Setting up RMS to allow overbooking enables accepting more reservations than there are physical rooms to accommodate.
A number of options exist in RMS to allow properties to manage this effectively.
Overbook by Category
Each Category in RMS can be setup to allow or not allow overbooking with a configurable number of overbookings permitted.
This option can be used to overbook one specific Category with the potential to provide a complimentary upgrade at a later date in exchange for improved overall occupancy.
Do Not Overbook Property
This option provides Properties using Overbook by Category the option of limiting the total number of reservations, including overbookings to never exceed the total number of physical spaces bookable at the property.
With this option a property who has a total of 50 Areas will never be able to create more than 50 reservations for a specific date, even if individual Categories have an Overbook Amount that would otherwise equate to greater than the 50 Areas.
Oversell Allotments provide properties the opportunity to accept overbookings for selected date ranges.
This option can be used by properties only wanting to accept overbookings during certain periods of time.
The following examples will highlight some of the ways these options can be used in combination as part of a property's revenue management strategy.
Hotel A has a total of 100 Rooms, 80 Standard and 20 Deluxe.
Hotel A sets up Overbooking by 10 on the Standard Category and selects 'Do Not Overbook Property' on the Property setup.
RMS allows up to 90 reservations to be created for the Standard Room, ensuring the total number of reservations in RMS for any date never exceeds 100.
This allows Hotel A to provide a complimentary upgrade to some guests who booked a Standard Room, increasing their overall Occupancy for overbooked dates.
Property B has a total of 60 luxury apartments on the city fringe, 20 One Bedroom, 20 Two Bedroom and 20 Three Bedroom.
Property B is setup as 'Do Not Overbook Property' on the Property setup.
Property B sets up an Oversell Allotment of 20 on the One Bedroom for the dates of a large city event held the following year.
RMS allows up to 40 reservations to be created for the One Bedroom on the dates of the Oversell Allotment, ensuring the total number of reservations in RMS for any date never exceeds 60.
This allows Property B to maximise occupancy on special event dates whilst providing some guests who booked a One Bedroom a complimentary upgrade.