👉 Percentage estimate of bookings that will not convert into actual stays (due to cancellations, no-shows, or early departures).
📘 What is the Wash Factor?
The Wash Factor, also known as the cancellation factor, is the estimated percentage of reservations that will not materialise. It accounts for guest behaviour like cancellations, no-shows and early check-outs, and is based on historical data.
Revenue managers use it to decide how many bookings they can safely accept above room availability, especially during high-demand periods.
✅ Why is it important?
- Helps maximise occupancy without causing operational disruptions.
- Improves forecast accuracy.
- Enhances revenue potential by minimising unexpected gaps.
- Crucial in volatile segments (corporate, MICE, last-minute).
💡 Practical example
A business hotel notices that 8% of bookings typically do not show. Based on this wash factor, it accepts 5% more bookings over capacity during high-demand events to ensure full occupancy.
🔄 Clarification
📍📍Wash Factor vs Overbooking:
Wash Factor is a proactive planning tool. Overbooking is the potential outcome — intentional or accidental.
📍Wash Factor vs Cancellations:
Cancellations are only part of it. Wash Factor includes all unmaterialised bookings, such as early departures and no-shows.
