Overbooking Strategies

Overbooking strategies involve intentionally accepting more reservations or bookings than the available capacity, based on the expectation that some customers will cancel or not show up. This approach helps maximize revenue and reduce empty seats or rooms. Businesses analyze historical data to predict no-shows and adjust their overbooking levels accordingly, aiming to balance increased occupancy with the risk of overcapacity and customer inconvenience. Effective overbooking requires careful planning to avoid significant disruptions and maintain customer satisfaction.