I may consider 10 day policy next year. On groups they will lose 25% unless it is less than 30 days then they are responsible for it all. FYI, I sent 1 a GC and rebooked the room. The others somehow managed to overcome their emergencies (I think not all have checkin yet). It is amazing when you tell them that they will be charged they can somehow make it. My next big problem is deciding to charge non groups a dp. At the moment we don't, just hold the cc #..
Last year was the first time I did deposits and I only did them at the end of the year for Columbus Day weekend after a mom cancelled 16 room nights for her daughter's wedding. It certainly slowed down the 'let's book now and think about it' crowd. But, policies only work if everyone answering the phone follows them...so we have another 16 room night booking with no deposit and they weren't told there's a 30 day cancellation period and a forfeiture of the deposit we didn't collect.
Can't worry about it now.
.
On groups I require 25% down, another 25% 30 days from the date of arrival and the balance on arrival. If you cancel outside of the 30 day mark you lose your 25% and if you cancel within the 30 days you are responsible for the entire amount. This quickly changes who needs room and who wants to hold rooms. My problem is that up until now I only hold the cc info with a 7 day cancellation. I really need to start charging something up front to verify the card and then most show up because they already charged at some point. The other problem with charging something up front is that when they cancel you may have to credit their card. A cancelation fee is another whole subject.
Thanks for hearing my frustration!
.
From what I have gathered, if you have to do a refund there is no cc processing fee other than if you pay a fee to 'dial in' which some companies charge. But, it takes time to do it and that's why many charge a cancellation fee...to cover the initial cc processing fee and the time and effort.
.
Bree,
I believe some cc companies do charge the processing fee & I understand others don't. I wish SI was easier to charge / credit reservations rather than start typing in the cc terminal. I have not been brave enough to charge a handling/ cancellation fee. Thought that maybe I should charge that amount say 25.00 up and if they cancel you don't have to charge unless it is inside your policy. ??????
.
Landmark said:
Bree,
I believe some cc companies do charge the processing fee & I understand others don't. I wish SI was easier to charge / credit reservations rather than start typing in the cc terminal. I have not been brave enough to charge a handling/ cancellation fee. Thought that maybe I should charge that amount say 25.00 up and if they cancel you don't have to charge unless it is inside your policy. ??????
Here's the deal with fees and charges...if you don't charge them in advance you may as well not bother. So, if you are going to charge a $25 fee to cancel, then set your policy and charge the deposit. The deposit less the fee is returned based on your policy. Yes, it's expensive to do it that way if you are running deposits on every booking. BUT, if you get a cancel or a bad card, at least you are (mostly) covered.
We've discussed this before and I think consensus is that if you do not collect a deposit the guest can challenge your charging them 'after the fact' if they cancel.
Generally, in a year's time, I do not have enough cancels INSIDE the cancel period to warrant charging the deposit. I DO have a lot of cancels (generally in a year over 100) but they all cancel outside the policy kick in date or I rebook the rooms. For the couple that cancel day of or within the week, it's not worth the fees for the rest of the year to collect that deposit and deal with the subsequent screaming on the phone. My sanity is worth more than the, maybe $300, I might collect in deposits during the year.
Now, also in previous discussions, it was brought up that if I charged the deposit, it might cut down on the cancels because it would cut down on the 'placeholder' bookings. Quite possible. I just haven't been motivated enough to charge the deposit.
Now, Swirt has gone to a completely automated system that charges the deposit when the booking comes in. He really seems to like it. Maybe he will comment on how it is working now that he's probably getting more of his bookings.
.