GUARANTEED NO-SHOWS

GOAL: Properties will follow a formal procedure for Guaranteed no-show Reservations.

SCOPE:

To outline the proper way to handle a Guaranteed no-show Reservation from no-show to billing to final resolution. To detail control procedures for the Guaranteed no-show billing process.

PROCEDURE:

To avoid no-shows from occurring, the Front Desk must periodically, throughout the day, check for duplicate reservations by comparing an in-house guest directory to a current arrivals list. Multi-hotel should communicate with each other and review possible no-shows.

During the close day procedures, Night Audit should run a no-show report, to be researched by the Reservations department the next morning. The Reservation Agent should review the no-show report to insure that all no-shows are legitimate, and billable. Possible discrepancies can result from but is not limited to the following:

• Group no-show was not canceled by sales agent;

• Misspelling of name;

• Guest

• Guest is a share account

• Correct date; wrong month entered

  
  

The most critical factor in the success of the Guaranteed No-Show Program is the adherence to detail by the Reservations Agents. Many Guaranteed No-Shows are rendered uncollectible because of misspelled or incomplete names, addresses, or other incorrect information on the folio. In addition, an incorrectly spelled guest name result in the inability to find the reservation when the guest arrives. If the hotel is sold out, the guest may be unnecessarily “Walked” to another hotel.

Again, properties in "multi-hotel" cities should communicate each night to review their lists of Guaranteed No-Shows, to prevent billing a guest who inadvertently checked in to a "sister" hotel. Once deemed billable, the following procedure should be followed:

1. Credit card guarantee: Reservations agent obtains credit card number off of no-show reservation, and writes up a voucher for billing. Billing information and voucher is returned to night audit for billing that evening, unless sold out. Billing is posted at earliest possible non-sold out night.

2. Group Guaranteed No-Shows should be referred to the appropriate Sales Manager for classification as soon as possible. Confirmed group Guaranteed No-Shows will be held with the Group Master Account for appropriate billing.

3. The Reservations Manager must review all No-Shows on a daily basis so as to be aware of repeat offenders. Such a problem may dictate the cancellation of guarantee privileges for a certain company or organization. The restriction or cancellation of guarantee privileges should be done only as a last resort and only with the approval of the General Manager, Rooms Director/Director of Operations and Director of Sales.

4. Copies of all Guaranteed No-Shows will be filed by period in a binder to be kept in the Reservations Office. Copies should also be forwarded to the Credit Supervisor to be filed with the receivable invoice.

5. When a Guaranteed no-show account has been paid, the Accounts Receivable department will notify the Reservations Manager so proper notation can be made on the copy in Reservations.

6. Credit meetings will reveal Guaranteed no-show accounts that have not been paid after thirty days. The Reservations Manager should then write a follow-up letter and attempt contact by telephone.

7. The account will be re-invoiced at normal intervals until it becomes sixty days old. At this time, all attempts to count the billing should be dropped.

8. In the case of Assured Reservations no-show billings, all charged-back amounts should be brought to the attention of the Reservations Manager. The Reservations Manager should then fully research these disputes.

9. It is the responsibility of the Reservations Manager to be informed as to collection percentage results on a period basis. Every effort should be made to consistently improve collections from one period to the next. Each property may develop an incentive (percentage of collected amount) for the Reservations Manager.

10. All Guaranteed no-show revenue must be shown separately on the Daily Report. No-Shows will not be considered as full or part day revenue and will not count as occupied rooms.

11. It should be kept in mind that Guaranteed No-Show procedures are designed not only to recoup lost room revenues and generate additional profit, but also to educate our guests. When guests call to dispute the Guarantee No-Show billing, a very liberal rebate policy should be in effect. Taking too firm a stance on payment may result in the loss of an untold volume of future business. The cancellation of the billing should make the customer more likely to call and cancel in the future. It may even increase his/her loyalty because of our “understanding” position.

12. It is important that Reservation Agent credit card guarantees rather than company guarantees to improve collection percentages.

    
    

EXHIBIT 1 SAMPLE LETTER COMPANY KALIHARA

[ Name of Individual Making Reservation ]

[ Company ]

[ Street Address ]

[ City, State, Zip Code ]

RE: Reservation for [ Name ]

ARRIVAL DATE: [ Date of Reservation ]

Dear [ Name of Individual Making Reservation]:

Out records indicate that the above party did not arrive or cancel [ his/her ] reservation before 6:00 PM. When we make a commitment to hold accommodations under your guarantee of payment, this means we will hold a room for your party until they arrive or cancel the reservation. This is done for the protection of you and your party, should they be delayed beyond the normal 6:00 p.m. check-in time.

We would appreciate your check in the amount of [Dollar Amount], which represents our loss of revenue on this reservation.

We sincerely hope to be of continued service to you.

Most Cordially,

[ NAME OF HOTEL ]

[ Name of Reservations Manager]

EXHIBIT 2 SAMPLE LETTER CREDIT CARD KALIHARA

[ Name of Individual Making Reservation ]

[ Company ]

[ Street Address ]

[ City, State, Zip Code ]

RE: Reservation for [ Name ]

ARRIVAL DATE: [ Date of Reservation ]

Dear [ Name of Individual Making Reservation

Our records indicate that the above party did not arrive or cancel [ his/her ] reservation before 6:00 p.m. When we make a commitment to hold accommodations under your guarantee of payment, this means we will hold a room for your party until they arrive or cancel the reservation. This is done for the protection of you and your party, should they be delayed beyond the normal 6:00 p.m. check-in time.

We have billed your [ Type of Credit Card ] in the amount of [Dollar Amount], which represents our loss of revenue on this reservation.

We sincerely hope to be of continued service to you.

Most Cordially,

[ NAME OF HOTEL ]

[Name of Reservations Manager]