by Alfred & Emily Glossbrenner of FullyBookedRentals
Here’s a sad scenario: The day before your next guests are due to check in, they call with bad news. One of them is too sick to travel. Or there’s been a death in the family. Or a major ice storm has brought down power lines and closed the airport. They’re going to have to cancel their travel plans.
If only they had heeded the advice in a recent Wall Street Journal article (February 14, 2009) about the importance of buying travel insurance with trip-cancellation coverage (“Road Hazards: Buying Travel Insurance is More Imporant—and More Complicated—Than Ever”). With the right policy, they’d be entitled to reimbursement from the insurance company for their nonrefundable expenses.
But as the article explains, choosing the right policy can be complicated. So even though it’s not all that expensive, adding about 4% to 8% to the cost of the trip, most travelers just skip it.
So what do you do, as the vacation-rental owner, when a guest calls to cancel at the last minute? You’re sympathetic, of course. But should you feel obligated to refund their money? In our opinion, absolutely not. Unless you’re able to rebook your property for the dates these guests have cancelled. You’re not a big hotel, after all, and you shouldn’t be expected to take a financial hit because of your guests’ misfortune. That’s what travel insurance is for.
If you’ve established a clear cancellation and refund policy, communicated it to your guests in writing in your rental agreement, and encouraged them to consider buying a travel insurance policy with trip-cancellation coverage, you’ve done everything right in our view. The rest is up to your guests.
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These companies cited in the Wall Street Journal article help travelers compare prices and features of travel-insurance policies. What’s in it for them? The companies generally receive commissions when a policy is purchased.
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About the Authors: Alfred & Emily Glossbrenner are the authors of the highly acclaimed book/CD package How to Make Your Vacation Property Work for You! and co-founders of FullyBookedRentals, a new membership website dedicated to helping other VR owners advertise, rent, and manage their properties effectively, professionally, and profitably. Take advantage of their special introductory offer of $29.95 for a full-year membership by entering the promotion code FVR40 during the sign-up process. For more on FullyBookedRentals member benefits and to sign up, click here.
