Cancellation terms affect both guest confidence and the property's exposure to unsold nights. Compare the value of flexibility with how easily those dates can be resold.
A practical approach
- Offer clearly described options where operationally feasible.
- Record cancellations by lead time and channel.
- Assess rebooking outcomes before changing terms.
An example to consider
A cancellation months before arrival has a different revenue effect from one a day before check-in. Treating both alike can hide the real risk.
What to track
Monitor cancellation rate, recovered nights and net retained revenue.
Part of the Marbella Hospitality practical-note collection. About this collection.