overbooking doesn't happen all the time, but it does happen. Sometimes it's inadvertent. Hotels will sometimes be fully booked, and then run into a problem with some maintenance issues such as faulty air-conditioning, a leaky faucet, or other problems that force them to take those rooms out of their inventory for the day. But other times, hotels overbook on purpose to protect themselves from any potential loss of business from last-minute cancellations and no-shows.