Pay at Property / Post-Pay Model
Pay at Property (also called Post-Pay or Hotel Collect) is an OTA distribution model where the reservation is confirmed without upfront platform payment, with the guest paying the hotel directly at check-in or checkout.
Why It Matters for Independent Operators
Pay at Property reduces booking friction and increases gross booking volume, but experiences significantly higher cancellation and no-show rates compared to prepaid reservations.
Practical Scenario & Calculation
[Illustrative Scenario] Offering Pay at Property on MakeMyTrip increases booking inquiries by 25%, but cancellation rates rise from 18% on prepaid bookings to 38% on post-pay reservations.
How Operators Can Apply This Concept
Monitor no-show rates on Pay at Property bookings closely. During peak holiday dates, restrict post-pay options or require a 1-night advance UPI transfer to confirm room block.
Common Misunderstanding to Avoid
The hotel still owes OTA commission on Pay at Property bookings even if the guest pays cash, unless a formal no-show report is logged in the extranet within the required window.
Hotel Cancellation & No-Show Loss Calculator
Estimate lost contribution after resold nights, retained fees and avoided variable servicing cost. Policy comparisons are explicit hypothetical scenarios.