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Overbooking and customer reactions in tourism: Evidence from restaurants

Year 2024, , 68 - 74, 30.09.2024
https://doi.org/10.24288/jttr.1512178

Abstract

This study explores the practice of overbooking in restaurants and its impact on customer reactions, drawing on insights from interviews with 15 participants. The research aims to understand the nuances of these customer experiences and the challenges restaurant staff face in managing overbooked situations. Through qualitative interviews, participants shared their experiences and perceptions, highlighting a range of emotional and practical difficulties. Participant opinions revealed transparency and effective communication are crucial in mitigating negative reactions. The findings suggest that while overbooking can financially benefit restaurants, maintaining customer satisfaction and loyalty necessitates a delicate balance. The study provides for restaurant managers, emphasizing customer relationship management's importance in accurately predicting and managing reservation flows.

References

  • Alexandrov A., & Lariviere M. A. (2012). Are reservations recommended? Manufacturing & Service Operations Management, 14(2), 218–230. https://doi.org/10.1287/msom.1110.0360
  • Antonio, N., De Almeida, A., & Nunes, L. (2017). Predicting hotel booking cancellations to decrease uncertainty and increase revenue. Tourism & Management Studies, 13(2), 25-39.
  • Antonio, N., De Almeida, A., & Nunes, L. (2019). Big data in hotel revenue management: Exploring cancellation drivers to gain insights into booking cancellation behavior. Cornell Hospitality Quarterly, 60(4), 298-319.
  • Chan, H., Wan, L. C., & Sin, L. Y. (2007). Hospitality service failures: Who will be more dissatisfied?. International Journal of Hospitality Management, 26(3), 531-545.
  • Chen, C. (2016). Cancellation policies in the hotel, airline and restaurant industries. Journal of Revenue and Pricing Management, 15, 270-275.
  • Chen, J., Zhao, X., & Gao, D. (2018). Loss-averse decision analysis in overbooking. International Journal of Systems Science: Operations & Logistics, 5(3), 227-238.
  • Chiang, C. I. (2023). Overbooking as a means to manage restaurant no-shows and cancellations: a novel model extension. Journal of Hospitality & Tourism Research, 47(8), 1530-1545.
  • Demir, M., & Alper, P. (2021). G20 summit menus as a means of gastrodiplomacy: Messages to the world via menus. International Journal of Gastronomy and Food Science, 25, 1-8. https://doi.org/10.1016/j.ijgfs.2021.100368.
  • Demir, S. S., Demir, M., & Nield, K. (2013). The effects of customer focused selling on destination choice and decision of purchasing: An empirical study on British tourists travelling to Turkey. Journal of Human Sciences, 10(2), 443-461.
  • Fasone, V., & Faldetta, G. (2013). Defining a sustainable overbooking approach in the hospitality industry. International Journal of Sustainable Strategic Management, 4(1), 83-102.
  • Gregorash B. J. (2016). Restaurant revenue management: Apply reservation management? Journal of Information Technology & Tourism, 16(4), 331–346. https://doi.org/10.1007/s40558-016-0065-0
  • Guo, X., Dong, Y., & Ling, L. (2016). Customer perspective on overbooking: The failure of customers to enjoy their reserved services, accidental or intended?. Journal of Air Transport Management, 53, 65-72.
  • Hayes, D. K., Hayes, J. D., & Hayes, P. A. (2021). Revenue management for the hospitality industry. John Wiley & Sons.
  • Haynes, N., & Egan, D. (2020). The perceptions of frontline employees towards hotel overbooking practices: exploring ethical challenges. Journal of Revenue and Pricing Management, 19, 119-128.
  • Heo C. Y., Lee S., Mattila A., & Hu C. (2013). Restaurant revenue management: Do perceived capacity scarcity and price differences matter? International Journal of Hospitality Management, 35(December), 316–326. https://doi.org/10.1016/j.ijhm.2013.05.007
  • Hwang J. (2008). Restaurant table management to reduce customer waiting times. Journal of Foodservice Business Research, 11(4), 334–351. https://doi.org/10.1080/15378020802519603
  • Ivanov, S. H. (2015). Optimal overbooking limits for a hotel with three room types and with upgrade and downgrade constraints. Tourism Economics, 21(1), 223-240.
  • Katz, J. B. (1997). Restaurant planning, design, and construction: a survival manual for owners, operators, and developers. John Wiley & Sons.
  • Kimes S. E. (2004). Restaurant revenue management: Implementation at Chevys Arrowhead. Cornell Hotel and Restaurant Administration Quarterly, 45(1), 52–67. https://doi.org/10.1177/0010880403260107
  • Kimes S. E. (2011). Customer attitudes towards restaurant reservations policies. Journal of Revenue Pricing Management, 10(3), 244–260. https://doi.org/10.1057/rpm.2009.24
  • Kimes S. E., & Robson S. (2004). The impact of restaurant table characteristics on meal duration and spending. Cornell Hotel and Restaurant Administration Quarterly, 45(4), 333–346. https://doi.org/10.1177/0010880404270063
