SYL

Sorry if this has been discussed before (searched but didn't find any post)

I'm pretty sure unlike many other hotel chains, Marriott typically doesn't charge credit card immediately upon reservation confirmation even if the reservation is on a prepaid nonrefundable rate.
Some (usually popular) properties do charge a few days prior to arrival (how many days exactly varies from case to case), most won't until check-out, so essentially Marriott's "prepaid" rate isn't prepaid.
I've contacted a few properties but upon request none of them agreed to charge me ahead of time.

The rate details state:
... but it's often not the case. If at all.

Sometimes I want to lock down credit card offers before they expire but other than that it isn't a big deal in most cases.
I'm just curious why Marriott doesn't want to make the "prepaid" reservation truly prepaid? Isn't it a good thing for them to hold our money for longer? At least AFAIK that's what Hilton and IHG do.

I also wonder in this case what exactly happens if I cancel a non-refundable reservation beyond 1 day after booking but before the charge comes through. Rate details say "Cancellation will result in forfeiture of the prepayment" but there isn't anything to forfeit if nothing is paid upfront?

LovetoTravel83

It's down to the property to charge and not Marriott. In all cases, I was successful in cancelling a prepaid reservation after contacting the property.

RK23

I booked a prepaid refundable rate in Japan for this Winter back in June and they haven't run the card yet, I assumed the hotel was taking a bet on the JPY/USD. But since the time of booking, JPY has depreciated another 5%+ on top of an already great conversion rate vs. the USD.

Oxon Flyer

I think the OPs question is less to do with cancellations, and more to to with, say, a credit card “Spend $400 with Marriott and get $100 statement credit, expires in 3 days” offer. If payment isn’t taken immediately, you lose out on the offer, and are stuck with a non-refundable booking.

Secondly, if you have booked with Marriott, and are subject to Marriotts terms and conditions, why isn’t it down to Marriott to ensure these are adhered to ?

MSPeconomist

For most hotels in most countries, at least when you make a reservation directly with the hotel, the rate in local currency is definitive, not a rate converted to dollars that might be shown for your convenience. Thus, the hotel receives the same number of yen for the basic room rate for your stay regardless of when the credit card is charged, assuming the hotel doesn't do a dynamic currency conversion scam. Your contract with the hotel is denominated in yen, not dollars.

LovetoTravel83

I'm basically stating the fact how it is implemented, not how it should be implemented. However, from my POV, I like the way these prepaid reservations are currently being processed. It's much easier to ask for a refund by speaking with the property directly. In fact, this is how I was attracted to SPG 13 years ago as I had several prepaid reservations that were processed and couldn't travel. After speaking with the property they happily refunded the full amount without any hesitation. Those were the good days.

Kacee

Because "Marriott" doesn't run the guest's card or take the guest's payment. The hotel with which the guest has booked does those things. Marriott gets paid by the property later on the back end. Pretty basic stuff.

Further, not sure what "adhered to" means in this context - the prepayment terms are for the property's benefit, not the guest's. In most instances, it is in the guest's best interest for the property NOT to adhere to a prepayment requirement.

People who are booking to take advantage of an AMEX offer need to be aware of how the payment system works. In general, your offer won't be triggered until you've completed your stay.

RK23

Exactly, it is in yen so as the yen continues to depreciate vs. the dollar and they haven't charged my card yet, I continue to benefit!

Oxon Flyer

Doesn't Mariott run the guest's card when the guest makes a prepaid reservation with Marriott on a Marriott website or app ?

The prepayment terms form part of the T&Cs of a booking agreement the guest has made with Marriott, not with the hotel. As a party in the booking agreement, isn't Marriott bound by these terms ?

It is made very clear to people who book prepay rates what the payment system is, and it is : "Prepay rates will be charged the full cost of the reservation within 24 hours of making the reservation."

Oxon Flyer

Juist as an afterthought, a specific example. Today, the GB pound is at all-time low against the USD. Anyone planning on visiting London next year should be seriously considering making their reservations right now.

