What is the major problem of overbooking?

When overbooking in hotels is done intentionally, the risks include: Negative customer experiences that lead to negative word of mouth. Loss of potential revenue from upsells, ancillary services, and in-room upgrades.



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Overbookings, or double bookings, happen when a hotel sells more rooms than it has available for a given night. Many hotels do this deliberately to offset last-minute cancellations or no-shows and avoid losing revenue and occupancy. Of course, it can also happen by accident.

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Potential poor publicity If your hotel overbooking strategy fails, you could get bad reviews. Many potential visitors to your hotel will be sure to check reviews to know what people are saying about your hotel before they make reservations.

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Sometimes overbooking happens simply because a guest doesn't check out when they are scheduled to leave or if a room becomes “out of service” due to an unexpected maintenance issue. Sometimes, however, simultaneous bookings happen when two guests book the same room from different channels at the same time.

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Overbooking, also known as overselling, is the practice of accepting more reservations than rooms you have available. The term can also refer to overbooked flights - we've all been offered vouchers to leave behind a confirmed reservation or airline ticket and the concept is very similar in hotels.

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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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How to handle overbooking in hotels
  1. Check your other hotel room availability. The first thing to do is find out whether you have another room of the same standard available. ...
  2. Relocate the guest. ...
  3. Have a strategy for who you relocate. ...
  4. Take a breath and take stock.


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In addition, the practice of overbooking allows airlines to keep fares low for the flying public. If airlines were no longer allowed to overbook, fares would likely rise as airlines would have to pass on the costs of more empty seats to consumers.

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It is legal to overbook seats for a flight on the provision that passengers who don't get a seat due to overbooking must be compensated with an alternative flight, cash, or travel vouchers.

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While it is legal for airlines to involuntarily bump passengers from an oversold flight when there are not enough volunteers, it is the airline's responsibility to determine its own fair boarding priorities.

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is delayed by more than two hours beyond its scheduled departure time, or cancelled. Ryanair, as a policy, does not overbook its flights.

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Moreover, every airline in the United States overbooks its flights at least some of the time. All but one, that is. JetBlue Airways (JBLU 2.70%) is the one holdout that chooses not to overbook its flights -- to be more customer-friendly.

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If there are not enough passengers who are willing to give up their seats voluntarily, an airline may deny you a seat on an aircraft based on criteria that it establishes, such as the passenger's check-in time, the fare paid by the passenger, or the passenger's frequent flyer status.

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However, there is no fixed way to find out if your flight is overbooked. Since overbooking usually happens during peak season, passengers can contact the customer service representatives of their respective airlines and inquire about overbooking.

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Frontier Airlines bumped the biggest proportion of passengers of the 15 largest US carriers in early 2023. Of every 10,000 Frontier passengers, 3.73 were involuntarily denied boarding due to oversales, the DOT said. Allegiant, Delta, Endeavor, and Hawaiian didn't bump any passengers in the quarter, per the DOT.

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