What is the term for a situation where a hotel takes more room reservations than it can accommodate?

The correct term for a situation where a hotel takes more room reservations than it can accommodate is overbooking. This practice is commonly used in the hospitality industry to manage the risk of no-shows or last-minute cancellations. By overbooking, hotels aim to maximize their occupancy rates, ensuring that they do not end up with vacant rooms that could have been filled, leading to lost revenue.

In the context of hotel operations, overbooking is a strategic decision. Hotels meticulously analyze historical data on customer behavior, including trends in cancellations and no-shows, to determine the appropriate level of overbooking. While this approach can enhance profitability, it requires careful handling to maintain customer satisfaction when guests arrive and find their reservations must be accommodated in alternate ways.

The other terms presented do not accurately define the situation of selling more reservations than available rooms. A no-show refers to a guest who fails to arrive for their reservation without canceling it, a guaranteed reservation is one that is held for a guest under specific conditions (often requiring payment or a deposit), and group booking pertains to a reservation made for multiple rooms, typically for events or gatherings.