Offering refunds is a contentious topic between venues and their customers. Customers expect venues, events and holiday providers to treat them with respect and empathy should something go wrong with their booking. But, from a commercial stand point, offering refunds can be a logistical and financial nightmare. So why should you not process refunds yourself?
Giving money back is expensive
For example, you’ve sold 1000 tickets for an event and made £10,000. Imagine a few large group bookings cancel. That’s immediately a large chunk of your sales – vanished. While many theatres offer some level of goodwill and discretion when it comes to refunds, as standard most venues will not offer refunds or exchanges in any circumstance. The reason for this is simple – refunding is expensive.
Event organisers of free events can expect up to 50% dropout rate. This is a sobering statistic that shows people may impulsively buy tickets for future events before they sell out – and they realise they can no longer make the event. If the industry was known for offering refunds, it’s likely customers would make the most of this and venues would lose out.
Monitoring and tracking sales becomes harder
Any business, particularly ones in the live entertainment industry, has to monitor and project sales figures. This becomes almost impossible to do if you must take into account possible refunds and cancellations. Having a no refund policy, or arranging refund protection via a third party, means that whatever sales are showing up on your report are a fully accurate representation. Businesses can then plan their spending accordingly.
Administering refunds is costly and time-consuming
Even if your venue can financially cope with refunding tickets, someone has to physically process each one. From communication with the customer right through to arranging the monetary transaction, someone must be responsible for the process. And this either puts unnecessary strain on existing staff members, or calls for your business to hire someone specifically to administer refunds. Therefore, this is understandably not a viable option for many.
Our customers offer ticket protection through Booking Protect as our team handle all refund applications, without adding any work for their own team. They know that all cases are being handled by a dedicated, competent team and trust us to act as an extension of their own customer service.
Regulating refunds can be difficult
If an event is cancelled, rescheduled or there are significant changes, customers are entitled to ask for a refund. But there are no other legalities in place to enforce live entertainment venues to provide a refund. This leaves refund policies open to interpretation by each individual venue.
Do you have clear T&Cs in place? Knowing exactly what your venue will accept as a valid reason for refund is imperative. Most businesses choose a ‘no refund’ policy altogether to avoid this problem.
For example, if one member of staff refunds a ticket due to family illness and another refuses, your customers could quickly become confused, dissatisfied and angry that your venue has an inconsistent and potentially unfair refund policy. That’s why, here at Booking Protect, our team knows our T&Cs inside out and always follows a strict protocol to ensure total fairness for our customers.
Our partners can make sure customers receive coverage when their reasons are legitimate. This means they can provide additional customer service without needing to worry about implementing their own individual refund policy.
Unexpected events can floor your sales figures when you process refunds yourself
Your venue will need separate insurance cover to protect you against unexpected incidents that means you have to cancel an event. But what happens if your customer can’t make your event? If there’s a local flood or public transport issue you could find most customers caught up in the same problem. And, unable to attend your event, this disruption could significantly impact your business.
Why you should consider a third-party refund protection provider to process refunds
When you partner with a third-party refund protection service, such as Booking Protect, you can avoid the above troubles while still providing your customers with an additional refund protection option. This gives your customers the empowerment to decide whether they want to protect their tickets or take a risk. Whatever their decision, your business has offered an additional level of customer service.
You’ll also receive an additional revenue stream if you partner with Booking Protect. We offer our partners a percentage of all refund protection purchases, meaning you get some extra cash for no extra work.
It’s a no brainer to offer your customers refunds if they are unavoidably unable to attend your event. And with Booking Protect there’s an easy way to do this that won’t put pressure on your team or your finances.
Contact the team to see how we can save you money, make you money and improve your customer service.