Many hotels are still operating on an inventory allocation model. With this method, the hotel allows each of its channels a certain number of rooms. This means splitting up inventory according to how much you think each channel will sell and reserving some for direct bookings. There are several drawbacks to this approach… Firstly, you may overbook your rooms. For example, you accept a booking over the phone, but within minutes the room is sold via a booking site, before you can log in and update it. With your room now double-booked, you have to upgrade your guests or turn them away completely. Many hotels keep back a number of rooms to avoid this happening, losing out on valuable revenue by holding rooms ‘just in case’. This is not the only way the allocated inventory model creates waste. For example, you could give two channels 10 rooms each. Channel one sells them all, while channel two only sells one. Channel one could have sold all the rooms, but instead you have nine rooms sitting empty because you allocated them to channel two. Get the full story at SiteMinder