When it comes to vouchers, many hoteliers fall into the trap of thinking that breakage - the revenue from unredeemed vouchers, is “free money.”
But here’s the uncomfortable truth: relying on breakage is a short-sighted strategy. While it might look good on a balance sheet today, it can actually harm your business tomorrow.
The illusion of profit
At first glance, unredeemed vouchers feel like a win. Revenue with no cost of delivery?
Wrong. Here’s what you’re really missing out on:
New customer opportunities – 79% of hotel voucher recipients are brand new guests. That’s a whole audience you could convert into repeat visitors (or even lifelong advocates).
Upsells and extras – Guests rarely stop at the voucher’s value. A £150 stay can quickly turn into £400+ with upgrades, spa treatments, and dinner.
Word-of-mouth reputation – Expired or forgotten vouchers leave a sour taste. Guests feel cheated, not charmed. That frustration can turn into damaging reviews.
Future loyalty – A redeemed voucher is the start of a relationship. Ignoring redemption lets that connection wither.
False forecasting – Counting breakage as real revenue gives you a distorted picture of business health. Growth should come from service delivered.
The power of redemption
The real value of vouchers isn’t in what isn’t redeemed, but in the footfall they generate. Encouraging guests to visit leads to:
Real revenue – Every redemption is an opportunity for upselling and add-on spend.
Stronger loyalty – A great first experience = repeat bookings, reviews, and referrals.
Better insights – Actual guests provide data you can use to refine your offering and marketing.
In short: it’s not about breakage, it’s about building sustainable, profitable relationships.
How to encourage voucher redemption
If you want to stop banking on dusty vouchers and start seeing real results, try:
Flexible policies – Extend expiry dates, allow transfers, and keep terms simple.
Proactive communication – Send reminders, highlight seasonal offers, and make redemption enticing.
Easy booking – Ensure your system is seamless, self-service, and redemption-friendly.
The bottom line
Breakage might pad your numbers in the short term, but it costs you growth, loyalty, and brand reputation in the long run.
When you actively encourage voucher redemption, you’re not just delivering a stay – you’re creating memorable experiences, repeat business, and long-term value.
And that’s far better for business.
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