Pre-authorization Hold Delays
Definition
Pre-authorizations freeze guest funds temporarily, but release delays up to 10 days prevent hotels from quick re-authorization or new bookings, causing capacity and cash flow loss.
Key Findings
- Financial Impact: AUD 200 fixed hold tied up 7-10 days per booking; opportunity cost of 1-2% on room revenue
- Frequency: Every check-in with pre-auth, especially short stays
- Root Cause: Manual processing and bank-dependent release times without automated PMS integration
Why This Matters
The Pitch: Hotels and Motels in Australia 🇦🇺 waste AUD 200-500 per hold in tied-up capital for 7-10 days. Automation of instant reversals eliminates this drag.
Affected Stakeholders
General Manager, Finance Team, Reservations
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Chargeback Fraud Losses
Authorisation Form Compliance Errors
BAS Lodgement Failures from AR Reconciliation
GST Tax Invoice Non-Compliance Penalties
Lost GST Input Tax Credits on Corporate AR
Capacity Loss from Overbooking Mismanagement
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