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Travel & Tourism Industry Glossary  :  Overbooking

Reservation of more seats by a tour operator than are actually available, sometimes done deliberately to compensate for anticipated no shows.

For tour and activity operators who do not use a tour operator software, this can be a serious issue.  Managing bookings from various sales channels can result in overbooking if actual inventory is not updated accurately.  Tour operators can avoid overbooking situations by enforcing advanced payment options via credit card for customers using a payment gateway and including a no show policy in their terms and conditions.  A modern tour operator software or reservation system can also help reduce overbooking by ensuring that channel management is automated and that inventory is maintained in real-time.

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