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Yes it is. Every hotel makes allotments with travel agencies, these allotments are not guaranteed by the travel agencies that will be filled 100% in all seasons. So in order for the hotel to have as many bookings as possible in all times, they make allotments for more rooms than what they actually have.
So when the high season is on and travel agencies get more requests for bookings, the hotel receives more bookings than it can possibly accomodate. If they are overbooked, the hotel management has the obligation to move the client in a same or better category hotel in the same area.
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