Online Reservation Cancellation – What to Do When a Reservation Is Cancelled

Online reservation cancellation is a great way to help your guests if their travel plans change. However, it’s important to remember that each experience has its own modification and cancellation policies.

Campground owners can save critical time on manual cancellations by allowing guest to cancel reservations online. This will reduce back-and-forth with reservations and enhance the customer experience.

Cancellation Fees

Cancellation fees are an important tool for many restaurants to help stem the tide of last-minute cancellations and no-shows. These fees are typically a percentage of the total bill and can range from $30 to $200 per reservation. These fees are often accompanied by other terms and conditions, which the customer must assent to when making their reservation.

If you have a Cancellation Policy or Prepaid Reservations added to your Resy OS App, you can manually charge guests a cancellation fee when you process their reservation through the app. Read here for more information about how to do this.

Customers can cancel or modify their reservations online, through the app, or by contacting the facility directly. When a facility allows a same-day self-cancellation, a $10 cancellation fee will apply. If a reservation is not canceled or modified prior to the day of the reservation check-in date, and the credit card used for prepaid products like CDW is not presented at time of pick up, a no-show fee will be assessed.

Refunds

If the guest has paid a deposit for their reservation and it’s cancelled, the hotel will usually refund the deposit to the guest. They may also choose to rebook the room for another date or issue a credit for future reservations at their hotel chain.

The guest will receive a cancellation email from your booking platform or directly from the host. It will include their options and an explanation of the fees associated with each option. The guest can always contact their host if they have additional questions or need more clarification.

When a guest cancels a reservation, the original invoice is canceled and a new invoice is created for the refund. The amount refunded is not shown in the reservation purchase report, revenue reports or any other transaction reports.

Emails

When a reservation is canceled, it’s best practice to update the customer with an email. This can communicate if you refunded them, if they owe you money, or even just that their reservation has been canceled. To do so, select the reservation in question and choose ‘Edit Bill’ from the menu. You’ll see a list of tasks that need to be completed for this bill and an option to cancel the bill.

You can also add a note in the CANCELLATION REASON notes box that appears for this reservation. This is useful for tracking the reasons for cancellation later in your Canceled Reservations report. You may want to use this to notify the guest that they can rebook with a room credit or voucher and that they need to mention the certificate number when they call. This can help you avoid double bookings. If you enable the Allow Customers to Cancel Online option on a reservation type, then this message displays in the confirmation email when they cancel their reservation online.

Documentation

A good cancellation policy doesn’t just protect you from losing revenue; it also helps maintain your customer relationship. If you set clear guidelines for your customers, they will know exactly what to expect if something goes wrong. That makes them more likely to book with you again, even if it’s at a later date.

If you do need to cancel an online reservation, prepare your internal process and communication in advance. This will help you handle cancellations and no-shows fairly, consistently, and calmly. Clearly state the deadlines and requirements for free cancellation and further deadlines that may trigger different levels of cancellation fees, deposits, or other charges. This will give your guests peace of mind and reduce frustration, resulting in a better overall experience for everyone involved.