11 years
Hi Brian, I am trying to find out the information with my main Hostelworld account but couldn't see the credit card info. I am going to ask Hostelworld on this tmr.
HW / HB - credit card charging for no shows
Front Desk Operations
Since we got started, we have had to live with the occassional no shows from HW and HB bookings. I believe this is a norm and most of you hostel managers would have to face every now and then.
The standard policy I believe is that for no shows / cancellations without prior notification, the hostel holds the right to charge the guests for their first night. However, this is not possible as HW and HB do not provide the credit card CVV / CVC code (apparently due to data privacy etc laws).
I suppose this is all fair but I do wonder then how do the other hostels handle these No Shows. While most bookings from HW and HB do translate into actual guests staying with us, how do we recover i.e. charge those who did not show up? During peak periods, this is a loss of potential revenue to us as we had to reject other bookings from other stream. :(
Do you guys do anything differently or do you also just write these bookings off?
:) Cheers
- Comments
11 years
Just adding a few thoughts here to the group. I know this is an older thread, but worth the comment.
For those requesting CCV/CVC numbers of guest credit cards, we have discovered from a payment provider we are doing some work with, that electronically storing a security number in any manner may breach your T&C's with your card provider, as well as not being PCI compliant!
Storing CVC numbers "electronically" in a database. This includes emailing by the guest to the hostel, as the email system can be considered to be a database. Each breach can leave an operator liable for a fine of $50,000 and $100,000 (depending on the terms from Visa / Amex / Diners / Mastercard etc).
What one of our client hostels has done is craft their own mobile app for taking full remaining payment from their guests. As the booking comes through, an email is sent from the hostel to the guest, which then directs the guest to a payment gateway solution provided by the hostel where following PCI compliance, the remaining balance of the stay is paid for prior to the guest arriving.
The payment detail, in value only, is passed through to the GuestCentrix PMS - which records that a payment has been made online. Payment is taken by the Gateway provider, securely and easily.
Certainly one solution for hostel operators to consider, if there are higher levels of guest no shows.
10 years
We add a phrase like this to all our re-confirmation emails: (it's a bit lengthy but it does the job.)
Please note that when you reserve with Hostelworld/Hostelbookers (or whomever), your room/dorm bed will only be guaranteed until 6pm. If you expect to arrive later, we suggest that you forward us the 3 digit security code that appears on the back of the same credit card that you used to make your reservation. Without this information, you risk losing your reservation and the deposit that you have already paid to hostelworld/hostelbookers.
When you forward us this number, we will not charge your card until we determine that you are a "no-show" and you have not called us within 48 hours of your arrival date in order to cancel. When you do arrive as scheduled, you will be able to pay in cash, and this 3 digit number will be discarded.
(Many people still don't send it, but at least they've been warned, and now your hostel can set a time when a reservation can be released. Only on 1 occasion did someone get "upset" enough to cancel his reservation...and frankly, we don't need that type of personality here anyway! :evil:
10 years
In many booking sites in china, full payment is becoming a market norm for making reservation.
Even if they don't show up, you'll still get the payment.
The no-show rate for Hostelworld can be as high as 10%.
For Chinese booking sites with a full payment option, no show as expected almost doesn't exist. (once in a few hundred bookings)
For my in-house booking, no matter how many days they book, an advance payment of the first night will be taken. In return we give them a very flexible option. As long as they can cancel it on the same day in early morning, we will give them back full refund.
I hope that HW can offer a similar arrangement.
7 years
I also have a big problem with this. The banks here do not allow me to do credit card authorisations without CVC code. So, with Hostelworld I hiave no way to protect myself against non-shows, which happend often by the way. Booking.com does not have that problem,, so what is the issue with Hostelworld.
I have talked to them/written to them about this many times, to no avail. Have you? What is it that makes them do this? Irish laws?
Basially, I cannot accept any of their bpokings any more as they (Hostelworld) take their money (not problem getting the CVC code for themselves) but do not offer any way for me to take my payment.
How are others dealing with this?
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