Vacation rental property owners work hard to keep their properties occupied. They’re serious about their booking calendar, they work hard at marketing their home, and they’re careful to provide an exceptional experience for guests – from booking to departing.
What do you do when a guest cancels or asks to reschedule their stay?
Whether it’s due to unforeseen circumstances, travel issues, or personal reasons, cancellations can be stressful for you as well as your guests. However, with the right strategies in place, you can manage these situations professionally, ensuring that your guests are satisfied but that you don’t lose any money on lost bookings or extended vacancies.
Here’s a professional vacation manager’s guide on how to navigate cancellations and rescheduling requests with ease.
Establish a Clear Cancellation Policy
Things can quickly get chaotic if you don’t have a policy in place to address a cancellation. The first step in handling cancellations smoothly is to set clear, well-defined policies for situations where guests need to reschedule or cancel outright. A transparent policy helps set expectations for both you and your guests from the moment they book their stay.
If you don’t already have a policy in place, here’s what we recommend you include in your cancellation policy:
- Time Frames
Outline how far in advance guests can cancel without penalty and the consequences of last-minute cancellations. You want to be clear about this before they book so they understand what the limits are if their plans change.
- Refund Policies
Clearly state whether guests will receive a full refund, partial refund, or no refund at all depending on the timing of their cancellation. Most owners will allow for a full refund up to a certain point. As the date of the stay draws closer, the amount refunded is likely to be lower. If you’re going to allow exceptions, make sure those are clearly outlined in the contract. For example, you might add flexibility for specific situations like emergencies, natural disasters like hurricanes, or government-mandated travel restrictions.
Clarify in your refund structure whether guests can reschedule their stay and if there are any fees involved to make changes to the dates or particulars.
By setting these expectations upfront, you’ll avoid misunderstandings and make it easier for both you and your guests to navigate cancellations.
Communicate Early and Often
When a guest reaches out about a cancellation or rescheduling, responding quickly is crucial. The sooner you acknowledge their request, the more likely it is that you’ll be able to find a solution that works for everyone involved.
Acknowledge the situation with empathy, even if it’s inconvenient for you. Guests may come to you with a sympathetic story, and you want them to know you’re listening. Even if you’re ultimately going to deny their refund request, you can still respond politely and professionally. Explain that you understand that things happen. Offer to come to a solution that will at least help them feel like they have not lost an entire vacation. This can go a long way in building goodwill with your guests. Here are some of our best tips for effective communication with guests who are cancelling or asking to reschedule:
- Be empathetic. Understand that cancellations often come with emotional stress for guests. Acknowledging their situation with kindness can help build trust. Don’t be angry or defensive; this will only turn off and alienate your guests, likely leading to a bad review and the loss of potential future guests.
- Provide options. Whenever possible, offer alternatives to a full cancellation. This might be an offer to reschedule for another date, offering a partial refund, or credit for future stays.
- Explain the policy. Gently remind guests of the cancellation policy and provide solutions that align with it.
Communicating transparently is the only way through a cancellation. If guests have the option to cancel online, you still want to follow up with them in writing or by phone. Express that you’re sad they won’t be able to stay with you as planned and invite them to rebook at a time that’s more convenient for them.
Offer Flexibility Where Possible
While it’s important to stick to your policies and remain consistent, offering flexibility when possible can improve guest satisfaction and help create positive guest relationships. Flexibility and convenience are also likely to generate good reviews. Here are some of the ways in which you can make it easier for guests who may find their circumstances or plans have changed.
- Rescheduling rather than canceling. If the guest requests to cancel, suggest rescheduling instead. This keeps their reservation intact and reduces the likelihood of lost revenue. It will also allow them to avoid the risk of losing money on their reservation.
- Partial refunds or credits. When you’re in a situation where you can’t offer a full refund, consider offering a partial refund or credit toward a future stay. This will make guests feel like they aren’t leaving completely empty-handed.
- Extending booking windows. If a guest’s trip is postponed due to unforeseen circumstances, offer to extend their booking window. You might offer to allow them to book for a later date within the next year, for example.
Being flexible in these situations might mean some short-term loss for you, but it can build long-term loyalty and increase the chances of repeat business.
Consider Booking Insurance or Protection Plans
Another way to smooth out cancellations and rescheduling issues is by offering booking insurance or a protection plan to guests at the time of booking. These plans often cover unexpected cancellations, medical emergencies, or travel disruptions. It can provide peace of mind for both them and you.
While offering this service may come with some additional administrative work, it helps protect both you and the guest. It can reduce the financial strain caused by cancellations and provide guests with peace of mind knowing they have a safety net.
There are lots of options available when it comes to protection plans and reservation insurance. We’d be happy to discuss them with you and talk about the type of plan that might work best for your property and your guests.
Update Your Calendar and Availability Promptly
When a cancellation or rescheduling occurs, don’t waste too much time bemoaning the loss. Get to work updating your booking calendar immediately. This allows you to reopen your property to other potential guests as soon as possible and prevents double bookings or missed opportunities.
It helps to invest in instant booking systems that can help keep your calendar accurate and up to date. When vacation rental property owners are working with a property management team like ours, they can leverage this technology. If you’re using an online booking platform like Airbnb, you’ll want to make sure that the platform updates your availability in real-time, so you don’t miss out on last-minute reservations.
Release the dates immediately when a guest cancels, and if they’re rescheduling, make sure you block out their new dates right away. This will prevent double-booking during the same period.
The more efficiently you manage your calendar, the smoother the transition will be for you and future guests.
Be Transparent About Your Pricing Structure
If a guest requests a reschedule, it’s important to clearly explain any price differences that may apply to the new dates. If rates fluctuate depending on seasonality or demand, let guests know upfront about any additional charges.
This is important, but you also want to keep things as consistent as possible. For example, if a guest is moving their stay to a less popular time, it’s courteous to adjust the price accordingly. Being fair and transparent about pricing can reduce frustration and help maintain good guest relations.
Maintain a Positive Relationship for Future Business
Cancellations, while often disappointing, don’t have to be the end of the relationship with a guest. How you handle the situation can determine whether they’ll return in the future. By offering excellent customer service and remaining flexible, you create an opportunity to turn a potentially negative experience into a positive one.
Consider sending a follow-up message after a cancellation or reschedule, thanking them for their understanding and inviting them to stay again. This will help leave the door open for future bookings and show guests that you value their business, even in difficult situations.
We don’t like cancellations, but we also believe that every cancellation or reschedule request is an opportunity for growth. Reflect on what went well and what could be improved. Perhaps your cancellation policy needs tweaking, or maybe you could add more flexibility to accommodate certain situations. By learning from each experience, you can improve your process and avoid making the same mistakes in the future.
Handling cancellations and rescheduling smoothly is all about communication, flexibility, and maintaining a professional yet empathetic approach. With the right tools, policies, and mindset, it’s possible to navigate these situations without unnecessary financial loos, stress, or conflict. By taking steps to make your guests’ experience as smooth as possible, you’ll strengthen your reputation and encourage future bookings.
If you find these cancellations are simply too stressful and time-consuming, contact us at Anchor Down Real Estate & Rentals. We can take this off your plate and provide all the support you need to effectively rent out a vacation home.
