Overselling or overbooking refers to selling of volatile goods and services in access of actual capacity.Overselling is common practice in common practice in the travel and lodging industries.In telecommunications,sometimes the term oversubscription is used.The practice occur as intentional business strategy where expect that some buyers will not consumes all of the resources they are entitled to,or that some buyers will cancel,the overselling ensures the 100% of available supply will be used resulting in the maximum return on investment.
In my opinion overselling means you are selling more than what you have on the basis that your customers do not use their full allocation and it is a way to maximise your profits.
Overselling is a business practice where a company sells more goods or services than they actually have available. It can occur in various industries, but it is most commonly seen in sectors such as travel, lodging, and telecommunications. The intention behind overselling is to ensure maximum utilization of resources and to optimize the return on investment.
Companies rely on statistical analysis and historical data to predict how many customers will not fully utilize their entitlements or cancel their reservations, allowing them to sell more than the actual capacity without negatively impacting customer satisfaction. However, overselling can sometimes lead to complications and dissatisfaction if the demand exceeds the available supply.