What is a No-Show?
No-Show = Guest who doesn't arrive
A guest who has a confirmed reservation but fails to check in without canceling. The room remains empty, revenue is lost.
No-Show vs Cancellation
| No-Show | Cancellation |
|---|---|
| Guest doesn't show up | Guest informs hotel in advance |
| No prior notice | Notice given before arrival |
| Usually full charges apply | May get partial/full refund |
| Room can't be resold | Room can be resold |
Why No-Shows Hurt Your Hotel
- Lost revenue: Room stays empty, no income for that night
- Blocked inventory: You turned away other potential guests
- Staffing waste: You prepared for guests who never came
- F&B impact: If they had MAP/AP, food was prepped and wasted
- Operational costs: Room was cleaned, amenities placed
Typical No-Show Policy
Standard Policy: If a guest with a guaranteed reservation fails to arrive by a specified time (usually 6 PM or midnight), the hotel may charge one night's room rate as a no-show fee.
| Rate Type | Typical No-Show Charge |
|---|---|
| Non-Refundable Rate | 100% of booking (entire stay) |
| Refundable Rate | First night's charge |
| Pay at Hotel | Attempt to charge card on file |
| No Card on File | No charge possible (write-off) |
How to Handle No-Shows
- Wait until cut-off time: Don't mark as no-show too early (usually midnight)
- Attempt contact: Call/message guest asking about their arrival
- Document: Note the time, attempts made, in your PMS
- Process charge: Charge no-show fee to card on file
- Release room: After cut-off, release for walk-ins if possible
- Update OTA: Mark as no-show in OTA extranet if applicable. Booking.com requires no-show marking within 48 hours
How to Reduce No-Show Rate
- Confirmation emails: Send reminder 3 days and 1 day before arrival
- Pre-authorization: Validate credit card at booking time
- Deposit collection: Take partial/full payment upfront
- Non-refundable rates: Offer discounted rates with full prepayment
- Clear policies: State no-show charges clearly at booking
- Easy cancellation: Make it simple to cancel so they don't just skip
- Overbooking strategy: Slightly overbook based on historical no-show %
Pro Tip: Track your no-show rate by channel. Some OTAs have higher no-show rates than others. Adjust policies accordingly.
No-Show Rate Benchmarks
| Segment | Typical No-Show Rate |
|---|---|
| OTA prepaid bookings | 1-2% |
| OTA pay-at-hotel | 5-10% |
| Direct bookings (card guarantee) | 2-4% |
| Corporate bookings | 3-5% |
| Group bookings | 5-15% |
| Walk-in reservations (no card) | 10-20% |
Overbooking to Offset No-Shows
Caution: Overbooking is risky. Only do it if you have historical data to support it and a plan for walking guests if everyone shows up.
Example: Your hotel has 100 rooms. Historical no-show rate is 5%. On a sold-out night, you might accept 103-105 bookings, expecting 3-5 no-shows.
If everyone shows up, you'll need to:
- Walk guests to a nearby hotel (pay for their room)
- Offer compensation (free night, upgrade on return visit)
- Handle unhappy guests professionally