IntroductionThis report seeks to investigate and analyze the main characteristics of overbooking and the impacts this can have on hotel management systems and customers. It examines the consequences of overbooking management decisions, both successful and ineffective, depending on how it is managed and the effect this can have on the hotel's profitability. It also examines the effect overbooking has on customer behavior and loyalty, and legislation passed in the United States. With existing research on overbooking yield management analytics and how this can be implemented effectively within hotels, some researchers have then expanded the topic to incorporate the effects on profitability, customer service and service recovery. Secondary data was collected through journals, books, hospitality-related journals, and hospitality news articles in order to gain a framework for the research topic. Literature Review Companies throughout the hospitality industry wish to implement the most successful techniques in order to make the most of their efficiency and increase their profitability and yield management, including overbooking strategies which are important in managing a hotel to maximize revenue and are increasingly putting it into practice across the business (Hwang et al, 2009), an unoccupied room in a hotel offers a revenue opportunity, regardless of whether the no-show customer whether he paid for it or not. Overbooking is part of hotel yield management, also known as revenue management and can be defined as "the application of information systems and pricing strategies to allocate the right capacity to customers, in terms of accurate cost and time" (Kimes et al, 2003: 30), expanding this term it......middle of paper......a donnybrook.”: Hotel Management Magazine, New York.Noone, B. & Kimes, S. & Renaghan, L. (2003) “Integrating customer relationship management and revenue management: a hotel perspective”: Cornell University, Journal for Hospitality Research. Simon, J. (1968) “An Almost Practical Solution to Airline Overbooking”: London, Journal of Transport Economics and Policy .Sulistio, A. & Kyong, K. & Byya, R. (2008) “Managing Cancellations and Misses Overbooking Reservations Presentations to Increase Resource Revenue": Washington, CCGRID '08 Proceedings.Talluri, K. & Van-Ryzin, G. (2004) “The Theory and Practice of Revenue Management”: New York, SpringerTodorov, A. & Zhechev, V. (2010) “The impact of overbooking on the operational management of hotels”: Unknown, Unknown.Vickrey, W (1972) “Airline overbooking: some further solutions”: Journal of Transportation and Economic Policy.