Here’s how smart payment practices can dramatically lower your no-show rate:
1. Take a deposit online before arrival
The most effective way to reduce no-shows is requiring guests to have "skin in the game”. Implement one of these payment structures to turn a casual booking into a commitment:
- Partial deposits: Require 25-50% upfront for accommodations, 30-100% for activities
- Full prepayment: Best for high-demand periods or specialised experiences
- Non-refundable booking fees: Even a small $10-20 fee significantly reduces frivolous bookings
2. Offer easy online payments
If guests can’t pay online at the time of booking, they’re less likely to feel committed. Cash-only businesses or unclear payment steps create friction and doubt. Offering online payment options, ideally in the currency and payment method of their choice, boosts both convenience and trust.
Payment platforms like Stripe, Tab, or Square make this easy.
3. Support international cards and currencies
Tourists are less likely to trust the business if it only offers a few payment options. They often travel with cards like American Express (AMEX) or expect to pay in their own currency.
Remove payment friction by accepting what international travellers actually use:
- Multiple card types: Visa, Mastercard, American Express (AMEX)
- Digital wallets: Apple Pay, Google Pay
- Local payment apps: Depending on your target markets (Alipay for Chinese tourists, etc.)
4. Build trust through payment security
Invest in legitimate payment processing that provides:
- Secure payment confirmation emails
- Digital receipts with a clear breakdown of the total price, taxes and what’s included
- Professional booking reference numbers
5. Set a fair cancellation policy
You don’t need to be harsh - but letting guests know there’s a no-show fee or cancellation deadline (and clearly stating it in your confirmation email) nudges them to take their booking seriously.
