Under what circumstances will the hotel not allow overbooking?

Overbooked. Overbooking is an important technical means of hotel revenue management, which means that the number of hotel reservations exceeds the total number of hotel rooms, so as to prevent the hotel from losing revenue due to the cancellation of reservations or the non-arrival of guests. The necessity of hotel overbooking is based on the following operating characteristics of the hotel: 1) For hotels, most rooms are sold by reservation. Once the guest sends a reservation request, the hotel reservation system reserves the right of the guest to stay in the hotel. During the period from the reservation to the guest's check-in date, the guest can cancel the reservation at any time, or fail to show up at the last minute of the check-in date without any economic loss or only a small amount of compensation. According to the experience of foreign hotels and domestic hotels, about 5% of hotel room reservations are failed, and about 8% ~ 10% of hotel room reservations are temporarily cancelled. If we don't overbook, there will be a certain number of vacancies in the hotel that day, which could have been sold to other guests in need. 2) For a hotel, the fixed cost of maintaining a hotel is very high, while the variable cost of staying with one more guest is very low, so the income brought by staying with one more guest can be regarded as the hotel's net profit. Studies have shown that if the average annual occupancy rate of hotels increases by 1%, it means that the annual income can be increased by hundreds of thousands or even millions of yuan. 3) The cost structure of high fixed cost and low variable cost of hotels, coupled with the non-storability of hotel rooms, determines that the opportunity cost of losing a potential guest is very high. Increasing the occupancy rate of hotels through overbooking has become an important means for hotels to increase their income.

Oversubscription is a double-edged sword. It is not only a way to increase income, but also an adventure. The number and degree of oversubscription is the most difficult to grasp. Conservative overbooking makes the hotel still have a high waste of vacant rooms, the occupancy rate is not very high, and it has not yet reached the ideal state of maximizing revenue; Aggressive overbooking makes the hotel "refuse to stay", which means that the hotel should compensate the rejected guests: arrange them to stay in other hotels, or pay a certain penalty (usually one day's room rate). From the marketing point of view, the loss is the decline of hotel service level, which will damage the reputation of the hotel in the long run, leading to the decline of guest satisfaction and hotel loyalty. Therefore, it is very important for hotels to determine a reasonable overbooking level for revenue management.

Different hotels should grasp different overbooking degrees in different sales seasons and different group dispersion ratios. The specific methods are as follows: First, grasp the ratio of group reservation to individual reservation (group-single ratio). Group reservations are generally made by travel agencies, commercial companies or government agencies. There are plans and schedules in advance, and the probability of cancellation or arrival is very small. However, the arbitrariness of individual booking is greatly influenced by external factors. Therefore, in general, overbooking only considers the proportion of individual bookings. If the number of group bookings is large on a certain day, the oversubscription ratio can be smaller; On the contrary, it can be bigger. Secondly, according to the historical data of hotel occupancy and temporary cancellation of rooms over the years. The ratio of arrival and temporary cancellation of hotel reservations in the same period over the years, especially the ratio of individual bookings, is a good reference for hotels to master the number of oversubscriptions. Thirdly, according to the historical data of guests who should leave (postpone check-in) and randomly check-in (on-site check-in) over the years. The number of hotel guests who should leave and stay at random in the same period over the years is the same, which is an important factor that hotels should not ignore when considering the number of oversubscriptions. Especially the income of random guests, the hotel can not be ignored. Fourthly, the market demand and seasonal changes of hotels. When considering the overbooking ratio, we should fully consider the booking situation of the whole hotel market. In the peak demand season or the city where the hotel is located, there are major business or tourism activities, and the number of rooms that should be temporarily cancelled after the deadline is generally lower than usual. Hotels should consciously reduce the proportion of overbooking when overbooking. Fifth, the booking situation of peers around the hotel. The booking situation of peers around the hotel is also an important reference factor when considering the over-booking ratio. If the room reservation of the surrounding peers is good, the hotel should consider reducing the degree of overbooking. The first reason is that the good reservation of the surrounding peers is a signal of strong market demand; Secondly, the hotel should consider the aftermath of the broken reservation and how to send the guests to nearby hotels with similar specifications. If there are no vacancies in the surrounding hotels, the hotel will rashly increase the overbooking scope, which may lead to serious service quality accidents.