Maintain hospitality industry knowledge
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develop-and-update-tg, SITHIND001B R1
| Overbooking Overbooking is a common industry practice but the way it applies (or even if it applies) will vary between premises. Overbooking is a situation where the property accepts bookings for more rooms (or tables) than are available, based on their history with the number of No Shows they have experienced. They overbook in order to optimise revenue and avoid vacant room and/or empty tables during times of peak trade. For example, a property with 100 rooms may have an overbooking policy allowing them to take bookings on anyone day for 110 rooms because traditionally they experience a 10% rate of people who do not arrive even though they have made a booking. Where all guests arrive as booked, the property then has to make other arrangements for them. This can cause embarrassment and a loss of reputation for the venue, and frustration and anger for those who cannot be accommodated as expected (especially where they have received confirmation of their booking. Where a property believes it is going to experience an overbooking situation (that is, a situation where all bookings are going to arrive) they usually start phoning other properties (of similar standard and price) to arrange to bump guests to that location. The property will apologise, and often pays for any transport (taxi fares) needed to move the guests from one venue to another they may also offer some other form of goodwill gesture such as a free meal, or a discount on the guests next stay. Check with your supervisor before engaging in any overbooking activity to make sure you are authorised to do so, and to verify the approved level of overbooking. Element 2: Source and apply information on legal and ethical issues for the hospitality industry 58 © ASEAN 2012 Trainee Manual Maintain hospitality industry knowledge Guests can ensure they will be accommodated if they guarantee their booking – that is, they supply their credit card details and agree they will pay the tariff even if they do not arrive/use the room. Download 2.68 Mb. Share with your friends:
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