Hotel Overbooking Strategies
As a part of a hotel’s revenue management strategy, overbooking has its pros and cons. While overbooking in the perspectives of a hotel industry aid in maximizing occupancy and revenue, it can also negatively ruin your brand causes a financial loss if it does not have a strategically planned.
Early check-outs, no-shows, and cancellations contribute to hotel losses while walk-in guests and those who overstay increase its revenue. These are the reasons hotels overbook, to minimize losses and maximize revenue.
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