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The reservations game and cancellation policies

(How far do you go with your cancellation policy? Or to put it more bluntly, what can your brand get away with, asks HOTELS blogger Larry Mogelonsky, a Toronto-based consultant)

When we make a reservation at a hotel, it is common practice for the property to have a cancellation policy in place whereby the failure to advise a property within the stipulated time period will automatically result in a no-show penalty, typically the price of a one night’s stay.

(Getty Images)
(Getty Images)

Many high-demand resorts will debit their guests’ credit cards for one night’s stay upon booking, with the balance often due 30 days in advance of arrival. Other policies can work as well, but the bottom line is that these cancellation fees are incredibly important to ensure that hoteliers aren’t taken advantage of.

And indeed, most guests understand these payment terms. They realize that holding a room effectively precludes said establishment from selling it to another customer. Ergo, there is an intrinsic value in that reservation and it must be treated accordingly.

The question then is how far do you go with your cancellation policy? Or to put it more bluntly, what can your brand get away with?

Read more at Mogelonsky‘s blog: “The Hotel Mogel”

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