no-show in hotels: what it is and how to reduce it
- December 10, 2023
What is the meaning of “No-Show” in hotels?
A “No-Show” happens when a guest who has a confirmed room reservation does not cancel it in time and he fails to check in at the hotel. It simply means that the guests didn’t arrive on the check-in date.
What are the implications of No-Shows in Hotels?
A no-show hotel booking is a big problem for hotels.
Loss of Revenue :
Housekeeping and front desk staff manage rooms based on room reservations. When a room falls which was supposed to be filled falls vacant it leads to inefficiencies.
Bad Reputation :
If there are too many and frequent no shows, it disrupts hotel planning and also puts an impact on guest satisfaction.
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What are the common reasons for No-Shows in hotels?
There could be several reasons behind no shows. If hotel owners analyse these reasons, it can help hotels to take preventive measures accordingly. The reasons are as follows:
Change of Plans – Guests can have unexpected changes in their schedule. This could lead to last-minute modifications in their itinerary or cancellations.
Booking Errors – There could be many mistakes such as incorrect check-in/check-out dates, duplicate reservations or mismatched details. All these can cause disruptions and cancellations.
Ineffective No-Show Policies If the hotel has weak or lenient cancellation policies and there are no penalties it can discourage non-cancellations. This can result in revenue loss for hotels.
Lack of Communication Guests might overlook confirmation emails and reminders. As a result, guests might forget about the bookings or there could also be last-minute cancellations.
Seasonality During peak travel seasons, travellers often book rooms at multiple hotels. Their aim is to secure the best option. This increases last-minute cancellations.
Competitive Offers Guests cancel room reservations when they find better or more attractive deals at another hotel in the form of discounts.
Some key statistics related to no shows in hotels are as follows:
According to hospitality.net there are several reasons behind no shows:
9% of guests chose to stay at home.
8% of guests forgot about their booking.
5% of guests couldn’t come because they didn’t have a babysitter.
6% of guests skipped their stay as they had no one to look after their dog.
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Request a DemoHow to reduce No-Shows in hotels
By using Booking Master hotel management software: Hotel owners can reduce and tackle no shows in hotels in the best possible manner by using Booking Master hotel management software . Booking Master provides hoteliers with a number of tools that eliminates the chances of no shows in hotels completely. These are:
Channel Manager
It updates room availability across all platforms in real-time. In this manner it prevents overbooking and reduces no-shows as well.
Booking Engine
It makes online booking easy and quick. When the discounts are attractive, guests prefer to book directly from the hotel’s website using Booking Engine. And while doing so, they will make sure that they go through the cancellation policy. Thus, the chances of no shows get reduced automatically.
Automated Reminders
Hotel team can send emails, WhatsApp messages and SMS to remind guests about their bookings using Booking Master. This stress-free process reduces the chances of cancellations and no-shows.
By collecting advance deposits:
If guests are making casual reservations, then it can be prevented by charging a small, non-refundable deposit. Guests are more likely to honor their bookings because they have already made a partial payment for the room.
By offering flexible cancellation policies:
If the hotel has a reasonable cancellation window it gives the guests the liberty to modify their bookings without facing any sort of penalties. This reduces last-minute cancellations. At the same time it helps in maintaining customer satisfaction and loyalty.
By implementing no-show fees:
If the hotel can chalk out a predefined no-show penalty it can discourage guests from skipping their reservations. For instance, guests can be asked to pay 20% of the booking amount 5 days before they check-in. This process can save the hotel from financial losses.
By incentivizing direct bookings:
As mentioned earlier, the hotel owner needs to encourage guests to book directly through the hotel’s website. This can be done by offering incentives like discounted rates, free breakfast, spa sessions, restaurant coupons or loyalty points. Booking Master’s Booking Engine can simplify this process and increase direct reservations. This is a good strategy to prevent no shows.
By adopting Overbooking Strategy:
Hotels can overbook a limited number of rooms. This figure should be based on historical data and a good analysis which gives an idea on the assumption of how many will cancel or not show up. This helps in maximizing room occupancy and revenue. However, miscalculations can lead to room shortages. Booking Master Hotel Booking System provides real time reports and analytics on each and every parameter based on guest records that can be utilised for making the correct assumption. Booking Master’s expert team assists hotels in managing overbooking with data-driven insights and this balances availability.
By maintaining a waitlist just like a rail ticket:
If there is a waitlist it ensures that rooms do not go unused even if a guest cancels at the last minute. This minimizes financial losses and improves the room occupancy rates.
By building strong guest relationships:
If a hotel provides personalized attention this makes guests feel valued. Plus, if there is online reputation management (as provided by Booking Master) it further enhances the credibility of the hotel. When the hotel succeeds in building guest trust it reduces no-shows. Booking Master helps hotels in maintaining a strong online presence.
Conclusion
No-shows can be a problem for hotels. But hotels can manage them with smart policies, clear communication and a good hotel management software like Booking Master. This reduces revenue losses and makes sure that guests keep returning to your hotel. Booking Master helps you stay ahead.
