Free cancellation can have some advantages for hotels. However, it also comes with its fair share of problems.
For one, it can leave you empty rooms at short notice, especially in busy seasons. For small hotel owners, this is a major pain point.
Increased Conversion Rates
Hotel owners want to maximize the number of direct bookings they can make, and to do so, and they need to have an effective online marketing strategy. More direct bookings mean fewer commission payments and lower selling costs for their hotels.
To enhance online conversions, several hotels and resorts provide free cancellation policies for reservations of vacation rentals. These guidelines may give visitors financial protection and increase their comfort while making reservations. However, only a select few visitors will be drawn to this kind of offer.
Offering targeted rewards to the product or service you are marketing is another approach to boost conversions. These incentives are a terrific method to pull people in, whether it’s a discounted rate or a special discount such as what you can discover at websites like RetailMeNot for those who book in advance.
For example, you can advertise that a hotel has just opened and offers a free night for those who book in advance. This will create a sense of urgency and encourage guests to book now. You can also advertise that you’re only accepting a certain number of rooms for a special price or that the rooms are already filling up quickly.
Getting these visitors to your official website is important, but it’s even more essential that they have a good user experience once they get there. They’ll likely leave if they can’t find what they want.
No Refunding Fees
Many guests find it frustrating to pay cancellation fees if they cancel their hotel booking on short notice. These fees are often imposed by third-party booking sites and can result in hundreds or even thousands of dollars being charged to the guest.
However, there are ways to avoid these fees. One method is to use a canceled or expired credit card to make your reservation. While this doesn’t work for all hotels, it may help you avoid the fee.
Another way to avoid paying cancellation fees is by contacting the hotel directly to ask about alternative forms of refunds. These may include points, gift cards, or vouchers that can be redeemed for a future stay.
It’s also a good idea to check with your travel insurance provider before you book. Some policies will cover the cost of a hotel stay in cases of bereavement or illness.
Most hotel chains can refund you if the hotel is not as advertised or the booked room needs to meet your expectations. This is especially the case if you booked a package with them.
These policies can sometimes be confusing, so consider contacting the hotel directly before you make a booking. This will give you a better understanding of their cancellation policy and help you avoid any surprises in the future.
In addition, it’s worth noting that some hotels are experimenting with tiered cancellation policies. You can cancel your booking for free at the beginning of your stay, but the fee will rise as the date gets closer to your arrival.
This can be particularly frustrating for small hotel owners as it can leave them with empty rooms in busy times.
Some OTAs, have a ‘Free Cancellation’ filter on their search results that shows only hotels with no cancellation fee. Alternatively, you can ask your hotel for a ‘Risk-Free Reservation‘ that guarantees you a full refund if you cancel your booking.
The advantage of this is that it helps hotels retain their customers and increase conversion rates. It is also a good way to segment your customers, allowing you to attract those who are more price-sensitive.
Increased Reputation
There’s a reason why free cancellation is the hot topic of hoteliers of all stripes. It’s not just about keeping guests happy and out of bad credit; it’s also a winnable battle between the hotels and the competition. There are increasing options, but a well-designed and managed strategy will set your business apart from the competition. The best part is you don’t have to leave your house to reap the rewards. A little research and planning will go a long way toward ensuring your business is in the black. From there, you’ll have plenty of time to enjoy your winnings.
Convenience
Whether it’s the weather or an event being canceled, guests often change their minds about what they want to do during their stay. This is why giving them as much flexibility as possible is important, and free cancellation hotel booking is a fantastic way of doing just that.
For the majority of hotel guests, the convenience of having a flexible cancellation policy is invaluable. They appreciate the option of being able to cancel and rebook at short notice, and most use it respectfully. But some people take the option more aggressively.
This is a problem for hotels because they have empty rooms during busy periods. It also means they’re generating less revenue from their rooms than possible, which can be a costly mistake.
To overcome this, many hoteliers are introducing free cancellation policies. However, it’s important to note that other ways exist to increase your conversion rates or improve your reputation.
