Hospitality glossary

Minimum spend

A minimum spend is the amount a guest agrees to spend during a visit in exchange for reserving a particular table, sunbed, cabana, zone or booking period.

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Minimum spend, deposit and prepayment are not the same

A minimum-spend rule protects the commercial value of scarce or premium inventory. It is a commitment attached to the visit, not automatically a charge collected when the booking is made.

Example

In practice

A terrace table for four has a €200 minimum spend. The guests reserve under that condition and their eligible food and drink bill is compared with €200 at the end of service.

Minimum-spend examples

Restaurant table

A premium Saturday table carries a €300 food-and-drink minimum for the group.

Private beach

A front-row cabana carries a €500 minimum that can be used against eligible food and beverage purchases.

Event or package

A reserved zone carries a €1,000 minimum for the agreed booking period, with inclusions stated before confirmation.

Minimum spend, deposit and prepayment are not the same

TermWhat it meansWhen money moves
Minimum spendA commitment to reach an agreed eligible spend during the visit.Usually reconciled against the final bill; any shortfall depends on the disclosed policy.
DepositAn advance amount that secures the reservation.Collected at booking and then credited, refunded or retained according to the terms.
PrepaymentPayment before arrival for all or part of a defined product, menu or experience.Collected before service for the item or package being purchased.

Minimum-spend questions

Is minimum spend an extra fee?

Not when it is designed correctly. It is an agreed spending threshold. The venue must explain what purchases count and how any shortfall is handled.

Can it vary by table or date?

Yes. A venue can apply different thresholds by table, zone, date, service, party size or package when the commercial reason is clear.

Does a card need to be charged at booking?

Not necessarily. A venue may secure a payment method, collect a deposit or prepayment, or reconcile the minimum at the end of service.

What should guests see before confirming?

The total commitment, amount due now, eligible spend, treatment of unused value or shortfall, cancellation terms and any taxes or service charges.

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Related terms

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