If you are selling a product on eBay, you are required to clearly define your return policy, and if your website is involved in any type of e-commerce or online payments, payment gateway service providers such as Authorize.net will require that your site defines its refund policies. Your policy may simply be “no returns and no refunds under any circumstances”, but that policy needs to be clearly defined – both for your protection and for the protection of your customers. Misunderstandings can lead to disagreements and the need for mediation.
One of my company’s clients e-mailed me late last week, after one of her campers contacted her on Friday, asking for a refund – minus her stipulated $25.00 processing fee – for a last-minute cancellation of his weekend reservation, due to a less than perfect weather forecast. The client balked at allowing the refund, even though her website did not clearly define the terms for cancellations and refunds. Under the circumstances, this first-time guest at her park was making a totally reasonable request. With this instance in mind, it may be time to take a closer look at your own park’s cancellation and refund policies, confirming that they are covering the full range of potential circumstances.
As I explained to the client last week, most of our campground clients who are booking either real-time reservations or online reservation requests have policies that are much more clearly defined than what she had instructed us to post to her site. Typically, they might say that a full refund, less a $25.00 administrative fee, will be issued if the cancellation is made 14 days or more prior to the intended date of arrival; a credit for a stay at another date will be issued if the cancellation is made between 7 and 14 days prior to the intended date of arrival; and no refunds will be issued for cancellations made less than 7 days prior to the intended date of arrival. Each park is likely to have its own timeline for cancellations, its own administrative fee (if any), its own expiration date for any credits that it may issue, and probably separate schedules for campsites and rental units. The important thing is for all of those details to be clearly defined.
Many of our more savvy campground clients (typically, campground owners who have decades of experience in dealing with people who will try to find loopholes that they can use to their advantage, in this case capitalizing upon any vagueness in a cancellation and refund policy) will also specify the following:
- Deposit forfeited for non-arrival on scheduled arrival date.
- Holidays, special events, monthly and seasonal reservations are non-refundable.
- No refunds for early departure.
- No refunds due to inclement weather.
- No refunds for evictions due to violation of rules.
These policies should be clearly visible on your website, accompanying your rates and probably repeated on a page that lists your park’s rules and policies. You want your customers to see them, and you also want to be able to direct customers to the text should any misunderstandings arise. I also suggest that cancellation and refund policies be outlined, with a link to the full list, at the end of the reservation process, using a checkbox where the guest must indicate acceptance of those policies before the form will be processed.
I know that some people like to keep things simple, and others fear that they might scare away business by posting what might be perceived as stringent policies; however, a customer who is unwilling to accept reasonable cancellation and refund policies is probably not the ideal guest.
Despite having policies that are crystal-clear and etched in stone, you will probably still want to evaluate each instance individually, exercising a degree of discretion in resolving each request. The bottom line these days is that, if a customer demands a refund, it is a lot less expensive in the long run to keep that customer happy than to suffer the consequences of encouraging him to post negative reviews or to complain on the social media. Going out of your way to make an exception to the rule in order to accommodate a first-time guest might turn that new customer into a lifetime source of income for your park.
Remember that, at least in his or her own mind, the customer is always right. Try to make an effort to help reasonable people to understand – in advance – your business’s point of view when it comes to cancellations and refunds.
This post was written by Peter Pelland