You can now access Expedia Group messages in the HiJiffy Console 🚀
Hotel no shows are a frustrating reality for every hotelier. A guest books a room but doesn’t turn up – and worse, they don’t cancel. This leaves hotels facing unnecessary financial losses and wasted resources. It’s a small term with a big impact on the hospitality industry.
What’s really causing this issue, and what can hoteliers do about it? Let’s break down the impact of no-shows and explore why encouraging direct bookings might just be the solution you’ve been looking for.
A no-show in the hotel business happens when a guest books a room but doesn’t show up or cancel ahead of time. This leaves the room empty, costing the hotel both revenue and additional operating expenses.
No-shows in hotels can present numerous challenges for hoteliers:
A recent study found that bookings through online travel agencies (OTAs) are far more likely to result in last-minute cancellations or no-shows compared to direct bookings. Here’s the difference: when guests book directly through a hotel’s website, the cancellation rate is just 14%. On platforms like Booking.com, that number jumps to 57%. Why? Experts point to lower commitment levels and less customer loyalty when using OTAs. For hotels, this means more uncertainty and added strain on operations. Understanding this trend can help you focus on strategies that encourage guests to book directly, benefiting both your team and your bottom line.
Guests who book through OTAs often have less loyalty to a specific hotel. Multiple simultaneous bookings on these platforms are not uncommon.
Many OTAs offer extremely flexible cancellation policies, which are customer-friendly but also significantly increase the likelihood of last-minute cancellations.
As OTAs act as intermediaries, the personal contact between the hotel and guest is often missing. This can result in less emotional connection or loyalty, which in turn may increase the likelihood of no-shows in hotels.
Guests who book directly with a hotel are more likely to stick to their reservation. But what’s the reason behind this? Let’s break it down.
Direct booking guests invest more time and effort in their decisions, significantly reducing the risk of no-shows in the hospitality industry.
Direct contact between the hotel and the guest strengthens the emotional connection, ensuring the hotel is not merely seen as anonymous accommodation.
Clear booking and cancellation policies provide guests with a better understanding of the terms and make handling cancellations in the hotel industry easier.
Direct bookings give hotels more control over payment methods, reduce the risk of no-shows, and allow them to charge a no-show fee if guests fail to arrive.
No-shows at hotels are more than just an inconvenience – they can seriously impact revenue and create operational headaches. However, hotels can take practical steps to tackle this issue. Focusing on direct bookings and building stronger customer relationships is a great place to start. Clear communication, enticing offers, and a smooth booking process can help reduce no-shows while keeping guests happy. It’s a win-win for everyone.
Would you like to reduce your hotel no-show rate? Start today by focusing on direct bookings and taking back control of your reservations.
HiJiffy gives you an easy way to handle guest enquiries, automate repetitive tasks, and boost your booking rates. See how it works with a free, no-strings-attached demo today.
Join our list and receive the best articles every month.