Hospitality glossary

Reservation deposit

An advance payment used to secure a booking. The venue decides whether it is refundable or applied to the final bill, subject to the terms shown to the guest.

Why it matters

How reservation deposit affects a service

Deposits create a financial commitment for bookings where late cancellations or no-shows carry real cost. They can be fixed, per person or conditional on the service, date, party size or inventory being booked.

Example

In practice

A venue can require €25 per person for parties of six or more on Friday and Saturday evenings while leaving smaller weekday bookings deposit-free.

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Related terms

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