Standard Procedure for Lost Business or Turnaways
SOP Number: S&M – 09
Department: Sales and Marketing – Sales
Date Issued: 20-Jun-2017
Time to Train: 30 Minutes
Lost Business and Turnaway Standard procedure:
This procedure helps to track lost opportunities and to be referred to for sales strategy evaluation, revision and new product development.
Business that is lost due to the inability of the hotel to accommodate the customer’s needs should be documented on a Lost Business Report.
The lost business report and turnaway report / form should be filed and reviewed at the weekly Sales Meeting.
Lost enquires or bookings are also tracked by the reservation department using 'Turnaway Codes'.
Turnaway Codes are used to assist in recording the number of reservations or possible reservations that were "turned away" or could not be made by the property.
Each Turnaway done by the hotel sales or reservations agent should be tagged to the respective Turnaway codes.
Turnaways can be ideally classified as denials or regrets.
Denials are reasons for turning away customer business on the property side (e.g: Sold out, Room Type not available etc.).
Regrets are reasons why a guest does not book the reservation (e.g., price sensitivity, location, facilites etc.).
Some examples of turnaway codes are:
Requested Room Type Not Available
Rate too High
It is useful to know for what reasons people cannot or do not make reservations and from which market segments they come.
The sales team members should use a lost business form to track all instances of lost business for both group, transient rooms, events, conference etc.
Director of Sales and Marketing should monitor all turnaway reasons by code by printing appropriate reports from the property management system.
If certain turnaway types habitually reoccur, it is advisable to re-evaluate the current Revenue Strategies and make necessary revisions to avoid missed opportunities in the future.
In the event availability of space is the reason for lost business, refer back to the client in case the space in question opens up due to a cancellation.
Sales team should refer back to the past report to solicit customers for future business over the same time period.
Training Summary questions:
Q1. Does anyone know why the lost business should be tracked?
Q2. Turnaway reasons are classified into two types what are they?
Q3. Who is responsible for reviewing the turnaway and lost business forms?
Q4. Give few examples of turnaway codes?
Q5. What action need to be taken if certain turnaway types reoccur?