The pandemic has forced hotels to have flexible cancellation policies due to changing regulations and protocols. Guests expect them, and hotels have adopted them to ensure they remain competitive and offer excellent customer service. Flexible cancellation policies will be a top trend in hotels for 2022. It doesn’t mean you have to love it. No-shows and cancellations with short notice are not great. The lost revenue and bookings are not only gone but so is the additional staff. There’s also the possibility of losing potential guests who could have stayed in there was more room.

We can all agree that a flexible, guest-centric cancellation policy is important. However, it’s also essential to reduce or prevent cancellations and no-shows from happening. This is our complete list of hotel cancellation prevention strategies.

Encourage future stays by rebooking and gift vouchers.

If a guest cancels a reservation, they should be able to rebook later or choose to redeem a gift or voucher for a future stay. Incentivizing guests to accept the offer could be as simple as offering a complimentary bottle of wine or a free meal at their favorite restaurant. This was a popular strategy in the hospitality industry after the pandemic. Many guests were willing to support small businesses.

Local travel should be the focus of marketing efforts.

Travel is now more accessible, but regulations and protocols can still be unpredictable, especially in the case of air travel. The pandemic was sustained by regional supporters, including staycationers and those who can travel by road. We all wish to see international travel return, but local guests are less likely to be affected by changes in travel regulations and, therefore, less likely to cancel their bookings. Be creative with your staycation offerings to help this strategy.

Drive direct bookings

Instead of relying on OTAs for bookings, focus on driving direct reservations. This is a major trend in 2022. Statistics show that OTAs have higher cancellation rates than direct bookings. It could be due to OTAs’ connection with hotels rather than an impersonal one. Direct bookings allow you to offer rebooking and vouchers instead of canceling.

For greater investment, you can upsell

Book value-added amenities or packages and upsell them during the booking process. Upgrades will result in more investment and commitment from guests. This holds even for guests who have stayed at several hotels before choosing the one they prefer. The assumption is that they will choose the hotel where they have invested most. This is especially true if the PMS can sell additional activities, items, or services.

Pre-arrival emails can create excitement.

Pre-arrival emails are a great way to build excitement and anticipation for your upcoming stay. The main emails you should send guests are booking confirmations, reservation reminders, registration invitations, and check-in online.

You can remind guests about their chosen room and the hotel they are staying in, as well as any amenities they might enjoy. This is a great opportunity to sell extras and foster guest loyalty. Personalizing communications via automated email tools or CRM integrations is also possible. Segment the customer database and send relevant offers to seal the deal.

Pro tip: Send an email with lots of lead time to ensure that you have enough time to fill the room again.

It is almost impossible for guests to claim that they forgot about their stay in pre-arrival emails. Are you getting bounced emails? Follow up by calling! You can also reduce no-shows by using advance online registration and checking in.

Overbook

If you decide to try this strategy, you should partner with a hotel that can offer guests who have no other options. This works best when guests book standard rooms. Oversell guests and upgrade them to larger rooms.

Is there a cancellation fee or no-show charge for your hotel?

Yes, and no. If there is enough time. What if you’re you’re late? You don’t have to. You can use the credit card on file to pay your no-show fees at your discretion. Try to reach the guest as soon as possible. Make sure you are clear and firm about your policy to avoid confusion or surprises.

To help you deal with cancellations or no-shows calmly, consistently, calmly, and with care, prepare a communication for these events in advance. You will feel less pressured and be able to maintain a calm, fair and even-tempered demeanor.

Do you think you should take a leaf out of Airbnb’sAirbnb’s book(ings)?

Airbnb offered refunds for cancellations at the start of the pandemic. They are now stating that pandemic-related cancellations no longer exist in unforeseen circumstances. This is an interesting perspective because it’s true on the one hand. However, it’s also true that things can change quickly, as Omicron has shown. It is easy to lose trust and confidence by putting the guest in a “buyer-beware” situation.