Pension in Prague does not accept Czech koruna?
 

I'm going to the Czech Republic this week and have booked into a pension recommended by a friend (who did not actually stay there). In my confirmation, I was told to bring US dollars to pay and that they could not accept Czech koruna. This seemed a bit odd to me. It this merely a way for them to save money converting currency? I think the owner is not a Czech citizen.

Andrew

well, it is certainly odd, but who knows what the owner is doing with money if he is not Czech--maybe sending it abroad or something. I think even foreign businesses that are based in Prague accept local currency, of course--I've stayed in a hotel that was Austrian, but they didn't refuse Czech money. You'd think the owner would have a local bank account, also, so it makes no sense. If they don't accept CK, that means their rates are quoted in USD, right? given how much the USD tanked against the koruna in that last couple of years, that's sort of surprising, also.

I haven't had a hotel do it, but I have had guides and a store or two in Prague request payment in cash in US $, and in fact a couple of them offered a discount, as compared to the official exchange rate, if I paid in cash $. I don't know if it has something to do with the stability of the koruna, or undeclared income, or what it is, but I have had it happen, and I didn't mind doing it since I was advised in advance.

In the case of a hotel, I would wonder what their official rates are, if they are posted on line or in faxes and such, and if they are giving you a good $ rate.

I emailed the hotel about this and they replied that they can accept koruna if it suits me, saying that it's usually just more convenient for travelers to pay in their home currency. But the confirmation message says they "cannot accept" it. Maybe they do like US dollars or Euros and it's just a pain for them to convert it from koruna? But the rate on their website is already shown in US dollars so I know exactly what I'm paying.

Europe is definitely different than the US regarding payment of currency (which we of course take for granted as the US dollar is almost ubiquitous), so I'll chalk this up to regional customs. It sounds like this sort of thing is fairly common. Thanks for your replies!

Andrew

>request payment in cash in US$
It's all and only about the bad bad taxman. The czech crown is a stable currency. Just be aware that you're supporting this.

<<saying that it's usually just more convenient for travelers to pay in their home currency.>>

oh, yeah, more "convenient" and probably more expensive if they are making up the exchange rate. People saying they already know exactly what they are paying just because it's in USD are what scammer stores and other establishments prey upon in the DCC scheme, etc.

It sounds just like a ripoff to me. Do you know what exchange rate they are giving you? Hostels are probably cheap anyway, but I'll bet anything you are being ripped off. The koruna is stable and has been for a long time, as I said, the dollar has actually dropped against the koruna a lot in the last couple years because the CK floated more like the euro.

I never had any store ask for USD in Prague or elsewhere in the Czech Republic instead of CK.

Okay, the test of their altruism of doing things solely for your convenience is == what is the exchange rate they are using?

Or maybe mafia trying to legalize their foreign deposits?

When I stayed in an apartment in Prague, we were told that we could pay in £, $US or €.

The exchange rate between Koruna and the other currencies was as expected so I just paid in £ and thought nothing more of it but it does make me wonder now whether it's more widespread than I thought.

i wouldn't get so worked up over this, christina...yes, i think it is clear that it is not merely for the convenience of the customer but as others have stated, it is probably to avoid tax or russian owners who wish to send USD back home. prague has a lot of dodgy dealings and this sort of thing is not surprising to me. as long as the price in USD is reasonable, i wouldn't worry. i'm sure they tell europeans to pay in euro also.

Well, Christina, the hotel does not even quote rates in koruna. So there is no exchange rate. It is obviously not a place for locals. The price in dollars is the price in dollars, just like a hotel in the US. I guess I could look at the quoted price in Euros and see if that's cheaper based on today's rate than what I'm being quoted in dollars, but I'm not worried about it. I just thought it was strange, but I'm not stressed about it.

Andrew

The conspiracy theorists won't think this thought holds any water, BUT since the rate was quoted in dollars, the owner wanted to be paid in the currency in which the rate was quoted. He did not want to be subject to the twists of an arbitrageur-customer, who would pay him the least amount. Let's say he has a 2500CZK room which he converts at a rate of 1CZK = US$0.04 to $100.00. You, an Alan Greenspan economist-in-training, take the room, but in the meantime, the conversion rate has changed to US$0.041. Do you offer to pay him $102.50? No, you'd say $100.00 because it was less. Or you'd try to pay him 2439 CZK for the 2500 CZK room. He's merely trying to take some of the currency risk out of his business by asking you to pay the same currency you were quoted in.