A no-show is a guest who does not appear despite a reservation and does not cancel. Overbooking is the deliberate or accidental sale of more rooms or tables than are actually available. The two belong together: hotels deliberately overbook to compensate for expected no-shows and last-minute cancellations — accidental overbooking, by contrast, usually results from unsynchronised distribution channels.
A guest who does not show up costs more than the lost revenue of the night or table: the room could have been sold to someone else, the table turned twice; in restaurants, purchased goods and scheduled staff add to it. Even a few percent of no-show rate adds up considerably over a year:
For hotels (rooms) or restaurants (tables) — adjust the values.
Average value: in restaurants the average bill per reservation, in hotels the average rate. Not included: follow-on costs such as discarded goods or over-scheduled staff.
| Deliberate (strategy) | Accidental (error) | |
|---|---|---|
| Cause | Calculated compensation of expected no-shows/cancellations based on historical rates | Unsynchronised channels, manual allotment maintenance, time lag between bookings |
| Risk | "Walking" individual guests if the rate is too aggressive | Double-selling without buffer or plan |
| Safeguard | A clear walk process: partner hotel of the same category, transfer, upgrade on the next stay | Solve technically: real-time sync of all channels (channel manager + PMS) |
Yes — if it was transparently agreed in advance (terms/reservation confirmation) and is reasonable. In hotels the room rate minus saved expenses is common, in restaurants a fixed amount per person. Check legal details for your case.
Without countermeasures roughly 3–10% depending on business type and booking channel; with guaranteed reservations and reminders it often drops below 2%.
Careful: with 20 rooms a walked guest weighs far more (reputation!) than with 200. Small properties usually do better with guaranteed rates and tight cancellation management instead of an overbooking quota.