Cost of Walk

    
Cost of Walk

Walking in the hospitality industry is a situation when a guest arriving at a hotel is unable to be accommodated and has to be "walked" to another property. This condition arises as a result of many factors from overbooking to emergency services. The cost of compensating the guest for this inconvenience is called cost of walking. The cost usually covers the overnight lodging expenses, taxi fare and a couple of phone calls for the guest. Most hotels also include a small complimentary gift presented to the guest.
Walking a customer has implications beyond the single transaction. Customer satisfaction suffers, so does the retention, and repeat business. It might cost exponentially more if you have to relocate a person who reserved a premium product (suite, penthouse, etc.)

Cost of walk is comprised of:
  1. Cost of accommodation in a partner hotel
  2. Cost of transportation
  3. Comp vouchers
It is important to remember that in the situations when “walks” occur the market is likely to be compressed with rates being reflecting this making the first variable even larger.