Revenue Glossary​

Oversale

👉 Same as overbooking, but said in a fancier way.

📘 What is Oversale?

Oversale is a hotel management strategy that involves selling more rooms than are available to cover potential cancellations or no-shows.

  • Aims to maximise actual hotel occupancy.
  • Common in hotels with high demand or seasonal peaks.

✅ Why is Oversale important?

Because it allows hotels to minimise losses from empty rooms:

  • Compensates for cancellations and no-shows.
  • Optimises total hotel revenue.
  • Requires careful management to avoid overbooking impacting guest experience.

💡 Practical example of Oversale

A 100-room hotel receives bookings for 105 rooms anticipating that 5 guests may cancel or not show. This ensures that the hotel reaches maximum occupancy without losing revenue.

🔄 Disambiguation of Oversale

  • Oversale vs Overbooking: Practically equivalent; oversale sounds more technical and strategic, overbooking is more common in daily language.
  • Oversale vs Cancellations: Oversale anticipates and manages cancellations; it is not a cancellation itself.

In summary:
Oversale = selling more rooms than available to ensure maximum occupancy, carefully managing cancellations and no-shows.

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