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Damage Deposits/Room Bonds

General Hostel Operations

InternationalInn started this discussion 11 years 9 months ago

Hello everyone

Firstly, I apologise if this topic has already been addressed, but I could not find one.

We are an independent backpackers hostel in Liverpool, England. We have 23 dormitories (ranging from 2 - 10 beds).

We also have Cocoon pod rooms which are more expensive to suit backpackers who want a bit of luxury.

And finally we have some self serviced apartments.

So, when groups hire out dormitories or a large number of pods we ask guests for a room bond. We pre-authorise a credit card or take a cash deposit. We Pre auth between £200-£300. This may sound steep but on weekends our clientèle is more stags and hens and so damage risk becomes high.

We are just wondering if anybody else out there does Room Bonds/Damage Deposits and if so how do you go about it? What is your process? Do you log things on a Computer or just paper? And how long do you keep them for?

Thanks folks

Carl and Danielle
International Inn

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Rucksack Brian

11 years

For individuals we charge a very small amount for a key/security deposit because there aren't usually problems. Groups behave differently though. When Group Mentality sets in, people start acting like idiots because their friends are acting like idiots. There's no individual accountability because everyone feels like an anonymous member of a larger group. If "everyone" is responsible, then no one actually has to take responsibility. That's when stuff gets destroyed.

When groups ask to make a reservation we tell them that there is a 25EUR per person damage deposit, due in cash upon arrival. We tell them that we will keep the full amount if there are any damages. Our hope is that at least one person in the group will want their money back enough to try to keep their friends under control. We have found that this has scared some groups away though. (Hopefully that is a sign that we didn't really want those groups anyway and not just a big stupid loss of money)

Here are two more threads about deposits:
Dealing with damage
Check in security/deposits

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gordo

11 years

Cash is king. So long as the group is made aware of it before booking, they SHOULD have no qualms about handing over a deposit. If they kick up a stink... well, you've already made them pay for their stay, right? I always take the cash, put it in envelope in the safe in the office and make them sign it. When giving the money back, assuming no damage, we sign again and all is right with the world. ALWAYS do a room inspection before handing any money back. I've worked in places that essentially did the same thing with credit cards - either via pre-auth or an actual payment that is then refunded but as far as I'm concerned this just adds an extra level of complexity and possible issues down the road (what if the card holder contests the charge? etc). If its in cash, its done and dusted.

I always found it best to try and check in the group, oddly enough, as a group. Take them to the common area (or bar, if you have one) and talk to them en masse, rather than individually. 99% of the time at this point you'll find out who the leader is, as this may not be the person who booked - leadder =/= organizer. Pull them aside shortly afterwards, treat them nice and essentially make them accountable for the group. Often enough this person has taken it upon themselves to be in charge and they usually quite enjoy that added bit of responsibility.

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