Overbooking
Overbooking ensures that your property can sell out and maximize revenue by accepting reservations beyond the capacity of a room type or overall property.
G3 RMS overbooks at the property and room type level to offset Wash
The drop in occupancy due to cancellations, no-shows, group cut-offs, etc. For future dates, the percentage is the expected drop for the Peak Demand. For past dates, it is the expected wash as of the last optimization..
Use Overbooking Management to review and if needed, override Overbooking Cost of Walk happens if your property is unable to provide the confirmed room to a guest and has to relocate, or walk, the guest to another hotel. In that situation, costs might include the hotel room at the other hotel, a taxi, etc.
Cost of Walk influences the overbooking level: G3 RMS weighs the risks of overbooking, represented by Cost of Walk, against its benefits, which are the additional revenues from selling another room. The higher the Cost of Walk, the lower G3 RMS tends to overbook.
What Help Do You Need with Overbooking?
- Show me the options for viewing the overbooking data details.
- I want to learn about the best practices for overriding overbooking.
- I want to directly influence the overbooking decision by Overriding Wash for Individual Groups.
- I want to override overbooking
- I want to test the impact of overrides before saving them by running What If.
- I want to learn how overbooking impacts G3 RMS.
- I want to set Ceiling Defaults to limit overbooking for all future dates.
Steps to View Data in Overbooking Management
Accessing Overbooking Management
Click 
and then Overbooking.
If you visit this page often, click 
next to the name to add it to the Quick Access menu.
Using the Heat Maps at the Top
- Under Calendar Heatmap, switch from the default Overbooking The practice of selling more rooms than are physically present in your hotel to make up for wash (cancellations, no-shows etc.). The goal of overbooking is to maximize revenue by achieving as close to 100% occupancy as possible on any given day. to Occupancy Forecast The number of rooms (or percentage of the total number of rooms) that G3 RMS expects the property to achieve for the period.
For the calculation, see the Demand and Wash - Overview topic (under Data Details)., or the Peak Demand Peak, or Total Demand, is the combination of the rooms on books and the remaining unconstrained demand. view.
- Point to a cell in the heat map to see the property overbooking limit plus the property's total number of rooms for that day, expressed as a percentage of the total number of rooms.
Note: By default, this value uses the Physical Capacity for the total number of rooms, which includes out of order rooms. - Click
a month in the heat maps to view that month plus the following in the calendar view below. Click the arrows
to view the next or previous 6 months. - Click Legend to see what different Overbooking, Occupancy, or Peak Demand levels the colors represent.
Changing the Calendar View
The Overbooking Management calendar displays the overbooking decision and the occupancy forecast. Use the following options to change the calendar display. For example, you might want to find potential sell out days and review the overbooking values for those days.
-
Click to filter
for options to focus on specific days.- Select one or more days of the week to view in the calendars. Days that you do not select appear grayed out.
- Use the Dates with menu to select days with an Occupancy Forecast Less Than or Greater Than the percentage that you type in the % field.
- Select a checkbox under Show Overrides to highlight only those dates in the calendar that have active overrides.
- Click Apply to save the filters. Click Reset to restore the default filters.
- Click the date button to select the starting month or click the arrows to move to the previous or next month.
- Select a Room Type from the left-hand calendar to view two months of data for just that room type.
- Select a different Room Type from the right-hand calendar to compare two Room Types side-by-side for the same month
- At the property-level view, the calendar displays all overbooking and wash overrides. Point to the override icon to see what level the override applies to.
Using Inventory Groups
If set up, you can select the Inventory Group filter at the top of the calendar. The default selection is Property, or all Room Classes. Change the default selection in Preferences.
Changing Inventory Groups limits the options in the Room Type menu. The selected Inventory Group does not impact the data in the calendar or the heat map.
Data Details
The following data displays on the calendar dates in Overbooking Management. For data in the Overbooking Override window see Overrides.
Calendar Data
| Detail | Description |
|---|---|
| Overbooking (Ovbk) | The current overbooking decision. If the Room Type selection is set to Property, the system displays the property level overbooking decision. Otherwise, the room type overbooking (RT Ovbk) decision displays. |
| Occupancy Forecast The number of rooms (or percentage of the total number of rooms) that G3 RMS expects the property to achieve for the period.
For the calculation, see the Demand and Wash - Overview topic (under Data Details). (OF) |
The constrained forecast of the occupancy that the property or the room type is expected to achieve for the specified period of time. This value displays as a percentage at the property level and a number of rooms at the room type level. |
| Wash (at the Property level) | Wash is the drop in occupancy due to cancellations, no-shows, group cut-offs, and so on. For future dates, it is the expected drop in Peak Demand Peak, or Total Demand, is the combination of the rooms on books and the remaining unconstrained demand.. For past dates, it is the expected wash as of the last optimization. For example, for yesterday the last optimization was at 1 pm when the system expected 4 rooms wash out of 40 rooms on books. Final Wash shows as 10%. |
| Property Overbooking (Prop Ovbk) (at the Room Type level) | The total property overbooking decision, when a room type is selected. |
Icons
| Icon | Description |
|---|---|
|
An Overbooking Value override exists for the date. See Override Details by Room Type for more information. |
|
An Overbooking Ceiling override exists for the date. See Override Details by Room Type for more information. |
|
A Wash override exists for the date. See Wash Overrides by Individual Group for more information. |
|
A Cost of Walk override exists for the date. See Override Details by Room Type for more information. |
Best Practices
Understand How G3 RMS Calculates Overbooking
The system calculates overbooking by considering the following:
- Occupancy on books
- Remaining Demand The remaining unconstrained demand for a date in the future. This value is either generated by G3 RMS or, in case of an active user demand override, the user override value plus or minus a possible system adjustment. G3 RMS adjusts a demand override according to the booking pace, so the override remains accurate after its implementation. by room type and Forecast Group
- Wash The drop in occupancy due to cancellations, no-shows, group cut-offs, etc. For future dates, the percentage is the expected drop for the Peak Demand. For past dates, it is the expected wash as of the last optimization. forecast by room type and Forecast Group
- Effective Capacity The hotel's physical capacity minus the out of order rooms. of each room type
- Room Type
- Cost of Walk setup
Based on this data, G3 RMS first determines the overbooking for each room type, based on wash Physical Capacity plus Overbooking minus On Books and minus Out of Order. This value is the number of rooms that G3 RMS can sell before the property or room type is sold out. at the property level is zero or less, but above zero at the room type level, the system's controls don't accept more reservations.
Note that if your property uses LRV with Delta Uploads, the MaxSold value overrules the overbooking decision until the next optimization. See Hurdle Rates for details.
Understand How Room Type Overbooking Impacts Property Overbooking
Property overbooking is not the sum of all room type overbooking, but it is limited by room type overbooking. The total property overbooking can never be more than the sum of all room type overbooking. When you limit room type overbooking, you might also limit the overall property overbooking. Property overbooking has a significant impact on the system’s forecasts and can impact other decisions like pricing, since G3 RMS optimizes all decisions together.
If you use Run-of-House overbooking, you can override overbooking only at the property, not the room type level.
Understand How G3 RMS Shares Wash Within a Room Class
G3 RMS calculates overbooking for a room type based on its expected wash. That wash doesn't change when you restrict the room type's overbooking through configuration, ceiling default, or a ceiling override. And when the system calculates property overbooking, it must consider the wash of all room types.
Thus, G3 RMS shares the wash of a room type with restricted overbooking, adding it to the overbooking of other room types in the same Room Class. This sharing only works if the receiving room type allows overbooking without any ceiling. See scenarios for Overbooking for examples.
