The non-refundable rate is paid upfront and is not returned if the guest cancels or fails to show. In exchange for giving up flexibility, the guest gets a lower price. For the hotel it locks in revenue and lowers cancellation risk, though it ties it to a price it can no longer move.
Example The non-refundable rate is 20 euros cheaper than the flexible one, but charges in full even if the guest never arrives.
A no-show is a booking that never turns up and never cancels in time. The hotel is left with an empty room...
RevenueThe best available rate is the public, flexible price a hotel offers at any moment for a date, with no...
Marketing and CROA rate fence is the condition that separates a cheap fare from an expensive one so each customer pays what...
OperationsOverbooking is selling more rooms or seats than exist, betting that cancellations and no-shows will happen....
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