Originally Posted by craz
So the day one makes a res say its website says its 1000 Kins for the night and that equals $100. Then when you get there the local currency is now 1500 per $ so now it will cost You only $75 for that room. Yeh it can go in reverse also where the Hotel will gain cause the Local currency got stronger against the $ but they know it will usually go down against the $. This way they will be able to charge $100 worth of the local Currency no matter where its trading at the day you have to pay.
Yeah, I get that side of it - you've basically described any transaction taking place anywhere in the world between a merchant and a customer from another country. Markets fluctuate, and some are more volatile than others.
I also get why hotels might want to transact business in what they perceive as a "stable" currency, given that they book rooms up to a year in advance. But if they do that as a way to reduce risk, they shouldn't be allowed to later change their mind and jam the customer with a bad exchange rate. If they quote in dollars, they should complete the transaction in dollars.