Management of Overbookings in the Hotel Industry - Basic Concepts and Practical Challenges
Tourism Today, Vol. 6, pp. 19-32, Fall 2006
27 Pages Posted: 7 Nov 2008 Last revised: 20 Jan 2009
Date Written: November 5, 2008
The paper examines the possibilities to manage the overbookings in the hotel industry. The basic mathematical model for calculating the optimal number of overbookings is analysed and techniques for calculating the optimal number of overbookings for a hotel with two different types of rooms and for two different hotels which coordinate their reservations are proposed. The managerial decisions and operational procedures connected with walking guests are also discussed.
Keywords: hotel, management, overbookings, walking guests, tourism
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