This was interesting reading from Howard Levitan's (Quantum Hospitality) Blog. I especially liked the resulting comments from Eric Goldreyer, April from TripAdvisor, Innkeepers and others.
Do Cancellation Policies Hurt Bed and Breakfasts? .
"This was interesting reading from Howard Levitan's (Quantum Hospitality) Blog. I especially liked the resulting comments from Eric Goldreyer, April from TripAdvisor, Innkeepers and others.
Do Cancellation Policies Hurt Bed and Breakfasts?"
Little Blue-May I ask about that? What did you like about Eric's comments?
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I almost hate to answer your question, KNKBNB, because although I speak only for myself, I'm sure the majority of you will disagree and try to show me the error of my ways.
I liked that Eric did comment (you see bb.com making an effort everywhere...I've never seen anyone from bbonline discuss these types of things...in any format. I get the impression that they will never change, never innovate, and just keep collecting the checks). I even like that Eric challenges innkeeper thinking about policies. It seems to me that far too many places set their policies and then NEVER adjust them. It even becomes a matter of pride for some innkeepers that they are overly strict. If guests complain, then the guest is in the wrong, and considered ungrateful and not worthy of what's being offered.
He said:
"My concern is that having seen a fair amount of innkeeper cax policies over the years, I am certain that there are some properties that are losing more revenue because they have a very heavy cax policy and if they would lighten it up a little, they would undoubtedly get more reservations."
I agree that
can be the case. Our area's newest Inn (a brand new build) just had their first full summer. He has a crappy non-informational website and a 14 day cancellation policy...he wanted a 30 day policy and I talked him out of it. His rooms are absolutely beautiful, huge, stuffed with all possible amenities and woefully underpriced. He's in the coolest town just steps from National Geographics "third most beautiful lake in the world". Yet, he was not as busy as he should have been, and I feel that his 14 day policy in the midst of a dozen other Inns ALL with 7-day policies (and that hideous website) caused him to have a far poorer summer than he could have had. Once his reputation and clientele become established, THEN he can adjust his policies to his own advantage.
For us, even our seven days notice rarely results in a rebooking. I think that stringent cancellation, check in and checkout policies is a large part of what stops the majority of the traveling public from booking with a B&B. I have toyed with the idea of different cancellation policies for different types of the year. Given my location relative to winter sports, I think a shorter winter cancellation period would help my advance bookings...weather is always a concern when you head into Northern Michigan in the dead of winter!
There has to be a fair balance between protecting ourselves and alienating guests with overly restrictive rules and policies if more travelers are going to be convinced to try B&B over the ever-convenient and lenient chain hotels. Though they might give us a feeling of control and peace of mind, I wonder sometimes if the restrictive policies are doing us more harm than good as an industry.
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As someone who regularly gets unfillable last minute cancellations, I would rather not have those people book. If the 7 day policy keeps 90% of them away from here, then that's good. It allows the person who wants a room to get a room.
I know there are areas & B&B's that have a low volume of cancellations, this is not one of them. Lots of my comp will email on a Sat morning to let me know they just got a cancel for that night. This happens pretty much every weekend. It happens to the places with the 7 day cancel policy, the places with the 14 day cancel policy, the places that have a cancellation charge, the places with no charges.
It does take some experience to get a proper policy for the location you're in. We started with a 2 week cancel policy. Then we went to a one week policy. The majority of our cancels are inside the week or just at the 8-9 day mark. Placeholders. They held rooms everywhere and then picked which B&B/hotel they wanted. I know this happens because sometimes I'M the place they decide to take. And they are happy to tell me (that they are gracing us with their presence) by letting me know they cancelled elsewhere to stay with us!
So in going from 2 weeks to 1 week, what we did to ourselves was make it harder to rebook. Some places are down to 4 days. In high volume areas it can be as high as a month.
Hotels and B&B's are not comparable for cancellation policies. If hotel X loses one room night at 6 PM, they have lost (around here) 1% of their revenue for that night. I've lost 15%. Some B&B's it can be 33%.
And I say it that way because I don't know any local B&B's who actually charge the guest for the lost revenue.
It's nice that Eric takes an interest in B&B polices. It would be nicer if he ran a small 7 room B&B for a month in the summer and had to realistically deal with what he's talking about. It's easy to say what should be done when you don't have to do it. (Heck, I do that all the time!)
BTW, there are posters on here from bbonline.
As to leniency in the winter...I saw an interesting policy I wanted to copy...'The no worries snow policy' if you cancel due to snow, you can use the deposit at anytime before the end of April. That seems reasonable.
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