Prepaid rates - currency question

 
Old Mar 14, 2009, 2:39 pm
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Prepaid rates - currency question

When booking a prepaid rate at a foreign hotel on spg.com, does the charge come through in USD or in the hotel's local currency?
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Old Mar 14, 2009, 3:02 pm
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Originally Posted by mahasamatman
When booking a prepaid rate at a foreign hotel on spg.com, does the charge come through in USD or in the hotel's local currency?
When I prepay at a "foreign" hotel, the charges often come through in USD.

IME, it has always been in local currency.
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Old Mar 14, 2009, 3:12 pm
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Originally Posted by mahasamatman
When booking a prepaid rate at a foreign hotel on spg.com, does the charge come through in USD or in the hotel's local currency?
Why should a "foreign" hotel charge in USD?
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Old Mar 14, 2009, 3:19 pm
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Originally Posted by Flying Lawyer
Why should a "foreign" hotel charge in USD?
uh...because for the said poster in question, USD charged by a US hotel is indeed "foreign" hotel (i.e. not British).

Also, hotels in some countries whose currencies are not very stable or do not trade freely, have the habit of adopting a USD pricing, for example, the Maldives. Other countries such as Turkey adopts a EUR pricing even though Turkey has its own currency.
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Old Mar 14, 2009, 4:18 pm
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Originally Posted by Flying Lawyer
Why should a "foreign" hotel charge in USD?
If the prepayment went to Starwood and then Starwood paid the hotel, then it would be conceivable to pay USD to Starwood. That's basically what happens with a prepaid rate through Expedia, Orbitz, etc. But I don't think that's how Starwood operates their prepaid rates.

My recent prepaid stay at the LM Etoile was charged in Euros.
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Old Mar 14, 2009, 4:45 pm
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Originally Posted by mahasamatman
When booking a prepaid rate at a foreign hotel on spg.com, does the charge come through in USD or in the hotel's local currency?
On your reservation, it shows local currency. If you charged it to a CC, your CC will show in US$ (at the then conversion rate). Your CC may also tag on a "currency conversion surcharge of x%). The x varies from card to card (can be as high as 3%). I use Capital-1 which waives such surcharge fees.
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Old Mar 14, 2009, 4:46 pm
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Originally Posted by Guava
Turkey adopts a EUR pricing even though Turkey has its own currency.
Turkish hotels certainly charge in Turkish Lira. Even it the rate on the website is in Euro, they convert the Euro amount into Turkish Lira on the day of invoicing and your CC issuer converts it back into your CC's currency.
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Old Mar 14, 2009, 4:48 pm
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Originally Posted by sc flier
If the prepayment went to Starwood and then Starwood paid the hotel, then it would be conceivable to pay USD to Starwood. That's basically what happens with a prepaid rate through Expedia, Orbitz, etc. But I don't think that's how Starwood operates their prepaid rates.

My recent prepaid stay at the LM Etoile was charged in Euros.
True, Starwood is not a tour operator (like Expedia for Expedia Special Rate) but a booking platform. The prepaid rate is not charged by Starwood but by the hotel.
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Old Mar 14, 2009, 5:19 pm
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Thanks all. I was hoping to avoid the foreign transaction fee by prepaying, but I guess it's not to be.

Originally Posted by allset2travel
Your CC may also tag on a "currency conversion surcharge
Most credit cards changed that a few years ago. They no longer charge for currency conversion - they now charge foreign transaction fee (or "service charge"), even if the transaction is in USD.
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Old Mar 14, 2009, 9:31 pm
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Originally Posted by allset2travel
I use Capital-1 which waives such surcharge fees.
Same here. This is the main reason that I have a Capital One card. The lone exception of its use on foreign travel is on Starwood stays. I still charge those to my Starwood Amex and take the double Starpoints. But with the foreign transaction fees, it's pretty much a wash.
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Old Mar 14, 2009, 10:28 pm
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Originally Posted by sc flier
I still charge those to my Starwood Amex and take the double Starpoints.
That's pretty much it for me as well. For everything else when I'm traveling, it's cash.
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Old Mar 15, 2009, 12:56 am
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Originally Posted by mahasamatman
That's pretty much it for me as well. For everything else when I'm traveling, it's cash.
Cash is certainly the most expensive method of paying unless you have a CC that gives you fee and cost free access to ATMs globally
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Old Mar 15, 2009, 7:40 am
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Originally Posted by Flying Lawyer
Cash is certainly the most expensive method of paying unless you have a CC that gives you fee and cost free access to ATMs globally
did you mean to say 'inexpensive'?
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Old Mar 15, 2009, 8:42 am
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Originally Posted by karenkay
did you mean to say 'inexpensive'?
No, I meant to say expensive. I pay 1,25% over interbank rate for transaction I put on my credit card, bank rates or even worse, money changer's rates for cash transactions cannot compete - getting foreign currency is not a free gimmick.

Last edited by Flying Lawyer; Mar 15, 2009 at 11:32 am Reason: typo
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Old Mar 15, 2009, 9:26 am
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Originally Posted by Flying Lawyer
No, I meant to say expensive. I pay 1,25% over interbank rate for transaction I put on my credit card, bank rates or even worth money changer's rates for cash transactions cannot compete - getting foreign currency is not a free gimmick.
gotcha, thanks for the clarification.
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