How a New Serviced Apartment Fixed Overbookings, Stabilised Operations and Achieved Profit in 3 Months
Opportunity
The property had been open for three months but was experiencing significant overbooking issues leading to guests arriving with no reservations; unmanageable event periods; the owners incurring large relocation costs and considering closure; with the onsite team extremely stressed and close to leaving.
Actions
Following a referral from their PMS supplier RevenYou was contracted to undertake a full review of the business to identify what the issues were before implementing the following:
Mapped the PMS, Channel Manager and OTA’s to ensure accurate availability was feeding through correctly.
Upgraded their existing server with a new system that did not shut down when Reception closed – ensuring all PMS and Channel Manager connections remained live 24/7.
Developed the property’s competitor set – to be used for analytics and tracking purposes.
Renamed the room types and highlighted unique selling points within the new names.
Implemented a rate strategy specific to the property and their location.
Introduced seasonal rate plans to build off peak and long lead occupancy.
Listed the property on the relevant OTA distribution channels and worked with the respective Market Manager’s to boost ranking and production.
Recruited an experienced staff member to oversee Reception and Reservations without needing direct supervision as the property’s cashflow did not allow for an onsite manager.
Undertook training with the onsite team to increase their knowledge and understanding of the systems being used.
Outcomes
Elimination of the frequent overbooking issues.
Within three months, the property was turning a profit.
After six months, RevenYou’ s role transitioned to being on call to assist with any day-to-day operational questions as they arose.
FAQ’s
How can a new hotel fix overbooking issues and stabilise operations quickly?
The most effective way to fix overbooking issues is to review and align the entire technology and distribution setup, rather than focusing on one system in isolation. In this case, the PMS, Channel Manager and OTA connections were mapped and corrected to ensure accurate availability, while system reliability was improved to maintain consistent connectivity.
At the same time, operational improvements including team training, clearer room configurations and stronger distribution strategies helped restore control and reduce guest disruption. With these foundations in place, the property was able to stabilise operations and achieve profitability within three months, creating a more sustainable platform for future growth.
