How can you prevent hotel no-shows and last-minute cancellations?

Say goodbye to no-shows and last-minute cancellations. Keep your hotel bookings solid and avoid those unexpected gaps

With the rise of flexible policies and competitive deals, booking behavior is changing. According to a June 2023 report by Statista, 66% of Gen Z adults and 64% of Millennials are now willing to pay more for flexible hotel cancellation options. This growing trend for booking flexibility allows more guests to adjust or cancel reservations, increasing the risk of cancellations and no-shows, which complicates occupancy and revenue management for hotels.

Key takeaways

• To reduce no-shows and last-minute cancellations, balance cancellation policies with commitment-focused booking options. Travelers today expect flexible bookings and often prefer reservations with a free cancellation period. Shortening this period (e.g., 24 or 48 hours prior to check-in) can help secure guest commitment and improve occupancy management;
• Prepayment strategies are another effective way to reduce cancellations while attracting more committed guests. When setting rates, terms of sale, and pricing strategy in your CRS, consider adding a discounted, non-refundable rate;
• Separate pricing policies from cancellation policies. You can require prepayment while still offering flexible cancellation policies. Prepaid bookings typically have a 50% lower than average cancellation rate because prepayment increases guest commitment and reduces the likelihood of cancellations.

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