Professional Documents
Culture Documents
OPERATIONS
(SEM ESTER-I)
BSCHMCTT-101
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by experts and approved by the concerned statutory Board of Studies (BOS). It conforms to the syllabi and
contents as approved by the BOS of PTU.
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the prior written permission from Punjab Technical University.
SYLLABUS
SYLLABUS
UNIT-V
Front Office Organization
z Basic layout and design
z Departmental organizational structure
UNIT-VI
Front Office Personnel
z Departmental hierarchy
z Attitude and attributes and salesmanship
z Job descriptions and job specifications of front office personnel
UNIT-VII
Front Office Operations
z The front desk – equipment in use
z The guest room – types and status terminology
z Key controls
z Traiff plans
z Types of rates
UNIT-VIII
Front Office Responsibilities
z Communication – internal and interdepartmental
z Guest services – basic information
z Guest history – maintenance and importance
z Relationship marketing
z Emergency situations
UNIT-IX
Reservations
z Need for reservations, definitions, importance of reservations
z Types of reservations
z Sources and modes of reservations
z Individual and group bookings
SYLLABUS
z Booking instruments –Whitney slip, Whitney racks, density charts, booking diary,
conventional charts, A & D register, etc.
z The reservation cycle
z Hotel reservation systems, CRS, inter-sell agencies, Internet applications
UNIT-X
Telecommunications
z Equipment
z Communication skills – common phrases in use
z Conversations over telephones
Practical schedule
z Basic manners and attributes for front office operations
z Communication skills – verbal and non verbal
z Preparation and study of countries – capital and currency, airlines and flag charts,
credit cards, travel agency, etc.
z Telecommunication skills
z Forms and formats related to 2nd semester
z Hotel visits – WTO sheets
z Identification of equipments, work structure and stationery
z Procedure of taking reservations – in person and on telephones
z Converting enquiry into valid reservations
z Role play – Check in/ Checkout/Walk-in/FIT/GIT/ etc; VIP/CIP/H.G. etc.
z Suggestive selling
Contents
UNIT I
1. Tourism 1-38
• Definition of Tourism
• Origin of Tourism
• Factors that promoted Tourism
• Modern Tourism in India
• Adverse effects of Tourism
• Importance of Tourism
• Economic impact of Tourism
• Tourism in World Economy
• Tourism and Tax Earning
• Educational Significance of Tourism
• Tourism and Employment
• Manpower Development for Tourism
• Importance of Tourism for National Understanding and International Goodwill
• Tourism and Environment
• Travel Agent
• Passport and Visa
• Type of Visas
• General Visa Information
• Basic Visa Information
2. The Hospitality Industry 39-69
• Introduction
• Origins of Hospitality Industry
• Nature of the Hospitality Industry
• Hospitality Market
• Hospitality Industry and Tourism
• Hotel
• History of Hotels and Accommodation Industry and their Development
• An Account of the Development and Growth of Hotel Industry
• Development and Growth in India
• Hotels of Madras and other cities of South India
• Hotel Business
• Hotel Services
• Various Departments sub-departments and Sections in a Large Hotel
• Some Problems of the Hotel
• Hotel Guest
• Customer Relations
3. Classifications of Hotels 70-106
• Basis of Classification of Hotels
• Size
• Star System
• Regulatory Conditions for Approval of Hotel Projects
• Classification on the Basis of Ownership
• Other Categories
• Types of Rooms
• Changing Pattern of Accommodation Sector
4. Organization Structure of Hotels and Lobby Arrangements 107-124
• Introduction
• Organization and Hotel
• Importance of Organization
• Organization Chart
• Hotel Organization Plan
• Organization of a Large Hotel
• Management of Human Resources of Front Office
• Lobby
• Hospitality Desk
• Equipment and Furniture, etc.
