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Note: the hotel does not allow outside catering.
From a non-Indian perspective, you’re not obligated to plan anything.
The pre-wedding day dinner/drinks thing is becoming popular, but they are not mandatory.
If you really feel the need to do something, you can put together some simple welcome gift bags for the hotel to give them at check-in to the hotel. Fill them with cheap but fun things, snacks, beverages, and a personalized note saying how happy you are that they are here. People appreciate the thought.
Coming from a non-Indian perspective, I know you aren’t quite talking about a rehearsal dinner, but it is typically the night before. Since my partner and I are paying for our own wedding we opted against a dinner the night before and have added some of our favorite restaurants in our city to our website for our guests to check out when they get here with images and recommended dishes. No one has asked or made a big deal about us not providing a dinner before, and some have expressed excitement in getting to try our favorite spots!
I plan to have a welcome dinner for out of town guests, planning to get a pre fix menu at a simple restaurant (nice, but nothing super fancy). Guests can buy their own alcohol. It should be close to $35 per person.
With that said, I’ve been to several weddings as the out of town guest and nothing was provided the meal before, and I definitely didn’t mind or expect it!
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It’s a nice gesture but not expected. If you don’t plan anything, provide them a list of recommendations for things to do and restaurants in the area. Let them know if any places require reservations or have a dress code. Let them know how transit works (are ride sharing apps reliable, should they rent a car, does the hotel have shuttles or taxis, etc) so they can plan.