Today's Revenue Management thought:-

SO we decide to overbook….. but what price do we sell those additional rooms at ?

The right pricing for overbooking will depend on the particular situation.

Generally, your goal of overbooking is to maximise revenue while minimising costs and customer dissatisfaction.

To achieve this, you typically should charge a premium for customers who are booking these rooms. This premium can range from a few € to hundreds of €’s, depending on the situation and the level of risk you want to take on as well as your alternatives.

Ensure that you have a clear and concise operational strategy to manage these situations. In addition that the level of overbooking is “controlled” properly.

Ultimately, the right pricing for overbooking will depend on the business's goals and the specific situation.

Have a profitable week.

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