Consequently, a bad overbooking strategy can cause a lot of damage and a whole lot of stress: from guests to associates. It often leads to bad online reviews, harm to your online reputation, financial loss, and “real-life” complaints.

Is overbooking a good practice?

Overbooking Strategy can help keep your hotel fully booked and minimize empty rooms. But it can also be stressful to manage for both the hotel and their guests. If you create a plan to successfully manage an overbooking, you can both maximize your revenues and maintain your guest's satisfaction.

What might be reasons for overbooking?

Even though it is a part of the revenue management strategy, overbooking hotel rooms is purely related to room allocation and inventory management. This is mainly done to insulate hotels from revenue loss that may arise due to no-shows and last-minute reservation cancellations.