Revenue Management Glossary

Booked to Capacity

Definition

Booked to Capacity refers to a situation where a hotel has reached its maximum occupancy for a given arrival date, preventing further reservations from being made for that date. For revenue management, this is a crucial tool to ensure you don’t overbook and can control room inventory effectively during peak periods.

How to use it

In revenue management, Booked to Capacity is used to optimize occupancy and pricing. When a hotel is at full capacity for a specific arrival date, it allows managers to focus on managing existing bookings and potentially increasing prices for remaining available rooms. This tactic can also help prevent revenue loss caused by overbookings and cancellations.

Formula

N/A

Related Terms

Overbooking, Revenue per Available Room (RevPAR), Availability Control, Yield Management, Closed to Arrival
“Using Booked to Capacity strategically helps hoteliers maximize revenue by ensuring rooms are sold at the optimal rate and avoiding the risks of overbookings, leading to a more controlled and profitable operation.”

Sarah Kock

Sarah Kock
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