How should I handle cancellations?

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Background

Some channels (such as booking.com, agoda, etc.) support sending cancellations through a channel manager, which allows us to display the booking as "cancelled".

This also gives myallocator the option to either:

  1. Add the availability of the cancelled room back to your inventory
    • OR
  2. Keep the inventory blocked.

Please note: You can only cancel bookings for Hostelworld, TripAdvisor and BookNow directly in myallocator.  All other channels require that you cancel the booking directly in their extranet.  See more information here:  

Can I cancel bookings directly in myallocator?

How to set the Cancellation option in myallocator

You can specify how you want to handle cancellations as shown below:

Understanding your Cancellation Options

Now that you know what is possible in myallocator, here is how to choose which option you prefer.

There are couple different ways to handle cancellations. First, here's an overview of what happens with incoming cancellations:

Scenario

The following situation is assumed:

  • Two channels active: A and B
  • There is only one room, with 0 availability since it's booked by a booking that is now getting cancelled

Option 1: Add availability on all channels

  • Cancellation is made on channel A
  • myallocator marks a booking as cancelled on Incoming Bookings
  • myallocator will set 1 availability on both channel A and B
  • myallocator and all channels have the same availability (1)

This option is best suited to the following properties:

  • Properties with a large amount of rooms.
  • Properties that have a tolerance for overbookings
  • Properties that want to maximize their bookings potential

This is a way to maximize your bookings by making sure that all availabilities are listed on all channels at all times. However, this comes with a higher risk of overbookings because some channels do not support modifications. Instead, what they do is cancel the booking and rebook with the modified resevations triggering a lot of updates in a very short amount of time.  If ensuring against overbookings is a greater concern, you may wish to consider Option 2.

Option 2: Keep room/bed blocked to maintain count as before on all channels

  • Cancellation is made on channel A
  • myallocator marks a booking as cancelled on Incoming Bookings
  • myallocator will not change availability, it remains at 0
  • myallocator will set 0 availability on both channel A and B
  • myallocator and all channels have the same availability (0), meaning no availability

This option is best suited to the following properties:

  • Properties who have a PMS that controls their availability
  • The possibility of an overbooking presents a significant problem
  • If you are connected to channels with higher than average latency
  • Small properties that are connected to many channels
  • Properties that want to relist cancellations on their own website

This option minimizes your risk of overbookings.  If ensuring a high level of occupancy is a greater concern, you may wish to consider Option 1.

For channels that do not support cancellations through myallocator

Some channels (such as HI, Hostelbookers, Gomio, etc.) do not support managing cancellations through a channel manager like myallocator.  For cancellations on those channels, the channel will send you an email directly with the cancellation information.

When the cancellation occurs, since myallocator does not know about the cancellation, your inventory will not be updated automatically.  In cases like this, if you want to add the cancelled room/bed back to your availability, you will have to manually update your availability in myallocator on the "availability" page.

To determine which channels support automatic cancellations to myallocator, please consult the Channel Features list here.

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