Imagine making a reservation with Marriott this evening to go and have tea with the King next August, when it's clearly stated that "Prepay rates will be charged the full cost of the reservation within 24 hours of making the reservation." But it wasn't charged as promised, and the guest ends up hundreds/thousands out of pocket because exchange rates have normalised in the meantime. If this went to legal dispute, who is liable ?

The Road Goes On Forever

While I haven't worked for Marriott in a while and based upon what Hilton does right now, I think you've got it backwards. There are properties that require a deposit of either the first night's room and tax or the entire stay at the time of the reservation. That is done manually on property at some point in time whether it's that day, the next day, the next week or maybe day of arrival. It depends on how on top of things they are and there is no standard for that.

There are also non-refundable advance purchase rates. In that case the parent company is charging your card and the property gets paid by the parent company at some point in time in the future. The property has to carry that balance after checkout on their A/R aging as a receivable (unless it was booked far enough in advance that they get paid prior to the stay) the same as any other company that they have a direct bill with until the parent company pays via a direct deposit. Up until the not too distant past, it was still paper checks and then it could go well over a month until you would get paid.

The parent company doesn't get paid on the back end for any specific reservation type. In hotel accounting, at the end of every month, the parent company gets a set percentage of every reservation and they also get a franchisee fee/royalty percentage based on gross sales revenue and if applicable gross F&B revenue, etc.

I know that I'm over generalizing and it's been a bit since I was an Asst. Controller with Marriott, but I can't remember a scenario where the property paid the parent company the way how I think you're suggesting and I can tell you for a fact that it certainly doesn't work that way with Hilton now.

SYL

I guess how I look at this is --

In the Rate Details it states:
Are there instances where it benefits us the customers if they do NOT charge within 24 hours? In other words are there instances where we the customers are happier if they do NOT follow their own written "rule"?
Yes, there are.

With that said, what I do not prefer is uncertainty.
If they say they'll charge immediately, and they do charge immediately, I know for sure what I'll get.
If they say they'll charge immediately, but some properties do, some charge anytime before arrival, some won't charge until checkout... It's difficult to plan accordingly.
e.g. If there's a Chase/Amex offer expiring, it's better to be charged sooner; If a travel credit (CSR, or former Bonvoy Brilliant) is about to renew, it's better to be charged later.

If they consistently charge within 24 hours on prepaid rate (again, as they explicitly claim)--

• If being charged immediately works for me, I'll choose the prepaid rate knowing I'll be charged immediately for sure
• If being charged immediately works against me, I'll choose a rate other than prepaid knowing I'll NOT be charged immediately for sure

The "knowing for sure" part is essential as I like making informed decisions.

mahasamatman

Definitely false. It is always triggered based on the payment date.

Kacee

I was referring to Marriott getting paid by the property pursuant to the franchise and/or management agreement.

The property takes the room payment.
It seems you've misunderstood my comment. The offer is triggered when the charge goes through on your card. And that will almost always be upon checkout.

The basic point here is that "Marriott" doesn't charge your card. The property does.

SYL

Regardless of whether Marriott or the specific property charges the card, "Prepay rates will be charged the full cost of the reservation within 24 hours of making the reservation" is clearly spelled out in the "Rate Details" which in turn is part of the T&C.
What I expect is either each property does this or Marriott makes each property do this. If they can't, then maybe don't put this statement in the "Rate Details" and instead write something like "Prepay rates will be charged upon check-out regardless of when the reservation is made" or "Prepay rates may be charged anytime at each property's discretion".

Again my point is: Let us know what to expect before hand so we can plan accordingly. Don't say one thing and do another, catching customers off guard.

(A) Wanting to be charged right after reservation, and (B) Wanting to be charged upon check-out, are BOTH legitimate expectations.
That's why there're "prepay rates" and "standard rates" so we can choose based off our specific need.

But if "prepay rates" works like anything but "prepay" then I think Marriott can do better.