Hotel Revenue Glossary · Strategy

Overbooking

Intentionally accepting more reservations than available rooms to compensate for expected cancellations and no-shows. The goal is to finish the night at or near 100% occupancy without having to turn away (walk) any guests.

Why it matters: Managed overbooking is a legitimate revenue strategy that can recover thousands of dollars in otherwise-lost revenue. But overshooting is costly — walking a guest damages loyalty and incurs compensation costs. The key is accurate cancellation and no-show forecasting.

All glossary terms Wash Factor No-Show Rate Walk (Walking a Guest)