This article applies to direct booking rates only, not any connected channels (OTAs). To set up reservation deposits for your connected OTA channels, please refer to their extranet or contact their support team.
Overview
Direct booking deposits allow you to secure advance payments from guests at the time of booking. This helps to reduce cancellations, improve cash flow and protect against no-shows.
Align your deposits with the cancellation penalty for each direct booking rate. Offer both flexible and non-refundable rates to help capture more bookings and maximise your revenue.
When enabled, your booking engine clearly displays deposit requirements to guests.
Set up a reservation deposit for a direct booking rate
Note: Room rates must be set up first before enabling deposits.
To set up a reservation deposit for each direct booking rate, follow these steps:
Navigate to Direct booking > Rates
Click on the ellipsis button (three dots) for the direct rate.
Select Edit rate
In the General tab, click on the Deposit toggle to turn it on
Select a Deposit type (Full amount, First night, Fixed amount, or Percentage). Enter the amount if setting a fixed amount or percentage.
Set the Reservation policy settings
Click Save
Important notes:
Reservation deposits are due at time of booking
Match your channels: Keep deposit policies consistent between your direct bookings and OTA listings
Payment methods: Configure accepted payment methods in Setup > Accepted payments
Fixed amounts: Ensure fixed deposits never exceed your minimum rate value
Set up cancellation policies separately to deposits
For non-refundable bookings, use the full amount deposit
The steps above are for reservation deposits. To set up security deposits for your booking engine (such as a deposit for any damages), you can add the policy into your property’s Terms, conditions and privacy policy
How guests see reservation deposits
Your booking engine displays deposit requirements clearly:
Book now, pay later: Appears when no deposit is required (most flexible option)
Pay today: Appears for full amount deposits
One-night deposit required: Appears for first night deposits
Fixed/percentage amounts: Displays the specific amount due
Deposit information appears in both the booking summary and confirmation emails.
Extras are not included in deposit amounts.
Why does my booking engine show "Book now, pay later"?
This label appears when no deposit is set for a rate. To remove "Book now, pay later", enable a deposit for that rate. Once a deposit is set, the label updates to reflect the deposit type, for example, "Pay today" or "One-night deposit required".
Processing reservation deposits for direct booking rates
With integrated payment gateway
If you are using Little Hotelier Pay or an integrated third-party payment gateway:
Card validation and deposit is processed automatically for direct booking rates
Note: When using Little Hotelier Pay, you need to select either Automated payments or Deposits. These options cannot be used simultaneously.
Without integrated payment gateway
If you do not have Little Hotelier Pay or an integrated third-party payment gateway:
Collect payment details during booking
Process the deposit manually after receiving the reservation
Still configure deposit settings to set guest expectations
Disable reservation deposits
Disable deposits for each direct rate:
Go to Direct booking > Rates.
Click on the ellipsis button (three dots) for the direct rate.
Select Edit rate.
In the General tab, turn the Deposit toggle off. If it is on, click on it to turn it off (will be grey).
Click Save.