What Is Hotel Overbooking Strategy?
It may seem bad at the outset but overbooking has its pros too. Here’s a quick guide to a hotel’s overbooking strategy and how to make it work to your benefit. What is overbooking? Why does it occur? Overbooking occurs when a guests book more rooms than the actual number available in a hotel. Overbookings can occur due to many reasons: Hotels overbook to mitigate losses from no-shows, cancellations and early check-outs, and to increase revenue with clients who overstay or walk-in. Airlines use a similar approach.