Asked by Paulina Martinez on Apr 27, 2024
Verified
Too low a level of overbooking will lead to unutilized assets and lost revenue.
Unutilized Assets
Resources or assets owned by a company that are not being used to their full potential, often resulting in inefficiency and lost revenue.
Overbooking
The practice of selling or booking more of a service than what is actually available, under the assumption that there will be cancellations or no-shows.
Lost Revenue
Revenue that was not earned due to missed opportunities, such as not having enough inventory to meet demand.
- Recognize the implications of overbooking on asset utilization and revenue.
Verified Answer
Learning Objectives
- Recognize the implications of overbooking on asset utilization and revenue.
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