Do you know that the average no-show rate in the hotel industry is between 8% and 15% of all bookings? A no-show is a worst-case scenario as it leaves the room vacant for that day; directly impacting your profit margins and productivity. It also leads to poor marketing because OTAs keep track of a hotel’s cancellations.
A no-show occurs due to some guest factors. Nonetheless, as researchers have discovered, a large part of these no-shows are due to deal-seeking customers who are committed to hunting for the best hotel deals.
As a hotelier, you must first understand the matter of no-show at your hotel. What’s your rate of no-show? How’s it different? All this information should be provided by your PMS. Draw perspectives from your guest information and work on them.
Hotels can implement a combination of overbooking strategies and cancellation policies to reduce risks associated with no-show
1) Impose a firm cancellation policy
Include in your hotel reservation process a well-structured cancellation policy and make it clear to your guests. The policy must be guest-friendly but also protect your hotel’s interests. Make sure under the circumstance of a no-show the customers are held accountable. A stricter cancellation policy can give win-win benefits to your hotel and customers. Also, it reduces bogus bookings.
2) Implement a thorough overbooking strategy
Though overbooking seems to have negative implications for the customers, 20% of the total revenue opportunity for hotels comes from overbooking strategies. The secret to successful overbooking strategies while maintaining a reasonable customer service level is to gather accurate data on no-shows, cancellations, and last-minute customers.
Besides, here are some intervention strategies that can opt to reduce no show at your hotel:
3) Offer discounts and deals
Verify your customer’s reservation and offer them a discount. Grant those customers that make early bookings with special upgrades or deals. This makes you appear more reliable as you reward your customers with better rates.
4) Send automated reminders
It gives guests a personalized experience when you keep the communication going. Arrange your message to let them know you’re looking forward to their stay with you. Invest in a digital hotel booking software that integrates well with mobile devices. Set automatic emails and SMS that sends reminders and updates about your upcoming trips and deals.
5) Be responsive
Keep a no-show record. Your front office needs to be diligent and responsive. Contact your guests immediately in case of a no-show. The information gathered will enable you to resell that empty room. Explain calmly why a no-show fee is required. Propose something that might not be very relevant to your hotel but would make an impact on the guest.
Get aware of the no-show trends of your hotel. Come up with the right strategies together with the exact rates, policies, and preventive features that suit your hotel. This way, without being too restrictive or missing out on bookings, you can handle no-shows at your hotel.