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
- ✓Analyze your booking windows to determine whether a strict or flexible cancellation policy is best for your situation.Effort: lowImpact: medium
- ✓Consider building multiple cancellation policies and pricing them separately, particularly on Booking.com.Effort: mediumImpact: medium
Tools & Resources
- →Freewyld Foundry: Learn more about Freewyld Foundry
Watch Out For
- ⚠Using the wrong cancellation rules for the wrong seasons can leave significant revenue on the table.
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