In dit artikel
No-shows, the daily struggle for hoteliers
Every accommodation has to deal with it, from bed and breakfasts and holiday homes to hotels. A no-show is always frustrating. A waste of the emptiness of the room and the revenue you miss out on. How do you reduce no-shows and what can you reasonably charge? We give you tips for reducing no-shows in your hotel!
What is a no-show?
A no-show is a literal translation for 'not appearing.' Guests who have made a booking, from whom you expect them to check in, but ultimately do not show up without any notification. It is virtually impossible to prevent no-shows. A good policy for no-shows is therefore of critical importance.
Why prevent no-shows
Often for a valid reason, sometimes just due to laziness. This last reason is logically seeing more common among budget hotels and short stay accommodations.
The anonymity of the internet does not contribute positively to the number of no-shows. When guests feel anonymous, they feel less restrained about not showing up without notice. Telephone and email contact typically work better as there has been personal engagement. Bookings via third-party platforms often have a lower reputation concerning no-shows at hotels. Last-minute bookings also hold this risk in comparison to early bookings.
The percentage varies greatly due to many circumstances, ranging from 0.5% to even 10%.
What does a no-show cost?
In most situations, a guest must pay for the full accommodation in case of a no-show. However, hotels charge an average expenditure from guests during their stay. You miss out on that profit and that's your direct loss. Moreover, you have management and it may be dependent on a possible rest payment of the outstanding amount. Consider also potential collection costs. Staff may be scheduled unnecessarily, and purchases are based on reservations.
Commission costs from booking platforms
It differs per platform whether they grant relief concerning already charged commission costs. Booking.com states on its website that these costs are not charged unless the accommodation is partially or fully settled by the guest. However, each platform operates differently, so check this carefully to adjust your no-show policy accordingly.
Implementing down payments to reduce no-shows
Requiring a down payment for bookings will certainly reduce the number of no-shows, beyond the fact that a partial payment takes place that you (depending on cancellation terms) do not have to refund, ensuring a baseline amount/revenue. The willingness for a down payment leads guests often to perceive the booking as definitive, and a no-show is less likely. If you do not work with down payments and the percentage of no-shows is relatively high, then this should certainly be taken into consideration for a trial period. Furthermore, increasing the down payment percentage can also lead to a reduction in no-shows.
Down payments are generally viewed as acceptable by consumers (or business guests). Rarely is a down payment a reason not to complete a booking, although this will depend on the accommodation – and especially the hotel's target audience. You might even consider trialing it for a specific period to see if there is a decline in bookings. Even applying a down payment for specific actions and arrangements is valuable experimental data to collect.
Paying the full amount, especially for last-minute stays, is widespread. The quick transitions via booking platforms have led to a situation where a large portion of bookings are paid for up front online via platforms like Booking.com.
Simplify cancellations
A cancellation is never pleasant. But hiding and complicating cancellation opportunities has the opposite effect. If someone wants to cancel, and you make it challenging, it can lead to procrastination. This results in late notification, making it impossible to rent out the room again.
Open all channels: WhatsApp, Facebook messenger, email, phone, etc. Ensure you are easily reachable and a cancellation can be processed swiftly. Immediate follow-up can also lead to a last-minute booking.
Overbooking
In aviation, this is routinely applied, but in hospitality, it seems less transparent. Nevertheless, it often occurs that overbookings are accepted. It's tricky, and as a hotelier, you run significant risks — particularly with a relatively small number of rooms. While I don’t recommend it as a preferred tactic, hotel managers have successfully boosted revenue with overbookings. Remember though, a disappointed guest, who blames the mishap on the hotel management or the colleague who already went home, doesn’t create a positive experience. So be cautious with overbookings and always have a contingency plan in place in case everyone does show up.
Maintain contact
A rather obvious tip. Send booking confirmations and pre-arrival mailings. Preferably, send these on behalf of yourself or a colleague. This personalizes your email and engages your guest. They will definitely reach out if a reservation needs to be canceled.
Document no-shows
Measure the number of no-shows and ensure you recognize the percentages and no-show behavior. A good PMS system helps you with this and maps out the developments of no-shows in your hotel.
