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.
Overbooking limits can be used with the Vertical Booking, iHotelier Advance and SynXis Enhanced GDS interfaces but cannot be used with the eRes Online Booking Engine or any 1-way GDS Interface (ie: iHotelier Basic, Synxis Basic, Siteminder, etc..). NOTE: Should you wish to use Overbooking Limits with iHotelier Advance please reach out to your iHotelier Customer Care Manager to activate this feature within iHotelier.
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:
- 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)
- Inv => this is the physical inventory of the property
- INV => this is the availability on that day after reservations, block holds, and out of service rooms are taken away
- 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:
- 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)
- Inv => this is the physical inventory of the property
- INV => this is the availability on that day after reservations, block holds, and out of service rooms are taken away
- 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):
