asks for the balance at least 15 days in adavnce. Fortunately he now has a high % of return business and also gets business through tour agents.
Just a little of the 'other side of the coin'.




