Things come up. Circumstances change. Plans get disrupted. But is that the only reason why your guests might not show up at the last moment?
More often than not, the problem lies on your side of the fence. A messed up cancellation policy, radio silence post booking,
or even a better deal somewhere else often lead to unexpected cancellations and no-shows.
Did you know that almost
20% of hotels
rooms booked online are cancelled before the guest arrives?
That’s 1 of every 5 bookings you get! It not only directly impacts the revenue, but also leads to poor marketing, since OTAs keep track of cancellations drawn by a hotel.
But before we move on to the rescue plan, here’s why cancellations are worth talking about.
Table of contents for this article:
Here’s some Business 101 for you - Saving money is earning money.
Now here’s some Business-in-a-modern-competitive-world 101 - Not earning money is losing money.
Somebody had plans to travel, looked up your website, booked a room and later cancelled or didn’t show up.
There’s good reason to believe that the person is still travelling. Just not staying in that room you lovingly prepared.
Cancellations matter for several reasons, some of which are listed below:
Any room that’s vacant in a hotel is probably a loss-making entity for the day.
You don’t need advanced math skills to understand the relation between last minute cancellations or no-shows and revenue.
Even when you’re able to sell the room again, it would probably be at a lower rate.
Just like Google’s search results, OTA listings work best for properties listed on the first page.
Although OTAs promote initiatives like ‘free cancellations’, they can significantly impact your rankings, and in turn, the overall sales and revenue.
If a ‘done deal’ isn’t done in time, you need to start from scratch again. Last minute cancellations and no-shows lead to extra work, more so, under stress and pressure.
Use insights from guest data to understand key parameters that affect conversion. Analytics can let you know the exact reasons for cancellation.
Types of rooms, days of the week, an event nearby etc. could be factors in increased cancellations.
Due to longer lead time, OTAs often have a higher cancellation rate. However, they also bring business. Though you should list the property on OTAs,
it’s also important to keep track of other properties in the listing page to understand what they’re doing right.
Guests often make multiple bookings well in advance, only to cancel all but one a day or two before the arrival date.
Try to make sure you’re the one that’s not cancelled. Stay in touch!
In certain countries, fraudulent bookings are a matter of concern. These are often made to get visa. Keep a check on such customers,
primarily travelling from countries with stringent visa policies.
You must have understood how cancellations and no-shows impact your revenue and other things in business. So here comes the rescue plan.
We’ve tried to provide you with certain tips that could help improve the overall customer experience and engagement to reduce cancellations and no-shows on the website.
Are your policies optimized for additional revenue and optimal guests satisfaction?
Meet HotelMinder - We empower ambitious hoteliers maximize performance, guests satisfaction & coworkers engagement with modern technology and expert know-how.
Be in constant touch with your guests, not to bother them, but to be helpful with information about cancellation policy,
local events, nearby places or anything that could be of use.
You need to be responsive and proactive to ensure last minute cancellations and no-shows are dealt with quickly.
It’s also important to keep track and check reports regularly.
Last but not the least, leave the job to experts and get a
Health Audit to review all your hotel policies and ensure you are maximizing both revenue and guest satisfaction thanks to clear, efficient and honest wording.
Benjamin is originally from France, but has been living abroad and travelling extensively for over 15 years. He currently lives in Dublin, Ireland, with his Polish wife and young daughter.
With years of experience in assisting hoteliers manage operations or opening up innovative hotels across the world, Benjamin has been a trusted name in the hospitality industry, and is well known for his knowledge and expertise in European markets.
Currently, Benjamin works across the globe, helping hotels use modern technology to improve operations & revenue. He understands the challenges independent hoteliers face, and believes that running a hotel should be simple.
Benjamin's life goal is to open a chain of eco-friendly hotels, promoting sustainable tourism and local community development.
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