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Forecasting Availability and Overbooking

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1 Forecasting Availability and Overbooking
Chapter 4

2 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-of-order rooms, walk-ins, and more for the current day.

3 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.

4 Adjusted Room Count Rooms removed from inventory are categorized as out-of-order or out-of-inventory. 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.

5 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.

6 No Shows- Guests that never arrive at the hotel
No Shows- Guests that never arrive at the hotel. These guests are often charged one-nights 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.

7 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. See Exhibit 4-7 page

8 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.

9 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.

10 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.

11 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.

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