What to Do If Your Hotel Is Overbooked: 5 Tips

Here’s some good news and some bad news. The bad news is that hotel overbooking is quite common and can cancel your stay even if you have a reservation. The good news is that you will usually be offered alternative accommodations at the hotel's expense, with the potential to receive additional compensation for the inconvenience.

Knowing what to do if you lose your room due to overbooking will help you receive the maximum compensation and, ideally, quickly get you back to enjoying your vacation. Here’s everything you need to know about hotel overbooking, why it happens, and what you can do if it happens to you.

What It Means When a Hotel Is Overbooked

Hotel overbooking is when a hotel  sells more rooms than it has available. For example, a hotel with 100 rooms but 105 guest reservations is considered overbooked by five guests. If all 105 reservations show up at check-in, the hotel will have to inform 5 of those guests that they can’t check in and the hotel must offer an alternative arrangement, such as a refund or book them at a comparable hotel.

Luckily, hotels that frequently face this issue typically have policies in place to ensure all guests remain satisfied, even with a major inconvenience like having a cancelled reservation.

Why Hotel Overbooking Happens

Did you know that hotels intentionally overbook rooms? For decades, hotels have used overbooking as a revenue strategy to make more money from guest errors, cancellations, or no-shows. 

Hotels can analyze their reservations and occupancy to determine how much they can oversell their rooms and still be profitable. The assumption is that a percentage of guests who make reservations will be no-shows, have early check-outs, or cancel. Overbooking occurs when more guests than they expect with reservations actually show up.

Your Rights When a Hotel Overbooking Happens

Overbooking is actually a common practice in the travel industry for hotels and flights. The airline industry is more regulated for overbooking. Major travel markets have established consumer rights for air travel, including the Airline Consumer Protection by the US Department of Transportation and the EU’s Air Passenger Rights.

Hotel overbooking isn’t as regulated as overbooked flights. It’s legal for hotels to use an overbooking strategy, and there are no consumer protections defining standardized practices if your reservation is cancelled because of an overbooking. All compensation offered to guests due to overbooking is a result of the hotel’s desire to maintain a good reputation and avoid bad guest reviews.

Travel insurance is one of the best protections against overbooked hotels. Guests can file a claim to receive reimbursement for expenses incurred due to overbooking.

Steps to Follow When Your Hotel is Overbooked

If your hotel reservation is cancelled due to hotel overbooking, follow these steps to maximize your compensation for the inconvenience.

Step 1: Remain calm

 Hotel overbooking inconveniences everyone and can be an uncomfortable situation for you, your traveler partners, and the front desk staff. Staying calm in this situation makes it easier to communicate alternatives and speed up the process of getting into a new room.

Step 2: Speak with the hotel manager

 The hotel manager is the best person to speak with about your cancelled reservation. Politely ask to speak with them to ask about the available options for the inconvenience.

Step 3: Ask about getting an alternative room

Sometimes,  overbooked hotels still have some rooms available. Ask about whether any upgraded rooms or suites are available for a complimentary upgrade.

Step 4: Ask about additional compensation

 “Walking” a guest, or sending them to a nearby hotel, is a standard resolution for overbooking guests. Guests can also ask about other compensation, such as bonus loyalty points, discounted future stay, food and beverage credit, show vouchers, or similar.

Hotels want to avoid bad reviews from upset guests, so these are just a few of the bonus perks they may offer to settle the situation.

Step 5: Get everything in writing

 The hotel is at fault for overbooking guests. Having an official statement from the hotel about the overbooked room and their resolution helps provide evidence when filing a travel insurance claim or requesting a refund.

Step 6: Keep your receipts

Keep all receipts for expenses incurred due to overbooking. This includes transportation to the new hotel and booking a new room. These receipts are helpful when requesting compensation or travel insurance claims.

Step 7: File a travel insurance claim  or request compensation from the hotel

If you have travel insurance, file a claim as soon as possible using the documentation and receipts you’ve collected. Overbooking-related expenses, such as rebooking costs or transportation, may be eligible for reimbursement depending on your policy.

