What are Non-Refundable Rates?
Trying to wrap your head around Non-Refundable Rate and Standard Rate? Check this post out for a simple explanation.
Ariana Carmona
Content writer
There are two concepts that every hostel manager needs to be familar with: standard rate and non-refundable rate.
First of all, the standard rate is the base price for a room, or a bed if it is a shared dorm, to be paid by the guest.
Cancellation policies for this rate may vary depending on the needs of each accommodation and the different options offered by each channel. For example, on Hostelworld, guests can cancel their booking, but if they cancel less than 24 hours before the check-in date, you can charge them for the first night of their stay. If they change their mind earlier, you cannot charge them (unless you specify otherwise in the Hostelworld ad).
If you're wondering why I'm suddenly talking about cancellation policies, it's because talking about non-refundable rates also implies understanding your cancellation management possibilities.
A non-refundable rate is essentially a cheaper rate, that does not allow the guest to cancel the reservation.
If the guest decides to cancel their stay (or not show up at all), you have the right to charge the full price of the reservation, regardless of how far in advance the cancellation was made.
Some of our clients have told us that this type of rate is very useful for last minute bookings.
Pauline from Bucuresti Bucuresti Hostel commented:
I think non refundable is good when the booking is for the next 4-5 days. Because it gives time for the hostel to rebook the bed.
If your guests book at short notice, you can be assured by charging the full amount of the reservation. If, on the other hand, they cancel a reservation a few days before check-in, a cheaper, non-refundable rate may help you rebook that bed.
If you have any doubts about these types of rates, we can help! Contact us via chat or support@bananadesk.com