Please rollout the new cancellation policies

Debra300
Level 10
Gros Islet, Saint Lucia

Please rollout the new cancellation policies

Recently, I had listed on another conversation some of the differences with listing with Airbnb vs. Booking.com.  One item I listed was that Booking had a cancellation policy that worked better for reservations booked several months in advance of the scheduled arrival date (bold text).  I just noticed that Airbnb has new cancellation policies for 30 and 60 days prior to arrival:  https://www.airbnb.com/home/cancellation_policies.  These policies don't seem to be available to all hosts yet, because they are not options that I can select for any of my listings.  The rollout of the new cancellation policies to all hosts (and Airbnb upholding all cancellation policies) would be a great help to hosts who cannot quickly rent spaces in short periods of time when there is a late notice cancellation.

 

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The key items that I like vs. Airbnb: 

  1. You can display all of your spaces on one listing page, but still make individual changes as necessary. 
  2. The ability to control the total financial transaction.  This includes a payment deposit, and obtaining an actual security deposit or credit card information for incidental costs.   
  3. The guest has to work with the host to resolve issues, and cannot make unsubstantiated claims and demand a refund.
  4. They cannot deduct or refund your earnings.
  5. The ability to cancel a reservation if the payment isn't authorized, and the host is not penalized.  
  6. More options for cancellation periods.  This is really helpful for reservations made several months in advance of the scheduled arrival.  For example, our cancellation policy is the guest has until 30 days before arrival to receive a full refund.  The only similar policy at Airbnb would be the strict 48 hour cancellation window.

 

Things that are more work at Booking.com:

  1. Booking.com charges 15% commission on all reservations.  This cost must be incorporated in the room rate.
  2. All reservations are instant. There is no opportunity to communicate with the guest before booking, and no guest reviews to see past travel behavior.
  3. The site's marketing motto that no credit card is needed results in several bookings made with invalid credit card details, because the guest is just window shopping (and blocking calendars).  It takes 24 hours after reporting an invalid card before the reservation is canceled, and the dates are re-opened on the calendar.
  4. The host is required to obtain a credit card processing account and other online payment accounts, e.g., PayPal, Google Wallet.
  5. The credit card and payment processing fees may be more than the 3% that Airbnb charges.
  6. There is a $300USD limit for deposits that can be collected (this amount may be different for UK and the EU).  We don't actually collect a deposit, but keep the credit card details.
  7. You are responsible for paying all of the appropriate taxes.
  8. There is a learning curve to becoming acquainted with the site's functionality.  There are some items that only Booking.com can change, e.g., only they can assign individual cleaning fees to each room (otherwise it's one standard rate for the whole listing), or can change the tax rate.
33 Replies 33
Trevor243
Level 10
England, United Kingdom

@Fred13The default position with Booking.com is that they allow hosts to take damage deposits by cash on arrival, then inspect and refund in cash on departure. Booking.com openly say they don't trust hosts, like we're all a bunch of criminals. There is the option of taking damage deposits by bank transfer, if Booking.com trust a host - but even if you have multiple properties listed on booking.com, all taking damage deposits by bank transfer, they still tell you they don't trust you and it must be cash ..... we end up in long running arguments with them and refuse to open any property until they allow us to take the damage deposits by bank transfer .....

Got cha. I have never in 6 years/600 have to even worry about what they can break so cool, deposit is a moot point with my scene. Great information indeed and thank you @Trevor243.

Debra300
Level 10
Gros Islet, Saint Lucia

@Trevor243 

Thank you very much for your response.  Unfortunately, the Payments by Booking.com feature is not available to me.  I have been seeing the following message for the past few years.

 

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Booking.com does represent a significant portion of our reservations.  Overall, I am pretty happy with them, except for the amount of invalid reservations due to the misconception that reservations can be made without a credit card (there should be better clarification that most accommodations require a prepayment to hold a reservations), and having to allow a guest 24 hours to present another payment method.   Since I currently handle the credit card payments, I don't have any issue with taking the damages deposit, if we were to collect it.  I find that when guests know that we have their credit card details it is a motivator for them to behave properly.  It's only been the Airbnb guests that have "overslept" on checkout day.

 

I often get a bit perturbed with people who cry and screech about how Airbnb has done them wrong, but very few say they are going to another OTA or will put more energy in developing their other channels to the marketplace.  Many hosts don't seem to realize that in exchange for the convenience of Airbnb's payment processing and the option to have guests pay the service fee, they are giving up the ability to control refunds, obtain reimbursements, payments for extras, and manage reservation changes.

