I recently started using a new automated price syncing service that did not set my VRBO prices correctly and caused the whole month of August to be booked in a quick time while I wasn’t paying attention, leaving 5-10k on the table, should I cancel?
Possible repercussions by cancelling on VRBO if I have a top 10 property in my market? (i.e. Should I even worry about it since they will easily book on Airbnb?)
Should I feel bad ethically if I cancel them all?
How to handle?
Any advice is appreciated.
Regards
That’s a lot of money.
You have a few choices
1- Contact all the guests and explain the price glitch. Odds are you’ll get zero sympathy and probably a few lectures from your guests about “hotels have to honor their mistakes in pricing…” You’re not a hotel, so there’s that.
- Cancel. Take the hit with VRBO, pay more attention, and don’t worry about it.
Caveat - I’m Catholic so guilt over things like this keeps me up at night. (religion bashers - hush I don’t berate you for your lack of belief or whatever so leave me be). But I’d still cancel.
Good luck!
1 Like
- 5-10k USD? Thats a lot of money.
- These reservations are 5 1/2 months in the future.
Food for thought:
-How long ago were these reservations made?
-Is it a pricing problem or did/do you offer an early booking discount?
-What percentage is this “loss” of your total revenue for August?
-on the booking platform do you see the revenue /what guest is paying before you accept the reservation? Or if instant book do you see the amount when you get the booking notification?
Here’s my thoughts, use as you wish.
If these reservations were made months ago, it gives the APPEARANCE market rates have increased and you are regretting the rate you had. If these reservations were made recently, it would be more understandable that a mistake was made.
Early bookings have value. It is not uncommon to see a 10-15% early booking discount. Is the $5k in that range? If yes, then consider leaving things alone.
Did you see the booking rate when you accepted the reservation? If you did this isn’t only a system issue. The moment you accepted, you created a contract with full knowledge.
If you tell the guests they need to pay more, they might do it if there are no other rentals but the unexpected price change will be mentioned in your reviews.
If you cancel, there is no guarantee you will rebook those nights.
I’m not going to tell you what to do, just the food for thought.
Risk vs. reward combined with ethical business practices.
Best wishes sorting this out.
The whole “reap what you sow” thing gets me every.single.time. (Aka karma)
(Galatians 6:8).
1 Like
