Welcome to Boostly Podcast Episode 476. In this podcast we're going to be hearing from Superhog, a guest screening and damage protection business about the pros and cons of the traditional damage deposit, and what solutions they are offering to both hosts and guests.
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Here's the audio for this episode:
Here's the video for this episode:
Timestamps (audio)
01:00 – Pros of taking a traditional damage deposit
02:05 – Cons of a traditional damage deposit
03:33 – How Superhog are solving the issue of deposit cost
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Transcript from the Episode
[00:00:00] Mark: There are those that think that the traditional damage deposit is out of date and is actually affecting your booking process. There are those that swear by it. Now, my name is Mark Simpson. I give hosts all over the world, the tools of tactics to training, but most importantly, to confidence to go and increase your direct bookings and the damage.
[00:00:21] Mark: Is something that has been a hot topic in the hospitality community and team boost, lead and forums further fielded for many years. Now. Now I reached out to some amazing people at super hog to ask this very question, what are the pros and cons of the traditional damage deposit and how they are helping this industry solve it?
[00:00:43] Mark: So I'm gonna throw it over. I've asked for a video. The best of the best is coming up. So please make sure you check this out and then leave the comments below while you are watching with your opinion on the traditional damage deposit. Is it a yay? Is it an a and why?
[00:01:00] Superhog: Hi, mark and everyone at team boostly.
Pros of taking a traditional damage deposit
[00:01:02] Superhog: Thanks very much for asking super hog to answer these really important questions. Um, we talk about this daily with our property managers and also our internal team. We're always trying to find that right solution for deposits for our clients. Um, so first of all, the pros of taking a traditional damage deposit would be.
[00:01:23] Superhog: It's less risk for the property manager. It means that they don't have to fulfill, um, the cost of damage if something was to happen. Um, especially if they haven't got the cash flow for doing that, because if they take that traditional damage deposit, They're going to be able to just pay for the damage from that.
[00:01:41] Superhog: Um, secondly, it's a huge deterrent for guests actually causing damage. During that booking. If I knew I had 500 pounds on the line, I would be being as careful as I could during that state. And secondly, to that, it's gonna deter those guests that are booking that property for no good reason. So, um, maybe it's criminal activity they want to do there, or maybe they're hosting a huge party.
Cons of a traditional damage deposit
[00:02:05] Superhog: It's gonna put those guests off from continuing with that booking. The cons to, uh, taking a traditional damage deposit would be that it costs the property manager, um, to facilitate that. So clients, um, might use a company like Stripe to do that for them. And it costs them commission in both ways, taking the money and refunding it.
[00:02:28] Superhog: Um, and that's obviously adding to running costs of the business. Um, secondly, the actual processing of it, um, that can take time out of a property manager's day. Um, and therefore, you know, they could be getting on with other things. Other than that, um, guest complaints could happen as a result of taking a deposit because they're waiting for the money back after they've checked out.
[00:02:51] Superhog: The host needs to go in and check the property. The cleaners need to check it and maybe, um, the guest starts complaining. And again, that's time, um, communicating with that guest over that. It could also put good guests off, um, booking. Uh, and what I mean by good guests is people that are gonna be genuine during their stay, but maybe they can't afford that deposit.
[00:03:15] Superhog: Um, when they, when they've put their stay because. The holiday or the, or the property, you know, the reason why they're going to that property might have cost them a lot of money to do so. Um, so they might then decide to book, uh, another property instead down the road. Um, I think this will be the least likely reason to happen.
How Superhog are solving the issue of deposit cost
[00:03:33] Superhog: Um, but it could happen. Um, so. How super hog are solving this. So first of all, we want to provide a full solution for our clients and our property managers. Um, and that includes obviously our screening and our upper property protection. Um, but now we are offering, um, a traditional deposit taking facility for our clients, um, up to five, 500 pounds, but we're also, uh, giving them the option of taking a damage waiver.
[00:04:02] Superhog: Um, and this consists of asking the guest for. Smaller fee, um, up to something like 30 pounds and that, um, gives the, the guests up to 500 pounds in a waiver, which means that the property manager won't go after them for any damage, because they are essentially creating a pot of money with all of the bookings that are, they are facilitating in this way.
[00:04:26] Superhog: Um, and therefore they can pay for the damage out of that pot of money, which is not unlike what a traditional insurer does. They take the premiums and pay out few times, um, and that's how they make money. Um, so therefore the damage waiver can create that extra income. Um, I hope this has been useful for, everybody's been really great to, to come on and chat about it.
[00:04:47] Superhog: Um, it's really, uh, something that is talked about so much, like mark. Says at the moment everyone's talking about it and super hold wants to provide that rounded product, uh, and service for property managers to take those things away from.
[00:05:01] Mark: Thank you so much for checking out today's podcast episode now, before you head and go anywhere else before you click to the next episode, before you do that, do me one big favor and go check out boost Lee dot code UK slash trust IPRAC sponsors of all of the boostly content and the reason why I work with them.
[00:05:19] Mark: And the reason why we spread the message of IPRAC is that when a host or a company is looking to get more into direct bookings, the main question they have is around trust as in will a. Trust that I am a true and real business. Will IRA take care of all of that. And they've got a special offer that is only available to boostly people, but to do that, you need to go to boost Lee, which is B O O.
[00:05:43] Mark: TL Y dot co dot UK slash trust. You can find out all the information there. You can book in a demo book in a call, and then you'll get your super special offer that is only available to Boley peoples, thank you again for tuning in do go check out IPRAC. We'll be back again very shortly with another podcast episode, but until then, we'll see you all very soon.
[00:06:02] Mark: Take care.
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