  • Kimes, S. E., Chase, R. B., Choi, S., Lee, P. Y., & Ngonzi, E. N. (1998). Restaurant revenue management: Applying yield management to the restaurant industry. Cornell Hotel and Restaurant Administration Quarterly, 39(3), 32-39.
  • Krawczyk, M., Webb, T., Schwartz, Z., & Uysal, M. (2016). Overbooking research in the lodging industry: from origins in airlines to what lies ahead. Management Science in Hospitality and Tourism: Theory, Practice, and Applications, 251-268.
  • Liang, S., & Anderson, C. K. (2023). Proactive Walking and Overbooking With Class Dependent Walk-Out Costs. Cornell Hospitality Quarterly, 64(4), 454-459.
  • McDougall, G. H., & Levesque, T. J. (1999). Waiting for service: the effectiveness of recovery strategies. International Journal of Contemporary Hospitality Management, 11(1), 6-15.
  • McGuire K., & Kimes S. (2006). The perceived fairness of waitlist management techniques for restaurants. Cornell Hotel and Restaurant Administration Quarterly, 47(2), 121–134. https://doi.org/10.1177/0010880405284212
  • Nazifi, A., Gelbrich, K., Grégoire, Y., Koch, S., El-Manstrly, D., & Wirtz, J. (2021). Proactive handling of flight overbooking: how to reduce negative eWOM and the costs of bumping customers. Journal of Service Research, 24(2), 206-225.
  • Oh, J., & Su, X. (2022). Optimal pricing and overbooking of reservations. Production and Operations Management, 31(3), 928-940.
  • Parsa H. G., Shuster B. K., & Bujisic M. (2020). New classification system for the U.S. restaurant industry: Application of utilitarian and hedonic continuum model. Cornell Hospitality Quarterly, 61(4), 379–400. https://doi.org/10.1177/1938965519899929
  • Phumchusri N., & Maneesophon P. (2014). Optimal overbooking decision for hotel rooms revenue management. Journal of Hospitality and Tourism Technology, 5(3), 261–277. https://doi.org/10.1108/JHTT-03-2014-0006
  • Phumchusri, N., & Maneesophon, P. (2014). Optimal overbooking decision for hotel rooms revenue management. Journal of Hospitality and Tourism Technology, 5(3), 261-277.
  • Roy, D., Spiliotopoulou, E., & de Vries, J. (2022). Restaurant analytics: Emerging practice and research opportunities. Production and Operations Management, 31(10), 3687-3709.
  • Sierag D. D., Van der Rest J. P., Koole G., Van der Mei R. D., & Zwart B. (2017). A call for exploratory data analysis in revenue management forecasting: A case study of a small and independent hotel in the Netherlands. International Journal of Revenue Management, 10(1), 28–51. https://doi.org/10.1504/IJRM.2017.084147
  • Tang, J., Repetti, T., & Raab, C. (2019). Perceived fairness of revenue management practices in casual and fine-dining restaurants. Journal of Hospitality and Tourism Insights, 2(1), 92-108.
  • Thompson G. (2002). Optimizing a restaurant’s seating capacity: Use dedicated or combinable tables? Cornell Hotel and Restaurant Administration Quarterly, 43(3), 48–57. https://doi.org/10.1177/0010880402434005
  • Thompson, G. M., & Kwortnik Jr, R. J. (2008). Pooling restaurant reservations to increase service efficiency. Journal of Service Research, 10(4), 335-346.
  • Toh, R. S., & Dekay, F. (2002). Hotel room-inventory management: an overbooking model. Cornell Hotel and Restaurant Administration Quarterly, 43(4), 79-90.
  • Tse T. S. M., & Poon Y. T. (2017). Modeling no-shows, cancellations, overbooking and walk-ins in restaurant revenue management. Journal of Foodservice Business Research, 20(2), 127–145. https://doi.org/10.1080/15378020.2016.1198626
  • Tse, T. S., & Poon, Y. T. (2017). Modeling no-shows, cancellations, overbooking, and walk-ins in restaurant revenue management. Journal of Foodservice Business Research, 20(2), 127-145.
  • Tyagi, M., & Bolia, N. B. (2021). Approaches for restaurant revenue management. Journal of Revenue and Pricing Management, 1-19.
  • Vajpai G. N. (2018). Managing overbooking in hotels: A probabilistic model using Poisson distribution. International Journal of Advance Research, Ideas and Innovation in Technology, 4(2), 1375–1379. https://www.ijariit.com/manuscripts/v4i2/V4I2-1655.pdf
  • Vidotto A., Brown K., & Beck C. (2007). Managing restaurant tables using constraints. Knowledge-Based Systems, 20(2), 160–169. https://doi.org/10.1016/j.knosys.2006.11.002
  • Vinod, B. (2022). Revenue Management of Room Rates. In Revenue Management in the Lodging Industry: Origins to the Last Frontier (pp. 105-188). Cham: Springer International Publishing.
  • Wangenheim, F. V., & Bayón, T. (2007). Behavioral consequences of overbooking service capacity. Journal of Marketing, 71(4), 36-47.
  • Webb, T., Ma, J., & Cheng, A. (2023). Variable Pricing in Restaurant Revenue Management: A Priority Mixed Bundle Strategy. Cornell Hospitality Quarterly, 64(1), 22-33.
  • Zhang, L., & Pippins, J. C. (2021). Application of overbooking model to college admission at The Citadel. International Transactions in Operational Research, 28(5), 2402-2413.
Year 2024, , 68 - 74, 30.09.2024
https://doi.org/10.24288/jttr.1512178