• Guest Amenities of VIPs and DG
• Duty Rotas and Work Schedule
• Uniform Services
5. Front Office Organization 125-135
• Front Office
• Flow Chart Showing the Functional Organization of Front Office Department
• Functions of the Receptionist
• Qualities of a Good Front Office Employee
• Selection of Staff
6. Front Office Personnel 136-167
• Introduction
• Recognize Customers Motive for Buying
• Product Knowledge (Know what you are selling)
• Direct Conversation to Sales Lead
• Understanding What You are Selling
• Features and Benefits
• Front Office selling Tips
• Salesman’s Bye-Laws
• Job Descriptions
• Rules of the House for the Front Office Staff
7. Front Office Operations 168-205
• Introduction
• Reception Counter
• The Art of Reception
• Rooming of a Guest
• VVIP Guest Arrival Procedures—Greeting and Rooming
• Bell Desk
• Some Activities of Front Desk and Bell Desk During Stay
• Tarrif
• Room Tariff Card
8. Front Office Responsibilities 206-233
• Communication
• Basic Concept of Interaction between Two People
• Four Communication Skills
• Importance of Communication
• Importance of Effective Communication in Hotel Industry
• Departments and Sections with which Front Office Communicates and Coordinates
• Guest History
• Relationship Marketing
• Customer Retention
• The Broad Scope of Relationship Marketing
• Internal Marketing
• The Six Markets Model
• When to use Relationship Marketing
• Criticisms of Relationship Marketing
• Handling Emergency Situation
9. Reservations 234-284
• Guest Circle
• Stages of Guest Contact with the Hotel
• Pre-arrival
10. Telecommunications 285-293
• Introduction
• Telephone Equipment
• Telephone Communication
• New Technologies in Telephones
Internal Assignment 295-301
TOURISM
TOURISM Notes
1
Chapter Objective
The reader is able to explain what is tourism and travel industry. He is also able
to explain the economic, social, cultural and other benefits of tourism for a
developed and developing nation and get a clear concept of travel agents and
tour operators. He also is able to realize the negative aspect of tourism.
TOURISM
Tourism is an activity of movement of ‘people that deserves praise of all human being.’
It can further be called ‘as the activity of movement of people (visitors) and the activities
of the provider (the person or agency that supplies various services and products to the
visitors) during the course of the travel.’ Tourism is the temporary movement of people
to destinations outside of the area of where they normally live and work, and their activities
during their stay at these destinations. Further, tourism is not only the activities of a provider
to a visitor, but it is also a process involving people and is about people, i.e., knowing
people better. It is not only a short-time process but is a long-term relationship between
consumer and provider. This means that knowledge, skill and attitude are important factors
in providing standard services and products matching his requirements. Hence tourism
can be called as the process of organized travel. Tourism is theory and practise of travelling.
Tourism is a structured break from routine life. It involves a separation from everyday
life and offers an entry in to another moral and mental state, where expressive and cultural
needs become more important. Hence, it may be identified with recreation or renewal
of life. It can be considered as a modern ritual in which people ‘get away from it all’;
particularly the usual work environment (which include home as well as the workplace)
There is an important point in this connection that tourism involves shorter periods of
stay in contrast to longer periods of ordinary life. There are basically three phases in
tourism (a) the beginning (when a tourist separates/moves out of his home), (b) the middle
(the period of his movement when he comes to new places to experience change) and
(c) the end (the process of his returning home after the end of the tour). Tourism is the
structure of all ritualistic behaviour. Tourism has rites of (i) intensification, when periodic
or cyclic rites renew both, the social and natural world in an annual cycles, such as fairs,
festivals, vacations and, seasons, and so on, which happen or occur after a regular intervals,
for example, annually (ii) Tourism has rites of passage or critical or non-periodic rituals,
these rituals are often linked with the passage of human life or societal events such as
childhood, adolescence, adulthood, marriage and old age, etc. Here, it is important to
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Notes note that tourism is a matter of personal choice and gives to an individual many
opportunities to celebrate the rites of passage in his life span.
Tourism passes through stages of preparation, liminality (crossing the threshold) and
reincorporation giving to tourist a new status just as religious rituals does, except that in
modern society, rituals have become secularized whereas in more traditional societies it
still remains associated with religion. The liminality period is the most suitable for the
passage to tourism because social and moral structure of the group is changed at this
stage. This process results in the state of communities where hierarchies are overthrown
and roles are changed.
Tourism as recreation is analogous to games because games with its boundaries of
time and space promotes the formation of social groups.
Tourism is basically considered an activity of pilgrim. MacCannell considers tourism
as a central motivating force. Tourism parallels pilgrimage according to Graburn.
According to Cohen there is greater differentiation between tourism and pilgrimage. Every
region has a centre, and the relationship of the tourist to this centre determines the
difference between the tourism and pilgrimage and hence on this basis three concepts
of tourism emerges (a) Recreational tourism—this is firmly centred and not alienated
from his society (b) Diversionary—that is centred in his own culture, but at the same
time accepting the validity of other culture and (c) Experimental—that is searching to
participate in the life of other but never finding the centre in the other.
