As vacation rental home owners, we all know first-hand that the travel landscape has undergone significant changes since the onset of the COVID-19 pandemic. Guests now prioritise flexibility and reassurance when making travel plans.

This shift in consumer behaviour has led to an increased demand for vacation rentals with relaxed cancellation policies.

The three types of cancellation policy

Three types of cancellation policy are commonly used. These are:

  • Relaxed

Offers guests a full refund if the reservation is cancelled at least 14 days before check-in.

  • Moderate

Provides a full refund if the reservation is cancelled at least 30 days before check-in.

  • Strict

Allows for a refund if the reservation is cancelled at least 60 days before check-in

To maintain competitiveness and enhance guest satisfaction, we strongly recommend selecting the “Relaxed” cancellation policy for your property. This policy offers guests the flexibility they desire while providing you with a competitive edge in the market.

Let’s consider why it’s a good idea to offer a relaxed cancellation policy for your vacation home bookings.

Meeting changing guest expectations

In recent years, there has been a noticeable shift in guest preferences towards flexibility when it comes to booking accommodations. With uncertainties such as travel restrictions, unforeseen emergencies, and changing personal circumstances, guests are increasingly seeking out properties with lenient cancellation policies. By offering a flexible cancellation policy, owners can cater to these changing expectations and attract more bookings from discerning guests.

Standing out in a crowded market

The vacation rental market is becoming increasingly saturated, with countless properties vying for the attention of potential guests. In such a competitive landscape, it’s essential for owners to differentiate their property from the rest. A flexible cancellation policy can be a powerful selling point that sets a property apart from competitors. Guests are more likely to choose a property that offers them peace of mind and flexibility in case their plans change, giving properties with flexible cancellation policies a distinct advantage.

Building trust and loyalty

A flexible cancellation policy not only attracts guests but also helps build trust and loyalty. Guests appreciate the transparency and reassurance that comes with knowing they can cancel or modify their reservation without penalty if needed. By prioritising guest satisfaction and demonstrating flexibility, owners can foster positive relationships with guests, leading to repeat bookings and positive reviews.

Ensure a consistent cancellation policy across platforms

We recommend that you offer a relaxed cancellation policy across all the platforms on which you market your vacation rental home.

This includes:

  • Vrbo
  • Airbnb
  • Other listing sites
  • Our channels
  • Any direct bookings you take
  • Other agents

This way, you simplify policy enforcement, booking administration and the guest experience.

Why a flexible cancellation policy is important for vacation rental owners

Offering a flexible cancellation policy is essential for vacation rental owners looking to stay ahead of the competition.

You can:

  • Meet changing guest expectations
  • Stand out in a crowded market
  • Attract more bookings
  • Enhance guest satisfaction
  • Build trust and loyalty
  • Ultimately, achieve greater success in the vacation rental industry.

Embracing flexibility is not just a competitive advantage—it’s a key ingredient for success in today’s dynamic marketplace.

What should owners do next?

To facilitate the process of selecting a cancellation policy, we will be emailing all owners a document to complete. This document will allow owners to choose their preferred cancellation policy from the options provided: relaxed, moderate, or strict. We believe that empowering owners to select their own cancellation policy ensures that it aligns with their preferences and business goals.

Questions? Get in touch

If you have any questions or require further assistance, please do not hesitate to contact us.

US: 407-605-5865

UK: 0333 332 1411