Module 4 4.2 The implications and possible legal outcome of overbooking
Te receptionist notes this figure on the reservation charts and the reception office will accept that number of reservations above their maximum accommodation. If the unexpected happens and the hotel is completely full and they have overbooked then it is the responsibility of the hotel to find alternate accommodation of the same standard in another hotel for the overflow and bear any additional costs (for example transporting guests to another hotel).
Example Mr Twani, the hotel receptionist at the Mount Nelson Hotel, overbooks the rooms available at the hotel on the 1 December. Mr Twani, in answer to Mrs Heath e-mail requesting accommodation in room 200 for 1 December, e-mails a confirmation of the reservation of that particular room. Mrs Heath arrives at the Mount Nelson Hotel and demands to stay in room 200, which has already been let for the night to Mr and Mrs Maree. Mrs Heath may bring civil action claiming damages for breach of the booking contract between herself and the Mount Nelson Hotel.
Did You Know Many establishments do not apply the concept of overbooking. Tis is due to various reasons. Smaller establishments oſten do not need to overbook as they can easily follow up whether guests with bookings are indeed still planning to check in. In very large hotels, with hundreds of rooms, it is a different scenario. Computer programmes can be used that can determine trends in terms of a hotel’s occupancy during previous years. Te soſtware allows a hotel to determine very quickly what the number of rooms is that can be overbooked based on the previous year’s occupancy levels and cancellations. Tis is an important tool to use in terms of revenue management. Every hotelier wants to ensure the maximum occupancy and highest average room rate possible.
Some hotels prefer not to overbook due to the inconvenience it might cause guests. If a guest arrives at a hotel with a reservation, and cannot be assisted due to the fact that the hotel is overbooked – the guest will not have a positive guest experience and will probably not return to that specific hotel in the future. Te legal actions a hotel can face due to overbooking have been discussed in this section.
Definition
• Calculated risk: undertaken aſter careful estimation of the likely outcome • Occupancy: the period during which one rents a room • Regained: to recover possession of; get back again • Terminate: to bring to an end or halt • Alternate: to act or proceed by turns • Bear: to carry in the mind; harbour
Web links
http://www.examiner.com/article/hotels-overbooking-rooms-illegal-or-smart http://chocolatepillow.com/how-to-manage-overbooking-properly/ http://www.tripcentral.ca/blog/frequently-asked-questions/overbooking-why-do-hotels-overbook/
Activity 4.4 1. Write down the formula used to determine the number of rooms a hotel can overbook. 2. Discuss the implications of overbooking a hotel.
122 FutureManagers
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