RESERVATIONS Chapter 4
What is a reservation? It is a booking in advance for a space for a specified period of time Hotel ballroom, restaurant booking, airline seat, a theatre seat, a hotel guestroom, a doctor s appointment 2
Introduction From a guest s point of view, the most important outcome of the reservations process is having a guestroom ready and waiting when the guest arrives To achieve these outcomes, the hotel must have efficient reservation procedures in place 3
Reservation Activities Conduct reservation inquiry Determine room and rate availability Create reservation record Confirm reservation record Maintain reservation record Produce reservation reports Research, plan, and monitor reservations 4
Guaranteed Reservation Insures that the hotel will hold a room for the guest until a specific time of guest s scheduled arrival date The guest must provide a method of payment. If the hotel then fails to provide the room for a guaranteed reservation, legal penalties can be applied if the guest files a complaint If the guest does not show up or cancel properly, the guest will be charged for one night accommodation 5
Guaranteed Reservations (continued) The reservation can be guaranteed by Prepayment Credit card Advance deposit Travel agent voucher/miscellaneous charge Order (MCO) Corporate (direct billing account) 6
Non-Guaranteed Reservation Insures that the hotel agrees to hold a room for the guest until a stated reservation cancellation hour (Usually 6 p.m.) on the day of arrival It is common for hotels planning on full occupancy or nearing full occupancy to accept only guaranteed reservation once a specified number of expected arrivals is achieved 7
Reservation Inquiry Guests can communicate their reservation inquiries In person Over the telephone Via mail Through facsimile By e-mail Through a website 8
Reservation Inquiry (continued) The reservation staff should obtain the following guest-related information: Guest s name, address and telephone number Company or travel agency name Date of arrival and departure Type and number of rooms requested Desired room rate Number of people in the group, if applicable Method of payment and/or guarantee Any other special requests 9
The Seven Steps Reservation Sales Process Greet the caller Identify caller s need Provide an overview of the hotel s features Make a room recommendation and room rate Ask for the sales Create a reservation record according to the hotel procedures Thank the caller 10
Reservation Sales Process The reservation function is a sales process, if the reservation staff is unenthusiastic, the caller will not a have a positive impression of the hotel and may decide to go elsewhere Reservations can be made for individuals, group, tours or conventions 11
Sources of Reservations Central Reservation System (CRS) Global Distribution System (GDS) Cluster reservations office Intersell Agencies (for example flight center) Property Direct Internet Distribution Systems 12
Central Reservation System (CRS) A central (or computerized) reservation system that controls and maintains the reservations for several hotels in one location Automatically redirects the reservation to the required hotel 13
Central Reservation System (CRS) The majority of hotel groups belong to one or more Central Reservation Systems A central reservation system is composed of a central reservation office, member hotels connected together via communication devices, and potential guests It exchanges room availability information with members hotel Central Reservation Office [CRO] offers its services via a 24-hours toll free telephone number(s) 14
Central Reservation System (CRS) Central reservation offices charges a fee for the utilization of its services A flat fee and a variable fee A flat percentage of potential room revenue, actual room revenue, and/or Rooms Division gross profit 15
Global Distribution Systems Computerized system by which reservationrelated information is stored and retrieved for multiple organizations Selling hotel rooms is accomplished by connecting the hotel reservation system with the GDS system GDSs have become a powerful force in hotel reservation 16
Global Distribution Systems SABRE Galileo International Amadeus WorldSpan 17
Cluster Reservations Office Single reservations office serving several geographically connected chain hotels All direct calls to each hotel is channeled to the cluster office Advantages to cluster offices Saves labor Cross selling is possible Room rates and availability can be coordinated 18
Intersell Agencies Intersell Agencies are special types of central reservation offices contracting to handle reservation for more than one Product Line Airline Tickets, Car Rental, Hotel Reservation. One Call Does it All Approach 19
Property Direct Reservation System Even though many of the five-star hotels rely heavily on central reservation offices and intersell agencies, some potential guests still find it convenient, and personal to call directly the hotel to communicate a reservation inquiry 20
Property Direct Reservations Property direct reservations are made in a several ways Telephone Mail Property-to-property FAX E-mail Website 21
Internet Distribution Systems Expedia Hotwire Travelocity Priceline 22
Group Bookings Types of groups Tour groups Conference/convention Charity groups (fund raising) Flight crews School groups Sporting groups 23
