cancellation refund policy

[Lee L.]

Wondering what I should establish as a fair policy. As this is all new to me I don't have past statistics upon which I can rely.

[Julie McCoy]

I started off with a looser cancellation policy and then made it stricter once I got some good traction.  It also depends on the market - one of my markets doesn't have many last-minute bookings, so I have a strict policy there, since it's unlikely I'll rebook any late cancellations.  Another market has a lot more last-minute bookings, so I don't mind having a less strict policy there.

Even with my strict policy, if someone comes at me with a (believable) story of events outside their control, I'll usually try to refund them IF I get another booking for the same date, at the same rate.  (if it books for less, I refund less, etc)  That way I'm not losing any money but can still offer a courtesy to my guest.