5 ways to decrease cancellation rate and retain customer loyalty

Post-pandemic period is the right time to express your appreciation for guests no matter if they book rooms or cancel reservations. In this article we will focus on flexibility that you can provide at the times of uncertainty.

1. Offer to reschedule bookings

Instead of cancelling a booking, propose rescheduling it. Allow to do it unlimited number of times and at any time before an arrival date. Include a link redirecting to a booking editing page in a confirmation email.

2. Reconsider booking cancellation fees

At this time hotel guests have less control over circumstances. They cannot always reschedule a stay instead of cancelling it. To retain customer loyalty, give a full refund, even if this does not meet your cancellation policy.

3. Set flexible cancellation policy

Your potential guests are planning trips but they fear to book at non-refundable rates because of the ongoing pandemic. Set less strict cancellation policies. For example, stop charging fees for cancellation made a day before an arrival date. This will increase a number of bookings and improve customer loyalty.

4. Add deferred bank card payment method

We have analyzed customer behavior in the Booking Engine and noticed that they look for accommodation 3–4 months beforehand, but do not book. What you can do is to provide guests with one more payment method — deferred payment.

When booking, guests will not have to make a prepayment at once. Send a payment link in the confirmation email and define when it becomes active and when it expires. If a client does not pay with a bank card within this period, the booking is cancelled automatically.

5. Let guests know about your offer

Have your flexible conditions noticed on the hotel website by setting widgets and banners? In the caption, briefly describe your best deal: discounts, deferred payment and cancellation policy.

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