Hotel CC blocking

[cmon0005]

One thing I've noticed over the years (and to tell you the truth I still don't understand it).
Is around Hotels of blocking $X amount on your credit card at check-in, well I understand and accept why they do it just I don't understand their varying policies for how much they will block.

Many years ago I ditched all my CC's and paid them off, but kept 1 for the purpose of Hotels (personal travel), it has a fairly small limit and I just transfer money onto it before my trip with an amount I think will be sufficient for they stay (I take into account exchange rate, local taxes.etc), but I can never correctly estimate due to varying policies, recently I had a 2 night stay in HKG I transferred about $400AU more than needed but the front desk of the Sheraton still wanted more money blocked, so I had to pay cash for the difference ~$500HKD.
*I should* check before hand but its normally the last thing I think of before going on a trip.
Yes I have a VISA debit, however don't like using this in overseas hotels due to the issue of blocking and security.

For eg almost every Hotel I've stayed in here in Aust generally they pre-authorise a small amount just to make sure your card works, from $1 to $20 I've had pre-authorised. Then at the end I am free to pay with whatever method I choose. This works for me and ensures I don't have a large amount of money 'blocked' on my CC.

But when travelling overseas in say Singapore, India, Hong Kong they prefer to block for the entire amount of the stay and 'then some'. The 'then some' amount is what varies, some seem to block the equivalent of one nights rates on top of the entire stay, others seem to block x% of your entire stay as extra, and others have a fixed $ amount on top of the entire stay.

Does anyone else find these varying policies annoying/confusing? Is there a general rule for each country or up to each hotel?

Yes a simple solution would be to get a bigger limit or transfer more cash onto the CC, but I made a decision a few years ago to get rid of all my CC's bar one and never get into high CC utilisation again.

 

[markis10]

There is no general rule, even in Australia I have had large holds placed including the Hilton at Brisbane which is $100 + room rate.

 

[Aussie_flyer]

I would say $100/night is routine in Australia for 5 star chain hotels. I think Conrad HKG is about $1000 HKD per night.

 

[knightman7]

Just get them to charge the full room amount onto your card at check in. Then you only need to have a small amount preauthorised on your card for incidentals.

You can even leave this amount in cash in most hotels and still charge items to your room, although some hotels don't allow you to charge things back to your room with a cash deposit.

 

[oz_mark]

There is no general rule, even in Australia I have had large holds placed including the Hilton at Brisbane which is $100 + room rate.

My experience with Hilton is basically the same, if the room hasn't been paid for. Generally, just the $100 if the room is prepaid.

 

[Ewing]

I would say $100/night is routine in Australia for 5 star chain hotels. I think Conrad HKG is about $1000 HKD per night.

$100/night is usually a safe bet.

In my experience, pre-auths have ranged from $1 up to $1000 (Meriton) in addition to the room rate.

 

[cmon0005]

Also what is annoying it at checkout, when you settle your bill (which in my case is always less than the blocked amount) some hotels don't seem to take the block off properly, so I end up having a few hundred $ locked up that I can't use, even worse if I am going on to another hotel the day after then they do their own block, potentially if you are going to many different countries in a short time frame you could well have up to a $1000 or more held up in blocks.

 

[markis10]

Also what is annoying it at checkout, when you settle your bill (which in my case is always less than the blocked amount) some hotels don't seem to take the block off properly, so I end up having a few hundred $ locked up that I can't use, even worse if I am going on to another hotel the day after then they do their own block, potentially if you are going to many different countries in a short time frame you could well have up to a $1000 or more held up in blocks.

Easily picked up at checkout by making sure the transaction was done offline.

 

[Aussie_flyer]

Also what is annoying it at checkout, when you settle your bill (which in my case is always less than the blocked amount) some hotels don't seem to take the block off properly, so I end up having a few hundred $ locked up that I can't use, even worse if I am going on to another hotel the day after then they do their own block, potentially if you are going to many different countries in a short time frame you could well have up to a $1000 or more held up in blocks.

Well it usually takes a couple of days to convert the pre-authorisation to the final payment amount, it may take up to a week.

This is where a credit card with a decent limit comes in quite handy. Otherwise I recommend a cash deposit which you get physically handed back at check-out.

 

[cmon0005]

Easily picked up at checkout by making sure the transaction was done offline.

Problems have happened more so due to inexperienced operators, the CC machine being 'down', can't find the original pre-auth receipt..

