This does happen, but rarely. Family boutique hotels should not overbook. It happens more frequently at business hotels, because those tend to offer no-fee cancellations, overbook and as a result never know how many people will actually show up for the night. So folks arriving very late can be hit with "sorry, we have no rooms available". Business hotels try hard not to do this often, but it does happen.
On the receiving side, this is not pleasant, but not the end of the world. On a business trip I can get a human travel agent on the phone who can find an available room and if it means a $100 taxi bill each way to get to a nearby town, so be it.
On the receiving side, this is not pleasant, but not the end of the world. On a business trip I can get a human travel agent on the phone who can find an available room and if it means a $100 taxi bill each way to get to a nearby town, so be it.