Since April, we’ve received feedback from several owners about an increase in guest cancellations for their properties. This trend has raised questions, so we’d like to offer some insights and updates on the situation.
Why Are Cancellations Increasing?
With a significant rise in bookings (currently a 47% increase from 1st January–19th November 2024, compared to the whole of 2023), it’s natural to see a proportional increase in cancellations. While cancellations can be frustrating, they are a part of managing increased sales volume.
Our Cancellation Policies
Direct Bookings
For direct bookings, we offer guests the option to take out holiday insurance, allowing them to claim back their money if they are unable to travel. This ensures we still receive payment for the booking.
If a guest doesn’t opt for insurance, we reserve the right to withhold funds in the event of a cancellation. This year, there were two instances where insurance wasn’t in place, but due to proven extenuating circumstances, we issued gift vouchers so the guests could rebook at a later date.
Booking.com
Booking.com has driven a significant increase in bookings this year, thanks to both the Channel Manager interface and the fantastic SEO work led by Agata.
However, one contributing factor to Booking.com’s success is its “relaxed” cancellation policy (previously allowing cancellations up to 5–7 days before arrival). While this increases listing visibility and bookings, it also leads to a higher cancellation rate.
To address this, we recently adjusted the cancellation policy to 21 days and will monitor the impact. Since making this change, we’ve noticed a drop in new bookings via Booking.com (from 9 bookings in one week to just 1 in the following week). We’ll continue to evaluate this change and its effect on overall bookings.
Airbnb
Airbnb operates on a 14-day cancellation policy, which has historically resulted in very few cancellations. This policy will remain unchanged, as the cancellation rate is minimal (with only 134 bookings via Airbnb compared to 430 via Booking.com this year).
Common Reasons for Cancellations
Whenever a guest cancels, we reach out to understand their reasons. While not everyone responds, here’s what we’ve learned from those who do:
- 36%: Travelling with others who changed plans
- 34%: Unwilling to pay for pool and leisure facilities
- 21%: Illness within their group
- 9%: Other reasons
Many of these reasons are beyond our control. That said, we are exploring new marketing strategies to address concerns around facility costs, particularly in light of recent price increases.
How We Manage Cancellations
To minimise the impact of cancellations:
- SuperControl: Our system instantly updates all calendars across Booking.com, Airbnb, Sykes, and direct bookings when a cancellation occurs, ensuring availability for rebooking.
- Quick Turnarounds: In some cases, cancellations have been rebooked within an hour. For example, this happened twice during the summer and once for a Christmas break.
While we can’t eliminate cancellations entirely, we are committed to mitigating their effects and securing new bookings to fill any gaps.
Looking Ahead
We understand that cancellations can be disappointing, but rest assured, we have your lodge bookings, guest satisfaction, and owner income as our priorities. While a “zero cancellations” rate isn’t realistic, we continually refine our policies and processes to reduce cancellations and maximise rebookings.
If you have any further questions or concerns, please don’t hesitate to reach out.