Why do hotel overbookings occur? The reasons for overbookings in hotels varies as you can see below. You try to distribute rooms with multiple OTAs to avoid being with a single agency It’s a tedious process to update room inventory manually leading to errors OTAs have no access to the latest room inventory details from your end Fear of wasted inventory and profits/loss (Allowing overbooking for increased revenue in case of no shows, or fear of zero revenue due to unused rooms.)