Denials and Regrets
Denials and regrets are the two categories of demand a hotel didn't convert, recorded so that revenue managers can estimate true demand rather than just bookings made. A denial is demand the hotel turned away — the guest wanted to book, but the hotel could not or would not sell (sold out, length-of-stay restriction, room type unavailable, rate closed). A regret is demand the guest walked away from — availability existed, but the shopper declined, typically over price or product fit.
Why the distinction matters
- Denials signal constrained capacity or overly tight restrictions: enough denials on a date suggest the hotel could have priced higher or that inventory controls (MinLOS, closed rate plans) were too aggressive.
- Regrets signal a price or product problem: heavy regrets at the current BAR suggest the rate is above what the market will bear, or the offer isn't competitive against the comp set.
Example
A city hotel shows 40 denials for a Saturday six weeks out — callers and website shoppers who couldn't book because MinLOS 2 was applied. The revenue manager reviews whether the restriction is displacing more revenue than it protects. Conversely, 200 website sessions reach the rate page for a shoulder-season Tuesday and 190 leave without booking (regrets): a pricing review, not a restriction review, is warranted.
Measurement
Historically captured manually by reservations agents, denial/regret data now comes mostly from digital funnels: booking engine and OTA shopping data (searches vs. bookings, the Look-to-Book Ratio) and CRS availability requests. The data feeds Unconstrained Demand estimates in a RMS (Revenue Management System) — without it, forecasts are capped at what the hotel happened to sell, systematically underestimating demand on sold-out and restricted dates.
Related
See Unconstrained Demand, Look-to-Book Ratio, Funnel Drop-off, and MinLOS / MaxLOS (Length-of-Stay Restrictions).