Save $125 off $600 Hotels.com with Klarna Canada: A Limited-Time Travel Deal Worth Booking

Klarna Canada and Hotels.com are running a limited-time stackable-style promo where Canadian travellers can save $125 off a $600+ booking when they pay with Klarna at checkout on Hotels.com, which can mean real dollars on hotels that rarely go on sale.

What this Hotels.com x Klarna deal is

• Hotels.com is giving Klarna users in Canada $125 off a hotel booking of more than $600 (before taxes and fees) when you choose Klarna as the payment method at checkout.
• The offer runs from December 18, 2025 at 12:00 a.m. EST through December 29, 2025 at 2:59 a.m. EST, and is limited to one discount per customer.
• If you return or cancel enough of the booking that the final amount drops under $600, the $125 discount is clawed back, so plan on keeping your total above the minimum.

Fine print Canadians need to know

• The discount only works when you pay directly with Klarna at the retailer checkout; Klarna specifically excludes one-time virtual cards and the Klarna credit card for this promo.
• The $125 credit is applied on Klarna's side, so your Hotels.com receipt shows the full amount and your Klarna receipt shows the reduced amount; this can matter at expense-report time.
• Klarna reserves the right to tweak or pull the offer based on availability or technical issues, so treat these as "live promos" that rotate and check the Klarna app or Hotels.com promo pages during major sale periods.

How much value you can squeeze out

• On a $600+ pre-tax stay, $125 off is effectively a little over 20% off before you stack any existing member pricing, flash sales, or city-specific deals on Hotels.com.
• Because this lives on the payment side, it can be especially powerful on properties that almost never take coupon codes or site-wide discounts, and historically similar Klarna/Expedia-family promos have gone as high as hundreds of dollars off on larger $2,000+ trips.
• If you are already timing travel around seasonal promos (Black Friday/Cyber, summer sales, year-end clearouts), this kind of payment-layer discount can effectively replicate a door-buster coupon for mid- to high-end hotels that usually just sit at "member price".

Example savings scenarios

• Weekend in Toronto or Vancouver: A $650 city-centre stay drops to $525 plus taxes with Klarna, and you still earn One Key rewards and any member-only prices that were already baked into the rate.
• Longer family trip: A $2,000 multi-night booking in Niagara Falls or Montreal during peak season becomes $1,875 plus taxes with this specific promo, and in previous cycles similar BNPL offers have scaled to even bigger dollar discounts on high-ticket itineraries.

What Klarna is in Canada (and how it works)

• Klarna is a Swedish fintech that offers "buy now, pay later" (BNPL) and flexible checkout options; in Canada its flagship product is Pay in 4, which splits your purchase into four equal interest-free payments over roughly six weeks.
• The first installment is charged at checkout and the remaining three are automatically billed to your stored debit or credit card on a set schedule, with no interest or fees if you pay on time.
• Klarna is now widely available in Canada, including at large retailers like Walmart Canada and many online merchants, and has millions of active Canadian users as BNPL has gone mainstream.

Klarna Pay in 4 basics for Canadians

• Eligibility is based on a quick approval at checkout, and Klarna may do a soft credit check and set a spending limit; this generally does not impact your credit score for Pay in 4.
• You manage all your orders, upcoming payments, and notifications in the Klarna app or through your Klarna account, and you can often pay early or adjust the payment card before the next installment.
• Missed payments can trigger late fees or restrictions on future use, and regulators in Canada are increasing scrutiny on BNPL, so it is smart to treat Klarna like short-term credit rather than "free money."

Step-by-step: how to actually book this deal

• Search Hotels.com for your Canadian or international destination (Toronto, Vancouver, Montreal, Niagara Falls and beyond) and build a stay that totals at least $600 before taxes and fees.
• At checkout, make sure you are logged into your Hotels.com/One Key account to unlock any member prices, then select Klarna as the payment option instead of paying directly by card.
• Complete the Klarna flow (or sign up if you're new), confirm that the Klarna order summary shows the $125 discount and your Pay in 4 schedule, and then keep your total above $600 if you make changes so the promo does not disappear.