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Asked by Paulina Martinez on Apr 27, 2024

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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.
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Stevie MicheleMay 01, 2024
Final Answer :
True
Explanation :
Overbooking is a strategy used to compensate for no-shows and cancellations, ensuring that assets (like hotel rooms or airline seats) are fully utilized. Too low a level of overbooking can result in these assets going unused, leading to lost revenue opportunities.

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