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management overbooking

In Revenue Manangement overbooking, is considered a necessary evil in order to achieve the maximum employment and maximum profit.

overbooking The purpose is to replace the rooms that inevitably will not be sold because of the distorting variables no show, check out early and late, last minute cancellations).

The end of overbooking must be conducted with great prudence in order not to turn it into oversale, which is the physical materialization of the customer to which you may not give the room because there are no longer available, will force accommodation in another hotel of the same class at their own expense. Capacity management of a hotel may at first glance, not be perceived as a problem, but in reality it is because always poses in front of two types of behavior that are distinct from each other

• Do not take rooms in excess of the capacity of its structure, thinking that all those who have booked will come.

• We accept bookings of rooms in excess of the capacity of his hotel, however, exposing themselves to the risk of oversale.

In the first situation is in danger of unsold goods, which in periods of high employment is exactly the antithesis of thought of every Revenue Manager. Therefore it is impossible to be taken into account.

In the second situation, however, tends to full employment, we identfica fully with the policy of the Revenue Manager for which each room is empty un'insuccesso. The Revenue Manager, therefore, opt for the latter behavior, but can not overlook the fact that undergoes such issues arising from two liabilities to be assumed by:

• A financial burden of those costs live at the reception will be charged to the customer that will be moved to another hotel, such as taxis and any fare difference of the new hotel.

• onyx non-financial, represented by the fall of image and word of mouth that this kind of negative attitude may result in the client. Another non-financial burden, now abundantly clear is represented by the stress of staff. A reckless policy of overbooking, constantly exerted over the whole period of high employment will determine definitely by the clerks at the reception level of stress and tension which inevitably will impact on the motivation and therefore the service provided to the customer.

These considerations must not retain a healthy policy of overbooking, but rather should involve careful analysis of how a book is handled and all the guarantees attached to it. These preventive care when combined with a careful study of the discursive variables for each segment, to minimize the risk of oversale.