 If you don’t have travel insurance, follow up with the hotel directly to confirm any promised compensation or refunds in writing.

Overbooking When Booking Directly vs. Using a Third-Party Site

According to HOTREC’s recent data, people prefer booking hotels directly instead of through third-party sites, like online travel agencies.

Guests who book through third-party platforms are also more likely to have their reservations canceled if a hotel is overbooked, for several common reasons:

• Rooms booked through third-party sites are usually discounted more than the standard rate

• Guests who book with a third party are usually not frequent guests

• Customer service is managed with the third-party site instead of directly with the hotel

Although third-party sites and online travel agencies may offer attractive prices, bookings made through these platforms carry a higher risk of being canceled during busy travel periods due to overbooking. As travelers increasingly rely on AI for hotel research, DirectBooker is working to connect large language models like ChatGPT, Claude, and Gemini with real-time hotel data, helping surface accurate direct-booking options and reduce surprises when it’s time to book.

5 Tips to Avoid Getting Bumped Due to an Overbooking in the Future 

Hotel reservations aren’t always guaranteed, especially when a property is overbooked. In those situations, hotels often prioritize certain types of reservations over others when deciding which guests to “walk.” The tips below can help make your reservation more favorable and reduce the chances of being bumped to another hotel.

Book the hotel directly instead of using a third-party booking platform or online travel agency

Hotels prefer direct bookings over third-party bookings due to fee structures and total revenue generated from each reservation. Guests who book directly are more valuable and will be given a room versus someone who booked using Expedia, Booking.com, or other third-party online travel agencies.

Check in early

Hotel rooms are on a first-come, first-served basis. Overbookings typically happen later in the day, after all other guests have checked in. The earlier you arrive, the greater the chance the hotel still has your room available.

Call ahead 

For busy travel seasons, holiday travel, or popular events/conferences, it’s helpful to contact the hotel at least 24 hours before your check-in date to confirm your reservation. Mention your arrival time, especially if it’s later in the day, so the hotel knows when to expect you and not give away your room. 

Sign up for the hotel loyalty program

Loyalty program members get room priority over non-members. And members with higher-tier status get even more preference over lower tiers in an overbooked hotel. Marriott Bonvoy members with Titanium Elite status or higher and Hilton Honors Diamond Tier members get a 48-hour guarantee, so you’ll always have a room if you book within 48 hours.

Book a longer stay

Hotels prioritize rooms for guests with longer stays. When reviewing reservations to pick who to walk, guests staying one night are usually considered first, rather than those staying multiple nights.

Stay Smart If Your Hotel Gets Overbooked

There’s always a chance of hotel overbooking, especially during busy travel seasons or major events. These strategies help guests understand what to expect if their reservation is cancelled and offer tips to avoid cancellation, such as booking directly and confirming the reservation in advance.

Sources

U.S. Department of Transportation. “Airline Consumer Protection.” Transportation.gov, https://www.transportation.gov/mission/performance/airline-consumer-protection

European Union. “Air Passenger Rights.” Your Europe, European Commission, 23 July 2025, https://europa.eu/youreurope/citizens/travel/passenger-rights/air/index_en.htm

HOTREC. “Digital Trends in Accommodation: Hotels, Booking.com and DMA.” HOTREC – European Hospitality, 2 July 2024, https://www.hotrec.eu/en/news/digital_trends_in_accommodation_hotels_booking-com_and_dma_.html

Bryan Shelmon

Bryan Shelmon is a travel writer with bylines in Lonely Planet, Midwest Living, and Wanderlust, known for immersive storytelling shaped by long-term travel across 25+ countries. He combines a background in business with nearly a decade of freelance experience, collaborating with tourism boards and capturing culture through art, language, and local exploration.

Our editorial process: DirectBooker curates insights from global hospitality experts and our network of industry insiders. Articles undergo rigorous fact-checking and quality review before publication, ensuring authentic, actionable advice for savvy travelers.