Paying hotels with cash

Since you are traveling next year, you have plenty of time to secure a debit/ATM card that is economical. I use a Schwab one and have for years, but there are others as often mentioned in Travelers Helpline posts. Also, If the discounts are substantial, even if you pay some fees, it will be worth it. Finally, securing a few hundred euro is not that much different than securing say a smartphone, pocket camera, etc. the total value may well be more than your cash.

You will have a hard time finding anyone in Europe that will accept travelers checks. Paying in cash isn't difficult. Usually you pay when you depart, but ask each place what their policy is. Make sure you have the cash you need by withdrawing enough from an ATM prior to payment and stashing the cash in your money belt if used, or take your chances with whatever other method you plan to use for your valuables.

You really have only two choices - carry cash or not. We tend to carry a lot of cash but it is safe in our money belts so we have no worries. If staying in a hotel for multi-days you should know the total bill. Pick up cash from the ATM on the way back to the hotel and make a payment. Carry enough cash the first day to cover the first day or two, then hit an ATM and pay off the balance. We avoid transactions fees by using a credit union that does not charge cash withdrawn of any amount. The biggest withdraw from my credit union was 750E to cover a week long stay.

I almost always pay my hotels in cash, and I agree with the other replies. Use your ATM card to get the cash; you might need to do this for several days in a row if you have a big bill. Stash the cash in your moneybelt until it's time to pay the bill. If you will have a very large bill, arrange to pay it in installments (I once staying in a hotel for 10 days, so I paid half the bill after 5 days, then the rest at checkout). If you're worried about bank fees, I'll repeat my tip about TD Bank (branches all over New Jersey). They have no percentage surcharge on the exchange rate they use for foreign withdrawals. A basic checking account ($100 minimum) has a $2 $2.50 fee per foreign withdrawal, and a fancier account ($2500 minimum) has no fee. When you set up an account, they give you an ATM card immediately. So, you can get this as a travel-only account, if you don't want to switch your current banking. Of course, check your current bank's fees before you even start to worry. But Chase (my other bank) charges $3 plus 3% per foreign withdrawal, so I always use my TD card to get cash instead. Traveler's checks are almost totally useless these days - nobody wants to change them, and even checks in euros are rarely accepted for direct payment. If you're worried about back up money, you're better off bringing a few hundred US dollars, or getting a few hundred euros in the US before you go, or getting more than one credit and debit card (opinions vary on which of these is "best," but all of them work much better than traveler's checks these days).

Do not get travellers checks,, sure you found one place that would acccept them, good luck finding another. As everyone suggests just use your ATM and withdraw cash.. for a two week trip you will only have to withdraw money 3 times or so.. are the fees that your bank charges really that bad ? I have a TD account so pay nothing myself but have read of some banks charging alot. I would change banks. Also have your bank raise daily withdrawal limit so you can have less transactions.

I always pay cash for the discounts when offered. I plan to go to the ATM the day before checkout and I always carry my money in a money belt.
If no cash discount is offered then I use a credit card get the airline mileage....

Maybe this will help alay your fears of safety issues. Its what I do. Get some pants with security pockets that zip that are inside the front pocket(s). Royal Robbins makes some and so does Railrider. I have both kinds. My wallet goes inside the zippered pocket on my right side along with my passport. If I have some loose bills they go inside my business card case in my left pocket. The wallet gets the big bills used to pay for hotels.

As expensive as hotel rooms are in Europe, I don't feel safe carrying around that much cash. I only pay for rooms with my Capital One Visa card, as it's one of the few credit cards that doesn't stiff you on the exchange rate. That way, I'm safe. And I can ride them another month before having to pay. And after being pickpocketed once in Paris, my wife and I are very proactive in our personal security.
I have no desire to chase around to ATM machines in strange towns getting out cash to pay for rooms. If you choose to do this, you will need to tell your bank to give you a high maximum withdrawal authorization.

Carrying a lot of cash is really a question of personal comfort. I don't mind carrying 1500 euros because I keep it in a neck wallet that no one is getting to short of mugging me. And mugging just isn't a problem in Italy. But I don't begrudge anyone who wouldn't feel comfortable doing that. Italy is much more a cash-based society than the US, and some of the most charming places to stay will take only cash.

One, use a money belt to hold your valuables, not a wallet. Second, I go to Europe every summer for a month for the last 12 years and have paid cash for 98% of my bills including hotels or B&Bs. I use a debit card tied to a checking account at a local credit union to get local currency from ATM machines that can be found all over the place even in some small towns I have been to. I have never had a problem finding one in a place I have never been to before after a quick walk or by asking locals. I, too, often get discounts by paying cash and some places, especially most B&Bs, do not accept credit cards. Happy travels.

Some hotels will accept partial payment as-you-go before you leave the hotel. I often carry hundreds (or over a thousand) of dollars in European currency. As long as it is in my money belt, I don't worry. If I am staying at a hotel for a week or so, I will stop at the ATM every day until I have enough money to pay the bill.

Even if the hotel says you must pay the cash in advance, they are usually quite amenable to accepting partial payments. The hotel will know the closest ATM's. Yes, use a money belt. Yes, get a no-fee card now. Yes, erase the phrase "traveler's check" from your vocabulary.

Thank you for all your suggestions. Paying cash it is. I will be purchasing a cash belt as suggested, and relying on ATMs more. And removing the thought of traveler's checks.

@George: Yes, I just checked with TD US (I'm traveling in a few days), and there is no percentage surcharge on foreign withdrawals. The US bank was Commerce Bank before TD bought it, and their slogan is "TD Bank: America's Most Convenient Bank" (italics mine). So, TD Canada is indeed a different entity, with different rules. However, one update for my post above. The charge for using a foreign ATM with the most basic account is now $2.50, not $2.