catbert55 wrote:
Quoting in dollars isn't helping you, because the hotel is doing an informal exchange into CRC, then charging your card in CRC. This is especially bad in the Castillo, where you can't pay in USD and can only pay in CRC after the exchange has been calculated.
Quoting in dollars does help, as you're protected from currency exchange fluctuations. While Castillo does take a vigorish by converting dollars to colones, it's reasonable, and it isn't affected by any change in the exchange rate. If you book a room for $129 per night and the exchange rate is 550:1, you're protected, even if the exchange rate falls to 400:1 after you book. If that price were quoted in colones, you'd eat a 35 percent price increase.
The way Castillo does it now, I pay about 3 - 5 percent extra when I charge to a credit card. That includes Castillo's exchange vig plus my CC bank's exchange vig (which is pretty small). But I never have to worry about the exchange rate itself. This works well for me because I can book a trip a year in advance without having to worry about a nasty surprise when I check out.
Quoting in dollars and paying in dollars have different effects. Paying in dollars is great if you're paying cash, but if you're paying by credit card, you're usually better off getting charged in the local currency rather than dollars. Thus, for a credit card, getting quoted in dollars but charged in colones is the best of both worlds.