Is a Hotel booking necessary to apply for Schengen Visa?

Flight bookings indicate that you simply enter and exit the Schengen area in a specific time period. Just like flight reservation, hotel bookings also indicate that you have a correct place to remain while you're in Schengen area. This additionally indicates that you simply have enough cash to support yourself while you're here and you won’t resort to jobs to support your basic wants while you're here on a traveller visa.
Simpler and easier approach is to go ahead and book your flight and do all relevant hotel bookings. But, the drawback of this method is that you simply lose thousands of dollars in an unfortunate incident of visa rejection. Rather than this method, various approaches are to just contact any travel agent and ask them to create an itinerary. Schengen visa itinerary are often assured of reduced loss, just in case the visa is rejected.
For hotel bookings, Schengen visa itinerary provides bookings with free cancellation. You can book those hotels, however make sure you enter names of individuals who are applying for the visa within the place where we enter the name while booking the accommodation.
Alternatively, you'll get a confirmed reservation for your flight ticket rather than buying an actual flight ticket. Schengen visa itinerary website offers confirmed Flight itinerary for Visa which may be shown throughout your Visa application method.
Make sure that the embassy you apply to, accepts reserved flight tickets and don't demand for an actual flight booking.
In the above case, it's extremely safe to pay a few dollars on reserved flight itinerary than running many dollars on real flight ticket.

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