Tips For Reducing Cancellations & No Shows at Your Hotel

January 28, 2019

Guest cancellations and no-shows are every hoteliers nightmare. Hotels are always looking to keep their occupancy rates up and when a guest cancels at the last minute it can be very frustrating.

Here are six strategies for reducing no-shows and cancellation rates at your hotel:

1. Know where your customers are coming from

Be aware of what channels the guest reservations are coming from as it is crucial to know who your customers are and how they prefer to book. You should then use this information to predict how often you might receive cancellations and what the underlying reasons for no-shows are. Once you are able to follow the paths through which you receive bookings, you will be able to analyze information and determine trends for each of these channels.

2. Organize reminders through your PMS

Consider using a cloud management software system that incorporates both hotel booking engine and hotel check-in software functionalities. You can use the system functionality to send personalized emails which will enable you to stay in close contact with the customer. You may then prompt visitors to respond to an email reminder to confirm their arrival.

3. Have a clear cancellation policy

Create a well-structured cancellation policy and make it clearly visible to your guest. The policy will have to be attractive to your guests but also protect your interests. Your guests should be informed about the unfortunate consequences of cancelling or forgetting about their stay at your hotel. Your terms and conditions must state that you will charge in the event of a no-show, however, you may only charge one night and not the whole stay.

4.  Send out booking reminders

After guests have booked a room, make sure to provide them relevant information and remind them about their upcoming stay. Not only should you let them know how excited you are to welcome them soon, you should provide them a lot of valuable content that is sure to make their stay even more memorable!

5. Do not be afraid to over-sell

Overbooking is one way of anticipating cancellation rates and no-shows. Cancellations are a standard occurrence in the hospitality industry, and you should be prepared to tackle the problem. You should not fill your capacities too early and then close out the channels.

6. Contact your customers when they don’t show up

The best way to prevent future cancellations is by contacting the customer that did not show up and enquire into the causes. If the problem lies within your reach you should do your best to solve it.

If you issued a no-show charge, be clear and honest, and explain that you have had no choice but to abide by the terms of the contract by issuing the fee.

However, make sure to let the customer know that you would still be happy to welcome them again to your property. You may want to consider offering an initiative that might be of small significance to your hotel but would make a difference to the guest. A free breakfast, for instance.

Article Source: Hoteliga

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