Define: Advance Purchase Rate

An advance purchase rate is a type of hotel reservation rate that requires guests to pay for their stay in advance, typically at the time of booking. This rate is often offered at a discounted price compared to other rates, but it comes with certain restrictions and conditions.

By choosing an advance purchase rate, guests agree to pay for their reservation upfront and acknowledge that the payment is non-refundable. This means that if they cancel or modify their reservation, they may not be entitled to a refund or may only receive a partial refund, depending on the hotel’s policy.

Additionally, advance purchase rates usually have strict cancellation policies, which may require guests to cancel their reservation within a specific timeframe to be eligible for any refund. If guests fail to cancel within the specified period or do not show up for their reservation, they may forfeit the entire payment made.

It is important for guests to carefully review the terms and conditions associated with an advance purchase rate before making a reservation. They should consider their travel plans and any potential changes or cancellations that may arise, as these rates may not be suitable for those who require flexibility.

Hotels typically offer advance purchase rates as a way to secure bookings in advance and guarantee revenue. However, guests should be aware of the potential risks and limitations associated with this type of rate before committing to it.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 11th April 2024.