A non-guaranteed booking is a booking without a deposit or credit card to secure the room. This type of booking allows guests to book a room with no financial commitment and can cancel or change their plans with no penalty. However, the hotel is not obligated to hold the room if the guest doesn’t arrive by a certain time, usually around 6pm on the day of check-in.
Non-guaranteed bookings play a big part in hospitality management. They give guests more flexibility in their travel plans which can lead to more bookings. For hotels and other accommodation providers, they fill rooms that would otherwise be empty. However, they also come with the risk of no-shows, which can mean lost revenue. Balancing these two requires careful management and overbooking strategies to maximise occupancy and profit.
You’re the front desk manager of a city hotel and it’s a Friday afternoon. You see several non-guaranteed bookings for the evening that haven’t been confirmed. You know from experience that about 30% of these bookings won’t show up. To avoid lost revenue, you decide to overbook by a small percentage, taking into account the no-shows. As the evening goes on, you monitor arrivals and are ready to implement your walk procedure if all guests show up. This way, you can maintain high occupancy rates and not have to turn away confirmed bookings.'