Cancellation Policy
A Cancellation Policy is a set of rules that determines what happens when guests cancel their reservations at a bed and breakfast or similar lodging. It outlines important details like how much notice guests need to give before canceling and whether they can get their money back. This is a crucial skill for B&B operators because it helps protect the business from lost income while maintaining good customer relations. Different properties might call this a "booking policy," "reservation policy," or "refund policy," but they all serve the same basic purpose of managing guest bookings and potential cancellations.
Examples in Resumes
Developed and implemented a flexible Cancellation Policy that reduced revenue loss by 25%
Managed guest relations and Reservation Policy enforcement for a 12-room B&B
Successfully handled guest communications regarding Booking Policy and refunds
Typical job title: "Bed and Breakfast Managers"
Also try searching for:
Where to Find Bed and Breakfast Managers
Professional Organizations
Online Resources
Example Interview Questions
Senior Level Questions
Q: How would you handle a situation where a guest demands a refund outside the cancellation policy terms?
Expected Answer: A senior manager should discuss balancing policy enforcement with customer service, explain their decision-making process, and mention how they would document the situation and possibly make exceptions based on circumstances while maintaining profitability.
Q: How would you design a cancellation policy that maximizes both customer satisfaction and business protection?
Expected Answer: Should demonstrate understanding of market standards, seasonal considerations, room inventory management, and ability to create clear, fair policies that protect the business while remaining customer-friendly.
Mid Level Questions
Q: What factors do you consider when enforcing a cancellation policy?
Expected Answer: Should discuss consideration of booking season, reason for cancellation, advance notice given, potential for rebooking the room, and customer history with the property.
Q: How do you communicate cancellation policies to guests?
Expected Answer: Should explain multiple communication channels (website, booking confirmation, check-in documents) and importance of clear, transparent communication before booking.
Junior Level Questions
Q: What are the basic elements of a cancellation policy?
Expected Answer: Should mention key components like cancellation deadlines, refund amounts, no-show charges, and how different booking seasons might affect the policy.
Q: How do you process a cancellation request?
Expected Answer: Should be able to explain basic steps: checking the policy terms, calculating refund amount if applicable, processing the refund, and updating the reservation system.
Experience Level Indicators
Junior (0-2 years)
- Basic policy enforcement
- Guest communication
- Refund processing
- Reservation management
Mid (2-5 years)
- Policy modification and improvement
- Conflict resolution
- Season-based policy adjustment
- Staff training on policy enforcement
Senior (5+ years)
- Policy development and implementation
- Revenue protection strategies
- Crisis management
- Market analysis and competitive policy setting
Red Flags to Watch For
- Inability to handle difficult guest situations
- Lack of experience with reservation systems
- Poor communication skills
- No understanding of seasonal booking patterns
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