The hospitality industry employs overbooking, a strategy where hotels accept more reservations than available rooms. This anticipates cancellations or no-shows, aiming to optimize revenue, particularly during peak demand.
- Declining further reservations would undermine the objective of achieving maximum occupancy.
- Offering reduced prices to fill vacant rooms is a standard practice, distinct from overbooking.
- Allocating rooms exclusively for VIPs is unrelated to the concept of overbooking.
Consequently, the accurate definition is reserving more rooms than physically present to enhance revenue.