Overbook

To accept more reservations for a service, such as flights, hotels, or events, than the available capacity, anticipating that some customers will cancel or not show up. The practice, though common, carries a risk of disappointing customers if too many people arrive. This strategy aims to maximize revenue by minimizing empty spaces, but can also lead to situations where customers are denied service, often resulting in compensation or alternative arrangements to manage the unexpected overflow of guests.

Overbook meaning with examples

• The airline admitted to overbooking the flight to London, leaving several passengers stranded at the gate. They offered vouchers and a later flight, but the inconvenience was significant. This happens, and they try to balance profitability and customer experience.
• The hotel tends to overbook during peak seasons, hoping to fill every room. However, this strategy sometimes backfires when everyone arrives, leading to guests being relocated to other properties or offering significant discounts.
• The cruise line knew it was risky to overbook the special event at sea, but hoped the chances of cancellation would offset the cost of the venue. This strategy led to an unhappy crowd of passengers.
• The venue frequently overbooks concerts. They'll promise upgrades, but many guests end up unhappy because the event is oversubscribed. This is a poor way to manage customer expectations and capacity.
• The restaurant planned to overbook its Valentine's Day dinner service, expecting some no-shows. Unfortunately, they were at full capacity. Now everyone waits for their table, and the service suffers.