 

We have a website for the guesthouse that hosted by Lodgify, but I am thinking about migrating it to Smoobu, because Lodgify doesn't support linking the calendars of a space that's offered in multiple configurations (we have an apartment that we offer as either a one or two bedroom).  

 

You are right, there isn't yet the perfect OTA, or lodging website host.

Trevor243
Level 10
England, United Kingdom

@Debra300Every time I add a new property, I see the same message - and we're in the UK and all the properties we have on Booking.com use Payments by Booking.com - we have to apply for it and sometimes their support team message us to say "it's not available everywhere". We often end up in long running arguments with them..... needless to say, Booking.com is the last OTA we list a property on, and we don't open it for bookings until they give us the settings we need .... we have a lot more properties on AirBnB than on Booking.com ...... we just don't have the time for the arguing .....

 

Debra300
Level 10
Gros Islet, Saint Lucia

@Trevor243,

I fully understand that working with OTAs can be frustrating.  I did call Booking.com to confirm availability before posting my message to you, and the very helpful rep informed that it's still not available for my listings.  He did recommend a workaround that may or may not work.  Remove credit card acceptance on my listings for 60 days, and sometimes Booking.com will suggest their payment service.  I may do it just to so, because we aren't planning to take guests in St. Lucia again until the holiday season when returning islanders and snowbirds will come down.

Trevor243
Level 10
England, United Kingdom

@Debra300That "solution" is similar to what we do. We ask for Payments by Booking.com, they say no, we say that we will not open the property for bookings until Payments by Booking.com is set up. I argue with them, point out all our other properties where it's all set up. I tell them not to worry, I don't need Booking.com as the property is listed on AirBnB, TripAdvisor and VRBO/HomeAway so I can get fully booked through them instead. Booking.com soon change their minds .....

Debra300
Level 10
Gros Islet, Saint Lucia

@Trevor243,

For a time period I was signed up for Expedia Collect, and they processed the payment for my bookings.  They charged an additional 5% on top of the 15% commission, and then they paid out via EVC (electronic virtual card) which incurred a credit card transaction fee to get your money, or through an invoice which was paid 30 days after submission.  Needless to say, I stop that agreement, and now process the payments myself.  Is the Payments by Booking.com fee similar to what Expedia charges?  

@Debra300  Smoobu is a mess full of glitches and terrible customer service. The idea is great, implementation poor. I just left them. Unfortunately I can’t have my own site. In chicago the license is $5000 and I don’t get enough direct reservations to make it worth while

@Trevor243 So good to know you had a chance to speak up to them. Deposits are so difficult on booking com. All guests do not even realize they have to pay it so every reservation starts with a conflict 

Debra300
Level 10
Gros Islet, Saint Lucia

@Inna22,

The thing that I find ironic about a guest's reaction to collecting a damages deposit is that they are hyper-concerned about getting their $300 refunded, but take little consideration that they have access to thousands of dollars worth of my stuff.  Or, the real gem is that some people actually think that they should pay when they leave, and not at arrival.  I just remind them that they also pay their rent/mortgage for the upcoming month.

 

Thanks for the tip on Smoobu.  Does that Chicago fee also pertain to Google websites?  You can't take reservations on them.

@Debra300 I am not sure. But I had a site that was completely non functioning and they fined me and made me take it down. If you can not take a reservation, what is the purpose? You list your phone number? If so, it is the same thing- as long as there is a pathway to bookings, it is an advertising platform that connects a guest to a host. Paying as they leave? Thats crazy and I thought I heard it all

@Inna22 Maybe you haven't heard this one: guest books for 24th-28th = 4 days normally, in his mind it meant 5 days , meaning on the 28th he gets to stay all day and leave in the evening! Older couple, wife beg me to be gentle with him because he was a bit slow-minded; to this day I am wondering why they were together if he was that confused.

@Fred13 thats even nuttier. No, have not heard of that either! 

Fred13
Level 10
Placencia, Belize

@Trevor243 , @Debra300 I must have missed something, getting Bookings.com to handle payment is usually a hassle? Can PayPal figure in this equation? PP is how my Direct guests pay for their reservations.

Debra300
Level 10
Gros Islet, Saint Lucia

@Inna22,

Would you please share some of the key issues that you had with Smoobu?