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Cutting your losses

So a guest doesn't show up and the credit card that was fine at time of booking is now rejected. What do you do? Try and claim the outstanding amount from them (slim chance) and pay the commission or cut your losses and charge zero cancellation fee (no commission) and the guest gets off scott free.

3 Replies

6
Isle of Wight …

I use Payments by Booking.com - guests must pay at the time of booking and we have "non refundable" set up. There is little risk if guests don't show - in fact, we have just had 2 bookings where guests decided that due to the rain forecast, they weren't going to bother coming - we still get paid for both bookings.

Although we can take credit card payments ourselves, we find that getting guests to pay via the OTA is better for us. We just increase the prices to cover the fees charged by the OTA.

5 months ago
8
Leandri Klopper

Heya,

It's a tough one that can sting if you have a smaller property and really need every single room filled. The best you can do is to waive the cancellation fee because, like you said, there is slim to none chance of you getting the guest to pay for accommodation they never used. Mark them as a No Show because at the end of the day it does count against the guest if he/she ever wants to make another booking via Booking.com. This doesn't do much for you but helps future properties to ensure that that guest actually pays. 

In future though, I suggest you implement a Prepayment policy where you charge the guest before arrival. That works for me and in my experience have found that cancelling a booking due to non payment prior to arrival is better than sitting with an open room.

Hope this helps. 

4 months ago
7
Thuild - Your …

What I suggest doing is Credit Card Preauthorization. You block the sum 30 days prior to arrival and voila! Don't need to worry about getting the money and you can also cancel the hold anytime if needed without much hassle.

+1
4 months ago