You held a room for a guest who promised to pay. The weekend comes, no money arrives, no guest shows up, and your room sits empty. Painful, right? A clear payment policy for accommodation owners is your safety net against moments like this. It protects your income and shows guests you run a professional, well‑organised spot with clear payment terms for accommodation.
We caught up with John‑Ross Hugo, NightsBridge’s Product Adoption Manager. He’s helped hundreds of owners find a payment policy that actually works, and knows where people stumble, what guests appreciate, and how to keep it friendly without losing firmness.
The Interview: Payment policy for accommodation owners in practice.
Q: JR, people often think of a payment policy as just “ask for a deposit.” What’s your take?
A: A deposit is key, but there’s more. What price the guest pays. How they pay. How much and by when. What flexibility they want (or can afford). What the costs are if they cancel. What’s involved with a refund. These answer your guests’ questions and help you streamline operations. You’ll get more committed guests.
Q: Deposits then. What’s the sweet spot?
A: Most places ask 30% to 50% as part of a booking deposit policy. But it’s also about offering the right policy to the right guest. Choose what prevents headaches for you.
- For last‑minute bookings, enforce a 100% deposit. It covers cancellations and drives commitment.
- A non‑refundable policy (100% deposit) on the channels, often at a slightly lower rate, can boost bookings and reduce cancellations. If you’re only paid via Booking.com’s virtual card and use our gateway, that virtual card is swiped the next day.
How you take payment is also vital. Guests who book online like to pay online — build this into your payment terms for accommodation. Logging in to online banking for an EFT is cumbersome. Then you wait for confirmation. That’s painful for a last‑minute booking.
Secure card payment gives the guest peace of mind that their booking is confirmed. You know you have a committed guest.
Q: And balances? When should owners collect those?
Q: And balances? When should owners collect those?A: It depends how you like to run your payment terms for accommodation. Some prefer balances before arrival. That’s brilliant for cash flow and useful if you won’t meet the guest. Others collect on check‑in, which gives guests flexibility. Either works as long as it’s crystal clear from the start, so the guest can budget accordingly.
If you’re taking payment before arrival, align your payment terms for accommodation to when your strictest cancellation fee kicks in. For example, if the guest loses 100% when cancelling 7 days out, have 100% payment 7–8 days before arrival. Your cancellation is only effective if you have the money. Our automated payment link feature can handle this for gateway clients.
Q: Cancellations can sound harsh. How do you keep policies fair but kind?
A: Keep it clear. Be considerate. Offer options. If the guest knows the costs when booking, you’re covered.
Add some warm and fuzziness. If the guest has a good reason, you can waive the cancellation fee. Or offer a credit for a future trip if you keep the money. Many clients do this. You’re not just thinking about one booking. You’re building a brand ambassador who can return and refer friends and family.
Offer a free‑cancellation policy at a higher price or a non‑refundable at a lower price. The guest chooses what works for them. You increase bookings, reduce cancellations, and the guest feels in control.
Q: Refunds?
A: In any payment policy for holiday rentals, be clear about who covers card fees on refunds. Always refund the same way the original payment was taken, to avoid getting double‑deducted by a surprise chargeback. Both of these are especially important when processing card payments.
Undersell and overdeliver on timing. Say it can take up to 10 days. Sooner feels like a win.
For international guests, warn about small exchange‑rate differences. The amount back may differ slightly from the amount paid. It’s usually minor unless there’s a long gap or a large amount.
Q: You’ve mentioned automation a few times. Why is that so important here?
A: It’s the friend you can trust. It takes the thinking stress away and gives you back your most valuable asset: time.
Here, we mean payment automation. Take the deposit at booking. Capture the payment in your system. Remind the guest to pay the balance. Know when to process the virtual card — and for how much. Each step takes time and invites errors. Errors cost money.
Q: Last word – what makes a payment policy really work?
A: Your payment policy reduces operational work and helps cash flow. Guests want to pay online. They want flexibility and clarity: how much to pay and by when. Like you, guests try to maximise value and manage money well.
A real story.
Pieter runs a cosy lodge in the Drakensberg. He used to “trust” guests to pay deposits. Often, they didn’t. One peak weekend he lost the booking and the revenue.
He added one line: “Deposits clear within 48 hours or the booking is released.” Now he sleeps easier. Guests know where they stand.
“Your payment policy can be as effective as specials with bringing you more bookings.”
– John-Ross Hugo, NightsBridge Product Adoption Manager
Final thoughts.
A payment policy for accommodation owners doesn’t need to be stiff or scary. Friendly but firm works on both sides. Set deposit deadlines. Handle balances smoothly. Write cancellation terms with care. Process refunds fast. Add a little automation behind the scenes – these are strong payment terms for accommodation.
Want to take a step further? See how this fits into the bigger picture of guest payments in our introduction guide.
Takeaway: Set clear rules, deliver them kindly, and let the tech handle the chasing. You’ll keep your cash flow strong and your guest relationships even stronger.