WHY DO ACCOMMODATION BUSINESSES REQUEST DEPOSITS?
For those who don't understand the principle behind deposits, here's an explanation...
|If someone makes a booking, the accommodation they have booked becomes unavailable to anyone else who might want it, and any enquiries are turned away. If the customer who booked doesn't turn up, or decides to cancel, the business owner loses income. The shorter the notice of cancellation and the busier the period, the more probable and the more substantial the loss of income will be. The business therefore minimizes its potential loss by requesting a deposit to cover a percentage of the booked period. The taking of deposits to protect the business owner is standard accommodation industry practice worldwide.|
|Some businesses, including ours, will return a fair percentage of the deposit in the event of a cancellation, depending on when both the booking and cancellation were made.|
|When a cancellation is made governs the likelihood of someone else booking the accommodation, and this in turn governs the amount of the refund. If the cancellation period is a fortnight or less, there is no refund. This is because a rebooking at an establishment of this nature becomes unlikely at such short notice: Most people seeking a booking have by then already sought alternatives, and not many people plan their holidays only two weeks in advance.|
|Remember: There is no obligation for the business owner to refund any or all of a deposit, and many big accommodation businesses will not do so, regardless of whether or not the accommodation is rebooked.|