Business, Legal & Accounting Glossary
A common practice whereby an airline, hotel or other company accepts more reservations than it has seats or rooms available, on the presumption that a certain percentage of people will not show up. Airlines have a legal right to overbook, while hotels do not. A hotel must find a room for everyone who has a reservation and shows up on time. An airline may be required to offer compensation for people involuntarily bumped from a flight, depending on several factors, including how long they must wait for another flight.
Overselling or overbooking is sale of a volatile good or service in excess of actual supply.
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This glossary post was last updated: 23rd April, 2020 | 0 Views.