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Hotel Overbooking Handling!

The document discusses hotel overbooking, a strategy used to maximize revenue by selling more rooms than available to counter cancellations and no-shows. It outlines procedures for managing overbookings, including checking occupancy levels, analyzing potential book-outs, offering compensations, and sharing guest lists with staff. Additionally, it highlights the importance of having clear overbooking policies and the challenges associated with this practice, such as poor guest experiences and potential damage to reputation.

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mrdeddysteven
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35 views

Hotel Overbooking Handling!

The document discusses hotel overbooking, a strategy used to maximize revenue by selling more rooms than available to counter cancellations and no-shows. It outlines procedures for managing overbookings, including checking occupancy levels, analyzing potential book-outs, offering compensations, and sharing guest lists with staff. Additionally, it highlights the importance of having clear overbooking policies and the challenges associated with this practice, such as poor guest experiences and potential damage to reputation.

Uploaded by

mrdeddysteven
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Adel Gouda

Sales, Marketing & Revenue Expert

Hotel overbooking
Strategy, Solutions & Policies
Overbookings, or double bookings, happen
when a hotel sells more rooms than it has
available for a given night

Many hotels do this deliberately to offset


last-minute cancellations or no-shows and
avoid losing revenue and occupancy.

Of course, it can also happen by accident,


when inventory availability fails to update on
some distribution channels, and they don’t
close on time
Adel Gouda
Sales, Marketing & Revenue Expert

What happens when there is a hotel overbooking?

When your hotel is overbooked for a certain date, follow


the steps below to ensure everything goes smoothly.
An established set of procedures is important.

1- Check occupancy levels


Monitor occupancy levels and close reservation
channels before you get too many overbooking.
Check your data to see how many cancellations and
no-shows you can expect

2- Analyse potential book-outs


Analyse your arrivals to determine who you can walk
If possible, keep the following travellers in-house:
Repeat guests
Loyalty members
Direct bookers
High-paying and long-stay guests
Travellers celebrating a special occasion
Adel Gouda
Sales, Marketing & Revenue Expert

What happens when there is a hotel overbooking?

3- Offer compensations
Arrange for alternative accommodation and
compensation
As soon as you know how many people you need to
walk, look for a suitable alternative for them
Consider offering some sort of compensation as well,
to show you’re sorry and appreciate their
collaboration.

4- Share your guest list


Share your list of guests to walk as well as the new
hotel with your team.
Then ensure they know which procedures to follow
when these travellers arrive
The goal is to make things go as smoothly as possible
to reduce the added friction guests experience.
Adel Gouda
Sales, Marketing & Revenue Expert

Examples of hotel overbooking policies


important for businesses?

Overbooking by a Fixed Percentage


Some hotels may choose to overbook by a certain
percentage, such as 2%, 3%, or even 10%. This percentage
is often based on historical data and the hotel’s past
experiences with cancellations and no-shows.

Walking Policy:
When a hotel is overbooked and a guest cannot be
accommodated, the guest is “walked” to a different
hotel. The original hotel typically arranges and pays for
the guest’s stay at the alternative hotel.

Compensation Policy
an overbooked hotel will provide compensation to the
guest for the inconvenience caused. This could include
free transportation to the alternative hotel, a free meal,
or a free night’s stay.
Adel Gouda
Sales, Marketing & Revenue Expert

How to unlock the advantages of


hotel overbooking

Analyse your data to make accurate


predictions

Implement and follow SOPs for


overbooking

Partner with hotels nearby

Train front desk staff on how to handle


book-outs
Adel Gouda
Sales, Marketing & Revenue Expert

Challenges and solutions around


overbooking

Despite the potential advantage of overbooking,


keep the risks and disadvantages in mind when
you plan your strategy.

1. Poor guest experience

2. A dent in your online reputation

3. Difficult situation for staff


Adel Gouda
Sales, Marketing, Revenue & Commercial Expert

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