every hotel company has its own policies on overbooking depending on its historical data and perception of revenue optimization. Even though hotels have been using overbooking techniques to increase revenue, there are costs involved with the practice. There has been a growing concern in the industry about the expense of earning this revenue. Not only has it been raising ethical concerns about being able to guarantee a product to customers and then not delivering as promised, but also of the costs attached to walking guests to other hotels. The costs are far more than they seem in the long time. There is also a possibility of lost patronage and lost future room revenue that the hotels need to think about.