Displacement inventory refers to the process of reallocating or substituting reserved rooms or resources within a hotel or property. This typically occurs when a guest's reservation needs cannot be met due to overbooking or other factors, and alternative arrangements must be made. By reallocating rooms or resources, hotels aim to maximize occupancy and revenue while ensuring guest satisfaction. This process involves strategic decision-making to prioritize guests and manage inventory effectively, often utilizing advanced reservation systems and algorithms to optimize outcomes.
What is displacement inventory in the hotel industry?
Displacement inventory refers to the practice of reallocating reserved rooms or resources within a hotel when a guest's reservation cannot be honored due to overbooking or other reasons.
How do hotels handle displacement inventory?
Hotels handle displacement inventory by strategically reallocating rooms or resources to alternative arrangements to maximize occupancy and revenue while ensuring guest satisfaction. This may involve offering alternative accommodations, upgrades, or compensation to affected guests.