A no-show is a booking that never turns up and never cancels in time. The hotel is left with an empty room and, depending on the rate, may charge a penalty or the first night. It is a key input for how much overbooking to take on.
Example A non-refundable rate charges the full stay even if the guest is a no-show.
A no-show is a confirmed reservation where the guest neither arrives nor cancels by the deadline, usually 6:00 PM or 24 hours before check-in. The room stays empty and, depending on the rate, the hotel may charge a penalty typically equal to the first night's cost.
How is the no-show rate calculated?
The no-show rate is calculated by dividing the number of no-shows by the total expected reservations for a period, then multiplying by 100 to get a percentage. For instance, if you had 30 no-shows out of 1,000 reservations in a month, your no-show rate is 3%, and that figure helps you set safe overbooking levels.
Why is the no-show rate important and how does it differ from a cancellation?
The no-show rate is important because it lets hotels forecast how many rooms will go unused despite being booked, so they can decide how much overbooking to accept without risking overselling. It differs from a cancellation because a cancellation is a prior notice from the guest, while a no-show is an unexplained absence, often resulting in a higher penalty for the guest.
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