Hotel overbooking: what it is, advantages and disadvantages and more!
Posted: Mon Jan 20, 2025 8:49 am
Overbooking at a hotel can occur for a number of reasons, whether it is due to a promotion, a local event, or simply high demand due to the season, for example. This event is called hotel overbooking .
But in practice, is this scenario positive or negative for the hotel industry?
Well, at first, hotel overbooking may seem like good news. After all, it's all about filling up reservations... right?
In fact, in this sense, overbooking is much more than the exhaustion of reservations, but indicates the over-selling of reservations.
That is, when the hotel sells more than its capacity.
It is a delicate situation that can cause serious problems for managers and owners of establishments.
How about understanding more about the topic? We have prepared a complete guide on the subject, explaining what it is, why it is often used as a strategy and the advantages and disadvantages. Let's go there!
What is hotel overbooking?
Overbooking in hotels occurs when there are too many reservations. That is, when the establishment sells more rooms than it can occupy.
This event may be the result of an oversight on algeria whatsapp data the part of hotel management , including an incorrect estimate of the number of cancelled reservations, or a strategy by the establishment to ensure that the hotel is always full.
However, when it comes to understanding what overbooking is in the hotel industry, it is important to understand that this practice can cause problems for guests, especially if there are not enough rooms available for everyone.
In terms of strategy, adopting overbooking is a delicate decision and should be avoided as far as possible.
Advantages and disadvantages of overbooking
For those who are not familiar with the hotel industry, it may seem strange to read that overbooking has advantages and disadvantages. After all, how can overbooking become a strategy, with its cons and, above all, its advantages?
We'll make it simple for you, check it out!
Imagine the following scenario: Diego has traveled to a conference in another state. However, upon arriving at his hotel after the long trip, he discovers that there are no rooms available.
Tired, Diego becomes frustrated when he discovers that the hotel is already full, even though his reservation has already been made.
With too many guests for too few rooms, the hotel would have to move to solve the problem, which brings us to the disadvantages of this practice.
The most unpleasant action would be to reject some of the guests, including Diego.
This decision in itself generates discontent, stress and can cause some confusion, depending on the guest profile.
It's something that could be important for the hotel's management team, who will have to deal with angry guests.
Ultimately, this impacts the hotel's reputation and can tarnish its image in the market, especially with negative reviews and comments on social media, such as TripAdvisor.
And of course there is the financial issue, which in this case can be considered ambiguous.
On the downside, the hotel will have to deal with “lost” revenue as it will not receive money from guests who were turned away.
Furthermore, offering a solution to accommodate guests whose room category is overbooked is offering an upgrade, which can be valued positively.
For Diego, this is the option that best suits his needs, and he supports it.
Alternatively, the establishment may direct guests to another establishment, accommodating them in rooms of the same level.
And, of course, without forgetting that the cancellation and refund option must always be available.
But in practice, is this scenario positive or negative for the hotel industry?
Well, at first, hotel overbooking may seem like good news. After all, it's all about filling up reservations... right?
In fact, in this sense, overbooking is much more than the exhaustion of reservations, but indicates the over-selling of reservations.
That is, when the hotel sells more than its capacity.
It is a delicate situation that can cause serious problems for managers and owners of establishments.
How about understanding more about the topic? We have prepared a complete guide on the subject, explaining what it is, why it is often used as a strategy and the advantages and disadvantages. Let's go there!
What is hotel overbooking?
Overbooking in hotels occurs when there are too many reservations. That is, when the establishment sells more rooms than it can occupy.
This event may be the result of an oversight on algeria whatsapp data the part of hotel management , including an incorrect estimate of the number of cancelled reservations, or a strategy by the establishment to ensure that the hotel is always full.
However, when it comes to understanding what overbooking is in the hotel industry, it is important to understand that this practice can cause problems for guests, especially if there are not enough rooms available for everyone.
In terms of strategy, adopting overbooking is a delicate decision and should be avoided as far as possible.
Advantages and disadvantages of overbooking
For those who are not familiar with the hotel industry, it may seem strange to read that overbooking has advantages and disadvantages. After all, how can overbooking become a strategy, with its cons and, above all, its advantages?
We'll make it simple for you, check it out!
Imagine the following scenario: Diego has traveled to a conference in another state. However, upon arriving at his hotel after the long trip, he discovers that there are no rooms available.
Tired, Diego becomes frustrated when he discovers that the hotel is already full, even though his reservation has already been made.
With too many guests for too few rooms, the hotel would have to move to solve the problem, which brings us to the disadvantages of this practice.
The most unpleasant action would be to reject some of the guests, including Diego.
This decision in itself generates discontent, stress and can cause some confusion, depending on the guest profile.
It's something that could be important for the hotel's management team, who will have to deal with angry guests.
Ultimately, this impacts the hotel's reputation and can tarnish its image in the market, especially with negative reviews and comments on social media, such as TripAdvisor.
And of course there is the financial issue, which in this case can be considered ambiguous.
On the downside, the hotel will have to deal with “lost” revenue as it will not receive money from guests who were turned away.
Furthermore, offering a solution to accommodate guests whose room category is overbooked is offering an upgrade, which can be valued positively.
For Diego, this is the option that best suits his needs, and he supports it.
Alternatively, the establishment may direct guests to another establishment, accommodating them in rooms of the same level.
And, of course, without forgetting that the cancellation and refund option must always be available.