Cancellations and no-shows are an inevitable part of the tour and activities industry, but that doesn’t mean providers are powerless to address them. By implementing strategic policies and leveraging the right tools, businesses can significantly reduce cancellations, protect revenue, and maintain strong customer relationships.
Are you looking for a software solution to help you process cancellations more efficiently? With Regiondo you can manage bookings, automate customer communications, connect to over 200 OTAs and much more. To learn how we can help your business thrive, book a free demo with one of our consultants.
The Importance of Flexibility
In times of travel disruption, such as the recent airline strikes in Europe, flexibility is as important as it was in the Covid era. It’s no surprise that customers are understandably reluctant to commit to bookings when their plans are at risk of being upended. By offering flexible cancellation policies, tour and activity suppliers can allay these concerns and build trust with their customers.
Our suggestion is to allow free cancellations up to 72 hours prior to the scheduled activity. While this may seem risky from a business perspective, it shows empathy for the customer’s situation and increases the likelihood that they will rebook with you in the future. For best results, highlight your cancellation policy both during the booking process and in the communications you send to your customers after they have made a reservation to provide peace of mind.
Another way to demonstrate flexibility is to offer a variety of booking options. In addition to traditional date-specific bookings, consider implementing open-date vouchers that allow customers to reserve an experience without committing to a specific date. This can be especially appealing to travelers who are unsure of their exact itinerary or concerned about potential disruptions.
Encourage Rescheduling and Vouchers
If a customer has to cancel, the first goal should be to convince them to reschedule. To accomplish this, train your customer service team to proactively present this option and make the process as smooth as possible. If the client is unsure of their future availability, offer to purchase a tour or activity voucher that can be redeemed at their convenience.
To incentivize rescheduling or voucher purchases, consider offering benefits such as complimentary merchandise, a discount on a future booking, or an upgrade to their rescheduled experience. For example, if a customer cancels a guided hike, offer a voucher for the same hike plus a free merchandise accessory or a discount on a future tour. The key is to make the customer feel valued and excited about maintaining their relationship with your company.
With Regiondo you can easily create, sell and manage gift vouchers. For more information, read our dedicated blog article.
Leverage Pre-Arrival Emails
The time between a customer’s booking and actual arrival is a prime opportunity to build excitement and engagement. To reduce the chance that they will be tempted to cancel, implement a pre-arrival email series that regularly engages the customer and reinforces the value of their upcoming experience.
These emails can include behind-the-scenes previews, staff introductions, weather forecasts, packing suggestions and fun facts about the destination. For example, if a customer has booked a city walking tour, your pre-arrival emails could include fascinating historical tidbits, restaurant recommendations, and a spotlight on the knowledgeable guide who will be leading their tour.
Pre-arrival emails are also a great way to cross-sell and up-sell relevant offers. For starters, you can showcase your other popular tours and activities, offer exclusive packages, and recommend upgrades or add-ons to enhance their experience. If a client has booked a snorkeling excursion, suggest adding an underwater photography package or lunch on the beach after they return from their adventure. By giving customers more opportunities to commit financially and emotionally, you create more reasons for them not to cancel.
Pro tip: In addition to pre-arrival emails, look for opportunities to up-sell and cross-sell throughout the customer journey. For example, a good time might be during the booking process itself or onsite, before the experience you’re offering begins or right after it ends.
With the Regiondo Booking System you can easily implement your up-selling and cross-selling strategies by selling add-ons, automating customer communications and much more. Check out our tips & tricks on this topic by reading the dedicated blog article.
Provide Stellar Customer Service
Exceptional customer service can go a long way toward reducing cancellations and building customer loyalty. Of course, this is easier said than done. To make it easier, we’ve put together a brief, easy-to-follow checklist:
- Make sure your team is well-trained to handle customer inquiries and concerns promptly and professionally.
- Offer multiple channels for customers to reach you, such as phone, email, chat, and social media, and strive to provide consistent, helpful service across all touchpoints.
- When customers contact you with questions or issues, take the time to listen and thoroughly address their needs.
- If a customer is considering canceling due to a scheduling conflict or travel disruption, work with them to find a solution that meets their needs while preserving the booking.
- Keep customers informed of any changes or updates to their booked experience, such as weather-related adjustments or new security protocols.
- If you anticipate potential disruptions, proactively reach out to affected customers with alternative options or assurances.
