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No-Show Transaction Scenario
A no-show occurs when a guest makes a reservation but does not check in or cancel the
reservation. No-show transactions are determined by the lodging's disclosed and
agreed-upon cancellation policy.
A lodging business can handle no-shows in several ways, including these options:
- Charging a no-show fee: This fee is charged to the guest's credit card if they do not cancel their reservation within a certain amount of time. The amount of the fee is typically based on the room rate and the length of the stay.
- Requiring a deposit: This is a payment that the guest is required to make upfront in order to secure their reservation. The deposit is typically refunded if the guest cancels their reservation by a certain date.
Figure:
No-Show Transaction Workflow
The no-show transaction workflow typically includes this sequence of events:
- The guest makes a reservation online, by phone, or in person. At the time of booking, the guest provides their credit card information.
- The lodging staff sends the guest a confirmation email or text message with the details of the reservation. The guest confirms their reservation by replying to the email or text message.
- The guest does not check in or cancel their reservation by the time their reservation is scheduled to start, which is considered a no-show.
- The lodging charges the guest a no-show fee using the same payment method the guest used to make the reservation. The amount of the fee is based on the lodging's no-show policy.