Most common cancelation policy

[Pete3178]

Looking for a little advise. We have been hosting for over half a year with pretty good success. Because of Covid we have been offering the 24 hour cancellation policy. Recently we had a cancellation of a week long stay  days before the guest was to arrive. We understand things change but all of a sudden we had a big hole to fill on short notice. We did fill 2 nights but the loft was left empty for 5 nights. We are thinking of changing to the full refund up til 5 days before arrival, and would be willing to work with people who have emergency situations.

Would making this change affect bookings at all ? What cancellation policy do most hosts have ?

[Cave0]

@Pete3178 

As you've discovered, it's very easy to end up with an empty calendar when offering flexible cancellation policies.

Your suggestion to work with guests who might have an emergency situation is a good one, the few questions I have received about my strict policy have been answered in a similar vein and every one of those prospective guests went on to book 🙂

I have 2 listings in the same area and they have dirfferent cancellation policies because they attract different types of guest. 

At the moment, people travelling to this region seem to prefer accommodation where they don't have to share facilitles and they're not travelling in groups or family units like they were 2 years ago.

For my small unit my policy is strict and I am full.  If people want to stay at your place it is my experience that the cancellation policy doesn't stand in the way of them booking.

In my larger unit, because the larger groups aren't travelling, there's little demand and even with a flexible cancellation policy, it's been hard work trying to fill it and only price adjustment seems to have had any influence.

[Inna22]

@Pete3178 I have a strict policy and am very happy with it.

Some things to consider: how far in advance do your guests usually book? Mine book months in advance so chances of rebooking at the last minute are slim for me.

Can you stomach empty nights? You will probably pick up a handful of reservations or get a higher rate for some nights but risk a scenario you have described. If you are a casual host who does not rely on this income, letting people cancel and not worry about dealing with their circumstances (trust me, everyone who will want to cancel outside of your policy will come up with a sob story) might be a good match.

Are you ok with last minute reservations? I am not. I want my house booked well in advance. In my market last minute guests are trouble.

[Mike-And-Jane0]

@Pete3178 We too moved to flexible but changed back to strict fairly quickly as some people in the UK are booking two places (abroad and in the UK) to here their bets on international travel being allowed this summer. We do say in out listing  that if Covid makes their travel to us or their stay with us illegal we will refund any money we get paid.

I think the policy needs to match your typical lead-time. If guests book months ahead then a strict policy protects you well. If they only book a day in advance then arguably a flexible policy may still work.

[Pete3178]

Thank you @Cave0  @Inna22  @Mike-And-Jane0 for your replies. Our Loft is not something people book way in advance. Its more of a weekend getaway or weekday work area away from home listing. We love to have it filed and do have empty nights ,but find it hard to fill when someone cancels a week long stay 2 days a head of arrival. We do get occasional bookings a day or 2 out as well. I think we will change it to the 5 days before policy.

[Nash-Cottages-LLC0]

@Pete3178 We have a moderate cancellation policy; we think the one to which you are considering moving. It's worked great for us, and we do get both plan-ahead types and last-minute bookings when someone cancels - a situation came up just this morning. Someone canceled, and within a few hours, we were booked for those same dates. 

Of course, we have had empty nights when someone cancels and no one rebooks. 

We've been considering moving towards a stricter cancelation policy just to try it out. And, that's something you could consider. Move towards a stricter policy for a few months, see how it goes, and then move back if it's not working out. 

[Elaine701]

You should use what works for you and your market, not what's "most common".

We have always had "strict" cancellation, and it's always worked for us, with no undesirable side effects. But we're in a popular tourist destination, and so we're better resourced to get away with that. The issue for us is that our guests tend to book we'll in advance, so, somebody who cancels a month before arrival can leave us high and dry. At least we get half. 

But that may not work for your offering. You just have to experiment and find what works best. If your guests tend to book well in advance, then strict might be your best choice. Otherwise, if your guests tend to book last minute, strict is probably not going to serve you well.

Or choose somewhere in between... 

Good luck! 

[Louise0]

Any cancellation policy beyond 'Moderate' is almost pointless. 

I have Strict and also had Modified Strict (beta).  However, I've found that regardless of your cancellation policy, when a guest cancels they will make your life a living hell until you buckle and give them a refund.  With that in mind, unless you've got nerves of steel and a heart of stone, you might as well opt for Moderate.