A no-show policy is a set of rules and procedures that hotels, restaurants and other hospitality businesses use to manage guests who don’t show up for their bookings without cancelling. This policy outlines the consequences for no-shows which can include charging a fee or cancelling future bookings. The main aim is to minimize lost revenue and protect the business from the financial impact of unused rooms or tables.
No-show policies are a key part of revenue management in hospitality. When guests don’t show up, the business loses the potential income from that room or table which they could have sold to someone else. By having a no-show policy, hospitality businesses can recover some of the lost revenue and discourage last minute cancellations or no-shows. This helps with cash flow and allows for better forecasting and resource allocation.
Let’s say you’re a restaurant manager at a busy city centre bistro. You have a no-show policy that requires credit card details for bookings of 6 or more. One Saturday night a group of 8 who had booked a large table don’t show up. Thanks to your no-show policy, you’re able to charge a per person fee to the credit card on file and offset the lost revenue from the empty table. This experience highlights the importance of having a clear and communicated no-show policy in place to protect your business and be fair to all guests.'