As a wise someone had mentioned before on LMH, people that book way early (such as 9-12+ months) do seem to be the most likeliest to cancel their booking. We lost one week June rental due to a cancellation like this and I'm wondering what to do to curb the early birds slightly or make them realise they can't 'hold' our property for a year and then cancel just before the 90 days notice. The 2008 enquiries are coming in, should I change to non refundable deposits? (Which I'm not personally too keen on).
In Edinburgh, August sells like a hot cake due to the festival, I'm definitely leaning towards non refundables for that month.
Enquiries for 2008 and controlling early bird cancellations
Enquiries for 2008 and controlling early bird cancellations
Last edited by Overboard on Fri Jul 13, 2007 4:21 pm, edited 1 time in total.
Non-refundables are a 'protection' for us against cancellations. If you point out to your potential guests that this is the case they then have a clear choice whether to make a commitment to you or not.
Go for it. We do, and I won't have it any other way now. It's NOT a way of earning easy money, it's a way of protecting (to a degree) your income.
Go for it. We do, and I won't have it any other way now. It's NOT a way of earning easy money, it's a way of protecting (to a degree) your income.
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Normandy Cow
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Re: Enquiries for 2008 and controlling early bird cancellati
I'm sorry, I don't get it - what on earth is the point of a deposit if it is refundable?!!!Overboard wrote:should I change to non refundable deposits?
All our deposits are non-refundable. We point out in our booking form that people should take out adequate travel insurance so if they have to cancel for a "valid" reason then they will get their money back, so I have no qualms about keeping their deposits. And then I would be able to discount the week in question by the deposit amount, in order to relet it easily, and I would not be "making money" by keeping their deposit as well as renting out the week at the full price. (I've never yet had to do this though).
Re: Enquiries for 2008 and controlling early bird cancellati
If I didnt have a household of visitors around me I may be able to work out at least 1 point!Normandy Cow wrote: I'm sorry, I don't get it - what on earth is the point of a deposit if it is refundable?!!!
I've had this problem. Guests booked a fortnight this July over 12 months in advance and about 4 weeks before final payment was due I sent a reminder email that the balance would be due soon. Got a reply along the lines of "yes haven't forgotten". Due day came and went and when I spoke to her a couple of days later got the "sorry decided not to come" story and "could we have our deposit back" - polite but firm no.
Was able to re-let 7 nights in that period who, despite numerous emails and telephone messages, did not respond to a final demand. So, my apartment is empty for the next 2 weeks which has never happend before and I ain't too pleased about
Was able to re-let 7 nights in that period who, despite numerous emails and telephone messages, did not respond to a final demand. So, my apartment is empty for the next 2 weeks which has never happend before and I ain't too pleased about
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Giddy Goat
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Hmmm, FIL - that sounds like a novel but good idea. I am worried at the moment about someone who is 2 and a half weeks overdue with the balance, and have a feeling that this will be my first cancellation in three seasons - I hope I'm wrong of course, but the deposit is non-refundable, and we're only 5 and a half weeks away from the holiday as it stands; if she continues to delay and then tells me..... What percentage of the weekly rate do you ask for the holding deposit, and of that, how much do you say is refundable?
I'm even wondering if there could be a tiered system in place, depending on the number of weeks in advance of the date of the holiday the booking is cancelled?
What percentage of the weekly rate do you ask for the holding deposit, and of that, how much do you say is refundable?I'm even wondering if there could be a tiered system in place, depending on the number of weeks in advance of the date of the holiday the booking is cancelled?
Nostalgia isn't what it used to be
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Normandy Cow
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That's a very good point which I had never thought of. But then again, you still have the hassle of trying to find someone else to book.Fil wrote:Why would they bother to do it if the whole deposit was not refundable ?
Here's a suggestion... (writing this as I'm thinking, and I haven't actually thought it through...!) How about saying that the deposit IS refundable (maybe less an admin charge of for example £15), as long as you are able to rebook the period in question. That gives them an incentive to let you know as soon as possible, and makes you feel good in that you are trying to meet them halfway (without losing out yourself, apart from the hassle factor).
Hmmm.... Food for thought.... Like to hear others' viewpoints....
I refund the deposit as long as the period is re-booked for the original price
I usually don't charge admin either, after all, e mails don't take long, it isn't as if you have the postal costs that used to be involved. I'd only charge if I had to take out extra advertising to let the period.
I don't really have a problem with cancellations as most people book well in advance and book the ferry at the same time. I can understand why Fil wants to put something in place for deposits as the pattern for city bookings are different, probably more like B&B.
I usually don't charge admin either, after all, e mails don't take long, it isn't as if you have the postal costs that used to be involved. I'd only charge if I had to take out extra advertising to let the period.
I don't really have a problem with cancellations as most people book well in advance and book the ferry at the same time. I can understand why Fil wants to put something in place for deposits as the pattern for city bookings are different, probably more like B&B.
I don't use percentages. As I have a daily price, my deposit is normally the price for 2 days.
If guests cancel more than 2 months in advance I refund all deposit less 100 euros and if they cancel after that Ia only refund value of rerented dates.
The ideas behind this regime are:
- I like people that reserve long time in advance as they tend to be organized and well behaved (relating to the property of course).
- I think that we owners have to share some risk. I fixed a 2 months limit (maybe a little short I know) because I am prepared to assume the risk with that time left to rent.
- I have an administrative fee (100 euros) not necessarily to cover real costs but as a way to avoid non serious reservations. I hope that someone who is loosing this ammount immediatly does have a serious intention to rent.
If guests cancel more than 2 months in advance I refund all deposit less 100 euros and if they cancel after that Ia only refund value of rerented dates.
The ideas behind this regime are:
- I like people that reserve long time in advance as they tend to be organized and well behaved (relating to the property of course).
- I think that we owners have to share some risk. I fixed a 2 months limit (maybe a little short I know) because I am prepared to assume the risk with that time left to rent.
- I have an administrative fee (100 euros) not necessarily to cover real costs but as a way to avoid non serious reservations. I hope that someone who is loosing this ammount immediatly does have a serious intention to rent.
If you make it absolutely clear from the outset that deposits are non-refundable, surely you are less likely to get the 'tentative bookers' If they choose to cancel that is their look-out.
This is from someone who has never had a cancellation, thankfully. But I feel I am doing nothing wrong if I am totally up front with my terms when they book and pay their deposit.
Saying that, if someone came back to me with a story about falling seriously ill or whatever, I may refund. But their insurance should cover that anyway.
Ruth
This is from someone who has never had a cancellation, thankfully. But I feel I am doing nothing wrong if I am totally up front with my terms when they book and pay their deposit.
Saying that, if someone came back to me with a story about falling seriously ill or whatever, I may refund. But their insurance should cover that anyway.
Ruth