Forecasting Availability
and Overbooking
Chapter 4
Automated Inventory Tracking
System
Room availability reports detail the
inventory availability for a set amount of
upcoming days.
General managers report details group
rooms pick up guaranteed and non
guaranteed reservations, stay overs, out-oforder rooms, walk-ins, and more for the
current day.
Components of the Simple Room
Count
The reservations department scrutinized the
report for several days upcoming. This
allows both reservations and the front desk
to sell the remaining rooms and lets them
know when they do not have any rooms
remaining for sale.
Adjusted Room Count
Rooms removed from inventory are
categorized as out-of-order or out-ofinventory.
These terms mean that there is something
wrong with these rooms and they cannot be
sold as is. These issues can include
plumbing, electrical, security or they are
being remodeled.
Stayovers
Predicting the number of rooms occupied
can be challenging, as people often change
plans.
Under-stays-people that check out earlier
than planned.
Overstays-people that stay longer than they
had originally planned.
No Shows- Guests that never arrive at the
hotel. These guests are often charged onenights stay to their credit card.
Cancellations- guests who cancel the day of
arrival.
Early Arrivals- guests who arrive at the hotel
one day or more before their reservation.
Every department in the hotel uses the room
count, mostly for staffing purposes.
Periodic Recounts- are seen throughout the
day and help reservations and the front desk
to sell rooms more accurately.
Overbooking
Overbooking- the hotel has sold more
rooms than it physically has available.
Rooms are overbooked to compensate for
the no-shows and cancellations that will
likely occur.
Reservations are legal contracts- the request
constitutes the offer and the promise of
accommodations represents the acceptance.
The promise to pay or the actual transfer of a
deposit is the third important element of a
contract: consideration.
Minimizing the Overbooking
Problem
The solution is found in reducing the need to
overbook rooms.
Guests will want the best of both worlds; the
ability to extend or shorten a stay while not
being charged additionally for either.
The hotel industry is increasing their
restrictive policies, similar to the airline
industry.
Trip Insurance- Guests can pay a small fee to
a third-party agency and pass off no-show
and cancellation fees to them.
Travel Agent Guarantees- In the event of a no
show the hotel receives payment directly
from the travel agent.
Advance Deposit Reservations- Guests pay
the amount of the stay in advance. This
greatly reduces the number of no shows.