Cancellation policy optimisation and promotional strategies for properties of every category.
The question most properties ask isn’t “what price should I charge?” It’s “what policy should I use?” And the answer is almost always: it depends.
It depends on the property, the season, the type of guest you attract and what you’re trying to protect. There’s no single policy that works for everyone. There’s the right combination for your property.
What Each Policy Actually Does
Free cancellation fills the calendar early, but it carries risk. Guests book and cancel at no cost, leaving dates open close to arrival. For high-demand properties, that often means lost revenue that’s hard to recover.
Non-refundable rates protect revenue and typically come with a lower price point. They work well for guests who book early and are confident in their plans, but they’re not the right fit for every property or every time of year.
Early bird fills slower periods well in advance by offering a lower rate in exchange for a confirmed booking. Used correctly, it’s a forecasting tool, not a discount strategy.
Last minute can fill gaps close to arrival, but without a clear strategy behind it, it trains guests to wait for lower prices and gradually erodes the perceived value of the property.
How Konnect Handles It
We don’t apply a single policy across the board. We build separate rate plans for each cancellation policy, anchored to the minimum selling price the owner sets based on their operating costs. Above that floor, dynamic pricing adjusts rates automatically based on demand, seasonality and the local competitive landscape.
We track occupancy, ADR and RevPAR daily, measure performance against targets and adjust strategy in real time. When needed, we use platform-specific promotional offers to boost visibility during slower periods — without touching the property’s baseline rate.
The goal isn’t high occupancy. It’s maximum RevPAR: the right rate, at the right time, for the right guest.