Despite business activities following a strict schedule, they are vulnerable to changes and volatility. Due to unpredictable scenarios, businesses lose a hefty sum of money depleted in planning such activities. Business travel is not an exception. Due to sudden alterations in the schedules of individuals, whole plans can be delayed or scrapped altogether. Travel admins can only prepare for such events and choose their options wisely. One such option is the refundable hotel bookings provided by various corporate hotels globally.
What are refundable hotel bookings?
Evident from the name, refundable hotel bookings allow cancellations with partial or full refund of the booking charges. Different from non-refundable bookings, refundable bookings provide flexibility to travel admins and travelers to change their plans at any given point before the date of booking. However, the service offered has a higher price than the normal nonrefundable ones but comes with the advantage of peace of mind.
Why are refundable hotel booking for business traveler better?
1. Flexibility
As discussed above, refundable bookings permit travelers to cancel their bookings at low or zero cancellation charges. This provides them with the flexibility to choose travel dates and change them accordingly. Consequently, businesses don’t incur hefty penalties and maintain the budget for the activity.
2. Better planning
Though planning is an essential part of business activities, some plans are made in a hurry. These plans are often discarded by calculating the ROI. With refundable bookings, travelers can make reservations well in advance without worrying about potential conflicts or changes to their itinerary. It provides a safety net or an open window to rethink the plan and change the booking dates after finalization.
3. Quality assurance
Refundable bookings often come with more favorable terms and conditions. They are indicative of higher-quality accommodations and services. Travelers can book with confidence knowing they have the option to cancel if the hotel doesn’t meet their expectations.
4. Opportunity for last-minute changes
Higher management understands the importance of tweaking business activities and squeezing the most out of any plan. Refundable bookings enable travelers to make last-minute adjustments to their plans. Suppose a client visit needs to be shortened or changed due to their schedules; it is best to have the ability to make last-minute changes in the accommodations.
5. Customer service benefits
As the price is a bit high for the refundable bookings, additional benefits are attached to them as well. If you can score better deals, they may come with better customer service perks. These can include priority assistance in case of changes or cancellations, which can enhance the overall travel experience.
6. Reimbursement for unexpected events
Refundable bookings provide a means of reimbursement in the event of unforeseen circumstances, such as illness, family emergencies, or natural disasters, allowing travelers to recoup their expenses.
Suggested Read: Travel Expense Reimbursement: Importance, Process and Platform
Complications with refundable bookings
1. Cancellation policy variability
Though refundable bookings offer refunds on cancellations, hotel policies can vary as per the region and booking platforms used. Some may offer up to 24 hours refunds while others may provide a wider window. Therefore, travelers will have to go through individual policies to find the best fit as per their requirements.
2. Partial vs. full refunds
As mentioned earlier, not all hotels provide full refunds. Some hotels may regulate the cancellations by reducing the refund amount. To ensure you get the best refunds on the bookings, you should go through the terms thoroughly before making the bookings.
3. Higher cost consideration
While making a group booking, travel admins can be caught up in the dilemma of paying more cost for refundable bookings as compared to non-refundable ones. Additionally, the hotels may cost a premium to reduce the risk of a penalty on the traveler and still maintain their profits. Travelers should weigh the benefits of flexibility against the higher cost when choosing between refundable and non-refundable options.
4. Booking strategy
For travelers who prioritize flexibility or have uncertain travel plans, opting for a refundable booking may be a strategic choice. However, for those with firm travel dates and a lower tolerance for risk, non-refundable bookings may offer cost savings. Understanding one’s travel preferences and risk tolerance can guide the decision-making process when selecting a booking option.
Non-refundable hotel bookings are a double-edged sword with the other edge being a little blunt. When it comes to hotel bookings, the advantages outweigh the disadvantages. However, it is essential to compare the same for your team and organization before making the final purchase.
Suggested Read: Flight Cancellation Charges And How To Tackle Them?
Refundable Hotel Bookings FAQs
What are refundable hotel bookings?
Refundable hotel bookings allow cancellations with partial or full refund of the booking charges.
Why are refundable hotel bookings better?
Refundable hotel bookings include flexibility in cancellation, better planning by allowing reservations in advance, quality assurance with more favorable terms and conditions, opportunity for last-minute changes, and reimbursement for unexpected events.
What are some complications with refundable bookings?
Complications with refundable bookings include variability in cancellation policies among hotels and booking platforms, differences in partial vs. full refunds, consideration of higher costs compared to non-refundable bookings, and strategic decision-making regarding.
