There are multiple reasons Why do high-end hotels claim to be fully booked when you hardly see any guests
The most important ones are as follows:
1. Efficient Inventory Management
Hotels work like Airlines. They don’t release all their seats/rooms for bookings in one go. They release rooms gradually for bookings in order to efficiently manage their available inventory.
2. Demand & Supply
If the supply of hotel rooms surpasses the demand, it creates a massive impact on its pricing. It’s simple economics. Therefore, to keep an exclusive price, hotels have to maintain supply in direct proportion with the market demand to control its pricing.
3. Room Division
Hotels have to pre-plan their room inventory on the basis of quotas. For example, at least 10% inventory is made available at cheaper prices in order to attract more first time guests. These are mostly based on discount offers, etc. Moreover, a specific %age of rooms is always supposed to be made available for its corporate partners.
4. Price Control
In order to maintain profitability, hotel industry follows the same concept as the aviation industry. In most cases, they release a few rooms for last minute bookings at higher prices. This leads to fewer bookings but more turnover.
5. Better Logistical Preparation
Hotels always make their inventory available as per the available logistical resources. Hotels are not prepared to accept a big event/gathering/booking at the last moment. It requires prior staff planning, proactive security arrangements, etc.
Hotels have exclusive Corporate, Event, VVIP partners. The terms and conditions for such partnerships may vary from case to case. However, in most cases, there is a lump-sum monthly/quarterly/annual billing. Hotels always save some rooms for such partners.
Lastly, people go and stay in Hotels to stay inside their rooms. You would hardly see any guests because they are in their rooms!!