Abstract

References

  • Alexandrov A., & Lariviere M. A. (2012). Are reservations recommended? Manufacturing & Service Operations Management, 14(2), 218–230. https://doi.org/10.1287/msom.1110.0360
  • Antonio, N., De Almeida, A., & Nunes, L. (2017). Predicting hotel booking cancellations to decrease uncertainty and increase revenue. Tourism & Management Studies, 13(2), 25-39.
  • Antonio, N., De Almeida, A., & Nunes, L. (2019). Big data in hotel revenue management: Exploring cancellation drivers to gain insights into booking cancellation behavior. Cornell Hospitality Quarterly, 60(4), 298-319.
  • Chan, H., Wan, L. C., & Sin, L. Y. (2007). Hospitality service failures: Who will be more dissatisfied?. International Journal of Hospitality Management, 26(3), 531-545.
  • Chen, C. (2016). Cancellation policies in the hotel, airline and restaurant industries. Journal of Revenue and Pricing Management, 15, 270-275.
  • Chen, J., Zhao, X., & Gao, D. (2018). Loss-averse decision analysis in overbooking. International Journal of Systems Science: Operations & Logistics, 5(3), 227-238.
  • Chiang, C. I. (2023). Overbooking as a means to manage restaurant no-shows and cancellations: a novel model extension. Journal of Hospitality & Tourism Research, 47(8), 1530-1545.
  • Demir, M., & Alper, P. (2021). G20 summit menus as a means of gastrodiplomacy: Messages to the world via menus. International Journal of Gastronomy and Food Science, 25, 1-8. https://doi.org/10.1016/j.ijgfs.2021.100368.
  • Demir, S. S., Demir, M., & Nield, K. (2013). The effects of customer focused selling on destination choice and decision of purchasing: An empirical study on British tourists travelling to Turkey. Journal of Human Sciences, 10(2), 443-461.
  • Fasone, V., & Faldetta, G. (2013). Defining a sustainable overbooking approach in the hospitality industry. International Journal of Sustainable Strategic Management, 4(1), 83-102.
  • Gregorash B. J. (2016). Restaurant revenue management: Apply reservation management? Journal of Information Technology & Tourism, 16(4), 331–346. https://doi.org/10.1007/s40558-016-0065-0
  • Guo, X., Dong, Y., & Ling, L. (2016). Customer perspective on overbooking: The failure of customers to enjoy their reserved services, accidental or intended?. Journal of Air Transport Management, 53, 65-72.
  • Hayes, D. K., Hayes, J. D., & Hayes, P. A. (2021). Revenue management for the hospitality industry. John Wiley & Sons.
  • Haynes, N., & Egan, D. (2020). The perceptions of frontline employees towards hotel overbooking practices: exploring ethical challenges. Journal of Revenue and Pricing Management, 19, 119-128.
  • Heo C. Y., Lee S., Mattila A., & Hu C. (2013). Restaurant revenue management: Do perceived capacity scarcity and price differences matter? International Journal of Hospitality Management, 35(December), 316–326. https://doi.org/10.1016/j.ijhm.2013.05.007
  • Hwang J. (2008). Restaurant table management to reduce customer waiting times. Journal of Foodservice Business Research, 11(4), 334–351. https://doi.org/10.1080/15378020802519603
  • Ivanov, S. H. (2015). Optimal overbooking limits for a hotel with three room types and with upgrade and downgrade constraints. Tourism Economics, 21(1), 223-240.
  • Katz, J. B. (1997). Restaurant planning, design, and construction: a survival manual for owners, operators, and developers. John Wiley & Sons.
  • Kimes S. E. (2004). Restaurant revenue management: Implementation at Chevys Arrowhead. Cornell Hotel and Restaurant Administration Quarterly, 45(1), 52–67. https://doi.org/10.1177/0010880403260107
  • Kimes S. E. (2011). Customer attitudes towards restaurant reservations policies. Journal of Revenue Pricing Management, 10(3), 244–260. https://doi.org/10.1057/rpm.2009.24
  • Kimes S. E., & Robson S. (2004). The impact of restaurant table characteristics on meal duration and spending. Cornell Hotel and Restaurant Administration Quarterly, 45(4), 333–346. https://doi.org/10.1177/0010880404270063
  • Kimes, S. E., Chase, R. B., Choi, S., Lee, P. Y., & Ngonzi, E. N. (1998). Restaurant revenue management: Applying yield management to the restaurant industry. Cornell Hotel and Restaurant Administration Quarterly, 39(3), 32-39.
  • Krawczyk, M., Webb, T., Schwartz, Z., & Uysal, M. (2016). Overbooking research in the lodging industry: from origins in airlines to what lies ahead. Management Science in Hospitality and Tourism: Theory, Practice, and Applications, 251-268.
