Strategies for reducing cancellation rates and retaining client loyalty

5 Tips to Reduce Cancellation rates and improve client loyalty 

Nobody likes to lose customers. You spend a significant amount of time earning each customer. Once clients have signed up for your product or service, you concentrate your efforts on meeting and exceeding their expectations. Thus, receiving a cancellation call or email can be financially and emotionally devastating. But in this post-pandemic period, whether people book hotels or cancel their bookings doesn’t matter. What matters is that you express your sincere gratitude to your customers during these unexpected times.

Here are 5 tips for providing your customers with flexibility while also reducing cancellation rates and maintaining consumer loyalty.

Tip#1

Make a rescheduling offer

Propose rescheduling rather than cancelling a reservation an unlimited number of times and at any time before the scheduled arrival. The visitor will receive an email confirmation once you make a change to a booking. If a reservation was made through the hotel’s website, the guest might change the dates at any time. The confirmation email should include a link to a booking editing page.

Tip #2

Reconsider booking cancellation fees

You rarely have any control over whether a customer decides to cancel the reservations or not. Neither you can know for sure whether they will reschedule the booking or not. Try to give them a full refund in the case of cancellation, even if it is not mentioned in your cancellation policy. This will make the customer feel valued and respected, potentially increasing the chances of them becoming long-term customers.

Tip#3

Set up a flexible cancellation policy

Because of the ongoing outbreak, potential visitors are planning trips but are unwilling to book non-refundable flights. If a traveller misses a flight due to a mishap, make sure your cancellation policy assists them in rescheduling their tickets.

Let’s say a traveller meets all of the company’s requirements to cancel a ticket. In that instance, a tourist can easily cancel the reservation and receive reimbursement after deducting a few fees. The best way is to stop charging costs for cancellations made one day before arrival, as this can lead to more reservations and increased client loyalty.

Tip #4

Add deferred bank card payment method

Customers typically browse for hotels three to four months ahead of time but do not book. You can offer a third payment option to your visitors known as deferred payment. In this type of method, guests are not required to pay in full at the time of booking. Send them a payment link in the booking confirmation email and tell them when the link will become life and when it will expire.

 If a client does not pay with a credit card within this time frame, the booking will be automatically cancelled. You won’t have to double-check transactions because the system will do it for you.

Tip #5
Market your offers

To make website visitors notice how flexible your terms are, give your clients an incentive to stick around by offering them something extra — a promo, discount, loyalty programme, etc. Also, don’t forget to mention your cancellation policy. This small gesture can go a long way toward displaying how much you value the business of your current consumers.

Customers usually cancel their reservations caused by unexpected circumstances such as illness or an emergency. Remember that, in some cases, using your discretion to remove cancellation costs may result in favourable publicity for your firm that balances the money lost.