What is the definition of Turnaway in the hotel industry?
Sometimes, a hotel simply cannot lodge a guest who has previously made a reservation. Having to treat such a guest as a Turnaway can happen at any time of year, but this usually happens during a certain period and for a convincing reason or reasons.
For example, a medium-sized hotel in Rome may have overstretched during an deeply busy period, such as when Masses with the Pope at the Vatican are soon to be renowned in St. Peter’s Basilica, or in St Peter’s Square. The hotel has recognized more reservations than it has available rooms.
Part of a hotel’s Revenue Management Strategy may be to comprise careful overbooking – decisively selling more rooms than it really should. This may seem a little odd, and can sometimes be reasonably annoying for forthcoming guests, but a hotel looking for to capitalize on revenue and capacity must eventually seek to put its own interests first.
The reality is that all hotels agonize financial fatalities each year due to cancellations. Overbooking, and so having to treat some consumers as Turnaways, is rarely the only way that a hotel can defend itself from the financial loss that cancellations can cause.