Thus, there is no hard and fast dividing line between tourism and pilgrimage travel,
but now, however, not all forms of tourism can be called a pilgrimage.
Tourism and class. Tourism is not monolithic or static. A large section consists of
middle-class tourist from western countries was travel to all over the world. This model
fits in the educational tourism category.
From the above discussion three basic conclusions can be made.
a) Connection between stable class and tourist consumption breaks down due to
factors such as marketing after the 50’s.
b) Income becomes the determining factor rather then lifestyle for tourism styles.
c) The image creators, such as intellectuals have created two images, i.e., of class
and food, for example, the aristrocratic image of 4S’s (Sun, sand surf and sex) and ethnic,
such as cultural, and adventure, etc. The following three factors determine consumption
and touristic styles.
i) Discretionary income—rich, self-employment, age, health, family, size, etc.
ii) Cultural self-confidence—excitement, unexpected nostalgia.
iii) Symbolic conversion or reserved—ordinary behaviour suspended, exagerated
or represerved.
The moving forces that brings in change in tourism are due to factors, such as self-
confidence, symbolic, inversion, class competition, prestige hierarchies, changing lifestyles,
and external factors like cast modes of travel access to region and countries and state of
the economy. Each style is chosen for the following reasons:
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TOURISM
Notes vii) Another definition of tourism ‘Tourism is an amalgam of phenomena and practices
and the relationship of motive needs and satisfaction of tourists.
viii) According to World Tourism Organization (WTO) an UN body, tourism is the
‘Movement of People away from their place of residence and work for a period of not
less than twenty-four hours and not more than one year.’
Further, we can also say that tourism is a leisure activity, because it coexists with
its opposite that is regulated and organized work.
Tourism involves journey and services like transport, accommodation, catering and
viewing, and so on.
Tourism is are not connected with paid work and offers contrast with where a person
works and his residence is situated. Tourism is directed at places (often built on
daydreaming and fantasy) of intense pleasure because such places are differentiated to
what we normally encounter. Such anticipation is sustained through a variety of
experiences which influence our daily lives like films, television, fiction, magazines, records
and videos, etc, which construct and reinforce our image of a tourist destination.
Tourism is now viewed as status symbol in modern society and is thought to be
necessary for ones health. Today 40 per cent of tourists spend their free time to travel to
developed countries. More and more new places are opening all over the world and tourism
now is a global phenomena. However, tourists movement are temporary and short-term
in nature.
ORIGIN OF TOURISM
It is very difficult to establish any specific period or era for the origin of tourism. As
tourism is involved with movement so it can be said that tourism started with the
development of transportation. In ancient and prehistorical period people used to move
in search of food and shelter from climatic conditions, such as rainy winter and summer
season and also for protection from wild animals and other people. First they moved
individualy and later started moving in groups (families and tribes). Nomads moved from
one place to another in search of food and shelter. The origin of tourism can be attributed
to this period.
FACTORS THAT PROMOTED TOURISM
It is important to study the factors that promoted tourism during these periods.
A. Motivation. The value of new experience and the changing concept of travel
from survival to improvement in the quality of life motivated people to travel. This includes
the following:
a) Curiosity. The curiosity of a person moving (i) from known areas and people to
unknown areas and people (ii) from known culture to unknown culture.
b) Anticipation. What a person hopes to find; see and do in the new area and place.
To look for something and evaluate every new experience that he gets at the new place
and area.
c) Posterity. It is mainly in search of the roots, i.e., to find decendent.
B. Holiday. The word holiday seems to have been come from ‘Holy’ and Days.
The word holiday has two sources (i) religious and (ii) secular.
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TOURISM
i) Religious. In Europe, in the olden days, a day was set at the end of a work cycle Notes
for religious rituals, and it was called holiday. Later on saints day and other observances
days were added to these holidays. No work was done on these days. These days later
on were also called holidays.
(ii) Secular. The secular tradition was part of the imperial system when the state
granted public holidays to celeberate imperial glories. No work was done and people
participated in and fun and feast. Games and sports were the highlight of such occassions.
C. Business. The movement of people for business have been a great motivator
for people to travel. Merchants travelled with their merchandise from one city to another
city for trading. Today 85 per cent of air travel is business related and this helps in the
development of new hotels with business centres. Car rentals business also flourishes.
Businessman can hire a car right at the airport when he lands. The demand of this group
is generally inelastic increase in airfares, room tariff and the cost of the meal in restaurant
do not change their demand.
