VRBO & Booking.com: The Best Cancellation Policy Strategy
Summary
This article discusses cancellation policy strategies for VRBO and Booking.com, emphasizing how the 'one size fits all' approach can hurt revenue. Hosts should analyze their booking windows and market to create flexible and non-refundable rate strategies to improve Average Daily Rate (ADR) and occupancy.
Key Insights
- •Relying on a single, static cancellation policy for the entire year rarely makes sense.
- •Offering both flexible and non-refundable rates boosts conversions.
Action Items
- ✓Consider building multiple cancellation policies and pricing them separately, particularly on Booking.com.Effort: mediumImpact: medium
- ✓Analyze your booking windows to determine whether a strict or flexible cancellation policy is best for your situation.Effort: lowImpact: medium
Tools & Resources
- →Freewyld Foundry: Learn more about Freewyld Foundry(https://www.freewyldfoundry.com/)
Common Mistakes
- ⚠Using the wrong cancellation rules for the wrong seasons can leave significant revenue on the table.
Related Videos
More from Pricing & Profitability
This article explores the value of community and structured learning in revenue management, contrasting it with the common autodidactic approach. It emphasizes the limitations of self-directed learning and highlights the benefits of collaborative learning through RevProf, a platform designed for peer-driven discourse. It stresses the importance of challenging assumptions, refining judgment through dialogue, and building a community for professional growth.
This article discusses a new tool that helps Airbnb hosts assess their earning potential during the World Cup. It highlights the significance of the event in driving demand. The tool could be useful for hosts in cities hosting matches, helping them optimize pricing and maximize revenue.
Airbnb has launched a Host Earnings Calculator for the FIFA World Cup 2026, offering hosts a tool to estimate potential earnings. This tool is a response to the anticipated surge in demand during the event, potentially leading to increased occupancy and ADR. Hosts can utilize this to evaluate the profitability of their properties and optimize their pricing strategies for the event.
Curated by Learn STR by GoStudioM