Is it time to open back up the non refundable rate plans?
May 20, 2020 | Ask Duetto Team
When it comes to non-refundable rates, the opinion of the moment is to keep them closed and unavailable. With any restricted discount though there are pros and cons.
The “cons” of publishing and making a rate such as non-refundable open/available are fairly numerous. Hoteliers should be working to garner trust with customers. But with the lingering presence of coronavirus, and the very real expectation of another flare up, you could be setting your enterprise up for bad PR and a customer service disaster if you start publishing guaranteed rates and the landscape changes.
The “pros,” in my opinion, are few and far between. You may be able to capture guaranteed revenue, but it is only as guaranteed as your operations team is willing to fight for it. Even Airbnb is relaxing prepayment restrictions during these times. That really says something!
For Duetto users, we recommend utilizing Open Pricing on existing (less restrictive) rates. For example, we recommend setting up a “locals only” rate to help inspire staycations, which is dynamic and elastic based on demand. Low demand? Why not do 40% off? High demand? Reduce that discount to 5%.
Director of Hospitality Solutions, Americas
Daniel has served in several roles throughout his time at Duetto over the last four years, with the lion’s share of his time spent in consulting, working in the field with Duetto customers to optimize their revenue strategy. Prior to that, he was a Director of Revenue Management at Landry’s Hospitality where he worked with both their gaming and non-gaming hotels. Over the course of seven years with them, he handled property openings, brand transitions, and expansions.