Uh, no. that is not the only reason why pre-pay can be beneficial to the hotels. Among other reasons, there is a cashflow benefit as funds will normally be available to the hotel sooner. More importantly, a pre-pay is a guaranteed sale. You remove the risk that the customer might change his mind and stay at another nearby hotel (eg because they have lowered their rate or their friend stays there or they hear good things about that other hotel, etc...). It is not just when a client does not turn up on a paid booking that there is an advantage to the hotel in having a guest pre-pay.