 

[markis10]

Problems have happened more so due to inexperienced operators, the CC machine being 'down', can't find the original pre-auth receipt..

I often hear the same but stand my ground, most common excuse is its a different card.

 

[cmon0005]

Well it usually takes a couple of days to convert the pre-authorisation to the final payment amount, it may take up to a week.

This is where a credit card with a decent limit comes in quite handy. Otherwise I recommend a cash deposit which you get physically handed back at check-out.

I think for my trips going forward I am either going to prepay or call the hotel in advance for their blocking policy, so I can predict how much I would need.

 

[Aussie_flyer]

I think for my trips going forward I am either going to prepay or call the hotel in advance for their blocking policy, so I can predict how much I would need.

Before I used credit cards I just used cash, $100 usually covers it and you get it back and can use it at the next place. When moving from hotel to hotel 3 or 4 times in as many days you can end up with large amounts of credit held up.

 

[harvyk]

Another one who uses cash when ever possible, I used to have credit cards, but found that I stopped seeing them as "credit" and more like a standard account. Needless to say, the day we decided to cut them up and stop using them was one of the best financial decisions we'd ever made.

The worst I've had was for a car rental place. They locked out $500 (it was a rental for 1 night) and it took 3 weeks for them to remove the lockout (at the end I was on the phone with them every day, each day was another excuse). I was most unimpressed as it was on a visa debt.

 

[blackcat20]

Just get them to charge the full room amount onto your card at check in. Then you only need to have a small amount preauthorised on your card for incidentals.

You can even leave this amount in cash in most hotels and still charge items to your room, although some hotels don't allow you to charge things back to your room with a cash deposit.

I had one where the room was pre-paid, but the hotel blocked $150 per night to my credit card, but never mentioned it on check-in. Went to use my card else where and was declined; turned out they had put the block on twice, and their only reponse was "too bad". Didn't unblock until I was well and truely back in Australia.

 

[joeymelb]

This March, I used 3 hotels in Singapore, Hong Kong and Bangkok within matter of a week. The block on my CC was SGD$100 per stay (Swissotel Stamford), the check-in staff informed me, Langham Place Mongkok (3 Day Room Rate, even though I prepaid), Dusit Thani (I actually can't remember how much was the block...)

I have 2 Cards for traveling - AMEX Charge Card (not mine, company issue) for the "blocking" - and Westpac VISA for "personal spend". When I check into hotels, I always use my AMEX charge as security, but pay with my VISA (if personal travel).

Further, last year, I had unfortunate event of my partner suffering heart attack in Bangkok. Even though we had travel insurance, the hospital still needed a substantial deposit (THB50,000 in my case) inside Emergency Room before any treatment. If I don't have the credit in my CC, my partner will likely be forced to go to a public hospital and I really don't want to think about what would have happened. My recommendation for those people who travel with min CC balance or with VISA Debit cards, may I suggest that you get a Charge Card for security and emergency purpose? (Provided you can get one without fees or very very low fee)

 

[serfty]

Back in the 90's after a three week holiday I had over 3000 pre-authorised on my sole Credit Card - back then they'd take over two weeks to drop off.

Car rental was the worst culprit.

In the end Charge cards are the ones that do it for me - always try to check in with one.

 

[Milboo]

I had this happen last month at the Intercontinental Westminster in London despite being an Ambassador member.

Checked in Friday night and out on Sunday afternoon and paid in full. The hold was placed on my card AFTER we had checked out (due to bank processing). I then had close to $1000 on a debit card held and as it was a debit card it took 10 business days to be released.

Massive dent on my holiday shopping as I don't use credit cards.

 

[Mal]

I know that there are people who don't have credit cards for varying reasons ... But this is one of the reasons I can't travel without one. Dont have to worry about this issue. Dont have to worry about my card being skimmed and my savings taken.

As for the solution... Yes, offering to prepay at the start does normally reduce the pre auth amount. And yes hotels should clean up the pre auths correctly.

 

[Danger]

I'm meticulous about paying of my credit card not just daily but soon after I've made a purchase (I view them not as credit cards but FF cards by another name). I have one credit card solely for pre-authorisations. It used to be the Hilton Macquarie card but I'm done paying their ridiculous annual fee so now it's my BMW Gold Amex. I rarely look at its balance because I know there's never any actual charges on it.