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Why do hotel overbookings occur?

Expedia booking screen image – Hotelogix connects with global OTAs like Expedia for real-time room distribution.

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.)