Cancellations and their impact on my business.
I would like ask how cancellations affect my bookings, except the obvious that some won't come to our appartments.
I'm asking because I presume that a property that has many cancellations is probably treated differently by the booking search algorithm and such.
What happened at out property is that we now have 31 bookings (in the past and reservations) and 13 cancellations (more than 1 quarter if you just look at those two numbers).
So we could say we have 13/(31+13) = 29.5% cancellation rate which seems awful.
Looking at the cancellations more closely:
1 cancellation was to just change to a different apartment in our property. (Not really a cancellation at all)
2 cancellations were made by the same customer for the same apartment and the same date and they didn't come back (1 cancellation really)
2 cancellations of the same customer for 2 apartments on different dates (don't know what to think about this one)
3 cancellations were made by the same customer trying to figure out how to add their children. In the end they figured it out and they are coming to our apartment in the summer (not really any cancellation at all).
So here we have 8 cancellations that when you look closely are really just 2 or 3. That is 5 or 6 cancellations less which brings our cancellations from 13 to 8 or 7.
So now we have one of the two: 8/(31+8) = 20.5% or 7/(31+7) = 18.4% cancellation.
So the conclusion would be that we have a ballpark 30% cancellation rate but in reality just 20% cancellation rate - this in my opinion is too much to be ignored because most of it are just customers going forward and backward on what and how to do things.
This is the reason why I'm asking how the cancellations are affecting our business or rather our reputation on booking.com.