Cancellation management for bookings in tourist accommodation

Broadly speaking, there is no common or standard policy for cancelling bookings in tourist establishments. The method of cancellation is determined by the management guidelines and directives of each site. This is why no establishment is obliged to follow established rules, although they must adhere to criteria that do not unduly harm the client.

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The cancellation date

The key factor when dealing with a holiday rental cancellation or a hotel booking cancellation is the date of the cancellation. The establishment's response to the client cannot be the same if they cancel their room a few months before their arrival as it would be if they do so only a few days in advance.In this regard, multiple decisions can be made depending on the advance cancellation date:

• No charges if the booking is cancelled at least one week in advance
• Charge 50% of the total booking cost if the cancellation occurs 48 hours before the client's arrival
• Charge the client for the first night, in case of a long stay, if they cancel within the last 72 hours
• Free cancellation up to 24-48 hours before the booking day.

Refundable and non-refundable rates

It is necessary to specify very clearly to clients which rates are refundable and which are not in the cancellation policy. If the rate is non-refundable, it is necessary to clearly indicate to clients that cancellations are not accepted, so the full booking amount would have to be paid regardless of when the cancellation occurs.It is also possible to be a little more flexible with clients and indicate until what date a non-refundable rate can be cancelled without incurring charges. This is especially important because non-refundable rates are a strategy that discourages many clients from booking with us. That is why these types of rates should be accompanied by attractive offers. In other words, a non-refundable rate would be for those promotions that seek to attract clients' attention with very competitive prices.Any decision in this regard will depend on a reasonable cancellation policy that is always specified in the booking terms so that the client is not taken by surprise.

The cancellation policy

Precisely, it is necessary to periodically review the cancellation policy we have at the hotel or tourist apartments. The most common practice is to allow clients to cancel their booking within 48 hours of payment. If they do so within this time, all their money is refunded. After this time, the refund will be 50% of the booking.You need to set aside hours to attend to clients, resolve potential incidents, and manage cancellations. Therefore, it is advisable to have systems that provide a global and integrated view of the business, improve process agility, and so on. We recommend installing the smart lock that allows you to control access remotely, carry out remote traveler registration, integrate with any PMS (channel manager) system, and monitor noise in your accommodation.In short, booking cancellation management is an issue that is always somewhat controversial for clients. The best approach in these cases is to try to find the greatest flexibility for clients, without us being harmed at the hotel.