How to Protect your Bottom Line from Emergency Cancellations

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CHTA Communications


How to Protect your Bottom Line from Emergency Cancellations

One of the worst case scenarios for any hotelier is having to deal with emergency cancellations. Sometimes they are caused by inclement weather such as storms and hurricanes, while in other instances they are emergencies of a much more personal nature. When guests cancel their vacation plans due to illness or accidents, the hotelier is placed in the difficult position of wanting to be considerate of their guests well being, provide the best possible customer service in a less than ideal scenario, and dealing with the effects those cancellations will have on their bottom line.

To Charge or Not to Charge

Many hotels are dependent on attrition, cancellation and no-show fees to boost revenue as they struggle with occupancy and the ability to drive rate. However, some hoteliers take a more generous approach and shy away from cancellation fees in an attempt to reassure and attract new customers. If your property however has a customer base that is made up of 70% groups and 30% transient, doing away with no-show and late-cancellation fees is not a possibility since these offset declines in revenue per available room. The situation is similar with resort properties where the possibility of a last minute walkin to offset a cancelled reservation is minimal at best.

An Option in the Midst of Turmoil

One of the most effective ways for a property in the Caribbean to secure their revenue without being concerned about the effects their cancellation policy may have on their marketability is offering travel protection along with their booking. This small, no cost, easy to implement add on covers a multitude of concerns for the hotelier:

  • Your revenue is protected while having no negative monetary effect on your guest.
  • Your staff is supported in not having to deal with implementing cancelation or no-show fees. The travel protection provider takes care of the customer service from the moment you are notified of the cancelation.
  • Your guests may feel that they can book with less concern and are more inclined to upgrade their experience if it is insured.

CHTA and Trip Mate have partnered to offer CHTA members the ability to safeguard their revenue this hurricane season at no cost. For more information contact Kelly Sahner at and be prepared for this year’s Storm Season.