Our Hotel Brokers Take a Look at Cancellation Policies

This year, many big companies such as Marriott and Hilton are enacting stricter cancellation policies. This is an aspect of running a hotel that is sometimes forgotten – but cancellation policies are important to keep things running smoothly. Today in the Southeast International Hotel Brokers blog we’ll be discussing the ways that cancellation policies have been changing, and what it means for the industry.

How Cancellation Policies are Changing

The biggest change in cancellation policies is changing the standard 24-hour policy to 48 hours. This means if someone wants a refund on their reservation, they have to notify the hotel 48 hours before. This may not seem like a huge shift, and it’s not really for the customer. But it does help out the hotel owners. A 48-hour time frame gives owners a lot more time to fill rooms that are now vacant. The 24-hour policy still allowed time to fill the room, but 48 hours gives you a better chance.

How Should I Set My Policies?

If your hotel is not a franchised property with cancellation properties already in place, you’ll need to determine a cancellation window that works best for you. The 24-hour cancellation is still the industry standard, so this is a safe bet. This is what our hotel brokers recommended if you have a fairly standard type of hotel property. Customers will understand and be familiar with it, minimizing the need for explanation from customer service. However, if you’re a smaller hotel, you may not be able to fill rooms as quickly as a big franchised property would. You may need to adjust your cancellation policy accordingly. Also, if your hotel offers special experiences and high levels of personalization, you may want to make your cancellation policy even more strict. When you’re in charge of the way your property runs, it’s completely up to you. Just keep in mind that you won’t want to enact a policy that causes confusion and frustration for your guests. Our hotel brokers always recommend putting the guest first when setting customer service policies.

Contact Southeast International Hotel Brokers

If you’re looking to buy or sell a hotel, trust the experts at Southeast International Hotel Brokers. We have a proven track record that spans over 50 years. Our team is dedicated to the satisfaction of our clients and making the process as easy as possible for them. Contact Southeast International Hotel Brokers today for more information, or continue browsing our website.