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OVERBOOKING

TheLaw.com Law Dictionary & Black's Law Dictionary 2nd Ed.

A common practice where a company accepts more reservations than it has accommodations for what is being sold, for example, seats on an airplane or rooms in a hotel. This practice is done on the presumption that a percentage of people will frequently cancel reservations or fail to show. Airlines may legally overbook but hotels and most other businesses do not. Airlines may be required to offer compensation for those who have been inconvenienced by overbooking.

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