Different Types of Restrictions to Apply on OTAs to maximize Hotel Business

Different Types of Restrictions to Apply on OTAs to maximize Hotel Business

It may seem like applying restrictions can decrease hotel business but that is not true always. If you are getting lesser traffic in your hotel then you may avoid restrictions but a hotel where the customer traffic is high, applying restrictions can help in managing the business more smoothly.

Following are 2 most commonly used restrictions to apply if you are running good on occupancy:

1. Strict Cancellation Policy - If you are already getting good traffic in your hotel then you should apply a strict cancellation policy in your hotel so that customers who are not sure of staying do not book your hotel in the first place. Most of these customers ultimately end up cancelling their booking one day prior to their check-in date. We had many hotels in our portfolio where the traffic gradually increased to very high levels, which also resulted in high cancellations. Hence we had to apply a 7 day non refundable cancellation policy in order to control bookings.
2. MLOS (Minimum Length of Stay) - As the name suggests, MLOS allows you to restrict customers who are looking for a stay of just one day. Suppose you want only the customers who are willing to book your hotel for 2 or 3 nights then you can apply an MLOS of 2 or 3 nights. Now when someone searches for a hotel in your locality then your hotel will only show up to the people who are looking for more than 1 night stay. This restriction can be used when there is some kind of even going on in your locality and you wish people to stay for at least a specific span of time.

Tip : Applying strict cancellation policy when you are getting high traffic can also help you earn extra money when someone cancels their booking.