Overbooking in Hotels Management Essay Research Paper (Essay Sample)

Overbooking in hotels
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Numerous hotels overbook rooms as a strategy for managing their revenue. “Overbooking is a scenario where the total number of hotel rooms reserved for a certain period of time exceeds the total number of rooms available for sale for the same period. In other words, it is the number of additional reservations a hotel needs to achieve 100% occupancy. Overbooking for hotels is a revenue management strategy that helps maximize the total capacity and increase room revenue.” (Phumchusri, 2014). I am firmly against overbooking in hotels because the situation doesn't justify the guest’s expectations triggering a bad reputation and experience. Overbooking has a negative effect on the guests, which confirms that the strategy is not right in the long-term for the hospitality industry. Besides, it calls the need for shifting the guests to other hotels whenever predicted overbooking exceeds actual availability. The situation requires well trained and experienced professionals to help minimize the risk of miscalculation (Antonio, 2017). Unfortunately, most of the hotels are deficient in such staff.