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Hostel cancellation policies?

Front Desk Operations

mcarolina started this discussion 10 years 2 days ago

All these PMS and Channel Managers things are pretty new for me, and now that i started using them i don't ever want to go back to the paper/pencil style i was using.
It has helped me a lot and it has made me go into details that before i never noticed or that were pretty reckless. One of those details that i am actually still struggling about is our cancellation policies. And is here where i'll like your help.
I came from not asking for a deposit ever to having the 'book now app'. I'm only asking for a 10% deposit through paypal. What my cancellations policies over this should be? I have a significant percentage of no shows which i'd like to reduce, but i also want to be flexible enough since we are located in a 'pass through city'.
I wanted to keep it simple, but of course, when i think i have it, all these other options come up, like: No shows of course loose their deposit. 2. 24h noticed before arrival we give it back? 3. Not cancelling 24h before, means not having the deposit back? What if they have 3 nights and when they arrived they cancel the last night? should i return the proportional part or none?
Any ideas?

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John Moriarty

10 years

I can only speak in relation to the experience in my own hostel as every location and hostel differs and there are reasons why.

For me 90% + of my bookings are booked in advance so I dont get many walk ins. This means if someone cancels last minute I am likely to lose out.

I have a fairly strict cancellation policy.

Also my cancellation policy differs depending on what channel a person books through.

I give my hardest cancellation policy to the OTA's as I would prefer to get more direct bookings.

For booking.com I have a 10% cancellation fee whenever a person cancels. As booking.com has a high cancellation policy this can reduce this.

For direct bookings it is a 3 day cancellation policy . If cancelled within 3 days of arrival I take the first nights stay. If for some reason someone arrives and want to shorten their stay I usually don't charge.

I prefer to lose out rather than having an unhappy guest who is staying with me.

For groups the cancellation policy is usually two weeks before arrival and I take a large deposit.

No shows also would be charged the first full nights stay.

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John Moriarty

10 years

I just had a quick look at your website.

Just a tip I would encourage you to have the booking option more prominent. I would have it as its own main menu item instead of in the drop down.

Also to put a button on the main homepage with book now.

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mcarolina

10 years

Awesome John, thanks for the tips, i will change that.
The main problem i think i have is that even if i have the credit card details, i cannot charge the guest. You'll see, here in Ecuador we cannot charge someone without having the physical credit card and swipe it, also, without a sign, the voucher is not valid.

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John Moriarty

10 years

This is a problem in a lot of areas. While we have the ability to charge often the customer will do a charge back which costs us more and the credit card company always takes there side of things.

I guess this is good that you have the deposit option on your website in regards paypal at least you have the details.

Have you looked in to airbnb. In regards the number of bookings it is still low but increasing a lot and at least you are guaranteed the money within your cancellation policy as airbnb hold the money.

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