Guests who booked a room paid but did not show up (no-show), causing the hotel to lose room preparation costs, revenue from additional services and affect rankings on sales channels.
The term “no-show” is used to describe a case where a guest has made a confirmed reservation but does not check in on the scheduled date. Guests also did not notify cancellations or changes to reservations before the specified deadline.
For example, if a guest books a room on November 13 but does not show up, nor announce a specific check-in time until the end of 24 hours, that room is considered “no-show”, according to Ms. Dang Thi Hai Linh, General Manager of Novotel Hanoi Thai Ha & Novotel Suites Hanoi hotels.
Guests are being guided by staff on how to use services at Novotel Hanoi Thai Ha. Image: Booking
In case the customer no-shows but has not yet paid, the damage may be “visible” or “hidden”. “The accommodation facility has empty rooms that cannot be sold to other guests, and at the same time still have to bear operating costs to prepare the rooms,” Ms. Linh said. These costs include cleaning staff, electricity, water and disposable items (amenities).
However, even if the customer has paid in full, hidden damages still arise. The biggest is the loss of ancillary revenue. A guest not only pays for the room but also spends on other services such as food and beverage (F&B), spa, laundry, and minibar. When guests don’t show up, the hotel loses this source of revenue.
“The hotel also loses the opportunity to sell that room to guests who want to stay longer or groups,” Ms. Hai Linh added. On peak days or holidays, keeping a room empty for a no-show guest means the hotel has turned away another potential customer.
In addition, a high no-show rate can negatively affect a hotel’s ranking on online booking platforms (OTA) such as Agoda and Booking.
“The partner’s system may rate the hotel as less attractive and reduce its display ranking,” Ms. Linh analyzed. Accommodations also face the risk of complaints or negative reviews related to no-show fees.
On the customer side, the direct loss is financial. Ms. Nguyen Thanh Loan, representative of Dolce by Wyndham Hanoi Golden Lake hotel, said that the deposit or the entire cost may not be refundable, depending on the booking policy of each accommodation facility.
Novotel Hanoi Thai Ha Hotel on Thai Ha Street, Hanoi. Image: Booking
Why do guests no-show?
In addition to the simple reason of forgetting, many customers no-show due to force majeure circumstances such as flight cancellations, accidents, sudden illnesses or last-minute schedule changes.
In these cases, losing the entire booking fee, especially with non-refundable packages, is often frustrating. However, experts note that the “no cancellation” policy is a clear deal, given customers a choice: accept a cheaper price in exchange for irreversible risk, or pay a higher price for flexible plans (flexible rates) that allow free cancellation.
What should be done to reduce losses if guests no-show
Experts generally believe that proactive communication and understanding of policies are the keys to minimizing damage for both sides.
Client
Ms. Nguyen Thanh Loan recommends that customers carefully read the booking policy, especially the cancellation terms and free cancellation period, before confirming. “If there are changes to plans, guests should notify the hotel or intermediary booking agency as soon as possible,” Ms. Loan said.
This action helps the hotel promptly receive information, release rooms and be able to support guests more flexibly such as adjusting stay dates or recording cancellations on time, ensuring the best benefits.
Customers also need to provide accurate contact information (phone number, email) so that the hotel can contact them when necessary.
Accommodation facilities
Hotels must ensure that cancellation and no-show policies are clearly and easily understood in booking confirmation letters and on OTA channels. Many hotels now have systems that automatically send emails or text messages to remind guests about upcoming reservations.
Whether the hotel calls to remind guests or not depends on its own policy. At Dolce by Wyndham Hanoi Golden Lake, the hotel will proactively contact guests if they have not arrived after the expected check-in time (usually 2:00 p.m.). At Novotel Hanoi Thai Ha, for guests booking through OTA, because there is no direct phone number, the hotel will send a message through that OTA partner’s system.
Some hotels, similar to airlines, employ an “overbooking” strategy based on analysis of historical data on no-show rates. This is an in-depth operation to maximize room capacity, but also has potential risks if the no-show rate is lower than expected, leading to guests having reservations but being denied service.