What to do when guest is a no-show?

Question

Just looking for creative input....our guests that were supposed to arrive on Friday sent a literally last-minute message saying that she had gotten sick and couldn't make it. She said she noticed our cancellation policy and understood, but asked if there was anything I could do....

I offered two options: #1) Come stay a different weekend and it would be no charge, just contact me outside of VRBO to arrange it.... or #2) I would Venmo her back for 1 nights stay. I explained that the guest house was now sitting empty, unable to re-rent so I couldn't refund the entire stay....

After thinking about it, I really feel like the only option should be #1. If you book and can't make it, it's not my problem...trying to run a business here and all that.

Thoughts?

Ken Boone · Answer

@Bruce Woodruff - Well a couple of things here.  Each host has to do what they are comfortable with.  We just had this happen about a week ago.  They called and said they were thinking about cancelling because one of the parties had a minor injury occur and might not be able to enjoy their stay there and wanted to know if we could extend credit for another time in the fall possibly.  This call came around 5pm on the day before check in of a 6 night stay.  We have a strict cancellation policy which means no refund if cancellation occurs within 30 days.

Ok first thing you do before you make any decision is ask the guest - did you purchase trip insurance when you booked the trip?  Because if they purchased that then they need to handle it with the insurance company and move on.  If you decide to provide full refunds in these cases means that you will always be the insurance company for the guests as well.  You are NOT their insurance company.

In my situation we felt like we would be able to book most of the 6 days if not all of the days even though it was last minute.   We might have to lower prices some to get it booked but we are operating at a premium now so it's not a huge deal.

Make sure your communications is through the platform so everything is recorded there.  So we went back over the cancellation policy which is 0 refund if cancellation occurs within 30 days and we also let them know it is our policy not to extend credit for a future booking or change dates within 30 days.  The game is here is that a guest changes their mind last minute and they know that  they are within the 30 days and will get nothing back.  Then they give you a sob story and ask to change their dates for like a couple months down the road.   Once the system is updated, they can now go in and cancel their stay since it is no longer in the 30 day window.  In this case you get hosed.  So we explained to them that we are not saying they would do this at all but because this happens is why we have this business policy.

What we decided to do was offer the guest two options.

#1 - You cancel in the next 2 hours so I can get the property listed ASAP and I'll issue you a 50% refund.  In this scenario I take the risk that I will book at least 50% worth over those days.

or

#2 - You cancel in the next 2 hours and do not receive any refund, however, if I can book those days, I will provide you a refund based on how much I was able to re-coup through new bookings.  In this scenario the guests takes the risk that I will book anything period and hopefully over the 50%.

The guest chose option #1 and we issued a 50% refund.

We re-listed and by the next morning had booked 4 of the 6 days at full price and then ended up booking the last 2 days at discount.  Since that happened we issued an additional refund to help the guest re-coup more of their loses.  I know we didn't have to do any of this based on our policy but I did what gave me a good conscience and I am not saying I would do this every time but I take it on a case by case basis.  I want to treat others I would want to be treated.  It is a fine line because you can't always tell if the guest is being truthful or not.  But if I was in an accident or fell ill right before a trip - yes its my fault for not having trip insurance, but if the hosts could rebook and not lose money then I hope they would be willing to help me out as well.

Again, you have to do what you feel right about.

Luke Carl · Answer

Absolutely no Venmo or communication off platform. Just stick to your cancelation policy. Better yet unblock your calendar on another platform and get paid twice.

Brady Richard · Answer

#1 seems very generous as you stand to lose the revenue you could receive from a paying guest for the different weekend  the no show chooses. It is always best to not deviate from your policies that are established for good reason. Take emotion out of the equation and see if your decision differs.

Nancy Bachety · Answer

Great variety of responses. It never occurred to me to think about doing what Luke’s clever mind thought of. I’d stick to my policy and say if I rebooked it, it give them refund less 10% for administration, for my time. If they follow up with me, they’d get it.But I’d base it off of what they ask for. This just happened a few days ago. Canceled on the way due to car trouble and asked for the cleaning fee reimbursement. I agreed. Then nothing. I’m waiting for him or Airbnb to initiate that refund. I’m not going out of my way to figure out how to do that. I’m nice and believe in good karma, btw, I just have a business and a life, especially now that life is almost normal and the weather is amazing. About travel insurance, it’s a good idea to include in a message upon booking to purchase travel insurance. Does anyone actually provide a few sources of travel insurance? Is it something folks can buy through a credit card or is any particular company better than another? I’ve never used it.

Russell Brazil · Answer

No refund. That's what travel insurance is for.

Bruce Woodruff · Answer

You would think AIR or VRBO would get involved in this business (if they are not already). Easy money for them.....

John Underwood · Answer

Small discount to a future stay. Then since my lake house would be open I would go up and ride my jet skis.

Theresa Harris · Answer

You have a cancellation policy for a reason.  I'd apply it.  If you wanted, you could give them a small (10%) discount on a future stay.  As you said you are running a business and I'd bet money that she wasn't actually sick.

Joshua Strickland · Answer

Do you offer travel insurance? Also I like that you offered a one night refund. You didn’t have to, but seems like good karma.

Michael Baum · Answer

Hey @Bruce Woodruff, I had a similar situation. Folks all got Covid and wanted to cancel. It was a bit farther out, about 10 days. We have a no refund policy if canceled with less than 14 days.

They were pretty upset so I just refunded the whole amount back to them. We had the time booked within 24 hours so no skin off our nose.

I guess I do feel more for folks that this happens to. Most of our guests are average folks and to lose a bunch of money can be a real hardship. I don't want to compound their problems.

We have had other folks cancel inside the deadline. We have rebooked them later in the year as well.

Basically just do what you are comfortable with. It's nice to be nice!

What to do when guest is a no-show?

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