How to avoid cancellation
Apart from losing revenue, cancellations can bring in a lot of undesired effects to your property rental business. To make up, you will have to somehow try finding ways to book rooms in short notice by reducing the existing rates. You also have to inform the housekeeping and other staff about the changes in booking. It also impacts your ranking factor in listing sites like Airbnb as they take into consideration your booking and cancellation rates while ranking your property. Therefore it is very important to avoid cancellations as it has a long term impact on your rental business
How to deal with cancellations
You might be thinking now that cancellations are part of the game and how can you avoid them? Yes, I absolutely agree with you. It is totally natural that your guests have a last minute change in holiday plans due to circumstances and also sometimes a change of choice regarding their holiday plans. But not all cancellations are caused by downright impulse and you can definitely reduce the number by being aware of the fact that your rental strategy also plays an important role in the mounting number of cancellations.
It is very important to minimize cancellations as it means less revenue, increased workload, decrease in ranking, losing potential business
We will take a look at some of the reasons behind cancellations and how to curb them
Analyze your lost bookings
Keep a keen eye on your competitors
It is very important to stay on top of your competition. In every vacation rental site the property of your competitors will be displayed above and below your listing, therefore it is very easy for customers to choose a property that has better pricing and amenities. So whenever you receive a cancellation just do a check up on your competitors to see what they are doing better than you and make a plan on how you can better your offer without a cut on your profit margins
Communicate with your cancellations
The simplest way to analyse the reason behind cancellations is by contacting them. You can use an email template or automated ones that do not sound very pushy to receive an honest opinion. Frame your mail in such a way so that it has more of a procedural tone to it rather than personal interest. Convey to them that the mail is sent just to improve the business experience and be kind and understanding before asking for the reason of cancellation
Have a good rental strategy in place
At the end of the day you need to attract your guests to seal bookings. This is what is called a rental strategy. Let us look at them more closely here
a.) Making your property specifically suitable for certain sections
If you intend to attract family more than couples then you need to include more kid friendly features into your property amenities. Also mention about the nearby places that kids can enjoy. Provide family discounts as part of your rental strategy
b.) Leveraging the settings of your listing platforms to lure ideal guests
You can control how your listing appears to potential guests through the setting feature of almost all Online travel platforms like Airbnb, Booking.com etc. Utilize these settings to make your listing the most attractive to guests that you don’t want to lose at any cost. This can be like providing discounts for bulk bookings or not allowing short term bookings.
c.) Using Vacation Rental Software like Homestaydnn
This is perfect for crafting your rental strategy.The Homestaydnn your vacation rental software helps to manage the bookings seamlessly with less cancellation with automated reminder messages to guests prior to checkin helps to avoid last minute cancellations and plan accordingly for both guests & hosts
To wrap up
Avoiding cancellations can bring in a lot of change to your existing business model. Even though you cannot completely eliminate the factor of cancellations, taking some necessary measures can definitely help your business to reduce the rate at which your cancellations are moving. Take the necessary steps today to avoid cancellations and to run your rentals in a better way!