Overbooking can cause stress for both your staff and customers, especially when guests arrive and find out that their confirmed reservation is not valid because the hostel is already full. Although overbookings can happen even to the best hostels and hotels, proper handling can turn these guests into loyal customers, while poor handling can lead to complaints that can damage your online reputation and your relationship with Hostelworld.
In this article, we will discuss the best practices for handling overbooking in line with industry standards and Hostelworld policies.
All Hostelworld reservations are confirmed immediately when the customer completes the booking, and as such, the booking cannot be simply canceled by either Hostelworld or the hostel that is overbooked. As availability and rates published online are fully managed by your property, it is ultimately your responsibility to manage the overbooking.
If you find yourself in an overbooking situation, here are some steps to follow:
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- Double-check your online availability immediately, in case you are still displaying rooms for that sold-out period. Check this online as well as in your Channel manager/PMS. If there is a configuration problem, some updates might not have been successful.
- Check your cancellations: email cancellations or cancellations done on the website can result in the cancelled beds being released for resale online.
- Consider your average level of cancellations and no-shows. Unless this is an event booking (i.e., New Year), and the overbooking is small enough, you might be able to accommodate the guest.
- Call around the properties in the area and see what they have available. This way, you can get an overview of the alternatives available to relocate your guests.
In case of an overbooking, here's what is expected from a hostel:
If you are certain that you cannot accommodate a certain guest, in line with Hostelworld policies and industry standards, you have to relocate the guests. It is best to let the guest know in advance of their arrival and provide a solution at that time. If the guest does not like the alternative and would prefer to cancel, it is up to the property to refund the booking deposit to the guest directly.
Relocating the guest:
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- When relocating the guest, remember that the alternative accommodation should be of the same or higher standard as originally booked and located in the same area. Customers cannot be expected to pay more than what was due on arrival as per the original booking.
- If the new accommodation is more expensive, you should cover the difference.
If you are relocating the guest after their arrival, you can potentially expect a very frustrated customer. It is crucial to follow the above points, and in the event that the alternative is not in the same location, it is best practice to cover the cost of transfer to the new property.
Once the dust has settled, and the guest has been successfully relocated, it is worth looking at the processes that led to the overbooking in the first place. Do you or your staff need a better overbooking handling process? Does your allocation distribution strategy need an overhaul? Was this caused by a lack of technology or technical failure, etc.?
Although the responsibility of handling an overbooking falls on the property, Hostelworld is always here to help. If you need assistance with the system, help resolving any technical issues, or if there is a force-majeure situation, let us know. Our agents will be able to quickly assess the situation and suggest a solution if you are unsure. Click here to find out how to contact us!
Please note that as Hostelworld does not manage property availability and our partners are not contractually obliged to give us beds, with the exception of those that are already booked, we cannot relocate the guest in case of overbooking.