Why Charging a Booking Fee Solves No-Show Problems
Are no-shows giving you a headache? You’re not alone. Many campground and RV park owners struggle with guests who reserve spots but never show up. This can lead to lost revenue and frustrated campers who couldn’t book because the site appeared full. But there’s a simple solution: charging a booking fee. Let’s dive into why this works so well.
What is a Booking Fee and How Does it Help?
A booking fee is a small, non-refundable charge that guests pay when they make a reservation. It’s usually a fraction of the total cost of the stay.
Here is how it helps:
- Â Skin in the Game: When guests pay a fee upfront, they’re more likely to follow through. It’s basic psychology – we value things more when we’ve invested in them.
- Fewer Last-Minute Cancellations: Knowing they’ll lose money makes guests think twice before canceling on a whim.
- Offset Costs: Even if someone does no-show, you’ve at least covered some of your administrative costs.
- Better Planning: With more reliable bookings, you can plan staffing and resources more accurately.
Did You Know?
Millennials and Gen Z are 52.6% more likely than Gen Xers and Baby Boomers to not show up for a reservation. Additionally, income plays a role in this behavior; campers earning more than $250,000 a year are more than twice as likely to forgo their reservations compared to those earning less than $50,000.
Don’t like using Booking Fees? Try using a Service Fee or Facility Fee
Service Fee: Covers additional or premium services Examples: cleaning, concierge, special requests
Facility Fee: Covers maintenance and improvements For amenities like pools, Wi-Fi, playgrounds
Implementing Booking Fees with OpenCampground
While many campground software providers charge you a percentage of every booking fee you collect, OpenCampground takes a different approach. We believe that the booking fees you charge should stay with your business – after all, you’re the one dealing with no-shows and managing reservations.
How OpenCampground Helps:
- Complete Fee Control
- Set your own booking fee amounts
- Keep 100% of the fees you collect
- Adjust fees seasonally or for different site types
- Flexible Fee Options
- Easy setup for booking fees
- Configure service fees for premium offerings
- Set facility fees for amenity access
- Combine different fee types as needed
- Professional Communication
- Automated fee breakdown in guest communications
- Clear fee display during booking process
- Transparent receipts and documentation
- Smart Revenue Management
- Track collected fees separately in financial reports
- Monitor the impact on no-show rates
- Analyze fee performance by season or site type
The OpenCampground Difference
Unlike “free” booking systems that take a cut of your fees, OpenCampground operates on a simple monthly subscription. This means when you charge a $10 booking fee to reduce no-shows, you keep the entire $10. Over time, this adds up to thousands in additional revenue that stays with your business rather than going to your software provider.
