Hello and welcome to the J'Affiche Complet , the channel which helps owners of seasonal accommodation to become serene and ultra-profitable entrepreneurs . A customer asked me a question earlier and I'm going to answer it on video. So, I'm obviously going to provide the answer directly, but I tell myself that it could also potentially help you.
This client asked me the question when creating his Booking ad: “Elise, am I creating a price that can be canceled in 5 days or in one day? Where do I also put the non-refundable price? »
It is true that currently, the platforms encourage us a lot to set cancelable, non-refundable prices, whether on Airbnb, Booking.com or even Channel Managers also encourage us to do that. So the question is, is this a good idea? Will this help increase our turnover and profitability? Well, my answer is yes and no.
There you are, you listened. I wish you a very good day, let's not talk about it anymore.
No, the joke was lame. So I'm going to give you the answer anyway.
It's indeed yes and no, but I'll tell you more anyway. I won't stop there yet.
Why yes and no? Yes, because it remains a good idea over a certain number of periods, in particular periods of low demand, periods with little demand for which we are not sure of being full. During these periods, it may be interesting to set a non-cancelable, non-refundable price. It is always a price which is associated with a reduction coefficient, less 10% in general, and it makes sense to put it at that time because we say to ourselves that we prefer to secure our reservations, that we prefer to have a -10% reduction but have more volume rather than missing out on reservations. So, during these periods, yes.
But on the other hand, and this is where the no comes from, in other periods, periods of high demand, in which we know that we are going to be fully booked, we know that there is a huge amount of demand in the city. During these periods, we have absolutely no interest in granting less 10% for non-cancellable reservations, since we know that even if there were to be a cancellation, we would still end up finding a traveler afterwards. . So, we have no interest in missing out on 10% of our turnover during these high financial stakes periods.
Because often, the strongest periods are those which have a strong financial stake at that time. Bottom no no no, no giving itself non-refundable.
And there, you will say to me, “But Elise, how do I do it? Because the system tells me either yes or no, but I can't choose. » So, I will answer it for you.
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So, how do we do it? If we are blocked because we are offered all or nothing, what I offer you and this is what we do is not to put this price of a non-cancelable, non-refundable price. We're not going to put it directly. On the other hand, we will act secondly on the most needy periods by putting a surgical promotion on the right dates, where we want to support demand.
So, for example, on the Booking extranet, you have a “Promotion” section, you can click on “Basic Deal”. And on “Basic Deal”, you can put different promotions. If you use, for example, the Beds24 Channel Manager in the “Channel Booking” section, you have the possibility of setting up promotions and conditioning them on the fact that they are non-cancellable, non-refundable. And you can choose the start dates, end date for the availability of this promotion.
So, these are methods which are much more virtuous for taking care of your turnover and which will really allow you to guarantee the best performance over your season without having, therefore, to suffer a minus 10% for prices which are non-cancellable and non-refundable.
There you go, I hope this could have helped you. If you have problems that are bothering you at the moment, if you have a thorn in your side, write to me in the comments what your current problem is. This will probably be the subject of a video.
And then, if you wish to discuss with me your financial performance in seasonal rentals, if you want to increase your turnover, if you are tired of stagnating, I will be delighted to be able to talk about it with you, to assess together what growth avenues you have and see if we could potentially help you achieve better financial performance.
I hope, I've said it before, but I really hope. It's even the second time. I also hope you enjoyed this video. Certainly, when this video... I wish you an excellent day and I'll see you tomorrow for the next video.