The decision to use overbooking will
A)lead to upset customers and a high cost of providing them space.
B)lead to unutilized assets and lost revenue.
C)lead to reduced profits.
D)depend upon optimization to be successful.

Question

Quizplus · Accepted Answer

The decision to use overbooking depends upon optimization to be successful. Overbooking can help airlines and hotels maximize their revenue and utilization of assets, but it must be done carefully to avoid upsetting customers and incurring high costs. Optimization techniques help companies determine the optimal level of overbooking that will minimize the risk of denied boarding or room bookings while also maximizing revenue.

The Decision to Use Overbooking Will