Deposit vs. earnest money: How to avoid being scammed when booking a hotel room. When booking hotels in Europe, it is important to understand the difference between a deposit and earnest money, and how to protect yourself from potential scams.
Understanding earnest money and earnest money in the EU
- A earnest money is an amount you pay in advance to secure your reservation. It is usually deducted from the final cost of your stay. If you cancel your reservation within the stated time, the earnest money may be refunded, but it is non-refundable if you cancel late.
- A security deposit is an amount that may be charged to cover potential losses or additional expenses (such as damage to your hotel room). The deposit is usually refunded after the room has been inspected upon check-out.
How to avoid being scammed when booking a hotel room
- Read the terms and conditions: Before you confirm your reservation, read the terms and conditions carefully.
- Make sure you clearly understand the policy regarding earnest money and earnest money, as well as the cancellation policy for your room. Check the reputation of the hotel: Research reviews of the hotel on independent platforms. This will help you avoid fraudulent offers and choose a reliable place to stay.
- Use trusted platforms: Booking through reputable sites like Booking.com provides protection and the possibility of free cancellation in some cases. Look for offers with free cancellation and no prepayment.
- Save booking documents: Keep all booking confirmations and correspondence with the hotel. This can help in case of disputes about the return of the deposit or security deposit.
- Check the availability of hotel licenses: Make sure that the hotel has the necessary licenses and certificates to conduct such a business. This can be done through local tourism associations or state registries.
- Inspect the condition of the room upon check-in and immediately notify the hotelier of any damage to the room or malfunctions of furniture or hotel equipment.
- Pay for your reservation through verified and secure methods: Use credit cards for payment, as they offer additional protection for purchases. Avoid transferring money directly to private accounts.
Many hotels in the EU refuse to accept prepayment or cash for hotel rooms. This is due to the practice of some guests to cause disturbances in the room or, for hooligan reasons, to make the hotel room uninhabitable.
This is practiced by people from the CIS, Africa, the Middle East and Eastern Europe. Such incidents are especially common among young people and on holidays. When paying in cash, it is very difficult to recover compensation for damage caused to the hotel, but in the case of payment by credit card, recovery is much easier.
Documents required for booking a hotel in Europe
When booking a hotel in Europe, it is important to have certain documents with you that may be required both to verify your identity and to complete the registration process. Here are the main documents that may be required:
- Passport:
A valid passport proving the identity of the client. For foreign citizens, the passport must be valid for at least six months from the date of entry. - Booking confirmation:
A printed voucher or booking confirmation if the room was booked in advance. This may be necessary for quick check-in at the reception. - Visa (if required):
For citizens of countries that require a visa to enter Europe, you must provide a valid visa and a migration card. - Additional documents for minors:
If you are traveling with children, you will need the child’s birth certificate and an identity document of the accompanying adult. - Credit card:
Some hotels may require a credit card to guarantee payment or cover additional costs. It is important to use an international credit card, as debit cards from banks of some countries may not be accepted in the country of stay. - Residential address:
In some cases, you may be required to provide your permanent address and contact details.
See also: Autumn in Poland: resorts for children and places for family vacations
Which European countries require payment for a reservation before check-in
When booking hotels in Europe, the terms of prepayment may vary significantly depending on the country.
Countries with mandatory prepayment:
- Poland: A minimum of 50% prepayment is required for domestic travel and 100% prepayment if the itinerary includes other Schengen states.
- Latvia: 100% prepayment is required when applying for a visa from the Russian Federation or Belarus, as well as some CIS countries.
- Estonia: 100% prepayment without the right to free cancellation when applying from the Russian Federation and the Republic of Belarus.
- Slovakia: 100% prepayment of the reservation is required, as well as a scanned copy of the confirmation of the reservation received directly from the hotel.
- Germany: Most German hotels require 100% prepayment for the room, but you can find offers with payment upon check-in, especially but in low season.
- Spain, Portugal and Italy: Hotels with flexible booking conditions are common, but many also require 50% or 100% prepayment, especially in popular tourist destinations.
Customer rights if a hotel in the EU does not provide a room for a reservation
If a situation arises where a hotel cannot provide a room for a confirmed reservation, the client has a number of rights and options to protect their interests.
1. Written refusal of check-in
If a room has been booked and paid for, but upon arrival it turns out to be occupied, the client has the right to demand a written refusal of check-in. This is important for further actions, including the possibility of filing a claim for compensation for moral damages and losses associated with the need to find alternative accommodation.
2. Refund
The client has the right to a full refund for the service not rendered. If the hotel does not provide the booked room, this is considered a breach of contract, and the client can demand a refund of the prepayment and deposit.
3. Right to alternative accommodation
If it is not possible to check into the booked room, the hotel is obliged to offer alternative accommodation. This may be a room in this or another hotel of a similar or higher class at no additional charge. The hotel has no right to demand that you pay extra “for providing a better room”.
4. Contacting intermediaries
If the booking was made through a travel agency or online aggregator, the client must contact them directly to resolve the issue. Intermediaries are obliged to help resolve the situation and offer accommodation options or fully refund the booking.
5. Complaint to consumer protection authorities
If the hotel administration refuses to satisfy the client’s demands, the latter can file a complaint with the local consumer protection authorities. This may help resolve the conflict at a higher level.
6. Court proceedings
If the hotel refuses to refund the money or provide alternative accommodation, the client has the right to file a lawsuit. To do this, you need to collect all the documents: booking confirmation, correspondence with the hotel and a written refusal of the hotel to accommodate on previously agreed terms.
Cancellation policies for hotels in the EU
Cancellation policies for room reservations can vary greatly depending on the specific hotel and rate type. There are some general guidelines in the EU that can help you understand how cancellations for room reservations work.
- Free cancellation: Many hotels offer free cancellation up to a certain period before your check-in date. This is usually between 1 and 14 days. For example, some hotels may allow you to cancel 24 to 48 hours before your check-in date without a penalty.
- Late cancellation fees: If you cancel after the deadline, the hotel may charge a penalty. The penalty is often equal to the cost of one or more nights. For example, if you cancel one day before your check-in date, you may be charged for two nights.
- No-show: In the event of a no-show (if the guest does not show up on the check-in date and does not notify the hotel), you will usually be charged the full cost of the first night or part of the stay, depending on the conditions agreed upon in advance.
- Special rates in EU hotels: Some rates, so-called “non-refundable”, require full prepayment and do not allow cancellation without forfeiting the entire amount. These rates usually offer significant discounts on accommodation and services (especially for long-term bookings), but are only suitable for those who are completely confident in their plans.