D. Mode of travel. The invention of wheel, railways, airlines, and so on, and the
network of routes, vehicles, cost of travel, documentation and safe passage, wayside
facilities and conveniences all have been instrumental in the growth of different mode of
transport.
E. Education. Education has always been a great motivator for travellers. There
have been great universities in India in the ancient times, such as ‘Taxila’ and ‘Nalanda’
which remained centres for education for students from far and near. Accommodation
sector such as dormitories, youth centres and youth hostels mainly benefited.
F. Health. Visit to health ‘spas’, natural springs (for skin ailments, and arthritis,
etc.) sanitoria, hill resorts, and sea resorts, etc., also have been the promotors of tourism.
G. Religion. All over the world people travelled to religious places, particularly, in
India where travel for a dip in holy rivers, visit to cities of temples, such a Kashi, Madurai,
Mahabalipuram, Ajmer, Vaishno Devi, Amarnath in Kashmir and ‘Char Dham’ Yatra
and travelled, extensively by the pilgrims.
H. Visiting friends and relatives (VFR ). This was an important reason to travel.
Since people travel by their own conveyance these days, mainly roadside catering
establishment and motels, and so on, are benefited by this.
I. Visits to historical places. An important reason to travel.
J. Adventure. The thrill always lies in new and unexplored, like voyages undertaken
by famous voyageurs and navigators, such as MarcoPolo, Christopher Columbus and
Vasco da Gama, and so on.
K. Culture and heritage. This factor also has played a great role in enhancing
tourism activities.
L. Philosophical discourses. India and Greece was considered great centres for
philosophical discourses and philosophers have been travelling from far and near.
M. Sports. Right from the times of first Olympics in 776 BC to the present day sports
and athletic meets, such as the Asian Games, Commonwealth Games, World Cups, golf
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Notes tournaments, skiing, Afro-Asian Games, and Olympics and so on, the participants and
spectators travelled.
N. Fairs and festivals. National and International fairs such as Pushkar Mela,
Surajkund Craft Mela, International Trade Fairs and Festivals, such as Holi, Diwali, Id,
and Gur purab, etc.
O. Leisure time and disposable income. After World War II, the technological
developments, development in transport systems and rapid industrialization benefits filtered
into the economic development of countries and also individuals and people had more
disposable income with them. Also, the concept of 5 days work a week gave more leisure
time to people. Both these factors also helped in giving thrust to tourism.
Periodization of tourism. The growth of tourism can be studied under different
periods. For convenience these can be grouped into the following groups:
1. Ancient period
2. Imperial and pilgrimage period
3. Grand tour period
4. The transition period
5. The modern period
1. Ancient period. People travelled in search of job, business, knowledge, religion,
and their mode of conveyance was mainly camels, mules and horses, etc. The needed
place to rest and also rest their animals. This was provided in the form of inns, sarais,
dharamshala, chaultry, musafirkhanas, which were provided by kings, lords, maharajas,
zamidars and sarpanch in India and abroad. Also, roads and highways were constructed
and to provide shade and protection from the sun, trees were planted all along the roads.
‘Wells and baolis’ were made for the comforts of travellers. In Chandogya upanishad
there is mention of King Janshudhi who constructed rest houses which were called
‘Panthagars’. He also took care of the safe travel of the travellers. Commercial activities
existed at the end of 5th century BC between Babylon and Egypt. Buddhist and Christian
missionaries travelled to promote their religions. During the middle ages large movement
of pilgrims between Italy and Palestine needed an efficient transport system. People
travelled from far to pay homage to the temple of Delphi. Early men travelled for biological
needs. Travel in the olden days was not safe and was difficult also. It was time consuming
and costly. Also, it was mainly seasonal, i.e., when the wheather was favourable. After
the initial stage, the next stage of tourism is believed to be the stage of invention of money
by the Sumerians in the 6th century BC. The invention of wheel is also attribued to the
Sumerians and this invention brought a radical change in the growth of first-travel and
then tourism. About 5000 years ago cruises were organized and conducted from Egypt.
Probably the first ever journey made for peace and tourism was made by queen
‘Hatsheput’ to the land of ‘Punt’ (present day Somalia) in 1490 BC as recorded, on the
walls of the temple of Deir el-Bahri, opposite the city of Luxor.
