The Booking Process - payments
Payment methods
If your guests are booking well in advance, then they are probably happy to pay by cheque. Payment by cheque is a good idea in that it does not involve any costs to you.
If guests are booking just a few days in advance you may well wish them to pay prior to their stay. In which case you may prefer to get payment quicker than is possible by cheque. In this case you may wish to use payment methods such as PayPal or BACS.
PayPal offers a variety of accounts by which you can receive (and send) payments. Normally this will involve a cost to you per transaction, but it can make receiving payment much quicker, and handles foreign currency. For more information see the PayPal website.
BACS stands for ‘Bankers' Automated Clearing Services’ and is a method of paying directly from one bank account to another. Typically it takes 4 days for the transfer to take place but many banks are now part of the ‘faster payments’ system which can conclude the payment within 4 hours. It is always a good idea to check with your bank beforehand.
Deposits
When making a booking your guest will send a deposit. How big that deposit should be is up to you, but typically it varies from 10% to 50%.
A 10% deposit is less expense up front for the guest and so may make it easier for the guest to make the booking, and therefore tempt them to make the booking there and then.
A 50% deposit is better for your cashflow as it spreads out the income more evenly. It also makes in less likely that the guest will cancel.
Remember to include the payment schedule in your terms and conditions page (see below).
Housekeeping deposit
It can be a good idea to charge a housekeeping deposit to cover any major damage. It will also serve as a useful incentive to guests to keep the cottage in good order!
If you do charge a housekeeping deposit, ensure that this is clear to guests via your website, and add a reminder in your tracking spreadsheet.
Cancellations
Ideally you should provide your guests with a cancellation policy, showing the effects of cancelling their booking at different times.
This should be a sliding scale. So, for example, if a guest books well in advance and then cancels shortly afterwards, you might be prepared to provide a full refund, whereas if the guest cancels just prior to the holiday, then a small refund or no refund may be more appropriate.
You may also choose to state that you will only provide a refund if you can re-let the property.
Your cancellation policy should be placed on your terms and conditions page (see below).
Terms and conditions
Your website should contain a terms and conditions page where you make clear what your terms and conditions are regarding prices, payment and payment dates and cancellations.
Why not have a look at the HowToHolidayCottage off-the-peg websites which include a terms and conditions page, and many other facilities.
