Overbooking is not just taking more reservations for the same night; it is managing simultaneously possibilities such as cancellation, no-show, extension, room failure and channel delay. Some hotels do controlled sales taking into account the tendency of cancellation, while some fall into unpredictable more reservations only by data or connection error. In both cases the goal is the same: to see the situation early, to clarify the options and to maintain the guest's trust in the hotel.
- The decision of overbooking should be assessed by the date, the type of room, the guarantee status and the number of available rooms, not by the total number of rooms.
- The availability in PMS, channel manager and direct sales channels should be compared regularly within the same day.
- If placement is necessary, the order of decision, alternative hotel criteria, transportation and cost liability must be determined in advance.
What does overbooking mean?
Overbooking is the formation of a date and more precise accommodation obligation than the hotel can actually offer for a type of room for sale. This should not be considered independently of the physical number of rooms. Non-service rooms, maintenance work, long-term stay, free room promise or reservations that cannot be converted into the same type of room may reduce the available capacity.
Controled overbooking can be a commercial decision made based on past cancellations and no-show trends. Unpredictable overbooking often arises by unupdated availability, simultaneous booking from two channels or the equalization of the room type. The difference in terms of operation is important, but the guest's needs are the same: the secure meeting of the confirmed accommodation.
- Number of rooms: Total room in the facility
- Number of rooms available for sale: maintenance, blockage and operating decisions available
- Exact reservation: a guarantee, payment or registration that generates a stay obligation according to the hotel’s confirmed condition
- Risk date: expected entrance, exit, extension and non-service room information is assessed together when the capacity is reduced at night
What is the risk that is noticeable early?
It is not enough to look at the only percentage of availability in the morning. The front office and booking team should compare the confirmed entries with the stock available on the basis of the room type, especially for near dates. The same guest's record of the deposit, the reservations not yet completed, the unnamed rooms in the group blockage and the rooms with the expected but requested extension to make the exit should be marked separately.
If the owner of this control is clear, the information will not disappear between the emails. For example, the booking manager will review the risky nights of the next three days in the afternoon; the front office manager will also record the changes in the day and extension. The goal is not to be perfect for the estimate, but to send the new information that affects the capacity in time to the decision maker.
- Date and room type based on the booking difference with available stock
- Expected outputs, approved extendments and late outputs requests
- The date of re-sales with unservice rooms
- Group blockage, unattributed rooms and cut-off containers will be released after
- Last time of synchronization on the channel and waiting reservations
How can the channel and PMS records be kept in agreement?
When multiple online sales channels are used, the availability on one screen is meaningful, but if it carries the same information with other systems. When the room type match, the closing rule, the minimum accommodation and the content update change; also check the reward in the channel manager with PMS. A delayed synchronization, especially in the same day-in-touch reservations, can cause a small difference to rapidly grow.
Connect the content to a specific time instead of doing it only when there is a problem. If there is a difference between the systems, first check which record is up to date, then give the authorized person the decision to close the sales channel or correct the content. If the date, channel, old-new item and reason for the change is recorded, it will be easier to distinguish the link or process error in the subsequent review.
- The PMS room type has been confirmed to match the room type in each sales channel.
- The channel synchronization time was checked in recent dates.
- The availability consciously determined which system is the source record.
- Content or sales closure changes are recorded by the user and reason.
If a lot of reservations are confirmed, what steps should be taken first?
First confirm the number: the same date, the same type of room, the real-time rooms and the exact accommodation. Then see which night, the number of rooms and which guest groups affect instead of generalizing the problem as ‘a room is missing’. Options such as room type upgrades, request to change the booking date, early departure or accommodation in different facilities should be offered if they can actually apply only before talking to the guest.
The guest is more respectful to inform as early as possible and directly than to compare it with a surprising situation at the time of entry. Share the alternative, the arrangement of transport, the contact person and the time of return, which can be confirmed instead of uncertain words in communication. Sorry, it does not replace the solution; but the open possession and the fast tracking experience will significantly improve.
- Re-calculate the actual capacity difference on the basis of the room type and night.
- Allow the sole decision-maker to the manager, the booking and the front office.
- Confirm the appropriate upgrades, date change or alternative facility options.
- Record the contact channel for the affected guest, the proposed solution and the status of approval.
- In the change of the valve, transfer the open file, the responsible person and the next step in writing.
How to get to the alternative hotel?
The decision of placement or walk should not be left on the phone that is last-time. Before the intense periods, similar location, quality level, room standard and transportation can be determined by alternative facilities. The current contact person, the booking method and, if necessary, the mutual working conditions for each facility must be written.
The solution for the guest is not the only location of another room. The alternative accommodation name, address, stay dates, how transportation is provided and the costs the hotel is charged must be clear. Personal circumstances, accessibility needs or conditions such as the non-reside of the people travelling together also affect the suitability of the solution. Therefore, without sharing the accommodation information excessively, only transfer the necessary details for the solution to the competent persons.
Why is the root found after the incident?
After the problem is closed, check the records with a small assessment. Was a over-sales decision planned; if not, when the first difference occurred, which channel appeared and who interfered? Causes such as cancellation trend forecast, unservice room update, room type matching or inter-ventory communication require different improvements.
The evaluation should serve not to blame the person, but to create a repeatable check. For example, if the same error occurs in the weekend intensity, a specific area can be added to the capacity check that will be done on Friday. Keeping the decision and the result taken along with the event record will help you determine healthier sales limits in the next season.
- When the difference is first seen and the source record
- Type of room, date and number of reservations
- Applied solution, cost and guest approval
- Technical, process or data-source root causes
- Added controls for the next vardi or intensive period
Make the capacity decisions visible with RoomFollow
The main need in overbooking management is to be able to see the real room status of the front office in the same operational context as the movement in the sales channel. When the booking, room plan, accommodation status and transaction notes are followed together in RoomFollow, which record changes on a riskable date and which solution remains open, it is easier to track.
Make the controlled sales limit, approval authority and alternative accommodation approach written according to the segment of your hotel; then link these rules to the daily check and turnover routine.
Overbooking checklist
This list is the starting point for facilities using different types of rooms and sales channels. Adjust your own contract, payment and guest communication procedures.
- For the nearest dates, stock and accurate reservations were compared on the basis of room type.
- Unservice room, extension, group blockage and waiting changes have been added to the capacity account.
- The matching of room type on the channels with PMS and the last update time were checked.
- The responsible for the risk dates, the time of decision and approval mercii were determined.
- The current contact list for alternative facilities, transport and cost liability has been reviewed.
- Only confirmed options can be offered to the affected guests.
- After the incident record, root causes and added preventive controls were reviewed.
FAQ
Is overbooking the same thing with room type upgrading?
No. Room type upgrade is the decision to offer a higher room type to the guest. Overbooking is the fact that there is a more accurate accommodation obligation than the hotel can meet for a specific date or room type; upgrade can sometimes be one of the solutions options.
Should every hotel have a overbooking?
No. This commercial decision should be taken by assessing the annulment and no-show tendency of the facility, the room type structure, the alternative solution capacity and the guest experience approach.
When should the guest be informed when a overbooking is noticed?
The applicable solution options will be verified at the earliest possible time. The guest must only provide clear alternative, transport information and contact information of the person to follow.