Question

Forecasting Available Rooms and Overbooking" Select a well-known hotel chain in your area and determine which method of forecasting available rooms (simple room count versus adjusted room count) would be preferable. Explain your rationale. •Compare and contrast the pros and cons of overbooking and create a list of best practices that would be applicable to all hotel chains.

Answer 1

Overbooking is sometimes necesseray to sell more rooms than actually available. Overbooking is nowadays a good practices those are very experienced in hotel industry. It is actually depends on forcast team. If they can not give exact forcast then it would be very critical problem to the company.

• First we need to identify the historical data about booking.
• Need to find out the data where we can find the customer tendency. from their we can get percentage to change tendency of guest. From their wwe can get cancellation and extension part.
• Need to select the strategy after cancellation.
• need to think about holidays and occsional days . On which we can check overbooking .
• No-sho reservation is one of the best practices here.

Pros:

• Most possible way to earn money for each rooms.
• Walking guest should be preferable first.
• Revenue generation from each night.
• Maximum utilization of room by yield managment.

Cons:

• If backup rooms are not available then it will reduce trust and loyalty of the customers.
• Loss of money and faith.
• Customers will face a big harrashment.
• Walking guest will not catch very greatly.

Best practices:

• In holiday season and hot season no overbooking is require.
• Always need to arrange backup rooms if overbooking is occured.
• Need proper rule of cancellation . Like no booking will be canclled within 24hrs or will no refund.
• Using yield managment forcast should be very proper.