How to reduce and manage guest cancellations
At Bookster, we offer support for holiday rental professionals, providing tools, tips, and strategies to help manage your holiday let business effectively. Read on for our best practices on reducing and managing cancellations.
Past guests are a valuable group of contacts, so take time to build a strong relationship.
Reducing & managing cancellations
In the ever-changing landscape of holiday rentals, cancellations can pose a significant challenge for property managers. Whether due to unforeseen personal circumstances or external factors, reducing the frequency of cancellations and managing them effectively is crucial for maintaining a healthy business and a solid reputation.
Here are some strategies to help you navigate cancellations:
1. Review cancellation policies
Guests today seek flexibility. Offering clear, flexible cancellation policies can make your property more attractive, helping you rank higher on booking platforms and securing more bookings.
Consider the balance between flexibility and firmness:
- Flexible policies: These can attract more bookings by offering guests peace of mind.
- Tighter policies: They may help secure revenue but could deter some guests.
Evaluate your options based on your business model and guest expectations, especially for bookings through your own website.
2. Increase communication with guests
From the moment a booking is made, proactive communication with key information can help build trust and reduce cancellations.
Strengthen relationships with your guests by:
- Building rapport: Establish a warm, professional connection early on.
- Clarifying policies: Reiterate your cancellation policies and the support available to guests.
- Frequent updates: Stay in touch, especially if there are any changes affecting their booking.
- Reassurance: Address any concerns your guests may have and reassure them with your commitment to their satisfaction.
- Detail cleaning practices: Outline your cleaning procedures to reassure guests of their safety and comfort.
Automating some of these communications can save time while keeping guests informed and engaged.
3. Discuss cancellation options
When cancellations do occur, offering flexible solutions can turn a potentially negative experience into a positive one. Consider these options:
- Rescheduling: Allow guests to move their booking to a future date.
- Vouchers: Provide a voucher for a future stay, adding value and encouraging rebooking.
- Partial refunds with incentives: Offer a refund alongside a discount code to encourage future bookings.
By presenting these alternatives, you can retain guest goodwill and potentially secure future stays.
4. Reconnect with previous guests
Past guests are a valuable group of contacts, so take time to build a strong relationship.
Reach out to them to encourage return visits by:
- Offering discounts: Provide exclusive offers to entice previous guests to rebook.
- Highlighting safety measures: Share updates on your cleaning protocols and safety enhancements.
- Updating availability: Ensure your property management system reflects future rates and availability for 12-18 months in advance.
Engaging with former guests can not only reduce cancellations but also boost repeat bookings and strengthen your guest relationships.
Looking after your guests
Focusing on guest needs and clear communication can reduce cancellations, lead to positive reviews, and increase repeat visits.
Many property managers who follow these practices receive glowing reviews, highlighting their excellent customer service and care.
