Hire a Hotel Management Consultant to Help You Implement These Tips to Lessen Cancellations
While last minute hotel cancellations cannot be completely avoided, hoteliers will tell you that they would like to keep their cancellations to the bare minimum. There are different ways to achieve this, but hiring a hospitality consultancy team is one of the best ways to reduce last-minute cancellations. Once you’ve hired a consultancy team, try these tips and find the best strategy for your property:
Use Property Management Systems
Last minute cancellations happen for a number of reasons. Property management software can give you all information you need such as the number of cancellations, how frequently it occurs within a certain period and if the cancellation was made through a direct booking or a partner website. By understanding the nature of these cancellations, you will be able to pinpoint the best technique and policies to apply for your property.
Review your cancellation policy
When was the last time you’ve reviewed or changed your hotel’s cancellation policy? Do you have a fee for last minute cancellations or do you offer free cancellation? What is the period until a customer can cancel before incurring a fee? The notice period of cancellation is crucial how well you can resell the room. The farther away from the booking date you notice period is, the higher your chances of being able to sell the room to someone else. A hotel management consultant like Enderun Hotels can help you evaluate if your policy works for you.
Experiment with non-refundable bookings
While some hotels offer free cancellations as part of their sales strategy, you have to check if this works for your property. In some cases, this promotion may cause the majority of your last minute cancellations. If so, you may want to explore non-refundable policies to address this. Popular online travel agency website, Booking.com, has observed that non-refundable bookings have helped them and they note that “on average, we’ve seen that adding a non-refundable rate plan can help reduce cancellations by at least 9% and increase bookings by at least 5%.”
Have a strategic pricing plan
What are your current pricing policies? Do you offer discounts through online travel agency sites and are the discounts the same if the customer were to book directly through your site? Do you have upsells or offer additional discounts for customers who pay in full in advance? There are many aspects you have to consider when reviewing your pricing plan that a hospitality management service team can help with.