Blog Post

Should Hotels Charge Cancellation Fees?

Share

After reading Daniel Lesser’s, president and CEO, LW Hospitality Advisors, article on Nickel and diming, part II, we cannot help but consider his writing from our personal and non-hotel business point of view. We, actually, always thought that it was a bit odd that someone could book a hotel room or reserve a car without a credit card and just cancel at the last minute or just not show up without any consequences.

Can you imagine having a customer order 1000 customized mugs, give no deposit, casually cancel the order at the last minute and then you just saying “oh well, it happens”? That just would not be acceptable!

As Mr. Lesser mentions, Penalty-free, last-minute cancellations create challenges for hotel owners and operators managing their inventory, namely available room nights. We can just imagine the amount of unused rooms hotel managers have to scramble to fill at the last minute in order to keep their quotas.

And, as with any profitable minded business, If no fees are charged, hotels need to somewhat make up for that “phantom lost opportunity cost” and add it into their room rates. What that means is that, us, responsible vacationers and business travelers, have to cover that cost and end up paying the “last minute” cancellation fee. That really does not seem fair!

We believe that, just as airline have gone to a “you want it you pay for it” policy, hotels should too. If you want to be able to cancel your room at the last minute, then you should cover the fee of doing so. Unless a guest is reserving a suite type of room, if a hotel guest wants a microwave or an iron… they should just pay for it.

On our part, for as much as we try to find the best deal for our customers and help them avoid shipping fees, set up fees or other fees, we still need to all stay in business so that we can continue to offer excellent service and quality products that will meet our customer’s needs. If paying $30 or $50 for a set up fee will mean a better outcome for our customers, then we will definitely advise them to pay the fee (as we would) instead of nickel and diming a job to death only to be disappointed with the results.

We wish you great success in all you do!

Related Posts

car truck magnet
I could just do it myself in minutes!

It always fascinates me when a client says something like that. Maybe that is

Cafe Promotional Chunky
Consumers Love Promotional Products

Americans have spoken: They love promotional products more than ever. For more than 200

Personalized umbrella
Choosing a Personalized Promotional Item

OK, so you just need an personalized umbrella. You may be tempted to select the

hotel management
Driving Hotel Revenue and Improving Guests Experience with Promotional Products

As a Hotel Manager or Sales Director, your main concerns are likely to be

usb-2-0-hotel-key
Personalized USB Key – Great for Hotels

Being successful in a hotel industry isn’t determined by the number of new customers

led-fan
LED USB Fan

This LED USB Fan displays a fully customizable message!The user can program their own

17-oz-regency-insulated-bottle
Debossed 17 oz. Regency Insulated Bottle

17 ounces, Full Stainless steel construction - Vacuum seal with leatherette sleeve Push Button

donald-j-trump
Donald Trump’s campaign spent more on hats than on polling!

Are slogans on hats and t-shirts better than messaging of substance? Does it just

bed and breakfast
5 Bed and Breakfasts’ No-Nos

B&Bs and inns are different from hotels. To the uninformed outsider, they appear the

bed and breakfast inn - breakfast
Top Five Things NOT to do at a Bed and Breakfast

Mike Shubic asked over 100 Innkeepers what their biggest pet peeves were with guests.

Technology and hospitality
Technology’s impact on the Hospitality Industry

Michael Bull and his panel of hospitality experts discuss how technology has changed the

Hotel guests fly a kite
Tell Your Hotel Guests To Go Fly A Kite!

When was the last time you flew a kite? We spend so much time indoors

hotel web site
Hospitality Web Site & Improving Guest Booking

Whether you have a web site or looking to build one, your web site

hospitality jobs
How To Write a Hospitality Job Post That Really Works

Which wording should be put in your hospitality ads that will ring true in

custom printed hanging toiletry bag
Toiletry Bags For Your Hotel, Inns, B&B, Resorts….. Guests!

We read an article from Kiplinger that mentioned gifts to give to someone who

hotel gift
Give your hotel guests the more unusual room gifts!

Surprise them with, more uncommon, custom printed gifts and useful items. Like a computer

bar in hotel
Pop-up Bar, Constructed From an Old Elevator Car

Loews pop-up bar goes on tour

attracting customers
Hospitality & Attracting Local Customers

As customers ourselves, we are, actually, very in tune with our process in deciding

hotel-guests
Hospitality Business And The Small Details

In the hospitality business, we know that when we are taking care of our

Share