In the hotel industry, few things are more frustrating than cancellations. Specifically, last-minute cancellations are a serious problem for many hotel managers. The critical question is, what steps can be taken to prevent cancellations? It’s a complicated question, but there are some solutions. In today’s blog post, Southeast International Hotel Brokers will take a look at how to reduce cancellations in the hotel industry.
Have a Strong Cancellation Policy
The first step the hotel industry can take to prevent cancellations is to have a strong cancellation policy. While you want to be hospitable with your guests, you also don’t want to be too flexible and allow guests to dictate policy. If guests know that there will be no ramifications for canceling, they are far more likely to book a room they know they might not be using. A strong cancellation policy will not only protect your hotel from late cancellations, but it will also make it more likely that the reservations you get will stick, and your rooms will be filled.
Require a Form of Payment for Reservations
Many hotels have run into problems enforcing cancellation policies without a form of payment on the books. While you can be firm with guests that turn up, you cannot charge a no-show fee without a card on file. It’s important to require a form of payment when the reservation is being made so that the guest knows they can’t skip the bill if they don’t show up on the date of their reservation.
Offer Discounts for Confirmed Bookings
More often than not, guests would prefer paying the night of the stay rather than the day they book their stay. This is known throughout the hotel industry. However, if your hotel offers discounts for confirmed bookings, you will see far fewer cancellations. You can even make the discount bigger for guests who want to pay completely upfront. While nobody likes to pay money upfront, they do enjoy saving money, and upfront discounts will promote fewer cancellations that cost your property money.
Contact Southeast International Hotel Brokers for Hotel Industry Tips
If you are looking to get into the hotel industry, Southeast International Hotel Brokers can help. We have many hotels for sale that would be a great way to get into the market. For more information on what we offer, get in touch with us at (417) 865-2520 or contact us online today.