Group Reservation Issues Contract Non-group displacement Group history (wash rate) Pick-up monitoring Definite vs. tentative groups Rooming list or direct registration 24
Reservation Availability After receiving a reservation request, the hotel might accept it, as it is, if there is room availability If not, the reservation department should suggest alternative room types, dates, and/or rates, to the potential guest If, however, the potential guest insists on his/her previous request, the hotel should suggest an alternative hotel That's one of the main reasons to maintain good relationships with nearby competing Hotels 25
Reservation Availability The reservation department should always compare historical reservation volumes against actual arrivals To cope with overbooking A situation occurring when the total number of rooms reserved for a certain period of time exceeds the total number of rooms available for sale, for the same period of time 26
Reservation Availability In order to cope with the overbooking problem, some statistical and historical data should be stored and processed by the hotel and should be continuously updated. Such data should include: Number of rooms reserved for a specific date Number of rooms occupied by stayovers (for a certain specific date) Forecasted no-shows percentage Forecasted understays percentage Forecasted overstays percentage Forecasted cancellation percentage Number of out of order rooms for a specific date 27
Reasons for Travel Business Pleasure Education Family Religious Special events 28
Types of Market Sources F.I.T. (Free Independent Traveler) Group Corporate Government Package 29
Room Rate Factors Location (CBD, Country) Hotel Rating (Star/Flag/Crown) Room attributes/aspects Hotel facilities Competition Time of year Intended client 30
Room Rate Types Rack Corporate Government Airline (delayed flights, crew, package) Travel Agents (package, familiarisation, group, F.I.T.) Groups/conference Packages (honeymoon, weekend, midweek) 31
Five steps to selling Know your product Know your guest Match the guest to the best alternative Be aware you are part of the sales team Always sell the product before the price 32
Guest History Assist with marketing strategies Ensure future reservations are more efficient Ensure a quicker check-in Ensure guest s needs are met Assist with check-out 33
History data Reservation forms Registration cards Guest folios on check-out History can be stored and maintained: Manually Computerized 34
Details Provided to Guest Room release time (6pm is standard) Guaranteed reservation Check-in time Parking facilities Hotel facilities and services 35
Cancellation Retrieve original reservation Note date and time cancellation received Record contact name of person cancelling Update manual and computer records File cancelled reservation Apply cancellation fee as per hotel policy Thank caller 36
Amendments Retrieve original reservation Note date and time amendment received Record contact name of person amending Update manual and computer records File amended reservation Thank caller 37
Departments Concerned With Reservations Report Housekeeping Food and Beverage Maintenance Concierge/Porters/Front Desk 38
Types of Reports Occupancy Arrivals Cancellations Special requests V.I.P.S Black lists Market Segments Guest history 39
Occupancy Reports Prepared on a regular basis for: Rostering Budgets Maximizing occupancy Planning refurbishment Ordering 40
Special Requests Report Housekeeping Cots/rollaways/special linen/vases/flowers/baby sitters/early and late arrivals and departures Room Service Champagne/fruit baskets/flowers/vip mini bars Porter/ Concierge Theatre bookings/restaurant bookings/hire cars/early arrivals/late departures/wheelchair access/luggage storage/red carpet 41
Special Requests Report Food and Beverage Dietary, Group meals, Children, Cultural Requirements, Seating, Groups departing early Functions Dietary, AV Equipment, Meal break times, Business Services 42
Group and Conference Details ETA/ETD Rooming list ready Rooms Assigned Staffing requirements Porter/Concierge (Luggage collection times) Food and Beverage Functions department Hospitality room/area 43
Black List Bad debts (previous accounts remain unsettled) Malicious damage to hotel property Theft of hotel property Verbal/physical assault of staff members 44
Reservation Reports: In the reservation department, the widely used management reservation reports include: Reservation transaction report Commission agent report Turnaway report (sometimes called the refusal report) Revenue forecast report 45
Reservation Considerations Legal implications Waiting lists Promotional packages Potential reservation problems 46
Potential Reservation Problems Errors in a reservation record: Record a wrong arrival or departure date Misspell the guest s name or reverse it Reserve for the caller instead of the guest 47
Potential Reservation Problems Misunderstandings due to industry jargon: Confirmed versus guaranteed reservation Double room versus 2 beds Connecting rooms versus adjacent rooms 48
Potential Reservation Problems Miscommunications with external reservation systems: Book a guest in the wrong hotel Book a guest in the wrong city 49
Potential Reservation Problems (continued) Online reservation system failures: Fail to update central reservation system concerning room availability or to communicate rate changes in real time Delays in communicating reservation requests 50