Ok now I know this is an old thread and I have only read the first entry.
My thought on credits is this, if the guest cancels and I am not able to fill the vacancy AND on top of all that I let the guest make another reservation, possibly at a busy time here, then I loose out on revenue twice. I never refund and never give credit. I'd much rather not have the people here.
Tell me if I am wrong.
IrisoftheWayfarer said:
Ok now I know this is an old thread and I have only read the first entry.
My thought on credits is this, if the guest cancels and I am not able to fill the vacancy AND on top of all that I let the guest make another reservation, possibly at a busy time here, then I loose out on revenue twice. I never refund and never give credit. I'd much rather not have the people here.
Tell me if I am wrong
We've always offered a voucher for the deposit for cancellations under 7 days and try to delicately balance and state the need for it to be a legitimate reason for the cancellation and not project suspicion that the guest is just trying to jake us. Most last minute cancellations aren't, stuff happens to everybody. Our experience has been the calculated timing of folks cancelling is more obvious and planned to "get away" with something than the last minute emergency situations.
Our stated philosophy on it when speaking to the cancelling party is always "Well, our ultimate goal is to share our home with you, so we offer this voucher in hopes that when conditions are better for you, we'll be happy to offer our hospitality again."
The law of averages lessens the financial impact of the practice in a couple of ways.
First, most vouchers are never redeemed and even if the room isn't rebooked, being paid for half a stay and having no food costs, cleaning, etc. is easy money. We don't sweat what hasn't happened yet, we sweat what is going on right now because we have no control over the future.
Then, if you do rebook the room which in the busy season happens more often than not, you've boosted income which lessens the blow of the voucheree rebooking next year at the busiest time.
We've had more than our share of guests who had to cancel last minute, use the voucher later and express such gratitude and good word of mouth to others about our compassion and humanity in their time of need, that we can't pay for that kind of good will and karma.
That one is hard to put a dollar figure on.
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