Should Hotels Apply Strict or Flexible Cancellation Policies?
💸 Hotels are reconsidering cancellation policies. Adopting flexible rates instead of non-refundable ones could increase revenue, despite statistically higher cancellations. Non-refundable rates need discounts, impacting profits. In high seasons, longer cancellation windows with strict penalties allow room reselling, minimizing revenue loss. Shorter windows during low seasons boost market share. Flexible policies enhance hotel visibility, driving bookings. Balancing cancellations and bookings is crucial, as flexible rates ultimately generate more revenue.
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