How to use Advance Collect

Modified on Thu, 10 Jul at 2:26 PM

RoomRaccoon's Advance Collect feature enables hoteliers to automate the collection of pre-payments or deposits from guests before arrival, helping to boost cash flow, reduce no-show risk, and streamline operations for both direct and OTA bookings.

  • Advance Collect is not mandatory, but it is a strategic lever for hoteliers who want payment certainty and operational control.

  • Consider combining advance collect with Online Check-In payment enforcement for full lifecycle automation.

  • Ensure your policies are legally enforceable and clearly communicated to the guest at time of booking.

Understanding pre-arrival payment collection options

RoomRaccoon provides two automated ways to collect guest payments before arrival. The availability depends on the booking source and setup.

Note: When creating a pre-payment rule on a rate plan, you may only choose one of the following two rules.

1. Pre-payment upon Booking Confirmation (Only for direct booking rates)

  • The guest pays a deposit immediately during the booking.

  • The reservation is only confirmed once the payment is made by the guest.

  • This option is available only for direct bookings via your Booking Engine.

  • Configured as a percentage per rate plan under:
    “Charge pre-payment on booking.”

This method does not work with OTA bookings, as the OTA confirms the reservation independently. Hotels cannot delay confirmation based on payment.

2. Advance Collect (Available for OTA and direct rates)

  • payment request is sent automatically X days before arrival.

  • Guests receive a secure link to pay a pre-defined deposit.

  • Works for:

    • Direct bookings

    • OTA bookings, if configured for Hotel Collect and guest CC details are sent to RoomRaccoon.

  • Configured as a percentage per rate plan under:
    “Charge pre-payment X days before arrival.”

This allows hoteliers to unlock cash before arrival, even for OTA bookings — as long as the OTA is configured for Hotel Collect.

OTA Collect vs. Hotel Collect: What is the difference?

When managing reservations from OTAs (like Booking.com or Expedia), there are two main payment flows:

  • OTA Collect: The guest pays the OTA, and the hotel receives payment later via a Virtual Credit Card (VCC). RoomRaccoon automatically charges this VCC via the VCC dashboard when it becomes available.

  • Hotel Collect: The guest pays the hotel directly. Payment is collected using RoomRaccoon's tools, such as payment links, pre-authorizations, or the Advance Collect feature.

RoomRaccoon supports both flows.
You can choose the approach that best fits your property’s operations and cash flow needs. Whether you prefer guaranteed payouts (OTA Collect) or faster access to funds (Hotel Collect), RoomRaccoon has built-in features to support you. 

Note: The costs associated with the Hotel Collect flow can be significantly lower than those of OTA Collect (VCC).

How to set up advance collect

Step 1: Configure OTA Settings (Optional)

Only complete this step if you are setting up advance collect for OTA rates. If you are setting up for direct rates, proceed to Step 2.

  • Enable “Hotel Collect” or “Pay at Property” in each OTA portal.

  • Ensure guest credit card data is sent to RoomRaccoon.

OTA platforms differ — hoteliers must set this up directly in each OTA’s portal.

Step 2: Create a Payment Request Document

  • Go to Documents > Payment Request

  • Create a default message:

    • Friendly greeting

    • Clear instructions (e.g., “50% deposit within 3 days”)

Sample Message:

“Welcome to [Hotel Name]! Please confirm your stay by making a deposit of 50% within the next 3 days by clicking the button below. This secures your reservation in line with our payment policy.”

OPTIONAL

You can create more than one payment request document that can be linked to certain room categories. You may wish to create a payment request highlighting specific pre-payment terms for your Standard room, versus your Deluxe Suite, for example.

  • Go to Documents > Custom Document

  • Select the document type > Payment Request

  • Select ‘Unique document per room’

  • Select the room categories and/or specific rooms to which this payment request document should apply.

Step 3: Configure rate plan for advance collect

  • Go to My Property > Rate Plans

  • Under Pre-Payment Settings, choose:
     “Charge payment X days before arrival.”

  • Enter the number of days (up to 255 maximum)

How it works:

  • Booking import triggers a payment request if within the defined window.

  • The system resends daily until the guest completes payment.

  • Use reservation reminders to follow up on unpaid bookings.

  • If a guest has not paid their pre-payment by a certain date, you may choose to either charge the credit card on file or cancel the reservation, as per your hotel cancellation and payment policies.

Disclaimer: Promptly notify OTAs of no-shows and cancellations if using Hotel Collect flow for payment collection. This ensures that you are not wrongly charged commission fees and that the room inventory is accurately updated.

Step 4: Monitor & Mitigate Risk

  • Include clear payment and cancellation terms in booking policies.

  • Use reservation reminders for staff to follow up manually.

  • Consider charging the credit card (CNP) or manually cancellation if the guest doesn’t pay.

  • Use pre-authorization to validate card funds before arrival.

Quick Checklist

  • OTA settings updated (Hotel Collect enabled) — Optional

  • Payment & cancellation terms updated in RoomRaccoon & OTA settings

  • Payment Request Template created

  • Rate Plans configured with Advance Collect

  • Online Check-In configured to collect remaining balance

  • Staff trained to monitor payment reminders and how to handle no-shows/missed payments

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