Hotel Overbooking: Crunch Point for Hoteliers

Overbooking is a situation when hoteliers reserved all rooms for a certain period of time exceeds the total rooms available for sale.

Why hoteliers do hotel overbooking?

Overbooking for hotels is a revenue management strategy that helps to maximize the total capacity and increase the Room revenue. It is the number of additional reservations which is held to achieve total occupancy. Some Hoteliers allow overbooking with his Hotel software and some are not. Some are key things which make hoteliers do overbooking in their hotels.

  • Maximize expected revenue
  • Achievement of total occupancy by dodging again cancellation
  • Revenue and profit
  • Low risk and high profitability
  • Operations efficiency by increasing profitability
  • Decrease faulty calculations from Past data

Although Overbooking increased occupancy of hotel rooms, It is not always beneficiary to hoteliers. Apart from only generating revenue, overbooking for guests means inconveniences which result is in their dissatisfaction towards a hotel. It can be the factor for damaging your prestige in the market which leads customers to diversified their attention from your hotel to another. By keeping your self at a traveler place, what do you expect in the hotel stay? A Hassle-free room allocation from hoteliers or waiting for a room to acquire. The answer will make your perception strong towards why overbooking is not always beneficiary.

To manage your room inventory with website and OTA(Online Travel Agencies), It is very tedious for hoteliers. Small mistakes can affect your revenue as well your brand reputation. However, your hotel architecture is attractive, the goofy mistake of overbooking can decrease the leverage of your hotel looks.

Problems occur with Hotel Overbooking

  • Integrations with Multiple OTA
  • Less resource to Manage Booking on different platforms
  • Manual errors in updating inventory, Seasonal rates, Offers and much more.
  • No synchronization with OTA after enter once.
  • Association with different agencies for bookings.
  • Allowing overbooking in the fear of Cancellation and not arrival.

Above problems arisen by which overbooking can become the curse for hoteliers. There are many other reasons apart from this listed above which tends to create the problem with hotel overbooking. For that, Hoteliers have to redefine the prefix planning for it. Because it became very stressful for hoteliers as well as for guests also when it is taken as less concern. Neither hoteliers want to give stress to making their guest to waiting, nor he wants to let his hotel revenue decrease by keeping hotel rooms empty. Hoteliers should make some strong planning for avoiding this kind of overbooking situations which occur in a real scenario.

How to deal with hotel overbooking problems?

By making updates across on all OTA is a very tedious task. So Hoteliers provide only available room numbers once without allowing access to real-time live inventory as it is being costly for him to allocate individual account manager to do this task.OTA and other agencies can't access hoteliers live inventory so they are not being updated with available room numbers and sell the same room which is already sold.In the result of this, the guests have to compromise with their expectation and it can lead him to dissatisfaction towards the hotel.

To avoid this blunder, Hoteliers need to get a channel manager

What is channel manager?

Pure Consolidate - Channel manager distributes hotel rooms among the different OTA channels with the available rates. Its become easy to coordinate prices and available rooms with different OTA in a couple of time with the use of channel manager.

Benefits of Channel Manager

  • Live status of room at OTA channel
  • Sales channel tracking
  • Increase Booking volume
  • Live rates Updates
  • Overcome Overbooking related problem
  • Maximization of sales

Today, It is important to do smart work instead of doing hard work. Although you are using best Hotel Management Software, It doesn't make your hotel business worthy unless you use Hotel channel manager for your hotel reservations. You don't need to update manually in OTA as channel manager do it. The problem of Hotel Overbooking can resolve by using some good channel manager with your Hotel PMS Software.So are you planning to hire account managers with the big salary who manages OTA solely or want to go with Pure ITES Limited's Channel Manager? The choice is yours.

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