It starts with the guest’s decision. For whatever reason – be it a change of plans, personal circumstances, or unforeseen events – the guest initiates the cancellation process.
Review cancellation policy
Upon deciding to cancel, the guest revisits the hotel’s cancellation policy. This step involves understanding the terms they agreed to during booking – including deadlines, potential charges, or any penalties. It’s crucial that these terms were made clear at the time of booking to avoid confusion at this stage – not just for the guest, but also for any staff member who must tackle the cancellation
Initiate cancellation process
Next, the guest takes action to cancel their booking. This might involve logging into an online booking system, making a phone call, or sending an email. The method depends on the hotel’s systems and what was offered as options to the guest during booking.
Confirm cancellation
Once the guest initiates the cancellation, the hotel’s responsibility is to process this request. This involves updating the booking system, adjusting room availability, and handling any financial transactions such as issuing refunds or applying charges as per the policy.
Refunds and charges
After processing the cancellation, the hotel sends a confirmation to the guest. This communication should include details of the cancellation, any charges applied or refunds processed, and a thank you for their business, even if it didn’t come to fruition this time.
Alternative options
Post-cancellation, the room that was booked becomes available for others to reserve. The hotel updates its inventory across all booking platforms to reflect the newly available room, ensuring that no opportunity for a new booking is missed.
Key considerations in a hotel cancellation policy
Every hotel is unique, and hotel policies must reflect that. That said, there are a few consistent areas that are crucial to cover in any hotel cancellation policy.
Deadlines
Deciding on a fair deadline for free cancellation is crucial. This might range from 24 hours to a week before the check-in date, depending on your hotel’s booking patterns and operational needs. It’s about finding the right balance between flexibility for guests and predictability for your hotel’s planning.
Fees
If cancellations occur past the free deadline, setting reasonable fees is important. These could be a percentage of the booking cost or a flat rate, but they should be proportional to the time of cancellation and the potential revenue loss.
No-show policy
No-shows are an inevitable part of hotel operations. Your policy should clearly outline how no-shows are treated, whether that involves charging the full rate of the first night or a different penalty. This policy needs to be communicated clearly at the time of booking.
Modification policy
Guests often need to change their booking dates rather than cancel outright. Your policy should clearly state how modifications are handled, any associated fees, and the notice period required for making changes.