We receive many questions about charging no-shows from our hotel clients, so
here’s some points to consider.
If you guarantee a reservation against a payment card, you have certain rights and responsibilities.
If the guest fails to claim or cancel their reservation, you have the right to charge a ‘no show’ for one night’s accommodation to the guest’s card.
However, remember that your organisation is responsible for all of its third party reservations. A reservation may be cancelled directly through you or your third party agent. Ensure that all cancellations made through third party agents are provided to you by the agents. This will help avoid potential chargebacks.
As to your responsibilities, you must ensure that the accommodation is available as reserved and agreed with the guest.
If you overbook, you must find comparable accommodation of at least equal quality for at least one night, transportation to that establishment, and forwarding of all the guest’s calls and messages.
It pays to be clear, especially around your terms and conditions. Communicate your charging, cancellation and refund policies to guests clearly at the time of the booking.
Depending on how you trade, you can include these terms and conditions as part of the online check-out page near the ‘submit’, ‘pay’ or ‘click to accept’ button. Or as a separate ‘click to accept’ box in the check-out sequence. Call centre operatives can provide details verbally and then confirm them via e-mail, text or post.
It is a legal requirement in many countries as well as good business practice to make terms and conditions of sale clear to the guest. However, review and monitor your proper disclosure practices regularly. There may be scope to improve and deliver even better customer service.
If a guest fails to cancel a reservation or claim the room, submit a sales draft for one night’s accommodation, plus any applicable taxes.
Obtain electronic authorisation for the full amount. Attach the terminal receipt to the guest record. Mail the transaction sales receipt and an explanation of the charges to the guest. File and retain your copy of the documentation.
For more information, please see the PXP Financial Hospitality Guide.
There is no one-size-fits-all approach to data security and the hospitality industry has some particular requirements. For a free 30-minute consultation, please complete the form below or call 0844 209 4370.
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