Overbooking Practices in Hotel Revenue Management
Businesses that accept reservations must cope with the problem of no-shows - customers who make a reservation but fail to honor it. Hotels can protect themselves from the revenue-losing no-shows and generate increased revenue by overbooking. This course teaches how to strategically overbook and how to manage issues associated with overbooking, as well as how to evaluate groups and determine which rates to charge.
This course explores the components of a successful overbooking strategy including no-show forecasting, no-show rates, arrival uncertainty, pricing policies, and cancellation forecasts. It explores the risks of overbooking and presents strategies to minimize costs and mitigate customer impact.
To fully realize a property’s revenue potential, managers must be able to manage group reservations. This course teaches participants how to create a group forecast and explores yieldable and non-yieldable business and incremental group costs and revenue opportunities. It introduces models to calculate displacement costs and contribution margins to determine which groups are most profitable.
Participants use Microsoft Excel to practice overbooking and group-management techniques.
Who Should Take this Course?
This course is designed for hospitality managers, general managers, revenue managers, and other hospitality professionals responsible for the financial performance of their organization.
Participants who complete this course will be able to...
- Develop an overbooking approach
- Manage issues associated with overbooking
- Evaluate groups
- Determine appropriate group rates
- Sheryl Kimes, Professor , School of Hotel Administration, Cornell SC Johnson College of Business
Estimated Hours to Complete Course: 6.0
About the School of Hotel Administration at the Cornell SC Johnson College of Business
The School of Hotel Administration at the Cornell SC Johnson College of Business is shaping the global knowledge base for hospitality management through leadership in education, research, and industry advancement. Accredited by the Association to Advance Collegiate Schools of Business (AACSB), the school provides management instruction in the full range of hospitality disciplines, educating the next generation of leaders in the world's largest industry. Founded in 1922 as the nation's first collegiate course of study in hospitality management, the Cornell School of Hotel Administration is recognized as the world leader in its field.