Definition of “Overbooking”
Overbooking is a practice in the travel industry that involves accepting reservations for more space or services than are actually available. This is often done to ensure that a business is able to maximize its profits by filling as many seats or rooms as possible.
However, overbooking can lead to situations where customers are unable to access the space or services they have reserved, which can lead to frustration, inconvenience, and negative publicity for the business. To mitigate the risks of overbooking, many businesses choose to implement processes that allow them to flexibly monitor and adjust their availability in response to market demand. This may involve offering incentives to customers who agree to move to alternative times or dates, or working with complementary businesses to meet the needs of customers during peak periods.
Overall, overbooking can be an effective tool for maximizing profits in the travel industry, but it is important for businesses to carefully manage their reservations processes to ensure that customer satisfaction is not compromised.
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