Which cancellation preference is right for me?

Modified on Wed, 28 Feb 2024 at 05:54 PM

Choosing the right cancellation preference can significantly impact the visibility of your listings across multiple channels and the number of bookings you receive. The best policy for you will depend on various factors, such as your location, target audience, season, and competition. 

However, according to our data, an average of 72% of bookings on channels are made with a flexible cancellation policy. Providing flexibility to your guests is crucial for increasing bookings and achieving good visibility.

We also recommend selecting the flexible policy to include a non-refundable option. Offering guests the option to secure a non-refundable booking at a 10% discount helps lower cancellation rates, could result in a 51% increase in bookings, but also means your earnings are protected even in the event of a cancellation.

Given that every host has unique needs, we have compiled the following tips to assist you in selecting the optimal cancellation preference. 

Consider choosing a flexible preference if:

  • It’s the low season and you want to attract guests interested in having some flexibility in their travel plans.
  • It’s the high season and you feel confident that your space will get rebooked if a guest cancels.
  • Your listing is in a competitive location and you aren’t concerned about late cancellations.

Consider choosing a moderate preference if:

  • You want to discourage last-minute cancellations.
  • You want to have some time to get another booking if a guest cancels.
  • You still want to attract guests whose plans require more coordination, such as business travellers who need to make refundable reservations.

Consider choosing a strict cancellation preference if:

  • You want to avoid cancellations and don’t have time to find or manage replacement bookings.
  • You host by yourself and last-minute cancellations are very disruptive to your schedule.
  • Your space is in high demand and a strict policy won’t deter guests from booking it.

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