Innkeeping is a business that’s largely built on trust. If you’re an innkeeper, you trust that your guests will treat your home with care; you trust that they’ll inform you if they’ve damaged anything (linens are a favorite); and you trust that they’ll actually arrive when expected.
But a B&B is a business, so trust – but verify. An effective reservation policy is one where the bottom line begins with the bottom line: Deposits.
For new innkeepers, it can be a little intimidating to ask a perfect stranger for a credit card number but, as most innkeepers quickly learn, it’s part of doing business. Smart business.
While there’s no definitive rule for taking reservations and securing deposits, it can be a fairly simple process. Here’s how one innkeeper does it:
• When a guest requests a room, they take the guest’s name, address, phone number(s), e-mail address, and credit card number and expiration date – making sure it’s in their name.
For further reading, visit The New Realities of Buying (& Selling) An Inn
• Soon after, a confirmation letter is created – a letter that looks like this:
Dear (Guest),
Many thanks for choosing the (Bed & Breakfast Inn) for your getaway. We look forward to meeting and visiting with you soon.
The (requested guestroom) with king bed and private whirlpool bath has been reserved for Friday and Saturday, October 21st and 22nd, 2011. The weekend rate is $149 per night, including an expanded continental breakfast, for a total of $298.00, plus 11% sales and lodging tax of $32.78 for a grand total of $330.78.
If reservation is canceled within thirty of days of arrival, a deposit of $165.39 will be charged to your account and applied to a future visit within six months of the cancellation date, excluding holidays and special events.
Check-in time is 3 to 6 pm, unless notified of late arrival, and check-out is 11 am. If you will be arriving after 6 pm, please give us a courtesy call. Guests are responsible for all nights reserved regardless of actual arrival or departure date. Due to the nature of our inn, we cannot accommodate children or pets and smoking is not allowed. If policy is disregarded, a $100.00 cleaning fee will be assessed to your account in addition to room charges...
**Note that a key part of this confirmation is the qualifier that states if the reservation is canceled within 30 of days of arrival, one night’s lodging will be charged – but the guest can use that as a “gift certificate” within six months of the cancellation date. Knowing they can still enjoy an evening at the inn lowers their defense and lessens the impact since they are not losing their deposit.
Consider other aspects of reservations and deposits.
- • If the guest cancels longer than 30 days out, the majority of innkeepers will charge nothing but a service fee.
- • One alternative many innkeepers apply in the event of a cancellation within 30 days,, is to refund the entire amount (less a small service charge) should they be able to re-rent the room. That will certainly please the guest, but can prolong the process of communicating with them.
For further reading, visit In The Zone: Is Your Dream Home Allowed To Be A B&B?
- • Depending on where your inn is located and what special events are taking place, you’ll likely modify your policies to account for peak weekends and high-demand holidays; perhaps including a minimum stay of two to three nights.
- • Don’t be surprised, however, when a guest cancels because they are (choose one) sick, unemployed, divorced, in the hospital, attending a funeral, etc. If they have an excuse and ask for their deposit to be returned, in that case you can either cite and enforce your reservation and cancellation policy… or give in.
Remember, there’s no definitive rule – but you have to have rules.
