How To Handle No-Shows And Cancellations At Your Hotel?




When you run a hotel, you can control a few things - the guest experience, the inventory, the amenities etc.
One thing you can’t control is last-minute no-shows and cancellations. No-shows and cancellations can affect your hotel negatively - there’s an empty room left to fill with very little time to fill it. If you can’t, you lose revenue and profitability is affected.


The Difference Between No-Shows and Cancellations
A cancellation is when a person goes through the channel they used to book a room at your hotel, to cancel their reservation.


A no-show happens when the guest is unable to cancel the booking, or if it’s too late to do so, so they decide to just not turn up and leave it at that.
How to Handle These Kind of Cases?
Most of the reservations at your hotel probably take place through online channels and OTAs.


Have a robust cancellation policy defined to handle these types of cases. And have this policy displayed clearly and precisely on those online channels.
After a booking, you’ll be supplied with the customer’s contact details. Get in touch with them with a greeting, but also mention your hotel’s cancellation policy at the bottom.


Cancellation and No-Show Best Practices
Most hotels have a 24-hour cancellation policy i.e. they can cancel their reservation without incurring any charges up to 24 hours before their booking period kicks in.
Some hotels keep it to 48 hours, some to 72 while some keep it to a week or two.
Upfront payment, cancellation fees or partial deposits are known to drive potential customers away, and many hotels steer clear of them. A better way would be to have an incremental cancellation policy that would help you recover costs in case of cancellations or no-shows.


For example 20% payment or 80% refund in case of cancellation up to 72 hours before the reservation, 30% up to 48 hours, 40% up to 24 hours and 50% beyond that.


Another way to reduce the risks of losing revenue is to have an automated confirmation system set up in order to remind the customer a couple days before their check-in date about their reservation and to have them confirm or cancel their reservation.
This prompts the guest to confirm their reservation more often than not, putting your mind at ease.
Woodstock Digital specializes in hotel solutions, services, and best practices. We know what works best for your hotel, and our end-to-end solutions can take your hotel to the top. Enquire now!


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