What is the definition of Cancellation Clause in the hotel industry?
The word cancellation clause hints to the terms stated in the hotel booking agreement, in which the hotel states under which terms a cancellation can take place. The type of cancellation clause varies depending on if 1.) only one/multiple room(s) are reserved – or 2.) the customer is booking entire blocks of rooms (for Events/Conferences etc.). Make sure to line up your Cancellation Clause with your Revenue Administration Strategy
In cases of cancellations, hotels, which are usually targeting to please their guests are in a state of inner disagreement. Event planners often have diverse objective than hotels, when it comes to assessing a fair cancellation clause. The plan is for both parties to be treated fair and sensibly in the case of cancellation. Trust in these moments can help attain again business and therefore overall upper occupancy – while bad/ unjust cancellation clauses might have a strong negative force on business.