You’ve cleaned your property (or your cleaning crew has), refreshed your amenities, and perhaps even picked up some local flowers. You’ve got your eye on the clock because your guests should have arrived hours ago but you still haven’t heard from them. You’re a busy STR host with things to do and people to see, and, unfortunately, you just got no-showed.
No-show guests can be a frustrating and financially stressful experience for any host, experienced or not. That said, all is not lost! When you have a plan in place to deal with no-shows you can minimize their impact on your vacation rental business.
Let’s jump right in.
Understanding No-Show Guests
No-shows can happen for many different reasons such as miscommunication, scheduling conflicts, unexpected circumstances, or a simple change of plans. We’ve all been there: someone gets sick, a flight gets canceled, or there’s an emergency. While it’s impossible to prevent all no-shows, there are some proactive things you can do to make them less likely.
Clear communication is essential. Make sure that all of your communication with guests is clear, concise, and easily accessible. Confirm check-in details multiple times, provide clear instructions, and answer questions as promptly as possible. The Airbnb and Vrbo messaging platforms are great, or you can use a messaging app or even email. The key here is to document all communications in case you need to reference them later.
Flexible cancellation policies can help prevent no-shows, especially if guests book at the last minute. But, be careful not to make it too easy for guests to cancel. A good cancellation policy should be fair to both you and the guests.
Platform Support for No-Shows
Luckily, Airbnb and Vrbo both offer support for hosts dealing with no-shows.
Host protection policies may provide financial compensation in certain cases that could help offset any financial loss. Though, keep in mind that these policies often have specific criteria that must be met to qualify for compensation. You usually have to provide proof of communication (see why it’s important?), and demonstrate that you made an effort to fill the vacancy after the no-show.
Airbnb and Vrbo also have dispute-resolution processes to resolve conflicts between guests and hosts. If you get into a dispute with a no-show guest, for example, you can initiate a resolution process through the platform’s website.
Additionally, both platforms have specific guidelines regarding cancellation fees. According to their website, Airbnb “releases payout for a canceled reservation as detailed in the Cancellation Policy. If this is your first time hosting, we may hold the payout for 30 days after the reservation was confirmed.” Vrbo is a little less forgiving to hosts and holds you responsible for coming up with your own cancellation policies. Understanding these guidelines can help you determine if you can charge a no-show fee and how much you can charge, or if the platform has to take over.
Some sites may offer options for waiving these fees in certain circumstances, like unexpected emergencies. Again, sometimes things happen, and you don’t want to penalize an innocent guest with a family emergency! The key takeaway here is to be aware of the specific platform’s policies.
Reducing Financial Loss from No-Shows
Whether you get help from the platform or not, no-shows can have a financial impact on your short-term rental business. Here are a few ways to help mitigate the losses:
- Dynamic pricing: This software will adjust your rates based on demand and occupancy. This can help fill vacancies and increase your revenue, especially during off-peak seasons.
- Insurance coverage: Make sure your STR insurance policy covers no-shows and other potential risks.
There are also proactive measures you can take to keep no-shows at a minimum. It all starts with communicating clearly and effectively with guests. This will minimize misunderstandings and ensure they have all the necessary information for their booking.
You may also need to put a bit more thought into who you let reserve your property. Aim to book guests with a complete profile, have great reviews from other hosts, and are polite and responsive in their messages.
At the end of the day, you can’t control whether or not a guest shows up to your property. But, there are things that you can do from your end to protect yourself as a host. Things like implementing effective communication and creating a flexible cancellation policy will help you better prepare.
Remember, proactivity and a well-thought-out plan will help you keep any losses to a minimum so that you can get back to doing what you do best: hosting!
