How to create a hotel no show policy?
A hotel no-show policy sets out what happens when a guest fails to arrive without cancelling in advance. It should define, at a minimum:
- the charges applied,
- the cut-off time for arrivals, and,
- the process for updating room availability, ensuring consistency across every booking channel.
A strong no-show policy helps prevent misuse of your booking system and gives staff a clear framework for handling absent guests. For hotels operating across multiple OTAs, aligning policies is essential. Discrepancies between channels can confuse travellers and increase disputes.
When creating your policy, start with fairness and transparency. Guests should know in plain terms what the financial consequences are if they do not show up. For example, many hotels charge the first night's stay, while others apply a flat fee or a percentage of the booking value. This clarity discourages speculative reservations and builds trust with genuine travellers.
Consider how flexible or strict you want the terms to be. Offering refundable and non-refundable options lets guests choose their level of commitment. Adding deposit or prepayment requirements strengthens enforcement, especially in high-demand periods or for group bookings.
Ensure your PMS automatically updates room status when a booking is marked as a no-show. This keeps your reporting accurate and, in some cases, allows the room to be resold the same night if it becomes clear the guest is not arriving.