Overbooking is a common business practice in hotels and travel where more rooms or seats are sold than actually available. This is done because some guests typically cancel or don't show up. Managing overbooking requires careful planning to balance maximizing room occupancy while maintaining guest satisfaction. When done correctly, it helps hotels maintain profitable operations, but when handled poorly, it can lead to guest dissatisfaction. This practice is also known as overselling or capacity management.
Developed overbooking strategies that increased hotel occupancy by 15%
Managed overselling situations with minimal guest complaints
Successfully handled overbooking scenarios by implementing guest relocation procedures
Typical job title: "Revenue Managers"
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Q: How would you develop an overbooking strategy for a 500-room hotel?
Expected Answer: Should explain the analysis of historical data, consideration of seasonal patterns, special events impact, and creating backup plans for guest relocation. Should mention tools and systems used for forecasting and risk management.
Q: How do you handle a situation where overbooking leads to multiple displaced guests during peak season?
Expected Answer: Should discuss prioritization based on guest loyalty status, having partnerships with nearby hotels, compensation policies, and maintaining positive guest relations while managing costs.
Q: What factors do you consider when making overbooking decisions?
Expected Answer: Should mention cancellation patterns, no-show rates, length of stay, group bookings, and seasonal factors that affect booking patterns.
Q: How do you balance revenue optimization with guest satisfaction in overbooking scenarios?
Expected Answer: Should discuss monitoring booking patterns, maintaining good relationships with partner hotels, and having clear procedures for guest compensation and relocation.
Q: What is overbooking and why do hotels use it?
Expected Answer: Should explain basic concept of selling more rooms than available to compensate for cancellations and no-shows, and how it helps maximize revenue.
Q: What steps do you take when dealing with an overbooked guest?
Expected Answer: Should describe the basic process of arranging alternative accommodation, transportation, and compensation according to hotel policy.