Industry term
No-show in hotels: definition and handling
Also known as: non-arrival, guest who didn't show up
A no-show is a booking whose guest neither arrives nor cancels. The room stays blocked all night, neither occupied nor freed up in time to be resold.
It is the most pointless loss a hotel can have: the room was sold, it was available, and it stayed empty. The no-show is also the reason a large part of the trade practises overbooking.
How it is recorded
A no-show is not declared the moment the guest fails to walk through the door, but at a time set by the property, usually overnight, at night audit.
Before declaring it, the usual practice is to check two or three things: that the guest hasn't arrived under a name the booking wasn't matched to, that no one called to warn of a late arrival, and that no cancellation came in through some other channel than the booking itself.
Declaring it changes what gets charged and what shows up in the statistics. It is also what triggers, where applicable, the charge set out in the booking's terms.
What the property charges
It all depends on what was agreed at the time of booking, and that is where the difference lies between a no-show the property absorbs and one it is covered for.
A guaranteed booking
A card was taken as a guarantee, and the terms provide for a charge in case of non-arrival, often the first night. This is the most common case.
A non-refundable booking
The stay was paid at the time of booking and is non-refundable. The no-show changes nothing about the payment already taken, it only frees the room too late.
An unguaranteed booking
No guarantee was taken. The property absorbs the loss, unless it can show a firm commitment from the guest, which is rarely straightforward.
A booking made through an intermediary
The online travel agency's or tour operator's own terms apply, and the no-show is usually declared through its extranet, within its own deadline.
The VAT question
It is one of the most common questions on the subject, and it has no obvious answer. It comes down to the nature of the amount taken: is it the price of a service the hotel had stood ready to provide, or compensation for the guest's failure to show up?
The answer is not the same in both cases, and the qualification depends on what your sales terms provide and on how the amount is collected. Case law on the matter is anything but simple.
So we won't set out a firm rule here: it is a question for your accountant, decided against your actual terms, not a page on a website.
Reducing the number of no-shows
Confirm the day before
A message or a call the day before, on sensitive bookings, turns some no-shows into cancellations, which at least give the room a chance of being resold.
Ask for a guarantee
A card on file changes behaviour, independently of the charge itself. Something that carries no commitment gets neglected more easily.
Make the terms easy to read
A guest who understood what they risk gives notice. A guest who discovers a charge they never noticed disputes it, often in public, online.
Look at who doesn't show up
No-shows aren't spread at random: certain channels, certain rates and certain periods produce far more of them. You still need to have logged them to notice.
What needs to stay in writing
The no-show itself is handled in your booking software. What surrounds it, though, is systematically lost: the guest's call at 11pm, the decision the night auditor made, the exception granted.
- A guest calling to warn of a late arrival: the note waits for the night team, instead of relying on the memory of whoever picked up the phone.
- What the night auditor decided, with their name and the time, without having to type either.
- The follow-up when the guest disputes the charge days later, found again with a search.
- Recurring cases, visible because they were written down night after night.
Questions about no-show
What's the difference between a no-show and a cancellation?
A cancellation is reported by the guest, which gives the hotel a chance to resell the room. A no-show is reported by no one: the room stays blocked until night audit, by which point it is too late to sell.
Can a hotel charge a guest who doesn't show up?
It depends on what the booking's terms provide and on what guarantee was taken. A booking guaranteed by card with clear terms generally allows a charge; a booking with no guarantee leaves little to act on. The point to check is always the same: what the guest agreed to at the time of booking.
Is the no-show charge subject to VAT?
It is a technical, debated question, which depends on how the amount is qualified, price of a service or compensation, and on how your sales terms are worded. We deliberately don't give a firm answer here: ask your accountant, with your terms in front of them.
Does a no-show count towards occupancy?
No: the room wasn't occupied, so it doesn't count as such, even though it was charged for. That's why a property can post a disappointing occupancy rate on a night that was, in fact, paid for.
What the night auditor decided that night
Written down at the time, under their name, read by the morning team and findable months later. 6-month free trial, no card required.