Overbooking in Peak Seasons What is Overbooking Overbooking refers to the practice that hotels allow some more reservation to be made than the actual number of rooms Which can be available this is done so as to make up the possible loss caused by no-shows, cancellations, and early departures
Overbooking in Peak Seasons ▪ What is Overbooking? ▪ Overbooking refers to the practice that hotels allow some more reservation to be made than the actual number of rooms which can be available. This is done so as to make up the possible loss caused by no-shows, cancellations, and earlydepartures
Overbooking usually occurs in peak seasons or holidays The rate of overbooking can be about 5% -15%
▪ Overbooking usually occurs in peak seasons or holidays. ▪ The rate of overbooking can be about 5%- --15%
Factors which need to be considered when overbooking 1. the amount of group reservation and individual reservation -----the more individuals the more overbooking 2. the amount of different types of reservation confirmed reservation i quaranteed reservation l. Advanced reservation s iv. on-wait reservation Hotels should guarantee rooms are available for confirmed and guaranteed reservation
Factors which need to be considered when overbooking ▪ 1.the amount of group reservation and individual reservation ------the more individuals, the more overbooking . ▪ 2.the amount of different types of reservation ▪ i. confirmed reservation ▪ ii. guaranteed reservation ▪ iii. Advanced reservation ▪ iv, on-wait reservation ▪ Hotels should guarantee rooms are available for confirmed and guaranteed reservation
3. Collect information and predict the amount of the following 4 types of customers no-shows ii. Cancellation Overstays iV. Early-arrivals
▪ 3. Collect information and predict the amount of the following 4 types of customers. ▪ i. no-shows ▪ ii. Cancellation ▪ iii. Overstays ▪ iv. Early-arrivals
Possible problems Proper amount of overbooking can help maximum the hotels interest but it is also possible that there is no room available for a guaranteed guest. Then how should the hotel solve the problem?
Possible problems ▪ Proper amount of overbooking can help maximum the hotel’s interest. But it is also possible that there is no room available for a guaranteed guest. Then how should the hotel solve the problem?
Problem solving 1. Earnestly explain the reasons and say sorry to the guest 2. If the guest agrees, contact another similar hotel and help the guest check in providing free-car service 3.provide the guest some compensation
Problem solving ▪ 1. Earnestly explain the reasons and say sorry to the guest. ▪ 2.If the guest agrees, contact another similar hotel and help the guest check in, providing free-car service. ▪ 3.provide the guest some compensation
Questions for further research How can hotels make full use of the National Day holidays and May-day holidays?
Questions for further research: ▪ How can hotels make full use of the National Day holidays and May-day holidays?
