Guests can sometimes bail on their reservations without letting the hotel know and no hotels want this. Dealing with no-shows is a hassle and will affect other things. That's why having a no-show policy is a must for hoteliers.
If you ever find your hotel gets reoccurring no-show incidents then chances are you aren't implementing a no-show policy. Some guests don't inform of making cancellations or make last-minute cancellations. Having a policy that specifically explains how your hotel handles no-shows will help reduce the probability of guests not showing up.
What is A No-Show?
In the context of hotels, a "no-show" refers to a situation where a guest who has made a reservation or booking fails to arrive at the hotel and does not provide prior notice of cancellation or modify their reservation. Essentially, it means the guest is absent or does not show up for their scheduled stay.
Who Is In Charge?
The responsibility for creating a no-show policy for hotels typically falls under the management and administration of the hotel. The exact individuals involved may vary depending on the hotel's organizational structure, but the decision-making process typically involves collaboration between several key stakeholders. This can include:
i. Hotel General Manager
Oversees all aspects of hotel operations, ensuring guest satisfaction, managing finances, leading the team, and maintaining the overall success of the establishment
ii. Revenue Management Team
Optimizes pricing, inventory, and distribution strategies to maximize revenue and profitability for a hotel or hospitality establishment
iii. Reservations Department
Handles the booking and management of guest reservations, ensuring accurate information, providing customer service, and maximizing room occupancy for a hotel or hospitality establishment
iv. Front Desk Staff
Serve as the primary point of contact for guests, handling check-in and check-out procedures, assisting with inquiries and requests, and providing information and support to ensure a positive guest experience. If you want to know more about the front desk, get the Ultimate Guide to Hotel Front Desk. It's free so don't worry!
A no-show policy is typically included as part of the overall cancellation policy of a hotel. The cancellation policy outlines the rules and guidelines for guests regarding canceling or modifying their reservations, as well as any associated fees or penalties.
The no-show policy can also be a standalone policy separate from the overall cancellation policy in certain cases. By having a standalone no-show policy, hotels can emphasize the importance of honoring reservations and the potential consequences of not showing up without prior notice. It's completely up to the hotel to make it under the cancellation policy or not.
Here is a template for what needs to be in a no-show policy:
i. Guests are required to notify [Hotel Name] of any changes or cancellations to their reservation at least [X] hours/days prior to the scheduled check-in time.
ii. Specify the acceptable methods of notification, such as through the hotel website, booking platform, phone, or email.
No-Show Charge or Penalty:
i. In the event of a no-show, a charge or penalty will be applied. It depends on you what kind of charge you want. Specify the charge as follows:
- [X]% of the total reservation cost OR
- The cost of [X] night(s) stay (whichever is higher)
ii. Clarify that the charge or penalty will be automatically billed to the credit card provided during the reservation process, or any prepayment made will be forfeited.
i. State that if a guest does not arrive or provide notice of cancellation within the designated notification period, [Hotel Name] reserves the right to release the reserved room(s) for other potential guests.
ii. Mention that released rooms may no longer be available upon late arrival or rescheduling after the designated time has elapsed.
i. Acknowledge that exceptional circumstances may arise, such as flight cancellations, medical emergencies, or unforeseen events beyond the guest's control.
ii. Provide guidelines and contact information for guests to inform the hotel in case of such circumstances, and outline the hotel's approach to handling these situations on a case-by-case basis.
Communication and Transparency:
i. Emphasize the importance of clear communication and transparency regarding the no-show policy.
ii. Display the policy on the hotel website, booking confirmation emails, and at the front desk to ensure guests are aware of their responsibilities and potential charges.
No-Show Policy Template
If you're wondering how it's going to turn out, it will look similar to this:
Where To Put No-Show Policy
When implementing a hotel no-show policy, it is important to communicate it clearly to your guests at various touchpoints to ensure they are aware of the policy before making a reservation. Here are some recommended places to put up your hotel's no-show policy:
1. Hotel Website
Create a dedicated page on your website that outlines your hotel's policies, including the no-show policy. Place it prominently within your website's navigation menu or in the footer, so it's easily accessible for guests browsing your site.
2. Reservation Confirmation Email
Include a summary of your hotel's no-show policy in the reservation confirmation email sent to guests after they book a room. This ensures they are reminded of the policy and have it readily available for reference.
3. Booking Platforms
If your hotel is listed on third-party booking platforms or online travel agencies (OTAs), make sure to update your property's profile with the no-show policy information. This way, potential guests can review the policy before making a reservation.
4. Terms and Conditions
Incorporate the no-show policy within your hotel's terms and conditions. You can provide a link to these terms during the reservation process or include a brief summary of the policy on the booking confirmation page.
Benefits of Having A No-Show Policy
Creating a no-show policy isn't just for fun - they're beneficial for hotels and guests. These are the benefits you can gain from implementing a No-Show policy for your hotel:
1. Revenue Protection:
A no-show policy helps protect the hotel's revenue by compensating for the loss of revenue due to unoccupied rooms. Charging fees or penalties for no-shows ensures that the hotel can recoup some of the potential earnings from the reserved room.
2. Room Availability Optimization:
By implementing a no-show policy, hotels can free up rooms that would have otherwise remained unoccupied due to no-shows. This allows for better utilization of available inventory and increases the chances of accommodating other guests, maximizing occupancy rates.
3. Fairness and Efficiency:
A no-show policy promotes fairness by ensuring that rooms are allocated to guests who show up or have properly canceled their reservations. It enhances operational efficiency by enabling the hotel to manage its inventory more effectively and provide better service to guests.
4. Improved Planning and Resource Allocation:
With a clear no-show policy in place, hotels can better forecast room availability, plan staffing levels, and allocate resources accordingly. This leads to smoother operations, enhanced service quality, and optimized utilization of hotel resources.
5. Guest Accountability and Satisfaction:
A no-show policy holds guests accountable for their reservations, encouraging them to honor their commitments or cancel promptly. By ensuring that rooms are available for guests who need them, the policy contributes to overall guest satisfaction and enhances the hotel's reputation for reliability and professionalism.
Guests will be more satisfied and the probability of them giving positive reviews increases. Guest feedback matters a lot to a hotelier's business. Check out Guest Feedback Tools: The Ultimate Guide for Hoteliers.
All these benefits collectively contribute to the financial stability and operational efficiency of the hotel, while also providing a positive guest experience.
Implementing a no-show policy at your hotel will benefit you in the long run. By understanding the important aspects of the no-show policy from this read, you can start making your own no-show policy for your hotel.
Reduce loss and increase confirmed bookings with the no-show policy. If you want to get more input on increasing hotel profit, download the free Guide to Increase Hotel Profit and Reduce Cost per Booking and gain more knowledge.