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Provided by Stephen Barth
One of the most difficult tasks facing the lodging operator today is accurately
forecasting contract capacity. “Perfect” sell-outs are celebrated by sales staff, but they
are few and far between. When “perfect” sell-outs do not occur, the operator is faced
either with the financial and public relations expense of “walking” a guest, or attempting to
recoup potential losses from “no-shows.”
Overbooking and the subsequent consequence of having to walk guests has been the industry’s
response to customers not showing up for their reservations. Several negative consequences occur,
however, when a guest must be walked. Knowing how to reduce no-shows and consequently
reducing possible litigation can prove to be beneficial to any operator. Although honoring all
reservations and abiding by all reservation policies seems to be the reasonable way to avoid
walking guests or potential losses, a great percentage of our industry does not practice this way.
This article will help to reduce no-show reservations and enhance your ability
to collect when guaranteed reservations do not cancel on a timely manner.
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