While cancellations are undesirable, they do not have to be traumatic. Booking.com provides solutions to help you manage cancellations successfully. Additionally, it gives resources that enable you to leverage your cancellation data to strengthen your listing and maybe increase bookings in the future.
Booking.com Host Cancellation Policy
Hosts’ Cancellation Policies
Seasoned Booking.com hosts will almost certainly inform you that cancellations, like negative ratings, are unavoidable. Booking.com provides its tenants with three distinct cancellation policies to choose from:
• Completely Flexible Cancellation Policy: This cancellation policy allows visitors to cancel up to the time of check-in without incurring any fees.
• Customizable: you can specify the number of days before check-in that a guest may cancel without incurring a fee. This option allows the host to select the period that is most convenient for them and can help reduce last-minute cancellations.
• Pre-authorized/Deposit: Additionally, you can pre-authorize a guest’s payment method or charge a deposit toward the guest’s stay at your property. While there is no clear cancellation policy, you might say that deposits are non-refundable to urge guests not to cancel.
It’s critical to remember that these cancellation policies may vary by property or unit listed on Booking.com.
Travel plans change frequently, so it’s critical to be adaptable to amended or canceled arrangements. At the same time, last-minute cancellations can be detrimental to your rental profile, as they might create significant holes in your reservation queue.
The good news is that you may try to reduce cancellations by reviewing your property’s “cancellation characteristics” report under Booking.com’s extranet. This report provides a summary of your property’s cancellation history in a single glance. This will inform you of the total number of cancellations at your property, as well as how this rate compares to others in your neighborhood. Additionally, you may track cancellation trends over time. Is there a certain period of a year, for example, when your cancellation rate is higher than average? These statistics might be extremely beneficial when you weigh your options.
After poring over this “cancellation characteristics” data, you can begin making efforts to reduce your cancellation rate. If, for example, your cancellation rate is significantly greater than that of comparable properties in the area, you can analyze why this is happening and make necessary adjustments.
One of the first considerations should be the price of your property: is it competitive with similar properties in your neighborhood? When a renter shops on Booking.com and discovers a comparable alternative at a lower price, the likelihood that they will cancel and rebook elsewhere increases. Apart from price adjustments, there are additional changes you may make to your listing to assist keep cancellations at bay. Several of these improvements may help you minimize your cancellation or no-show rates, including the following:
• Cancellation policies: Booking.com allows you to customize the timeframe during which tenants can cancel their booking without incurring a fee, so you can make canceling during your high cancellation times less appealing.
• non-refundable Rates: While renters may view non-refundable prices as a method to save money, you, the host, can view them as a guarantee of payment regardless of whether your guest shows. Once your guest has committed to a non-refundable fee, their likelihood of canceling significantly decreases.
• Payment methods: Booking.com research indicates that when guests have additional payment alternatives, such as PayPal or WeChatPay, they are significantly less likely to cancel their reservation. Guests appreciate options, and by offering these additional payment methods and enrolling in online payments through Booking.com, you may expand your property’s reach while perhaps reducing cancellations.
• Advance payments: you can also help reduce cancellations by asking for full or partial prepayments for reservations made in advance. This may deter some prospective renters, but tenants who make reservations with this minimum prepayment are significantly less likely to cancel.
While cancellations are an unavoidable aspect of the OTA experience, you may work within these aspects of your listing to limit them to a minimum. Again, it’s critical to remember that your cancellation rules and rates are simply adjustable: you can experiment with a more lenient cancellation policy or with modifying a unit’s nightly pricing to see how it affects reservations. Simultaneously, you can provide guests with the luxury of choice by giving distinct policies/rates for each apartment. As an example, you may rent a property for $300 per night with a completely flexible cancellation policy, $275 per night with a tailored cancellation window, or $250 per night with a non-refundable cost, allowing potential renters to choose the option that works best for them.
Use a channel manager for vacation rentals to manage your properties with ease and simply. Read here to learn more about to navigate the booking.com extranet.