Cancellation (and asking for future credit)

[Flora Jen]

Hi everyone,
I've had a few recent last minute cancelations with request for future credit. They're not asking for a refund, exactly, but wish to use the $ they paid as credit toward a future stay. I'm inclined to maybe offer a partial credit for future stays in the near future- say within 6 months. What do others think, and what suggestions can you share?
Thanks to the hive mind
Jen

 

[TheBeachHouse]

We are case by case. If you have a full house and can’t rent the empty room in time, you should keep the money. Sometimes, we are turning people away before a cancellation. Now we have an empty room! Why should that be our problem?
if the house isn’t full, and the change they want is reasonable, like, not a holiday weekend, or it’s just the following week, we are happy to keep everyone happy.

make it advantageous to both you and your guests. Your instinct about a deadline is right on. Don’t let it be open ended.

 

[Flora Jen]

We are case by case. If you have a full house and can’t rent the empty room in time, you should keep the money. Sometimes, we are turning people away before a cancellation. Now we have an empty room! Why should that be our problem?
if the house isn’t full, and the change they want is reasonable, like, not a holiday weekend, or it’s just the following week, we are happy to keep everyone happy.

make it advantageous to both you and your guests. Your instinct about a deadline is right on. Don’t let it be open ended.

Thanks so much for sharing your input - We are sadly super slow right now so I'd like to keep any revenue we have coming in! But I'd also love to be sure we don't lose a customer. I like the 50% of funds if used in 6months for this one, and I like keeping it case by case for future cancellations. Thx again

 

[Arks]

Keeping up with future credits is more work that I want to do! I stick to my cancellation policy, always.

They agree to it when they make the reservation. It's a contract, both ways. I agree to hold the room for them and turn down anybody else wanting it. They agree to pay me.

If they cancel on short notice, they pay for 2 nights (if they booked more than one) and I refund the rest. If I can rent the room to someone else on such short notice, they just pay a $25 cancellation fee, to compensate for the hassle of dealing with them, and I refund the rest. That's about as complicated as I want to deal with.

 

[JimBoone]

I've had a few recent last-minute cancelations with request for future credit. They're not asking for a refund, exactly, but wish to use the $ they paid as credit toward a future stay.

I look at it this way. If that future credit is going to be used at a time when I would be busy and sell the room, I still hurt me. If that future credit is going to be used when rooms are empty, yeah, why not. Offer that "free" visit at a time that is to your advantage. Even if not asked, I may make a note in the reservation system and give them a future deal if the timing allows.

Most of the time I hope to fill up my weekends, these days pay my bills. Mid-week visitors are often a bonus, maybe I'm not too strict with that fella.

 

[GoodScout]

Agree. If you want to offer a credit for a future stay, tack on a hefty "cancellation fee" which doesn't get issued as a credit. Ours started out at 10%, and then went to 15% and now 20%.
DON'T put this in your cancellation policy. If you do, you're stuck with itevery time. Keep your wordage that the booker forfeits the whole amount, and then you can do them a "special favor" when you see fit.
I don't offer it for people who cancel a day before a busy weekend I've turned away multiple people for.
Finally, we do ours as gift certificates, and on the verbiage I specifically say it's not valid for peak dates.

 

[Momma Smurf]

Finally, we do ours as gift certificates, and on the verbiage I specifically say it's not valid for peak dates.

I don't know about your state, but in Maine gift certificates don't expire, so we specifically label ours Courtesy Vouchers with an expiration date that we choose depending on the cancellation circumstances and our mood of generosity. We too add dates that are invalid.

 

[GoodScout]

I don't know about your state, but in Maine gift certificates don't expire, so we specifically label ours Courtesy Vouchers with an expiration date that we choose depending on the cancellation circumstances and our mood of generosity. We too add dates that are invalid.

It's a good question innkeepers need to know the answer to. In our state, gift certificates can expire, but they have to be good for at least 2 years.

 

[Generic]

If it's a cancellation after the limit, we, at our discretion will offer a gift certificate/promo code with a value of up to half and a 1 year expiration. It is always marked as no-value and with the clear expiration date. And one more caveat, it cannot be used against the cost of a cancellation. In other words, if you cancel again, you still have to pay the cancellation fee, the GC won't cover it.

It is important that it is NOT for the full amount, because then they can claim that it was purchased. No, it was not. In our books, we are the purchaser. The cancellation is entirely separate! The expiration date is also inviolate. You must have made your reservation and put in the code by the expiration date.

They can use it at any time. To be honest, they are rarely used. It just makes them feel better that they got something for it. And we sometimes do a GC to guests who booked via OTAs... so the only way they can use it, to book direct

 

[GoodScout]

They can use it at any time. To be honest, they are rarely used. It just makes them feel better that they got something for it. And we sometimes do a GC to guests who booked via OTAs... so the only way they can use it, to book direct

Oh wow. We never offer gift certificates for OTA cancellations inside our window. You cancel within 30 days, it's gone. Should have booked direct.

 

[Generic]

Oh wow. We never offer gift certificates for OTA cancellations inside our window. You cancel within 30 days, it's gone. Should have booked direct.

Oh, I keep the cancellation money, the GC is usually for a much smaller amount. But it can only be used direct, and of course they hardly ever get used. But I've also had it happen where they keep the reservation and don't show, so I can't resell the room

 

[Tom]

As usual, interesting comment. Cancellation and policy are perennial problems.
I've usually been pretty lax on cancellation so don't charge at all, and I have usually extended "rain check" courtesy credit against future use when I do.
But I don't like it -- not the money per se, but the hassle of dealing with people's expectations and future re-booking. Having a less than full credit rain check, and a time limit makes sense. Use it or lose it.
The past couple of years we've had cancellations because a guest tests positive, and I don't doubt most of them likely did. I -- and my other guests -- don't want them here if they are infectious, so I'm lenient: cancel outright, just come back when you're OK, and people usually do if the reason for the first booking is visit University, family, etc.
I'll have to see where it goes this year.