Which term means the guest pays for the entire stay before arrival?

Which term means the guest pays for the entire stay before arrival?

• A. Prepayment
• B. Advance Deposit
• C. Guaranteed Reservation
• D. Non-Guaranteed Reservation

Answer: (A)

Paying for the entire stay before arrival is called prepayment. This means you settle the full cost of the stay at the time of booking or by a specified date, so the hotel has the money before you check in. It secures the room and often comes with stricter refund terms since the revenue is collected upfront. In contrast, an advance deposit is only a partial payment to hold the reservation, with the remaining balance due later. A guaranteed reservation refers to holding the room for you when you arrive (often backed by a credit card) but not necessarily paying the full amount upfront. A non-guaranteed reservation means the room isn’t securely held without a guarantee, and the hotel may release it if you don’t arrive by a certain time.

Paying for the entire stay before arrival is called prepayment. This means you settle the full cost of the stay at the time of booking or by a specified date, so the hotel has the money before you check in. It secures the room and often comes with stricter refund terms since the revenue is collected upfront.

In contrast, an advance deposit is only a partial payment to hold the reservation, with the remaining balance due later. A guaranteed reservation refers to holding the room for you when you arrive (often backed by a credit card) but not necessarily paying the full amount upfront. A non-guaranteed reservation means the room isn’t securely held without a guarantee, and the hotel may release it if you don’t arrive by a certain time.