  • Liang, S., & Anderson, C. K. (2023). Proactive Walking and Overbooking With Class Dependent Walk-Out Costs. Cornell Hospitality Quarterly, 64(4), 454-459.
  • McDougall, G. H., & Levesque, T. J. (1999). Waiting for service: the effectiveness of recovery strategies. International Journal of Contemporary Hospitality Management, 11(1), 6-15.
  • McGuire K., & Kimes S. (2006). The perceived fairness of waitlist management techniques for restaurants. Cornell Hotel and Restaurant Administration Quarterly, 47(2), 121–134. https://doi.org/10.1177/0010880405284212
  • Nazifi, A., Gelbrich, K., Grégoire, Y., Koch, S., El-Manstrly, D., & Wirtz, J. (2021). Proactive handling of flight overbooking: how to reduce negative eWOM and the costs of bumping customers. Journal of Service Research, 24(2), 206-225.
  • Oh, J., & Su, X. (2022). Optimal pricing and overbooking of reservations. Production and Operations Management, 31(3), 928-940.
  • Parsa H. G., Shuster B. K., & Bujisic M. (2020). New classification system for the U.S. restaurant industry: Application of utilitarian and hedonic continuum model. Cornell Hospitality Quarterly, 61(4), 379–400. https://doi.org/10.1177/1938965519899929
  • Phumchusri N., & Maneesophon P. (2014). Optimal overbooking decision for hotel rooms revenue management. Journal of Hospitality and Tourism Technology, 5(3), 261–277. https://doi.org/10.1108/JHTT-03-2014-0006
  • Phumchusri, N., & Maneesophon, P. (2014). Optimal overbooking decision for hotel rooms revenue management. Journal of Hospitality and Tourism Technology, 5(3), 261-277.
  • Roy, D., Spiliotopoulou, E., & de Vries, J. (2022). Restaurant analytics: Emerging practice and research opportunities. Production and Operations Management, 31(10), 3687-3709.
  • Sierag D. D., Van der Rest J. P., Koole G., Van der Mei R. D., & Zwart B. (2017). A call for exploratory data analysis in revenue management forecasting: A case study of a small and independent hotel in the Netherlands. International Journal of Revenue Management, 10(1), 28–51. https://doi.org/10.1504/IJRM.2017.084147
  • Tang, J., Repetti, T., & Raab, C. (2019). Perceived fairness of revenue management practices in casual and fine-dining restaurants. Journal of Hospitality and Tourism Insights, 2(1), 92-108.
  • Thompson G. (2002). Optimizing a restaurant’s seating capacity: Use dedicated or combinable tables? Cornell Hotel and Restaurant Administration Quarterly, 43(3), 48–57. https://doi.org/10.1177/0010880402434005
  • Thompson, G. M., & Kwortnik Jr, R. J. (2008). Pooling restaurant reservations to increase service efficiency. Journal of Service Research, 10(4), 335-346.
  • Toh, R. S., & Dekay, F. (2002). Hotel room-inventory management: an overbooking model. Cornell Hotel and Restaurant Administration Quarterly, 43(4), 79-90.
  • Tse T. S. M., & Poon Y. T. (2017). Modeling no-shows, cancellations, overbooking and walk-ins in restaurant revenue management. Journal of Foodservice Business Research, 20(2), 127–145. https://doi.org/10.1080/15378020.2016.1198626
  • Tse, T. S., & Poon, Y. T. (2017). Modeling no-shows, cancellations, overbooking, and walk-ins in restaurant revenue management. Journal of Foodservice Business Research, 20(2), 127-145.
  • Tyagi, M., & Bolia, N. B. (2021). Approaches for restaurant revenue management. Journal of Revenue and Pricing Management, 1-19.
  • Vajpai G. N. (2018). Managing overbooking in hotels: A probabilistic model using Poisson distribution. International Journal of Advance Research, Ideas and Innovation in Technology, 4(2), 1375–1379. https://www.ijariit.com/manuscripts/v4i2/V4I2-1655.pdf
  • Vidotto A., Brown K., & Beck C. (2007). Managing restaurant tables using constraints. Knowledge-Based Systems, 20(2), 160–169. https://doi.org/10.1016/j.knosys.2006.11.002
  • Vinod, B. (2022). Revenue Management of Room Rates. In Revenue Management in the Lodging Industry: Origins to the Last Frontier (pp. 105-188). Cham: Springer International Publishing.
  • Wangenheim, F. V., & Bayón, T. (2007). Behavioral consequences of overbooking service capacity. Journal of Marketing, 71(4), 36-47.
  • Webb, T., Ma, J., & Cheng, A. (2023). Variable Pricing in Restaurant Revenue Management: A Priority Mixed Bundle Strategy. Cornell Hospitality Quarterly, 64(1), 22-33.
  • Zhang, L., & Pippins, J. C. (2021). Application of overbooking model to college admission at The Citadel. International Transactions in Operational Research, 28(5), 2402-2413.
There are 46 citations in total.

