Reducing Late Cancellations: A Guide for Facility Managers

How much revenue do you lose every month from customers who either cancel at the last minute (leaving you no time to make their booking time available to others) or just completely fail to turn up for their booking (and didn’t pay prior to arrival)?

The Impact of Late Cancellations on Revenue

During the onboarding process at Pitchbooking, we observe that an average of 12% of total revenue is lost to late cancellations and no-shows. While the exact figure varies depending on the facility, this trend can lead to significant financial challenges, including:

• Cash flow problems
• Heavily reduced profitability
• Decreased viability of sports facilities

For many Facility Managers, this loss—amounting to thousands of pounds annually—is both staggering and often unnoticed.

Start with a Clear Cancellation Policy

A well-defined refund and cancellation policy is the first line of defense against late cancellations and no-shows. At Pitchbooking, we’ve helped thousands of facilities craft effective policies. While every facility has unique needs, a good cancellation policy should include:

• Minimum notification periods: For example, cancellations made at least 24 hours in advance incur no penalty.
• Grace allowances: For instance, waiving the penalty for the first ‘mistaken’ no-show, but charging for subsequent occurrences.

Best Practices for Cancellation Policies

1. Make it simple: Policies should be easy to understand for both staff and customers.
2. Exercise discretion: Allow flexibility for genuine emergencies.
3. Use technology: With the Pitchbooking platform, you can quickly reopen cancelled slots to other customers, minimizing revenue loss.

By adopting a clear and enforceable cancellation policy, facilities can strike a balance between customer fairness and protecting their bottom line.

The Benefits of Upfront Payments

Enabling online payments through the Pitchbooking platform allows your facility to collect upfront payments, which can drastically reduce late cancellations and no-shows. Key benefits include:

• Guaranteed payment: Even if the customer fails to show up, your revenue is secure.
• Reduced speculative bookings: Customers are less likely to make casual, non-committal reservations.

Automating Recurring Payments with Block Bookings

Block bookings ensure predictable, recurring revenue for your facility. The Pitchbooking platform automates payment collection for recurring bookings, requiring just a one-time setup of customer payment details. This streamlines operations and ensures consistent revenue generation.

Educate Your Customers on the “Why”

It’s important to communicate the rationale behind your cancellation policy. Here’s how:

*Explain the impact: Cancellations and no-shows affect your ability to keep prices affordable and the facility operational.
*Emphasize fairness: A clear policy benefits both the facility and its customers by ensuring fair access to booking slots.
*Be transparent: Display your cancellation policy prominently during the booking process and on your website.

Additional Resources

For more insights and tips on improving your facility’s operations, check out these helpful articles:

• How to Set Up Online Payments
• Managing Block Bookings
• Facility Management Best Practices

FAQs About Reducing Late Cancellations

Why should I implement a cancellation policy?

A cancellation policy protects your revenue and ensures fair access to bookings. Without it, facilities risk losing thousands annually due to no-shows and last-minute cancellations.

How can Pitchbooking help reduce late cancellations?

Pitchbooking offers tools such as online payments, automated block bookings, and quick slot reopening to minimize revenue loss and streamline operations.

What if customers complain about the policy?

Clearly communicate the benefits of the policy for both the facility and its customers, emphasizing how it helps keep prices affordable and operations running smoothly.

Can I customize my cancellation policy?

Yes, the Pitchbooking platform allows full customization of policies to suit your facility’s unique needs.

By taking proactive steps to reduce late cancellations, Facility Managers can protect their revenue and provide a better experience for their customers. Start optimizing your operations today with Pitchbooking!