Which are the implications of a high no show rate in the hotel? How do you handle the penalty in case of no show? How can hotel cancellations be reduced?
In this blog-post will talk about two problems that afflict hoteliers and receptionists, namely no shows and last minute cancellations, trying to give some advice on how to reduce cancellations, manage no shows and produce revenue from these events.
No shows and late booking cancellations are one of the worst nightmares of hoteliers, who are put to the test to try to stem this problem, which can significantly impact those who are profit margins of the hotel.
Specify well booking conditions and cancellation policy
Marco and Edoardo believe that a delicate step in this phase is to correctly specify within their website and the booking engine which are the booking terms and conditions.
By highlighting what the cancellation policies are with the times within which penalties apply, it becomes clear how much a customer will be able to cancel his reservation without incurring penalties, thus avoiding discontent and misunderstandings.
Check the arrival time
Although it may seem obvious enough, an effective way to prevent guests from not showing up without having notified, is to ask for the arrival time at the facility.
A management software that sends pre-stay emails is particularly convenient in this sense, also to help increase the user’s customer journey.
Measure, measure, measure
It is important to check and keep track of metrics related to no shows and booking cancellations, trying to understand which channels they come from most.
This is because the cancellation percentage must not be seen as a single number, but must be measured for each distribution channel used by the structure.
Use a channel manager who reopens sales on the OTA portals
In the case of last minute cancellations, it is very important to use a channel manager who is able to instantly reopen the availability and distribute rooms and rates quickly on each channel, trying to immediately put the unsold back on sale.