Since becoming available last year, Selfbook’s Flexible Cancellation feature has rapidly made strides in improving guests’ flexibility and confidence when booking – and has simultaneously benefited hotels by lowering cancellation rates, improving conversion, and more.
This innovative feature, which allows guests to personalize their cancellation policy for a fee, has proven to be a favorite for guests and a driver of several metrics valued by hotels. This case study highlights data ranging from July through December 2023 across all Selfbook hotels actively using Flexible Cancellation and showcases these key areas of effectiveness.
40%
drop in cancellation rates
44%
increase in conversion
12%
longer booking windows
How it Works
Flexible Cancellation enables hotels to commoditize cancellation policies and reduce last-minute cancellations. Depending on the original policy type selected, guests can pay a small fee to either extend their cancellation window or shorten it and save on their room rate. This feature provides guests with more flexibility and control over their booking.
Adoption Rate
Guests have been quick to pick up on the value Flexible Cancellation can add to their booking process, and adoption has been instant. Across all reservations, 15.8% of guests have included Flexible Cancellation in their booking.
Even more notably, when presented to guests as an option during the booking process, the adoption rate rises to 35%. This substantial uptick showcases the product’s instant appeal when displayed to guests, who value flexibility when making their travel plans.
Impact on Cancellation Rate
One of the central tenets of Flexible Cancellation is its ability to reduce cancellations, and the feature has exceeded expectations in this department. Hotels saw a remarkable 40% drop in cancellation rates compared to refundable bookings made without it.
This data point is a testament to the confidence and commitment guests feel when they have the opportunity to gain more control over their booking flexibility. This, in turn, leads to more stable and predictable bookings and inventory for hotels.
Influence on Conversion Rates
Guests who opt for Flexible Cancellation while booking are 44% more likely to convert than those who saw the option but elected not to add it. This heightened conversion rate illustrates the feature’s ability not only to attract guests, but also to convert interest into confirmed bookings.
Booking Window Expansion
When reservations include Flexible Cancellation, booking windows are 12% longer. This translates to bookings made an average of 5 days earlier than usual thanks to the added predictability for guests, providing hotels with a longer lead time and the ability to more effectively plan and manage their resources.
An Indispensable Hospitality Tool
Flexible Cancellation’s ability to drive strong adoption, reduce cancellations, enhance conversion, and extend booking windows has established it as a must-have in the modern hospitality industry. As Flexible Cancellation continues to develop, its impact on enhancing guest experiences and influencing hotel revenue and inventory management strategies is set for further expansion and innovation in partnership with hotels worldwide.