How to Take Advance Payments From Guests (Simple Steps)

By villatab · Published · Updated · 5 minute read

Ask for an advance when the guest agrees to the dates, tell them the exact amount and the last time to pay, record the payment the same day, and confirm the booking only after it arrives. The rest is the balance, paid at check-in.

Why an advance matters

An advance shows the guest is serious. It also pays for the dates you are holding for them. Without it, you block dates for people who may never come.

How much to ask for

Choose one rule and use it for everyone. You might ask for 30 percent of the stay, or more in peak weeks. Pick what suits your property and season. For peak weeks you may ask for more. Write the rule in your confirmation so the guest is never surprised.

Steps for every booking

  1. Quote the full price and the advance in one message.
  2. Tell the guest the last time to pay, for example 24 hours. Hold the dates until then.
  3. Give one clear way to pay, such as your UPI ID or a bank account.
  4. When money arrives, record the amount, the date and the reference number.
  5. Send a confirmation that shows the advance paid and the balance due.
  6. Collect the balance at check-in and write it down too.

What to write down for each payment

  • The amount and the date.
  • How it was paid: UPI, cash, bank transfer, card or collected by an agency.
  • A reference number or a screenshot of the receipt.
  • Who received it.

Common mistakes

  • Accepting an advance without blocking the dates.
  • Keeping payment proofs only in a chat that scrolls away.
  • Forgetting the balance because nobody wrote it down.
  • Changing the advance rule from guest to guest.

Refunds

Decide your cancellation rule before the first booking and send it with every confirmation. A clear rule saves arguments. See the homestay booking checklist for where it fits in the process.

How villatab helps

villatab records advance and balance payments against each booking, with the method, reference and who received it. The balance updates by itself. You can set an advance percentage, and a booking can be confirmed when its advance is recorded if you turn that rule on. Online payment is not built in: you collect by UPI, cash or bank transfer and record it. See payments.

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