Attract and Retain Local Customers
While much of the tourism industry is once again focused on international travelers, local customers can be a tour and activity provider’s best defense against cancellations. First, because “proximity tourism” continues to be a strong trend, especially in Europe. Second, because locals are far less likely to be affected by disruptive events like airline strikes and can be a reliable source of bookings all year round.
To attract locals, develop marketing campaigns that highlight your offerings as exciting opportunities to be a “tourist in your own backyard” and discover hidden gems. Reach out to residents through targeted social media ads, partnerships with nearby businesses, and special promotions during shoulder seasons. If you want to go the extra mile, consider offering experiences tailored to local interests, such as a “locals only” behind-the-scenes tour or a workshop showcasing a unique regional craft.
Our clients have found that another effective strategy for attracting locals is to foster a sense of community among your customers through a loyalty program that rewards repeat bookings and referrals. For example, you could host special events and behind-the-scenes tours exclusively for loyalty members, or offer perks such as priority booking access, complimentary upgrades, or invitations to preview new experiences. By making locals feel like VIPs, you will build a devoted customer base that is more resistant to cancellations.
Predict and Prevent Cancellations
The booking data you collect contains valuable insights for predicting and proactively preventing cancellations. In particular, analyzing factors such as booking lead time, party size, customer type (local vs. tourist), and booking channels can help you identify patterns that indicate a higher likelihood of cancellation. For instance, you may find that bookings made within a week of the activity date by international customers have a much higher cancellation rate than those made a month in advance by local ones. With this insight, you could focus your customer service efforts on the at-risk group, reaching out to confirm details, share pre-arrival information, and offer flexible rebooking options if needed.
In the same way, predictive analytics can help you anticipate shifts in demand and adjust your offerings accordingly. If a major event in your area is postponed or canceled, you can anticipate a ripple effect on your bookings and proactively reach out to affected customers with alternative suggestions. Similarly, monitoring weather patterns and local news can help you identify potential disruptions and proactively communicate with concerned guests.
Turn Cancellations into Opportunities
Even with the best prevention strategies, some cancellations are bound to happen, and how you handle them can make the difference between a lost customer and a loyal brand advocate. As mentioned above, training your customer service team to respond to cancellations with empathy and a solutions-oriented approach is paramount.
Instead of simply processing the cancellation, have your team express understanding of the customer’s situation and work to find an alternative that meets their needs. If a rebooking isn’t possible, suggest other experiences the customer might enjoy in the future and make it easy for them to book when they’re ready. For guests who had to cancel due to circumstances beyond their control, you might consider offering a special “welcome back” discount or perk. By showing that you value the relationship beyond the immediate transaction, you increase the likelihood that the customer will return.
Automate with Booking Software
Implementing the strategies discussed above is made infinitely easier with the help of a booking system. You should look for a platform that includes features such as customizable cancellation policies, automated pre-arrival emails, upsell and cross-sell prompts, and a customer relationship management (CRM) system to track interactions.
With the right software on your side, you can set up automated processes to handle common cancellation scenarios, freeing your team to focus on more complex customer needs. For starters, you can configure your system to automatically send a follow-up email with rebooking options and a discount code when a cancellation occurs. You’ll also have access to robust reporting tools that provide the data you need for predictive analytics and demand forecasting.
You can do all this and more with Regiondo, Europe’s leading booking system for tour and activity providers. Learn how we can help you manage your reservations, connect with the major OTAs and generate more revenue by requesting a free demo with one of our consultants.
Conclusion
Reducing cancellations is a critical component of success for tour and activity providers. By implementing the strategies outlined in this article, companies can protect revenue, foster customer loyalty and turn challenges into opportunities for growth. In summary, here are the key takeaways:
- Offer flexible cancellation policies and booking options to build trust and accommodate customers’ changing needs.
- Encourage rescheduling and voucher purchases by incentivizing customers with added value and a smooth process.
- Use pre-arrival emails to build excitement, retain customers, and cross-sell or up-sell relevant offers.
- Deliver exceptional customer service across all touch points to address concerns and find solutions that retain bookings.
- Attract and retain local customers with targeted marketing, unique experiences, and loyalty programs.
- Leverage booking data for predictive analytics to identify and proactively address at-risk bookings and demand shifts.
- Turn cancellations into opportunities by showing empathy, offering alternatives, and valuing long-term relationships.
- Automate processes and gain valuable insights with a comprehensive booking software solution.
If you’re ready to take your business to the next level with a powerful booking system, consider Regiondo. Our platform offers all the features you need to effectively manage cancellations, connect with customers, and grow your revenue. To discover how Regiondo can revolutionize your business, request a free demo with one of our experts today.
