It happens to all of us, one time or another. Someone is looking for a stay, however someone else will pay on their behalf. The only major exception here is groups, which are a completely different matter altogether. A person unable to pay for their stay should be a major red flag, and you should only consider this if you are really desperate or are able to make an exception for this one cause. Here is why.
Typically the main problem is there is a lack of trust between the lender and the guest
A dorm bed at a hostel is significantly cheaper than a queen room at the Ritz Carlton. Depending on where you are, it can cost around the same as three Big Macs. So, someone unable to come up with that kind of money must have some kind of problem.
This problem only worsens when you consider how easy it is to transfer money nowadays. In Europe, you just need the SWIFT and a few other code numbers. In Australia and New Zealand, you only need a mobile app. In the US, many bank apps make it easy to electronically deposit checks with just taking a picture. On top of all this, there is an ever increasing number of P2P money transferring services such as Google Wallet, PayPal, Cash by Square, Venmo, and more. So, considering how easy it is to send and receive money, you should question why hasn’t the other person send the money directly to guest instead of you?
Typically the main problem is there is a lack of trust between the lender and the guest, which could be because the of guest prioritizing some things over the necessities of travel, such as an addiction to drugs, gambling, or worse. This is something that can put your other guests’ safety and security at risk. Even if that guest is just that inept at handling his or her own money, this can lead to issues which can affect your business completely.
Say they have a believable story, such as a guest was pick-pocketed and have no means of payment, then you must also consider your local laws in authorizing a third party credit card authorization and payment. Some countries need a hard signature, whereas others need a form filled out with a copy of their card, and a government ID. Some make it totally easy. The reality of the issue is that, if the story is legit, then you have no need to worry, because they won’t dispute the charge. If it is not, then you better make sure you got yourself covered so you don’t lose those funds later.
Of course, your policies are there for a reason, and there should always be exceptions. Training your staff on the policies is a lot easier than training them on the ability to grant exceptions. However, as a general rule, it is safer for everyone, the staff and guests alike, if you avoid guests who need someone else to pay for them.
