Late Cancellations

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oskar
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Late Cancellations

Post by oskar »

Appreciate this subject has been covered before in different topics which I've searched for and read, but a specific question..............

What do forum members' T & Cs state for a late cancellation by clients regarding 100% retention of booking fee by the property owner...........

7 days before
14 days before
21 days or more before?
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J&J
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Post by J&J »

Our contract states:

4. Cancellation of the booking by the holidaymaker should be made in writing. If such cancellation is made prior to eight weeks before the start of the holiday then the holidaymaker’s liability shall be limited to the forfeit of the deposit paid. If cancellation is made within eight weeks of the start of the holiday then the full rental amount will be forfeit. The owners strongly recommend that the holidaymaker takes out suitable travel insurance to cover any loss due to unforeseen circumstances leading to cancellation of the holiday.


If I received a cancellation then I would re advertise the week concerned at a substantial discount. I would then probably refund the original person who booked whatever I manage to get for the week minus a small amount for admin costs - purely as a gesture of goodwill.

Hope that helps,

James.
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Post by guest 4 »

Here is the clause in my T&C's

3. Cancellation of your booking by you must be notified in writing. If cancellation is prior to the 6 weeks of the holiday commencement date then only the 25% deposit will be forfeited. Notice of cancellation received in writing less then 6 weeks prior to departure will result in the loss of the total cost of your booking. Please ensure that you have adequate travel Insurance cover at the time of booking which would include cover for cancellation and for the total booking period. Should the property become unavailable due to circumstances beyond our control, a full refund will be given. Any refund is restricted to the property hire costs.

I too would make a refund less admin costs if I were able to re-book.

Ruth
The Olive Grove
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Post by The Olive Grove »

Quick question - if they have only paid the deposit how do you enforce the payment of the balance?
la vache!
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Post by la vache! »

The Olive Grove wrote:Quick question - if they have only paid the deposit how do you enforce the payment of the balance?
With great difficulty!
There was a thread that went into cancellation and non payment a while back, you might find some useful info here too
viewtopic.php?t=3059&postdays=0&postorder=asc&start=15

If I re-let I would refund in the same way as J&J and Kip have explained.
A-two
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Post by A-two »

Since our average lead time for bookings is running at around 148 days in advance of arrival, and we use an online availability calendar to block out dates, we don't refund at all unless it is rebooked at the same rate or higher rate, otherwise the difference is forfeit. If rebooked at full rate, advance monies are refunded in full less a small admin charge to cover possible need for extra advertising.

As a practical matter, it's not possible to enforce payment of the balance of rent owing once it has been cancelled, which is why we ask for payment in full with sufficient advance notice to expect another booking in time.

Many folks here ask for payment in full 60 days in advance, but we only have 45 days, because we can usually rebook easily in that time frame. Also, we have only had 1 cancellation in the last 2 years, a total of 3 cancellations in 5 years, so we don't view it as a major risk.

Hope this helps.
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Post by guest 4 »

Hi Olive..

Basically you don't bother to enforce it, if you insist on payment eight weeks before, it at least gives you a couple of months to re-book, You keep their deposit anyway, which helps towards the shortfall if you can't.

Thankfully I have never experienced a cancellation.

Ruth
rebel
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Post by rebel »

kipper889 wrote:Hi Olive..

Basically you don't bother to enforce it, if you insist on payment eight weeks before, it at least gives you a couple of months to re-book, You keep their deposit anyway, which helps towards the shortfall if you can't.

Thankfully I have never experienced a cancellation.

Ruth
tatally agree with you.we touch wood have not had that mis fortune,but have had a booking cancelled for wich we kept deposit.also takinga refundable deposit on return of keys and a report that the place was left ok,as last year someone spolied all the marble floors with sun oil,had to be polished out cost to us 300 euros plus they lost a lounger :?: and the apartment was dirty,causing longer and more money for cleaners,so they lost their bond,not very happy people,but they sign a contract for these reasons.it cost us far more than the £100 deposit,but we had something
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oskar
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Post by oskar »

Thanks for that. Only a couple of answers to the original question though. Any more? :)
A-two
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Post by A-two »

I count 8 relevant answers to your question, plus a link to another thread where this issue has already been covered in some depth.
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Sue Dyer
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Post by Sue Dyer »

Oskar, do you make it plain on your form/T&C's that guests should have insurance to cover cancellations? I'm in the U.K and most of my guests are the U.K market. I guess they don't really think they need it as they aren't travelling overseas. However, I put a gentle reminder that like any other holiday their U.K break will benefit from insurance if anything happens to prevent them travelling.

I have an annual travel insurance policy. A lot of people don't realise this covers you for breaks in the U.K too, even short weekends away.

Joanna, mine is 6 weeks but I think the 8 is much more sensible and as you say, gives you more time to rebook. One for next year!
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Re: Late Cancellations

Post by cromercrabholiday »

oskar wrote:Appreciate this subject has been covered before in different topics which I've searched for and read, but a specific question..............

What do forum members' T & Cs state for a late cancellation by clients regarding 100% retention of booking fee by the property owner...........

7 days before
14 days before
21 days or more before?
Oskar, as you want specific responses.

We never "charge" for cancellations but we do ensure that we always get the full value of the booking, if necessary taking the customer to court. So far, we have never come up short.

For me, it is a quid pro quo - if we get a rebooking for the full price, the cancelling customer gets all the deposit back, if we do not succeed in booking it at all, they have to pay the full price (which is what they contracted to do) - this has never happened.

We do not take any account of the extra time, trouble and postage - we reckon that this is part and parcel of running a business.

John
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Mouse
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Post by Mouse »

hi Oskar

we take 50% deposit and if anyone cancelled (not had one yet) this would be kept unless we re-let. In that case I would refund, less expenses.

If they cancel after they have paid their final balance (5 wks before) again the above would apply. As they're liable for the full cost if they cancel within the final 5 wks

As Sue has mentioned I also suggest quite strongly that they should take out insurance that includes cover for cancellations etc.

Mouse
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Fil
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Post by Fil »

I also only refund if the place gets re-let, keeping a small fee for costs. Do not want to keep any of their money if I don't have a damage.

It is essential however to fix a scond-payment date that allows reasonable time for re-leting. And this depends on the location and type of property.
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Ben McNevis
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Post by Ben McNevis »

Hi, Oscar.

We've had 7 cancellations and one no-show over 3 properties in the past two years.

On our booking form the renter signs up to this text:
CANCELLATION: If we have to cancel our reservation we will inform the owners as soon as possible. If we cancel with at least 8 weeks notice, we will receive all prepaid money less a charge of £10. With notice of between 6 and 8 weeks we will be charged 25% of the booking value. With notice of between 4 and 6 weeks we will be charged 50% and with less than 4 weeks notice we will be charged 75%.
Yes, it's tricky if they cancel at between 4 and 8 weeks before the stay as they have only paid a £50 deposit but according to our terms they are liable to more. However, we always suggest that they take out holiday insurance, so it's often no pain for them to pay up as it's an insurance claim.

I've never offered a reduction on the cancellation charge due to being able to re-sell the week(s). Once, the reason for cancellation was so tragic that I didn't make the charge at all.

Our cancellation charge reaches a maximum of 75%. That seems a reasonable ceiling to me, as
1. There's a bit of a chance of selling the week(s) last-minute
2. If unsold, there's no wear and tear, no electricity/water and no cleaning expense
3. It provides a chance for me to visit and do some maintenance.
Cheers, Ben
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