No-Show

A no-show refers to situations where a customer has made a reservation, but neither shows up at the appointed time nor cancels the reservation in advance. No-shows are mostly commonly associated with travel and hospitality verticals, which includes merchants such as hotels, restaurants, airlines, and car rental agencies.

A reservation is considered a contract, therefore a customer who does not show is in breach of contract. Most hospitality merchants require the reserver to provide billing information for a major credit card. If the customer is a no-show, the card can be billed based on the contract. The amount may simply be a penalty fee, or may be for the entire reservation amount. In cases of unavoidable circumstances,  a merchant may allow the reservation to be shifted with no loss, or a minor fee.

Medical practitioners also deal with no-shows, but are less likely to have a patient’s credit card information on-file. An office may charge a no-show fee, but will have fewer options for recouping the loss.