“Prepayment”, i.e. Down payment or Advance payment, is a function in the BedBooking reservation system that requires the guest to pay part of the amount for the stay before arrival, when making a reservation. This tool allows you to protect your property against excessive cancellations.
Down payment and Advance payment are two similar concepts, but their exact legal definition may vary depending on the region in which your property is located. In some countries, the Advance payment must be returned to the buyer, regardless of who broke the contract - whether it was the buyer or the seller. In the case of a Down payment, if the seller withdraws from the contract, he is obliged to return twice the amount of the Down payment to the buyer. If the buyer resigns, the Down payment is forfeited to the seller.
The BedBooking reservation system will use the term Advance payment or Down payment when guests make reservations, depending on the option you choose. Before adding the option of an Advance payment or Down payment, we recommend that you carefully read the applicable law in your country and choose the option that best suits the characteristics of your business.
How to add an Advance payment or Down payment?
Step 1: Go to the "Price list" section in the menu and then click on the "Prepayment" tab
Step 2: Decide whether you want to collect an Advance payment or a Down payment.
Step 3: Set your prepayment rate.
By default, prepayment has several prepayment levels set. Each level has a certain number of days and a percentage of the total booking amount that will be the prepayment amount. Number of days allows you to set different prepayment rates depending on the number of days between the date of reservation and check-in.
Example:
- Level 1 - 0 days and 50%
- Level 2 - 7 days and 20%
- Level 3 - 14 days and 10%
If a guest books a stay 0-6 days before check-in date, 50% prepayment is required. If guests book within 7-13 days prior to check-in, a 20% prepayment is required. If the reservation is made 14 days or more before the check-in date, the prepayment will be 10%.
Thanks to this arrangement, a guest who makes a reservation at the last minute has to make a larger Advance payment than a guest who makes a reservation further in advance.
If you want to have only one percent of the prepayment, regardless of the date of booking and check-in, then set one level with the number of days 0 and the percentage you want to charge.
Step 4: Save your changes
Remember, the Down payment or Advance payment only applies to reservations in the BedBooking Reservation System. It does not apply to reservations made via portals such as Airbnb or Booking.com.