You have prepared your property, spent money and time making it as comfortable as possible, decorated it so that it looks like it has come straight out of the pages of well-known lifestyle magazines, cleaned every detail, and you are now in the process of waiting for your first booking.
You receive the first request and are delighted that your efforts have paid off; you can’t wait to welcome your first guest. However, a few weeks or even days before the expected arrival, you receive a notification of a cancellation! What could have gone wrong?
Dealing with Cancellations
The first step you need to take is to remain calm. Remember that you are not just a property owner or manager, but a professional in the industry, and you should approach a cancellation as such.
Keep in mind that you are being judged and rated not only on the appearance of your property but also on your overall behaviour towards your guests. Therefore, you must handle any issue that arises with courtesy, composure, and professionalism.
Practices for Managing Delays and Cancellations on Airbnb
Cancellation Policy. One of the first things you should do when creating a property listing on the Airbnb platform (as well as on other short-term rental platforms) is to set your Cancellation Policy for your accommodation. Each platform offers various policies, from flexible and moderate to restrictive and stricter options, to meet your needs. All you need to do is read carefully and choose the cancellation policy that suits you.
You can read more about Airbnb’s Cancellation Policy here.
Communication with Guests. The next step you can take to ensure that there will be no issues (e.g., delays) with your guests’ arrival is to communicate with them before their arrival. This way, you confirm the details of the arrival and both parties are informed in a timely manner about any changes, such as a flight delay, which may consequently affect the agreed arrival time.
Through communication, you can also inform your guests about any sudden changes, such as if the previous departure was delayed, resulting in a delay in cleaning the property, and therefore, it may not be ready at the expected time of the next arrival. At this point, you will need to provide solutions that serve both parties.
Alternative Solutions. You can also offer alternative solutions in any situation, whether it concerns a delay or a cancellation, such as securely handing over the keys to the accommodation (in the case of a delay) or suggesting different dates for the stay (possibly at a different cost) in the case of a cancellation.
Apps and other tools. Following on from the above, managing any changes that arise in a booking, including delays and cancellations, can be made easier through the apps provided by each short-term rental platform.
Essentially, these are tools that allow you to track bookings from the very beginning until check-out and communicate directly with your guests. Most platforms even provide the option for automated messages to be sent to your guests before check-in.
Pricing and Competition. We must not overlook the aspect of accommodation costs. If the cost of staying at your property significantly differs from that of a neighbouring or similar property in terms of amenities, there is a good chance that potential guests will notice the latter and choose it, thus cancelling their booking with you.
Therefore, you should conduct a competitive analysis. What is the cost of accommodation, what services are provided, where does your property fall short, and where does it excel compared to others? Take notes, review your service costs (cleaning, etc.), check the differences between low and high tourist seasons, and set a reasonable accommodation cost for each, corresponding to the area where your property is located and the other short-term rental properties nearby.
Reviewing Your Policies. If, despite all the aforementioned points, you find yourself needing to deal with a cancellation or an unjustified delay, it may be time to review and adjust the policies you have set. Managing short-term rental properties is a service that must continually evolve and adapt to current needs.
In conclusion, the satisfaction of your guests with your services is your primary concern. Your services may only involve communication in the event of a cancellation. Therefore, courtesy, calm handling, professionalism, and a willingness to serve are your essential tools, which ultimately could turn a negative experience into a positive review.
By choosing Sparrow to manage your property, you can rest assured that every new instruction will be executed promptly and that all short-term rental platforms’ rules and policies will be followed.
