The Next Revolution in Guest Satisfaction

One morning you receive a phone call at the front desk. On the line is a Mr. Jason Watson, an anxious pre-booked guest who needs to cancel his stay at your hotel because of “extenuating” personal circumstances. There's only one problem: his reservation is non-refundable. The decision is up to you: should you refund Mr. Watson's reservation?

Let me guess- probably not, right? An agreement is an agreement. Your hotel agreed to sell him a room for a discounted rate as long as it couldn't be changed or cancelled. On the one hand, it does make sense to be empathetic. You don't want to alienate guests. On the other hand, you've heard it all before and you have to draw the line. The later prevails. No means no.

They will be heard.

But Mr. Watson will not except your logical explanation. He yells. He screams. He accuses. And he threatens he won't stop at that. Yes, many people are rationale and mature. They will understand that non-refundable means exactly that. But if we can all be honest for a second, many others often won't take responsibility for their own mistakes. Like it or not, most people today want rock bottom prices AND expect unconditional forgiveness when their purchase isn't going to work out even though the rules of the price were very clear before they paid for it. And in today's consumer review society, right or not, the likes of Mr. Watson will make certain they are heard way beyond the front desk:

"That's obviously all they care about"

"Or so I thought"

"They shouldn't be able to keep your money"

"Did NOT know"

"I was told it was non-refundable"

Recover $100s. Lose $1000s.

So you got a lousy review from some loudmouth that doesn't read the fine print. Big deal. Your hotel still kept the non-refundable funds and can even double dip by selling the room again. Our two bits is that it may be time to reevaluate that line of thought: in times when social media is king, and with a direct correlation between online reputation and profitability, you might want to give some thought to the consequences of sticking to your guns. And here are 4 reasons why:

• More than one third of consumers will not book a hotel room without reading reviews first

• 45% of consumers hold negative reviews to be more influential for their decision than positive reviews

• 90% of hotel guests share their experiences online to help others make better buying decisions

• Hotel cancellation policies cause confusion amongst 40% of guests and make up for 20% of all complaints

What's more, while hotels might be happy on the surface with cancellations where they earn revenue without a guest, this in fact presents a lose-lose situation. Not only does your estranged guest lose his money, you will have undoubtedly lost their future business, their family's and their friends. And let's not forget the nice amenity fees that would have appeared on their bill. Top that off with a "favorable" post they'll be glad to write about your business, and often even about you personally- posts that can easily go viral and snowball into a full-blown reputation management crisis you do not want to deal with.

Life Happens™: from lose-lose to win-win.

By now, you've probably had a flashback or two, thinking what should I have done different with those persistent guests? Well here's the answer: you could have offered them Life Happens™.

Life Happens™ is a guest-centric cancellation protection on non-refundable reservations that helps increase direct bookings by offering peace of mind value to guests – at NO COST to you.

The beauty of Life Happens™ is that guests can cancel non-refundable rooms, for any reason, up to 24 hours prior to arrival and receive an 80% refund.

By partnering with us, your guests can purchase Life Happens™ during checkout directly on your booking engine, allowing your business to increase value and volume of advance payment bookings, create new revenue streams, higher loyalty, more repeat bookings and boost guest satisfaction.

How does it work? The cancelled room will be posted for resale online. If the room is not re-sold, you still keep the non-refundable room revenue. Life Happens™ is responsible for the refund to your guest and you don't lose a cent. You keep the booked revenue, and we take care of the rest.

On the travel agents' side, Life Happens™ betters the chance you'll be recommended because they would retain all commissions lost from cancelations.

Once there was a right way vs. smart way. Today right and smart go hand in hand with Life Happens™

We're sure you offer great service, comfortable beds, great meals and clean towels. However, in today's competitive market, it would be mutually beneficent to allow your guests the added flexibility and understanding they desire when booking. From our encounters, we truly believe that luxury is about the experience, not the price. Leveraging innovative ways that deliver better experiences is key to lasting success.

Contact us today for more details on how to become a Life Happens™ partner.

P.s. Please give our best to your next Mr. Watson.