Recruiter's Glossary

Examples: MICE (Meetings, Incentives, Conferences, Events) • Maintenance Management • Direct Booking

Overbooking

Term from Hotel Management industry explained for recruiters

Overbooking is a common practice in the hotel industry where hotels accept more reservations than they have rooms available. This is done because some guests typically cancel or don't show up. Hotel managers use this strategy to maximize room occupancy and revenue. It's similar to how airlines overbook flights. When done correctly, it helps hotels stay profitable, but it requires careful planning and good guest management skills to handle situations when all guests do show up.

Examples in Resumes

Developed and implemented Overbooking strategies that increased revenue by 15%

Managed Overbooking situations successfully with zero guest complaints

Created Overbooking policies and procedures for a 200-room luxury hotel

Typical job title: "Revenue Managers"

Also try searching for:

Hotel Revenue Manager Reservations Manager Front Office Manager Hotel Operations Manager Revenue Optimization Manager Rooms Division Manager Hospitality Manager

Where to Find Revenue Managers

Professional Associations

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you develop an overbooking strategy for a 500-room hotel?

Expected Answer: The candidate should discuss analyzing historical data, considering seasonal patterns, understanding cancellation rates, and creating backup plans with partner hotels. They should also mention monitoring competitor events and local activities that might affect occupancy.

Q: How do you handle an overbooking situation during peak season?

Expected Answer: Should explain the importance of having partner hotels ready, prioritizing loyal guests, offering upgrades or compensation, and maintaining professional communication throughout the process. Should also mention preventive measures and staff training.

Mid Level Questions

Q: What factors do you consider when making overbooking decisions?

Expected Answer: Should mention cancellation patterns, seasonal trends, group bookings, local events, weather conditions, and historical data. Should also discuss the balance between maximizing revenue and maintaining guest satisfaction.

Q: How do you calculate a safe overbooking limit?

Expected Answer: Should explain using historical no-show rates, cancellation patterns, and considering factors like season, day of week, and special events. Should mention the importance of monitoring these patterns regularly.

Junior Level Questions

Q: What is overbooking and why do hotels use it?

Expected Answer: Should explain that overbooking is accepting more reservations than available rooms to compensate for cancellations and no-shows, helping maximize revenue. Should understand basic concepts of why it's necessary.

Q: What are the basic steps in handling an overbooked guest?

Expected Answer: Should describe the process of walking a guest to another hotel, including arranging transportation, covering the first night's stay, and maintaining professional communication throughout.