Calculation example invoicing with regard to no shows / late cancellations

Yoga Club Deluxe

In this article, we will discuss the number of no-shows / late cancels on the final invoice based on three different scenarios. In addition, we explain why using the "expected reservations" is more beneficial for the partner in terms of the number of paid no shows / late cancels than using the total number of reservations.

The number of reservations expected, is the number of reservations open at the time of the cancellation deadline. In case of a 2 hour cancellation period, this is 2 hours before the start of the lesson.

Here we take Yoga club deluxe (fictional partner) as an example. Yoga club deluxe has a 2 hour cancellation period and offers 3 classes.

Scenario 1

Yin Yoga 20.00

12 expected reservations at 6pm (after the cancellation deadline (2hrs))

10 Check-ins

Result:

2 registered no shows / late cancels.

These are members who have done a late cancellation since 6pm that has not been filled or have not shown up for class.

Scenario 2

Flow Yoga 20.00

8 expected reservations at 6pm.

12 Check-ins

Result:

0 registered no shows / late cancels.

This means that everything happened between 6 pm and 8 pm. During this period, new reservations have been made and late cancels may also have occurred. If a late cancel has taken place, it has been filled with a new reservation.

Scenario 3

Nidra yoga 20.00

8 expected reservations at 6pm.

8 Check-ins

Result:

0 registered no shows / late cancels

It is possible that members have used the late cancellation option between 6 pm and 8 pm, but these places are eventually filled again.

Taking all three scenarios into account, Yoga club deluxe has gathered a total of 2 no shows / late cancellations.

The 5% rule is based on the total number of expected reservations. In this case, 0.05 * 28 = 1.4 no shows are withheld. We round this to 1 that we withhold and 1 that ends up on the invoice. *

* Had the "total number of reservations" been used, in this case for example 32, this number would have been higher (0.05 * 32 = 1.6) and in this example all no-shows / late cancels would be withheld.