Why Hotel Deposits Matter (And What We Just Built To Make Them WAY Easier to Manage)

We recently rolled out a new feature we’re calling Scheduled Pre-Payment Requests. (2 April 2025)

If you’re a hotelier—or honestly, just someone who runs a lodging business—you already know how annoying it is to chase pre-payments (deposits) manually.

It’s a time suck, it’s inconsistent, and it can mess with your cash flow big time.

Let’s back up for a sec.

What is a hotel deposit?

A deposit (also referred to as a pre-payment) is any payment collected before the guest’s arrival date. Whether it’s a full upfront payment or just a percentage of the total stay, it’s considered a deposit if it’s received before arrival.

Why are hotel deposits so important?

Collecting deposits is a smart way to secure revenue in advance and reduce no-shows.

And that’s HUGE. Because let’s be honest: guests cancel. Plans change. And if you didn’t get anything upfront? Boom. You’ve just lost revenue, and you’ve got to fill that room last minute.

It’s awful, and we’ve seen hoteliers go gray faster because of it.

The RoomRaccoon Way: Smarter Deposits, Better Conversions

With RoomRaccoon, you can create multiple rate plans with different pre-payment requirements. That means more flexibility for you and better booking options for your guests.

For example:

• Non-refundable deal: Create a 2-person rate that’s 100% prepaid at booking. You’d make this rate slightly cheaper, meaning the guest would get a slight discount, and you get guaranteed revenue upfront. If the guest cancels, your revenue is still guaranteed, as the rate is non-refundable.
  
• Flexible plan: Offer a rate where guests pay just 30% upfront as a deposit and can cancel up to 2 weeks before arrival for a full refund. It feels low-risk to book, but you still get early cash in hand.
  

Using deposits and flexible rates is all part of a smarter revenue management strategy, like Buy Now, Pay Later for hotel stays. Smaller upfront payments feel easier psychologically, which means guests are more likely to hit “Book Now” when the barrier to entry is low.

This means that you could make your flexible rates a little more expensive, knowing that guests will be paying the balance in portions, rather than in one big lump sum.

But here’s the problem we noticed…

Hoteliers were creating flexible rate plans with no upfront payment to boost conversion, but then manually sending payment requests afterwards to collect deposits.

It’s a common strategy to make a rate look more attractive by delaying commitment and having less friction to reserve a booking.

This meant hoteliers were still stuck chasing payments manually—emailing guests to request payment, managing bank transfers, and dealing with VCCs.

Cash flow nightmare, anyone?

So we fixed it.

Introducing: Scheduled Pre-Payment Requests.

With this new feature, you can:

• Set a rate with no upfront payment at the time of booking
• Automatically trigger a payment request X days before arrival
• Request payment via a secure, 3D-secure credit card link

Boom—you’re offering a rate that feels flexible and low-risk (boosting conversions), but still guarantees you get paid before guests arrive.

Top Tip: Activate the scheduled pre-payment request in your rate plans to email guests a secure link to pay their deposit before arrival. The pre-payment request will continue to be sent daily until the guest makes payment.

If payment still hasn’t been made by the guest 2 days prior, you can choose to auto-charge the credit card on file—just make sure this is clearly stated in your booking terms and the payment request to avoid chargebacks.

Suggested wording:

Quick takeaways

• Deposits are essential for your hotel’s cash flow.
• With RoomRaccoon, you can adjust and customize pre-payment settings across individual rate plans.
• Our new feature automates the boring stuff, like chasing deposits after the guest makes a booking.
• You can still require the guest’s credit card details as a guarantee to mitigate against no-shows.
• You can auto-charge a guest’s credit card for no-shows, but always include these terms in your Booking T&Cs to mitigate against chargebacks.
• Guests can get a flexible, friction-free booking experience.

It’s a win-win. Set it up once, let it run, and enjoy smoother, smarter cash flow.