by Turo
posted on November 6, 2024
Key takeaways
• Hosts can now offer non-refundable trips at a 10% or 15% discount — review and make changes starting today
• If a guest cancels a non-refundable trip, the host keeps all earnings, minus Turo fees
• Guests must book at least seven days in advance, and this will replace early bird discounts for guests on November 6
• Hosts who previously offered early bird discounts automatically have non-refundable rates turned on at 10%
• Make changes to your discounts in your “Pricing & discounts” tab before they’re live for guests November 6
As we continue to find ways to improve the Turo experience for guests and hosts alike, we’re excited to introduce non-refundable rates, which hosts can view and adjust starting today.
Since we launched the early bird discount in 2020, guests have locked in lower prices by planning their trips in advance. In turn, hosts could better manage their business with fewer last-minute bookings. In the last few years, however, we’ve seen that trips are more likely to be canceled the further ahead that they’re booked.
Now, we’re introducing a new, non-refundable pricing option that replaces the early bird discount for guests on November 6, in time for the busy holiday travel season ahead. Guests who book in advance can expect more competitive pricing options, and hosts will enjoy more peace of mind knowing their earnings are protected, even if a guest cancels.
All hosts who previously offered early bird discounts automatically have non-refundable rates turned on at a 10% discount, but you have until November 6 to review and change this before the discounted prices go into effect.
How non-refundable rates work
Non-refundable rates have some similarities to the early bird discount they replace, with some important changes.
- Participating hosts can offer discounts on non-refundable rates at either 10% or 15%
- Guests must book their trip at least seven days out to be eligible for the discounted price
- Guests have a 12-hour grace period after booking to cancel non-refundable trips penalty-free
- Hosts keep the earnings, minus Turo fees, if a guest cancels after the grace period
- Guests who shorten a reservation will not be refunded for the unused days, but they will keep the original distance included
- Any days added via an extension to non-refundable trips will also be non-refundable
- Guests can still choose to pay full price for a fully refundable trip
Altogether, these changes are designed to increase bookings, reduce guest cancellations, and protect your earnings as a host.
Increase bookings
Affordability is a top priority for travelers. Similar to other sectors in the travel industry — like airfare or hotel bookings — the non-refundable discount gives guests more affordable and attractive pricing options when they book in advance and are confident in their travel plans. Offering these more competitive rates can help drive up demand for hosts who offer the discount.
Reduce guest cancellations
Cancellations can be particularly frustrating for hosts, not just due to lost earnings, but also the challenge of securing a last-minute replacement booking. Data also shows that trips booked further in advance are more likely to be canceled.
Guest cancellations based on when they book
This chart represents trips booked across all regions where Turo is available between January 1, 2023 and January 1, 2024.
The discounted non-refundable rate helps address this issue. With the outgoing early bird discount, guests could save 5% to 10% and could cancel their booking penalty-free up to 24 hours before the start of a trip. Now they’ll get a deeper discount of 10% or 15%, but they’ll have to trade some flexibility for those savings. If they cancel after the 12-hour grace period, they’ll have to forfeit their payment, which encourages more serious, reliable bookings.
Protect your earnings as a host
While a non-refundable rate may reduce cancellations, it won’t eliminate them entirely. However, as a host, it offers you the peace of mind that your earnings are protected if a guest does cancel. If a guest cancels a non-refundable trip after the 12-hour grace period, you’ll keep the earnings from the original trip, minus the Turo fees, and you can still find a replacement booking to maximize your earnings.
What’s changing, at a glance
When the non-refundable rate discount goes into effect
Hosts can make changes to their non-refundable rates starting today. These rates will replace early bird discounts for guests on November 6, when they’ll begin to see the non-refundable option at checkout.
All hosts who previously offered early bird discounts automatically have non-refundable rates turned on at a 10% discount, but you have until November 6 to review and make changes before the discounted prices go into effect.
You can make changes to your non-refundable rate discount at any time in your vehicle’s “Pricing & discounts” tab, and you can opt out by setting the discount to “None.”
Take a moment today to review your settings and make any adjustments before the new discount goes live.
