How to Handle Cancellation Requests with Exceptional Refunds

Check the pros and cons that guide the decisions of property owners looking to maximize income and ensure an excellent reputation.

16/09/2024 - Cancellation requests with refund demands often reach property owners, even under strict cancellation policies. Recent events, such as the threat of an Air Canada pilots' strike, which raised concerns over potential flight cancellations or delays (read more on The Star), highlight the types of disruptions that can force guests to adjust their travel plans.

In addition to labor disputes, other unforeseen events such as climate-related issues or personal emergencies also contribute to last-minute cancellations. While strict policies generally ensure payment, including limited refunds for cleaning fees and taxes, property owners and managers can assess these exceptional cases individually. Offering flexibility, such as rescheduling dates or providing future booking credits, can help preserve guest relationships while balancing business needs.

Here are some strategies to manage exceptional situations and minimize their impact on your revenue.

1. Offer Date Changes

If possible, offer guests the option to change their stay dates. This approach can turn a difficult situation into an opportunity for long-term customer loyalty.

Pros:

Increased Satisfaction: Guests appreciate flexibility, which can improve reviews and recommendations.
Revenue Retention: Allows you to keep the reservation without financial loss.

Cons:

Availability: The new date must be available to avoid booking conflicts.
Complexity: May require additional management of bookings.

2. Offer a Credit for a Future Reservation

If changing dates is not feasible, consider offering a credit for a future reservation. This can be a beneficial compromise for both parties.

Pros:

Revenue Retention: Avoids full refunds while providing a solution to guests.
Flexibility for Guests: Allows them to plan a future stay.

Cons:

Uncertain Return: The credit does not guarantee that guests will return.
Need for Clarity: Essential to clearly communicate the terms of the credit.

3. Offer a Partial Refund

Finally, in extreme situations, a partial refund can be a fair solution for guests affected by strikes.

Pros:

Fair Approach: Shows understanding towards guests.
Improved Reputation: Can lead to positive reviews if guests feel supported.

Cons:

Financial Loss: You will absorb part of the costs.
Potential for Abuse: Some guests might misuse this policy for unjustified reasons.

To stay informed and manage these situations effectively, hosts can consult the L'univers de la gestion locative blog by TeamCHECKiN here. By staying well-informed, you can navigate these challenges while providing excellent service to your guests.