{"id":838,"date":"2024-01-10T23:07:07","date_gmt":"2024-01-10T23:07:07","guid":{"rendered":"https:\/\/e360hospitality.com\/?p=838"},"modified":"2024-05-04T10:41:59","modified_gmt":"2024-05-04T10:41:59","slug":"understanding-hotel-cancellation","status":"publish","type":"post","link":"https:\/\/e360hospitality.com\/hotel-operations\/understanding-hotel-cancellation\/","title":{"rendered":"Understanding Hotel Cancellation Policies"},"content":{"rendered":"\n

Understanding hotel cancellation policies: Your travel plans are set, bags packed, and excitement brewing. But what if unexpected circumstances force you to cancel your hotel reservation? Dealing with the complexities of hotel cancellation policies becomes your next challenge. In this guide, we simplify the process with insights into why hotels enforce cancellation fees and how to get out of it, when possible.<\/p>\n\n\n\n

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Quick Link: Can you get a refund from a hotel after check-in?<\/a> <\/p>\n\n\n\n

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<\/span>Understanding the Necessity of Hotel Cancellation Policies<\/span><\/h2>\n\n\n\n
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Hotel Cancellation Policies help hotels as businesses to minimize losses due to thoughtless bookings and cancellations. And, it offers guests a legitimate way out when there is a real need to cancel a booking.\u00a0<\/p>\n\n\n\n

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<\/span>Impact on Hotel Revenue<\/span><\/h3>\n\n\n\n
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Hotels sell rooms as their primary business. And, the rooms are perishable inventory, meaning if a hotel cannot sell a room today, it can never sell the room again once the day has passed.<\/p>\n\n\n\n

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A cancellation policy or a strategy increases commitment on the guests’ side to avoid guests taking this agreement for granted such as making \u2018backup bookings\u2019 to cancel at the last hour. <\/p>\n\n\n\n

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<\/span>Importance of Guest Commitment<\/span><\/h3>\n\n\n\n
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When you make a booking with a hotel, you enter into a contract with the hotel where the hotel promises to provide you with a room on a specific date for a specific price. And, you agree to the terms set by the hotel.<\/p>\n\n\n\n

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<\/span>Why Do Hotels Charge Cancellation Fees?<\/span><\/h2>\n\n\n\n
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<\/span>The Scenario: Mr. Alan’s Dilemma<\/span><\/h3>\n\n\n\n
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Imagine, Mr. Alan has a tiny hotel with 5 rooms. Mr Smith has made a booking for next week for a room, because of this Mrs Adele\u2019s booking request was denied as there was no room available. Mr. Alan prepares everything and gets ready to welcome Mr. Smith. However, Mr. Smith cancels his booking at the eleventh hour.\u00a0<\/p>\n\n\n\n

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