Last minute change-of-mind results in no booking

Up, down, could be better? How to get more bookings is our number one obsession. Talk shop here.
User avatar
taurus
Posts: 11
Joined: Tue Jun 22, 2010 11:43 am
Location: Alanya, Turkey
Contact:

Last minute change-of-mind results in no booking

Post by taurus »

I am wondering why quite a few inquiries this summer, which were just about to turn into bookings, instead turned into nothing.

What I mean is that out of all the people who sent follow-up emails (after getting complete price quote) saying basically "ok, where do I go to do the booking?", only one actually booked.

I send reply emails including URL of my booking page with the booking calendar, and explain how to proceed. Yet, the correspondence ends up with no booking. As I'm not getting any feedback from the potential renter beyond this step, I don't know what caused the change of mind.

I recently removed the final cleaning fee, in an attempt to avoid having "too many fees", but I can't remove the damage waiver and the fee charged by Rentalsystems. And I have a feeling that it might be the rather high fee charged by Rentalsystems that is scaring people off. Although I include this when I give the first quote by email, I believe it's psychologically discouraging for people to see it spelled out during the booking process.

I would appreciate any input on this, that could hopefully give me some clues.
User avatar
wallypott
Posts: 1421
Joined: Sat Mar 27, 2010 9:50 pm

Post by wallypott »

It can't be the pricing, it seems like really reasonable pricing to me.
kg1
Posts: 2347
Joined: Tue Jan 05, 2010 4:23 pm

Post by kg1 »

Hi. Your rates are reasonable but I do think it is probably the 4.5% that's doing it. Why do you need Rentalsystems? Can't you do your own bookings or at least offer payment by bank transfer as an alternative. Either that or put your rates up a little to cover the 4.5%.

Apartment looks lovely though!
Hells Bells
Posts: 13173
Joined: Sat Apr 30, 2005 8:42 am
Location: French Alps
Contact:

Post by Hells Bells »

I don't think you can hide the 4.5% booking fee in your own charges, Rentalsystems charges the customer regardless of your prices.
User avatar
Mouse
Posts: 7277
Joined: Tue Jun 20, 2006 6:47 pm
Location: Balearics
Contact:

Post by Mouse »

I'm not sure how the rentalsytems thing works, but if I thought I was going to be subject to a booking charge then I would look elsewhere.
So that might a barrier to them going forward.

Why can't you just accept bank transfers? All you need to do is send them your bank details and they do it all.

Mouse
x
One martini, two martini, three martini floor!
User avatar
taurus
Posts: 11
Joined: Tue Jun 22, 2010 11:43 am
Location: Alanya, Turkey
Contact:

Post by taurus »

I had originally planned to use Paypal, but because I am resident in Qatar, it hasn't until recently been possible to receive money (only send). Paypal also charges something like 3.4%, so that's another card fee that would scare people off (plus Paypal's reputation for withholding people's money doesn't make it an attractive option).

I chose Rentalsystems because it seemed to be the only option, also considering the advantage of having the whole process automated. But their fees are exorbitant.

I could maybe handle it via bank transfers to my offshore account, but bank transfers also do cost renters extra money. Again, I guess it's about psychology. Maybe bank transfer charges don't seem as negative as card handling charges that are displayed right in your face on an online booking page?
Riverside
Posts: 102
Joined: Sun Mar 13, 2011 9:18 pm
Location: United Kingdom
Contact:

Post by Riverside »

I charge a £15 'Booking Fee' to cover (or in some case contribute to) the cost of taking a payment online. I know adding fees aren't popular with a lot of owners, but it's what we decided to try this year and as of yet nobody has questioned it.

In the peak weeks if a guest decides to pay by paypal it doesn't actually cover the charges, but in some of the off-peak weeks it more than covers it so I guess it evens out. If people choose to pay by cheque or online bank transfer we normally waive the fee - we're not out to profit from it. We'll review how it's worked at the end of the year and decide whether or not to incorporate the cost of paypal fees into the week's rental cost or not.
User avatar
CSE
Posts: 4414
Joined: Mon Nov 06, 2006 3:34 pm
Location: Galicia

Post by CSE »

Is not adding fees is a bit Ryanairish?
Never try to out-stubborn your guests.
e-richard
Posts: 5008
Joined: Sun Oct 17, 2004 11:33 am
Location: Algarve, Portugal
Contact:

Post by e-richard »

Looking at a rental advert, which is more likely to get bookings:
Weekly price: €825.00
(Plus credit card fees at 4%)
Weekly price: €850.00
Price is fully inclusive. No hidden extras.
** Richard
PIMS: Holiday Rental Management system
They say we learn from our mistakes. That makes me a genius !
Hells Bells
Posts: 13173
Joined: Sat Apr 30, 2005 8:42 am
Location: French Alps
Contact:

Post by Hells Bells »

No contest, the second one.
Cotterdale
Posts: 166
Joined: Thu Nov 25, 2010 10:44 pm
Location: Yorkshire Dales
Contact:

Post by Cotterdale »

Guests can choose with us
bank transfer no charge
cheque no charge
PayPal / card 3.4%
I do find very few guests use PayPal and most use bank transfer
I think this points out guests don't like add ons
Cotterdale
Posts: 166
Joined: Thu Nov 25, 2010 10:44 pm
Location: Yorkshire Dales
Contact:

Post by Cotterdale »

Guests can choose with us
bank transfer no charge
cheque no charge
PayPal / card 3.4%
I do find very few guests use PayPal and most use bank transfer
I think this points out guests don't like add ons
User avatar
taurus
Posts: 11
Joined: Tue Jun 22, 2010 11:43 am
Location: Alanya, Turkey
Contact:

Post by taurus »

Thank you all for your contributions. Seems I should choose to accept bank transfers instead of using Rentalsystems.
Post Reply