What is the definition of Regret in the hotel industry?
Occasionally reservations just don’t work out. For any motive, possible guests make a decision to call off a booking, or not to complete it in full. This is particularly familiar where bookings are made online, where it is so simple to click off a web page and look somewhere else on the Internet for a perhaps improved (lower priced) deal.
For a hotel, when a reservation is not made in full, this is unfortunate, hence such a booking being known in the Hotel Industry as a Regret. Hotels huge and tiny should always log all regrets, as this can help them when setting pricing strategies each year. If they can anticipate a certain number of regrets (based on statistics drawn from previous trading years) they can at smallest amount take steps to wrap this loss in revenue in other ways in the future.
Where a hotel tells a prospective guest that a demand room type is sold out, this is called a Denial. Denials and Regrets are part and package of hotel management, and savvy hoteliers and large hotel succession revenue management teams will factor Regrets and Denials into their pricing and income management. However, with Regrets it is not possible to make completely precise forecasts, as much of it is still left to conjecture once all gathered figures and other key data is cautiously analyzed.