The decision on whether or not to offer courtesy holds generally spurs some healthy debating on both sides. Those who argue against courtesy holds generally cite reasons such as:
Could potentially tie-up inventory that could otherwise be sold to others.
Skews results of forecast projections.
Creates unnecessary administrative tasks.
Yet when the managers at certain types of hotels and resorts fully embrace the process, and organize their operations to maximize sales efforts, the results always show it is a worthwhile effort.
What types of lodging companies can benefit from offering courtesy holds?
Certainly, not all hotel operations can benefit from offering a courtesy hold and so it is not always the right thing to offer. However, courtesy holds should be considered when:
There are restrictive requirements, such as requiring an advance deposit or non-refundable deposit, that can create barriers to making a commitment right now.
Guests tend to travel in larger parties requiring several rooms, such as extended families or informal reunions.
Callers are checking dates well in advance, and for which there is still plenty of time for the accommodation to be sold to others.
There is a longer average stay and a higher ADR.
There are revenue-generating outlets and/or other ways for the lodging operation to generate additional non-rooms revenue.