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You are designing a cancellation and refund system for an online booking platform. Which approach best balances user trust and system scalability?

hard📝 Trade-off Q15 of 15
LLD - Design — Hotel Booking System
You are designing a cancellation and refund system for an online booking platform. Which approach best balances user trust and system scalability?
AAllow partial refund based on how close cancellation is to booking time
BAllow full refund anytime, no restrictions
CAllow full refund only if cancellation is made 24 hours before booking time, else no refund
DNever allow refunds to avoid complexity
Step-by-Step Solution
Solution:
  1. Step 1: Consider user trust

    Partial refunds based on cancellation timing show fairness and flexibility, building trust.
  2. Step 2: Consider system scalability

    Partial refund rules can be implemented with clear logic and scale well without manual intervention.
  3. Step 3: Evaluate other options

    Full refund anytime is costly; no refunds reduce trust; strict cutoff is less flexible.
  4. Final Answer:

    Allow partial refund based on how close cancellation is to booking time -> Option A
  5. Quick Check:

    Partial refund balances trust and scalability [OK]
Quick Trick: Partial refunds balance fairness and system load best [OK]
Common Mistakes:
  • Choosing no refund which harms user trust
  • Allowing full refund anytime which is costly
  • Using strict cutoff without flexibility

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