Details

Primary Language English
Subjects Tourism Management
Journal Section Research Articles
Authors

Edward Kenneth Lebaka 0009-0002-3167-6364

Early Pub Date August 11, 2024
Publication Date September 30, 2024
Submission Date July 7, 2024
Acceptance Date July 14, 2024
Published in Issue Year 2024

Cite

APA Lebaka, E. K. (2024). Overbooking and customer reactions in tourism: Evidence from restaurants. Journal of Tourism Theory and Research, 10(2), 68-74. https://doi.org/10.24288/jttr.1512178
AMA Lebaka EK. Overbooking and customer reactions in tourism: Evidence from restaurants. Journal of Tourism Theory and Research. September 2024;10(2):68-74. doi:10.24288/jttr.1512178
Chicago Lebaka, Edward Kenneth. “Overbooking and Customer Reactions in Tourism: Evidence from Restaurants”. Journal of Tourism Theory and Research 10, no. 2 (September 2024): 68-74. https://doi.org/10.24288/jttr.1512178.
EndNote Lebaka EK (September 1, 2024) Overbooking and customer reactions in tourism: Evidence from restaurants. Journal of Tourism Theory and Research 10 2 68–74.
IEEE E. K. Lebaka, “Overbooking and customer reactions in tourism: Evidence from restaurants”, Journal of Tourism Theory and Research, vol. 10, no. 2, pp. 68–74, 2024, doi: 10.24288/jttr.1512178.
ISNAD Lebaka, Edward Kenneth. “Overbooking and Customer Reactions in Tourism: Evidence from Restaurants”. Journal of Tourism Theory and Research 10/2 (September 2024), 68-74. https://doi.org/10.24288/jttr.1512178.
JAMA Lebaka EK. Overbooking and customer reactions in tourism: Evidence from restaurants. Journal of Tourism Theory and Research. 2024;10:68–74.
MLA Lebaka, Edward Kenneth. “Overbooking and Customer Reactions in Tourism: Evidence from Restaurants”. Journal of Tourism Theory and Research, vol. 10, no. 2, 2024, pp. 68-74, doi:10.24288/jttr.1512178.
Vancouver Lebaka EK. Overbooking and customer reactions in tourism: Evidence from restaurants. Journal of Tourism Theory and Research. 2024;10(2):68-74.