No Show


No-show is a situation when a guest books a reservation in a hotel for a certain date and does not show up. What makes this situation a “no-show” vs. cancellation is that the guest did not cancel the reservation 48 hours prior to arrival (different hotels have different policies as to the number of days/hours).

A customer is typically charged a fee, sometimes amounting to the cost of full stay. Hotels rationalize this by saying that they were not able to re-sell the room. More often than not, however, hotels are anticipating a certain percentage of no-shows and have plans in place to re-sell that room, before the guests even know that they are going to cancel!

No-shows vary drastically among different business segments. As a general rule of thumb, the customers who were “comped” a room (given a room for free as a part of a promotion) will tend to not show at a higher rate than customers who paid in full. Analyzing your hotel’s business mix prior to arrival will help you optimize the overbooking strategy.
A typical resort on the Las Vegas strip can expect a 2-3% no-show rate. The no-show rate tends to be different in every market.

Knowing your no-show rate is crucial for a successfull overbooking strategy, successfull execution of which can add 2-5% to the ocuupancy, and, consequtively to the bottom line.