If you see a Red line on your Timeline, it may not be an overbooking at all.
As you can see from the example below:
It looks like we have an overbooking but after Optimizing the space allocation the property is no longer overbooked.
There are 3 primary reasons why overbooking can happen.
1. Booking.com auto-replenishment feature (effective April 2020)
This overbooking is most likely caused by Booking.com’s auto-replenishment feature which puts canceled spaces back up for sale on Booking.com immediately without waiting for an inventory update from Mews. Recently, Booking.com made this a default function to increase the number of bookings and revenue, as you pay commission for each of their reservations.
2 types of auto-replenishment features
- The general auto-replenishment feature is integrated by default to all properties on Booking.com and cannot be deactivated. Whenever a cancellation comes through Booking.com, the room is put back on sale automatically to give the property another chance at reselling it.
- The auto-replenishment on closed rooms is a feature that can be deactivated at the property level, however, the general auto-replenishment for Booking.com cancellations will remain active. Deactivating this feature means that if the room/date is closed in red (stop sell), it will not be auto-replenished even if there are cancellations.
Please, find more information on this functionality on their official help center here.
2. Choice of the availability calculation strategy
Choose how overbookings will impact your availability:
Diffusive if you want overbookings in lower room/bed categories to take availability from higher categories. This option helps prevent overbooking your whole property.
Discrete if you want overbookings to affect only the availability of the overbooked room/bed category. This option increases the risk of overbooking your whole property.
For both options, you’ll still have to manually resolve overbookings by clicking on the booking, dragging, and dropping into the free space.
3. "Last room" available on all channels
In case you are going through a high season and your property is constantly booked at 99% occupancy it puts you at risk of overbooking.
Imagine 1 room available on Booking.com, Expedia, Agoda, etc. - there is a chance multiple reservations can be accepted by your Channel Manager. simultaneously Mews will accept reservations that have been confirmed to the guest by the Online Travel Agency, delivered to your Channel Manager, and sent to us.
Dynamic inventory management and integration with Revenue Management software will help you prevent this scenario.