Zaui Integrates with Copernican – Cancellation Management and Purchase Protection Platform
When it comes to running a tourism business, cancellations are a significant reality. Sometimes, your guests’ travel plans change, or life happens, and they can’t make it. In such situations, how do you manage cancellations and rescheduling? Do you have the tools to implement them?
Once you have received a booking from a customer, the last thing you want to think about as a tour operator is a cancellation. However, to fulfill your customer expectations and to keep up with competitors, you are going to need to have a flexible cancellation policy in place that seems fair to both your guest and you.
Key Considerations for your Cancellation policy
Let’s walk through the top 6 key considerations for your cancellation policy:
1. Consider the Flexibility of your Cancellation Policy
You have to find a middle ground between you and your customer when developing a cancellation policy. A policy that is too strict might scare off potential bookings, and one that is too lenient might result in revenue loss. Without reasonable guidelines, customers may cancel without sufficient notice, impacting your business’s ability to manage resources effectively and potentially resulting in a financial loss. The key lies in finding that sweet spot where your policy is fair to both your business and your customers, encouraging bookings while safeguarding against undue losses.
2. Consider the Time-Frame of your Cancellation Policy
Your time-frame might be unique to your business. When creating a cancellation policy, you need to consider the time required to fill a booking if it’s canceled by a prospective customer. This will determine the impact of cancellations on your overall profitability. The industry standard typically involves offering a full refund if a customer chooses to cancel within the first 24 hours. However, this will greatly depend on the type of experience you offer and how long it takes to fill up the canceled spots. Keep in mind that many OTAs offer cancellations up to 24 hours prior to departure which may motivate customers to purchase from OTA websites instead of your own.
3. Consider How Effectively you Communicate your Cancellation Policy
How effectively you communicate your cancellation policy can significantly mitigate any future disputes, prevent disagreements and confusion later in the customer journey. If not communicated properly, it can adversely affect your customers’ satisfaction with your brand. To eliminate any future confusion, make sure your cancellation policy is clearly mentioned on your website as well through your guest communications.
4. Consider a Cancelation Fee
When a customer cancels their booking, there is always a possibility that you won’t be able to fill up the spot, causing you to bear the cost and lose potential revenue, especially if it’s a last-minute cancellation. In such cases, consider charging a cancellation fee to protect yourself against any significant losses.
5. Consider your Refund Policy
Your cancellation and refund policy go hand in hand. Customers seek assurance that booking a tour with your company won’t leave them at a financial disadvantage if something unexpected happens. A refund policy establishes transparent expectations for customers regarding the outcomes of a cancellation. Additionally, it safeguards your business, minimizing the risk of legal disputes and negative reviews stemming from dissatisfied customers.
6. Understand your own Cancelation Rate
How often do guests cancel their reservations? Understanding how cancelations affect your business on a regular basis can help you design a cancelation and refund policy that motivates bookings, encourages a positive customer experience, and mitigates revenue loss for your business. Some businesses are surprised to find out that their cancellation rate is low and can allow them to adopt more customer friendly policies that put you ahead of large OTA channels or direct competitors.
How to Leverage Technology for your Cancellation Policy Implementation?
For tour operators, the process of canceling tours and refunding customers their payments can be quite complicated, and there is no one-size-fits-all solution. This is one of the reasons why many tour operators don’t readily accept cancellations. Customer expectations are at an all-time high, and to meet those expectations, you can leverage booking software that easily integrates with cancellation management platforms like Copernican to implement flexible and profitable cancellation policies.
What is Copernican and How does it work?
Copernican empowers your guests with an opportunity to enhance their booking experience when purchasing activities through booking software. With Copernican’s “Cancellation+” feature, customers gain valuable cancellation flexibility that goes beyond the standard “all sales are final” policy, providing your guests with cancellation flexibility and peace of mind.
By utilizing Copernican’s Cancellation+ feature, you’ll be able to automate your cancellation processes, simplifying the refund process and the notification process via automated guest communication. If you are curious to try it out, book a demo today with Zaui.
What are the Key Benefits of Using Copernican for your Cancellation Management?
Implementing an operationally sound and economically viable cancellation policy can contribute significantly to increasing revenue. By carefully structuring your policy, you can minimize financial losses associated with cancellations, allowing your business to maintain a healthier bottom line.
Offering flexible cancellation policies is a direct path to ensuring customer satisfaction. When customers feel they have options and understanding in the face of unforeseen circumstances, it creates a positive relationship. Happy customers are more likely to return and recommend your services to others, contributing to long-term business success.
A well-managed cancellation process simplifies operations by reducing the strain on staff resources. When cancellations are handled efficiently and seamlessly, it minimizes the time and effort required from your team. This streamlined approach enables your staff to focus on other critical aspects of your operations, enhancing overall efficiency and productivity.
Cancellations are an important aspect of every tour operator’s business. Implementing preventive measures can minimize their frequency, and mastering the art of handling them seamlessly is vital for recovering business losses.
In search of an online booking platform that simplifies cancellation management? Give Copernican a try! You can easily access it via Zaui’s extensive marketplace featuring 80+ integrations to supercharge your business!