Nearly Half of Consumers More Likely to Stay at Hotels That Offer Hassle-Free Cancellations, Refunds

As the rise of the omicron variant brings the pandemic back to the top of mind for consumers, if it wasn’t there already, providers of travel and entertainment services may want to remember that hassle-free cancellation and clear refund policies went a long way toward building consumers’ confidence to book hospitality services.

According to Merchant Refund Policies, a PYMNTS and Fortis collaboration that surveyed 2,133 U.S. consumers between Sept. 8 and Sept. 21, 2021, some consumers said they may limit their travel and entertainment plans well into 2022 if the pandemic is still hurting public health and the economy.

Get the report: Merchant Refund Policies: Keeping Travel And Entertainment On Track

Overall, well over one-third of consumers said they expect pandemic-related concerns to have an “extremely” or “very” big effect on their interest in using hospitality services in the next 12 months, with 44% saying that of events, 41% saying it of attractions and 37% saying it of hotels.

In response to pandemic conditions, consumers are planning to take several actions, including going to more outdoor events, spending more time reviewing cancellation and refund policies before booking, not traveling as far and decreasing the amount of money spent on hospitality services.

Offering hassle-free cancellations and refunds can help providers of different travel and entertainment services acquire and retain customers and encourage repeat business. That holds true for hoteliers, concert promoters, arena managers and amusement park operators.

The survey found that well over 40% of consumers who are “very” or “extremely” likely to use hospitality services say providers offering hassle-free cancellations and refunds would increase demand of these services in the next 12 months. In fact, 47% of consumers say that about hotels, 44% say it about attractions and 44% also say it about events.