Setting Overbooking Limits

The Overbooking Limits allows the Revenue Manager/Hotel Manager to set up an overbooking strategy based on historical No Shows, last minute cancellations, and last minute early departures => the ultimate goal is to optimize the chance to reach 100% occupancy while minimizing the amount of "walks" due to un-planned overbooking.  

Training Tip: when properties use Overbooking Limits Management, the clerks should be trained to use the existing "Enable Overbook" feature more sparingly

NOTE:  In order to set Overbooking Limits in RoomKey under System Configuration -> Overbooking Limits, you must have the Clerk Permission found under System Configuration -> 2300 Overbooking Limits.  

Configuration

Property Limit Setting - Which limit is right for your property?

Under System Configuration => Property => Preferences => is the setting for "Property Sum of Room Type Limits":

  • When box is checked => the Property Limit will automatically equal the sum of the Room Type Overbooking Limits => in the example below, the property has overbooking limits in mind for each specific Room Type => OPTION A
  • When box is un-checked => the Property Limit is managed independently of the Room Type limits => in the example below, the property is okay with overselling either the KNL or the KSL by 10 rooms but only 10 overall for the Property => OPTION B

Overbooking Limit Cutoff

Under System Configuration => Property => Preferences => is the setting for "Overbooking cut-off limit (days)" => this allows the property to have an automatic release of the Overbooking Limits, as the arrival day comes closer (Training Tip: properties that experience higher levels of No Show, may want to allow Overbooking right up to the day of or day before arrival => knowing that historically there will be No Shows)

In the example below, today being April 12 => the 3 day setting would make the Cut-off April 15th => Overbooking Limits would be removed on the next 3 days:

When the cutoff is in effect:

  • the clerks can no longer Overbook using the Overbooking Limits (clerks can still use the Enable Overbooking function on reservations)
  • the Inventory will now show the "true" Inventory so that the property can "shuffle" rooms for arrival date

Overbooking Indicator

System Configuration => Clerks => Permissions => Reservation Management => 339, Overbooking Inventory Indicator (Off) => in the example below, 2QNL is at -1 in Physical Inventory

=> if Permission is on the Available side => the color of the box for the day changes to indicate the room type is now into the overbooking limit

=> if Permission is Attached to a clerk => the color will not change, thus the clerk does not know they are within overbooking limits for that Room Type

 

Inserting Overbooking Limits => Property Sum of Room Type Limits Preference is Checked

System Configuration => Property => Preferences => Property Sum of Room Type Limits:

System Configuration => Overbooking Limits:

  1. Rate =>This is the same Rate display for the Inventory Calendar (rate is pulled from the Default Rate that is set under System Configuration => Room Inventory)
  2. Inv => this is the physical inventory of the property
  3. INV => this is the availability on that day after reservations, block holds, and out of service rooms are taken away
  4. OB => stands for Overbooking and is the limit you are setting

Insert Limits button => enter in the amount that each Room Type can be Overbooked => Update will automatically check (if OB amount is added and Update box is un-checked, the OB limit will not be added) => select Date Range => select days of the week => click Save:

After closing the Insert Limits window, the Overbooking Calendar will update automatically with amounts that were entered and the PROPERTY LIMIT will re-calculate to the sum of the Room Type OB Limits:

Second method to update is to click on Edit Mode => update the amounts directly on the calendar => click Post => amounts will update and PROPERTY LIMIT will re-calculate:

Inserting Overbooking Limits => Property Sum of Room Type Limits Preference is Un-Checked

System Configuration => Property => Preferences => Property Sum of Room Type Limits:

System Configuration => Overbooking Limits:

  1. Rate =>This is the same Rate display for the Inventory Calendar (rate is pulled from the Default Rate that is set under System Configuration => Room Inventory)
  2. Inv => this is the physical inventory of the property
  3. INV => this is the availability on that day after reservations, block holds, and out of service rooms are taken away
  4. OB => stands for Overbooking and is the limit you are setting

Insert Limits button => enter in the amount that each Room Type can be Overbooked => enter in the amount that PROPERTY can be Overbooked => Update will automatically check (if OB amount is added and Update box is un-checked, the OB limit will not be added) => select Date Range => select days of the week => click Save:

After closing the Insert Limits window, the Overbooking Calendar will update automatically with amounts that were entered on both Room Type Limits and the PROPERTY LIMIT:

Second method to update is to click on Edit Mode => update the amounts directly on the calendar => click Post:

Re-Calculating Property Sum to Room Type Limits

In the example below => the property wishes to re-calculate the Property Sum on May 4th => click Insert Limits => select Date/Date Range you wish to update => check Property = SUM(Limits):