CAVITE STATE UNIVERSITY

Don Severino De Las Alas

Campus

CASE STUDY

In Partial fulfillment
of the Requirements of the Subject
BSHM 21

Presented by:
Francis D. Crucillo

Presented to:
Ms. Fojas

Date Submission:
September 9,2019
I. Time Context

The hotel are overbooked for one night in October. She prepared to talk with the front desk
associates as they came on duty at 7:30 in the morning, knowing it would be a challenge to sell
out without “walking” guests.

II. View Point

The person who is in the position to make the final recommendation is Jill Reynolds, the front
office manager at Hyatt Regency La Jolla.

III. Central Problem

The hotel sell out before having to walk a few guest. The percentage of no shows varies by
hotel and location but is often around five percent. In a 400-room hotel, that is 200 rooms ,or
an average loss of approximately $2,600 per night. Considering these figures ,it is not surprising
that hotels try to protect themselves by over booking.

IV. Statement of objectives

 To arrange and pay for another hotel in the nearby areas with similar facilities and guest
service standard.
 To have an available room to sell for walking guests.
 To offer desired room and services.

V. Areas of Consideration

Strength

 The hotel’s policy and procedure on walking guest enables the front desk associates to call
nearby hotels of a similar category to find out if they have rooms available to sell.
  Hotels look carefully at bookings: whom they are for, what rates they are paying , when
they were made , whether they are for regular guests or from a major account ( a corporation
that uses the hotel frequently), and so on.

Weakness

There is a potential guest frequently make reservations at more than one hotel or are
delayed and therefore do not show up.

Opportunities

The associate must explain that suitable accommodation have been reserved at a nearby
hotel and that the hotel will pay for the room and transportation to and from the hotel.
Usually guest are understanding ,especially when they realize that they are receiving a free
room and free transportation.

Threats

 If there is vacant room not used there is no enhance to regain lost revenue.
 If it necessary to walk a guest, no rooms are available because of fewer departures than
expected.

VI. Alternative courses of action

 The hotel must have overbooking agreements in advance between hotel.

 Keeping a check on occupancy of the room as desired by the guest , also checking
the availability of the complimentary rooms.
 Always be prepared and attentive for some circumstances happen in hotel.

Advantages

 It can minimize revenue loss due to a difference in pricing between the rate paid
to your hotel and the current rate where the guest is actually sent to.
 The hotel will reach 100% occupancy for all guest.
 Disadvantage
 Overbooking for guests means waiting and inconvenience that result in their
dissatisfaction with the services.

VII. Recommendation

I suggest Alternative courses of action it seems effective, because when staff do that it can
reach the satisfaction of the guest and will organize communication between the guest and
hotel. For checking the occupancy of the rooms in hotel, we can determine the availability of
rooms that is suitable to our guest. In some instances overbooking for hotels is revenue
management strategy that helps to maximize the total capacity and increases the room
revenue. The front office manager is good, there is an prepared option for that situation ,he
can come up with that problem of overbooking and he fill up the need of guest even the hotel
sell out and not expectedly having walking guest.

VIII. Detailed plan of action

The hotel need to confirmed reservations versus no shows based on historical data, expected
cancellation and predicted walk in guests. It helps the hotel to achieve 100% occupancy by
limiting against guests who do not arrive or cancel their reservations. It will have an
availability of rooms even for walk in guests.