Question

What is Overbooking?

• A. Booking more rooms than available to maximize revenue
• B. Refusing to take more reservations
• C. Offering discounts to fill up rooms
• D. Reserving rooms for special guests only

Hint:

Overbooking is a common strategy used in the hospitality industry, but it can lead to complications if too many guests arrive, so it's important to manage overbooking carefully.

Answer 1

The Correct Option is A

Overbooking is a strategy used in the hospitality industry where a hotel books more rooms than are actually available, anticipating that some guests may cancel or not show up. This is done to maximize revenue, especially during high-demand periods.
- Refusing to take more reservations would contradict the goal of maximizing occupancy.
- Offering discounts to fill up rooms is a common practice, but it is not the same as overbooking.
- Reserving rooms for special guests only does not relate to overbooking either.
Thus, the correct answer is Booking more rooms than available to maximize revenue.