What do you think are the disadvantages of overbooking in hotels?

Cons of Overbooking
  • Do expect a guest review that may affect the reputation.
  • Additional financial loss as other guests stay in a hotel might use other hotel facilities.
  • Guests that move may have a negative thought about your hotel, so it is not suitable as a long-term strategy.




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Overbooking for hotels is a revenue management strategy that helps to maximize the total capacity and increase the Room revenue. But on the other hand overbooking for guests means waiting and inconvenience that result in their dissatisfaction with the services.

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Consequently, a bad overbooking strategy can cause a lot of damage and a whole lot of stress: from guests to associates. It often leads to bad online reviews, harm to your online reputation, financial loss, and “real-life” complaints. Nevertheless, a good overbooking strategy can bring many benefits.

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Despite the potential advantage of overbooking, keep the risks and disadvantages in mind when you plan your strategy.
  • Poor guest experience. Guests that arrive only to get sent away probably won't be happy. ...
  • A dent in your online reputation. ...
  • Difficult situation for staff.


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Overbooking is when your total room available reserve is less than the number of rooms that had been booked for sales in the same period. Overbooking is a common problem that happens in hotels if they are doing the daily operation task manually. It can maximize your profits and also cause you damage.

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Because overbooking involves the intentional and deliberate act of promising more rooms than are actually available, the practice must therefore be associated with a number of ethical and moral dilemmas.

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Whether you're flying from New York or New Orleans, Lisbon or London, airlines continue overbooking to compensate for “no-shows” all the time. Simply put, they sell more tickets than they have available seats. And it's not an illegal practice.

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The risk that expected cancellations might not take place and some guests might not find available their reserved rooms is the reason why overbooking is considered a controversial practice, unethical for consumers.

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Whether you're flying from New York or New Orleans, Lisbon or London, airlines continue overbooking to compensate for “no-shows” all the time. Simply put, they sell more tickets than they have available seats. And it's not an illegal practice.

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Some of the main drawbacks of working in the hospitality industry are:
  • It can involve long working hours. ...
  • It usually comprises a high-pressure environment. ...
  • It may involve extensive physical work.


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Other disadvantages include high cost of effective distribution, increasing costs of communication, inability to obtain necessary marketing intelligence in order to compete (Holverson & Revaz, 2006), high amount of investments required for technology solutions (Ting, 2017), cost of paying high OTA commissions and ...

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The purposeful and deliberate act of overbooking runs counter to any acceptable standard of ethical business practice. In addition to the practice being ripe with serious legal, contractual and consumer protection violations, overbooking forces hospitality personnel into making conscious immoral and unethical choices.

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Overbooking = more profit, but often = unhappy customers. Airlines use statistics to avoid overbooking, resulting in 50k people getting bumped off flights annually. Airlines use data to predict the number of passengers boarding a flight.

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As a result, airlines can, with a degree of certainty, overbook a flight considering the number of no-shows expected, thereby maximizing the capacity available to customers. For consumers, this practice is beneficial because it allows more consumers to fly at the time, date and fare of their choosing.

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For example, an airline overbooks a flight in expectation of a certain number of passenger no-shows. Similarly, a restaurant overbooks its seating reservations, since some patrons never show up for their reservation slots.

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Overbooking flights in the US
Here's what you need to know: Only boarding denials due to overbooked flights are covered. US regulations are quite strict: passengers are only eligible for compensation if they are denied boarding due to the airline overbooking the flight in question.

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Here's a list of common threats that hotels face:
  • Pandemics.
  • High taxes.
  • Rigid labor market.
  • Safety Emergencies.
  • Disorderly conduct.
  • Airbnb.
  • Intense competition in the industry.
  • Terrorism and political uneasiness.


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