The Components of Revenue Management, the authors discuss several analysis elements and components linked to revenue management - such as performance indicators, optimization levers, quota restrictions and overbooking. For this weeks discussion assignment, we will further investigate the controversial concept of overbooking. Overbooking is defined as the regular acceptance of more products than the company has to sell - e.g. selling 105 hotel rooms when you only have 100 rooms or selling 160airline seats on an Airbus A320 when the airline only has 150 seats available.

address the following questions

• Why do hospitality and tourism businesses utilize overbooking?
• What are the potential benefits to practicing overbooking?
• What are the potential challenges to practicing overbooking?
• Do you think overbooking is a policy you would use as a manager? Why or why not?