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What you need to know about Risk-free Reservations

Hi everyone,

I'm the Product Marketing Manager here at Booking.com for the Risk-free Reservations program. We noticed a lot of conversations in the Community on the topic! So we gathered the top three most asked questions to answer here, in order to provide more clarity. We want to enable you to make the most of this program. 

How can you make sure that the payment is guaranteed?

In the event of a cancellation, Risk-free Reservations provides you with a full, risk-free experience if you allow us to resell the cancelled room nights. To do so we need continued availability for the corresponding rooms and a compelling price. This is the commitment we ask from your side to guarantee the payment.

Receiving your Risk-free Reservations, what is the process, timing and amount you can expect to get paid?

Process:

The majority of guests that book flexible policies don’t actually end up cancelling, so in most cases you’ll be able to handle payment as normal, charging the guest once they are liable according to the policy terms. 

If the guest cancels outside the free-cancellation window and their means of payment is invalid, you mark this in the system as per usual and we’ll search for a replacement booking. If we are unable to find a new guest for those reservations we’ll still pay you for the room nights according to the payment solution you have signed up for. 

If a guest doesn’t show up on the day of arrival and again has not provided valid payment details, we will pay you straight-away as there is no time to find a new guest. 

Booking.com will only pay out for the room nights we were unable to find a replacement for and when the guest who cancelled is liable but fails to provide a valid means of payment. 

Timing:

 If we fail to replace the full reservation we’ll pay for the loss on the day of check-in.

Amount:

We will pay you the amount that was expected from the unfilled room nights in the original booking.

What are the benefits of Risk-free Reservations?

One of the top selling points for Booking.com guests is having the option of free cancellation. With Risk-free Reservations you’ll be able to attract those guests by adding more flexibility to your existing cancellations policies, with the guarantee of a risk-free experience. Adding more flexibility will boost your conversion and help you secure bookings quicker.

How can you join Risk-free Reservations? 

To join Risk-free Reservations you need to be a part of Payments by Booking.com. We use this solution to ensure your payment. If you have ticked all the criteria we will enroll you for this feature and confirm via an Extranet inbox message and/or an additional email. You can also enable/disable it here if you’ve not been automatically enrolled or your business strategy changes.

For more answers to frequently asked questions visit our FAQ Help article

We'd love to hear your feedback in the comments below. 

8 Replies

7
fluff

Thanks for the clarification on this feature.

With regards to "and a compelling price" what is the minimum compulsion we need to offer?

This could be a usable feature to soften the no-refund-only policy we have had to employ due to rampant cancellations and no-shows in the past.

BUT

Is it possible to have this made more flexible i.e. we don't wish to be part of the Payments  by BDC scheme, with payments being as late as 6 weeks after check out a small business finds this a cash-flow problem.

I guess this would require a Payments by BDC solely for this setting/rate, on the immediate basis as quoted.

If that is possible we would use it.

+2
23 days ago
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Bert - PMM Ris…

Thanks for your comment fluff.

By "Compelling price" I mean that for the same price you get extended features.

Regarding your suggestion, it's something we will think about, thanks for your feedback.

21 days ago
7
pibomarco

Till what time (on the arrival date) we must keep the room available for Booking.com to find a replacement? 

+2
23 days ago
1
Bert - PMM Ris…

Hi pibomarco, thanks for your question.

B.com would look for a replacement until the guest check-in date and pay out to the partner otherwise. In the meantime, partners can remove the inventory. However, by doing that would make it not liable for replacement.

21 days ago
7
pibomarco

Meaning that on the check-in date we can close the availabilty at anytime and the payout to the partner will be issued (if replacment was not found before the check-in date)?

21 days ago
1
Bert - PMM Ris…

Hi pibomarco,

We will check for a reallocation until 2pm (hotel time) and then payout if we are unable to find one. That means that ideally you can't close the availability until 2pm hotel time for that day check-in.

+1
20 days ago
7
Bandara Hotels…

Bert - PMM Risk Free Reservations  Thank you for your clarify and the Risk Free program is very good concept. And this make Booking.com be unique than other agent.

But the problem we have that cause deactivate this program is about room availability. When the hotel sold out the room type that guest booked. Booking.com cannot find the replacement booking for us as we already close the room. And hotel cannot earn money from that Risk free booking once they cancelled.

 

We understand that you need the hotel to keep open room for sell so you can find replacement booking for us, but if the hotel is really full, how can we keep room open.

 

My suggestion is If we can setup separate Guarantee Allotment for Risk free booking, I think this will help. So the hotel will know exactly how many booking under this program for make us control allotment easier. And make sure that all room will be sold and earn money. And hotel can still close sell the room (standard allotment) once they need.

-1
19 days ago