What is the definition of Denial in the hotel industry?
When a hotel cannot house more guests, because it is fully booked at that time, then their reply to the potential customers’ demand is called a Denial.
Every year, many hotels throughout the world have to refute reservations to people keen to stay with them, but that is the character of the Hospitality Industry, unluckily. It is good for a fully-booked hotel, of course, but not for the people who actually want to live there!
Keeping a documentation of Denials is at all times a good thought for a hotel. Why? Because it can help them in their customer checking. Having such data at hand can help hotels to more efficiently yield on their limited account, achieving the best last room value. Also, knowing how many denials you have in Year 1, for example, will give you an imminent into how much extra capability you might Endeavour to create in Year 2.
Tracking Denial statistics can give an hint of how much unfulfilled demand a hotel has for a definite date, too. For example, if a particular hotel in Chicago always has an amplified demand for bookings on the eve of the Patrick’s Day Parade, they can regulate their prices for that date to make sure that they are make the most of profits – the people who can pay augmented prices get the rooms (rather than being denied them).