The state of having accepted reservations or bookings for more spaces, seats, rooms, or services than are actually available. This situation commonly arises in industries like airlines, hotels, restaurants, and event management, where businesses attempt to maximize revenue by accounting for potential cancellations or no-shows. However, it can lead to denied services for some customers, creating inconvenience, disappointment, and sometimes financial repercussions, such as compensation or alternate arrangements. Overbooking is often managed through sophisticated algorithms and demand forecasting but remains a calculated risk. The practice inherently balances profit optimization with the potential negative impact on customer satisfaction and operational efficiency.
Overbooked meaning with examples
- The airline realized its flight to London was severely overbooked, leaving several passengers anxiously awaiting confirmation of their seats. Despite offering travel vouchers, some customers refused and were in conflict with the airline staff. The company had to find alternative flight arrangements or issue refunds. This unfortunate situation demonstrates the risks of anticipating no-shows.
- The hotel receptionist informed the guests that their ocean view rooms were overbooked due to an error in the reservation system. After some negotiation, they were given a suite with an amazing view as recompense. This highlights how important it is to have policies in place to handle overbooked situations and provide acceptable alternatives.
- Despite sending out confirmed tickets for the opera, the box office announced the performance was overbooked. This created chaos amongst ticket holders who had traveled significant distances, leading to frustrations and complaints. The organizers had to find more seating or issue refunds for the inconvenience.
- After receiving confirmation for his dinner reservation, he arrived at the restaurant to discover it was overbooked due to a large party, and they were told there would be a long wait. This resulted in a ruined anniversary and an unsatisfactory customer experience, highlighting the importance of communication.
- During the concert series, many shows were overbooked, causing issues with venue capacity and security control. Management was scrambling to move attendees to different locations in the venue as there were not enough seats for every attendee and the fire marshal was onsite. This shows the challenges related to venue size.