In the hospitality industry, the cost of walk is the total cost a hotel incurs when it cannot accommodate a guest with a confirmed reservation and has to "walk" them to another property. It typically includes the room at the alternative hotel, transport there and back, a phone call or other courtesies, and the lost room revenue for the night. The hidden part is often larger: a walked guest may not come back and may share the experience in reviews. Hotels weigh the cost of walk against the cost of an empty room when they decide how far to overbook, and they keep it low through careful reservation management and clear policies.
What is the cost of walk in the hospitality industry?
The cost of walk in the hospitality industry refers to the financial loss incurred when a hotel cannot accommodate a guest with a confirmed reservation due to overbooking or other reasons, resulting in the guest being "walked" to another property.
How can hotels minimise the cost of walk?
Hotels can minimise the cost of walk by implementing effective reservation management strategies, optimising forecasting and inventory control, offering incentives for guests to voluntarily change their plans, and maintaining good relationships with neighbouring hotels for relocation options.