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Perhaps the ‘Phoenicians’ were the first real business travellers. During Homer’s Notes
times (as mentioned in Odyssey and the legends of Argonauts) the ‘Hellenes’ sought to
learn about the world around them. The earliest reasons for travel can also be attributed
to seven wonders of the ancient world. Apart from touring to see the seven wonders of
the world people also travelled to visit and see some other important monuments, such
as the Great Wall of China, Stonehenge (the temple of Sun god built in 1680 BC) Leaning
Tower of Pisa (Built in 1174), the Suez Canal, the Eddystone Lighthouse, the Palace of
Escurial, the Palace of Cyprus, St. Peter’s of Rome, the Taj Mahal and many others.
Roads and bridges were constructed during the Roman empires and the roads were stone
paved in the middle of ‘Samnite War’ in AD 312 Rest houses and food resources were
provided along these routes.
Although travel was not safe, yet the following three significant developments
encouraged travel.
a) Paths and routes primarily used by traders were available.
b) Development of specialized vehicles for travel over land and sea.
c) Growth of urban centres and cities near the banks of rivers and seas in
Mesopotamia, China and India. The growth of cities indicated the need for political
and economic contacts.
Soon the outposts grew into market towns or commercial centres that increased
the range and scope of travel to distant parts of the known world, at the same time
specialization began to emerge, for example, in vehicles, wagons for goods and chariots
for passengers, accordingly improvements were made in making paved paths and routes
as well as trees for shelters. Better routes led to the knowledge of wealth and property
of distant lands. This led to the emergences of wars of conquest or trade or commerce.
Silk route. The land route connecting East to West in 2000 BC was called the silk
route. It is mentioned in various travel records and chronicles and accounts of pilgrims.
Meeting to exchange silk, muslin, fine glass, tea, rice and spices were very frequent.
Along the silk route the stages of journey were short and the travel was mainly in winters
because of extreme topography and climate. Though the travel was hazardous yet it
was rewarding. The navigation was done with help of stars. The revenue generated from
travel was collected by the state and, therefore, in order to generate more and more
revenue more and more attractions and facilities were provided by various states. The
technological developments, such as irrigation systems, printing technology, paper and
gunpowder, etc., were introduced to different countries by travellers and merchants. The
vision of tourists were enhanced by seeing new places, meeting new people and
understanding new culture and the increase in knowledge.
2. Imperial period. In the West, tourism was introduced in the Egyptian empire
and reached its peak in the Roman period. In the East, in China and the Maurayan empire
of India provided extensive facilities to travellers. Road networks and transport were
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Notes systemetized into imperial highways were wells were dug, security picket established
and dak chowkis were made. Inns, caravan, sarais and pantagars were provided by
the state and these were accompnied by kitchen staff, servants to look after luggage,
tents, animals and their rest houses, food and water supply, etc. Travellers were known
to bring prosperity as they consumed services and facilities.
a) Egyptian and Phoenicians. The Egyptian civilization, the pyramids, and the
light house of Alexandria attracted lots of travellers. The Greek traveller, Herodotous
has written about journeys enlivened by women playing on ‘Castenets’ and men playing
on flute and the rest of the travelling group singing and clapping and on arrival at the
desination there used to be celeberation feast often with a sacrifice for thanks giving
with liberal service of wine. April to November was safe period of travel. The Phoenicians
were skilled people and constructed bridges and developed trunk routes and travelled
across Atlantic in the West and to Africa in the South in 11th century BC.
b) Persian empire. The Persians developed four wheel carrier wagons covered
from top and the Persian empire extended over a large area.
c) Greeks. They extended tourism to and beyond East Africa and since mountains
were not conducive to land route they travelled mainly by sea. They established the system
of currency exchange. The Greek language became the common language. They hosted
big sports (Olympic Games in 776 BC to display the creative ability of atheletes in honour
of god Zeus). Greek theatre showed the manners and philosphy of the time through
comedies and tragedies. Men with medical skills interacted with men of science and
physician. Athens was and is still a renowned destination for travellers, and it has facilities
such as food, accommodation and entertainment like floor shows, dancing girls and
gambling, etc. The Greeks introduced the custom of hiring a native to advise tourists
where to go and how to travel safely.
d) Romans. They developed further on Greek achievements. They brought
prosperity and peace to their land that encouraged tourism. Roman elite and middle class
started building ‘Villas’ on coastlines and mountains for spending their leisure time. This
concept is used by present day resort and hotels. Tourism in this period grew mainly due
to the following reasons:
∑ Roman coins were the official currency all over the Roman empire.
∑ Excellent and planned roads network and water routes.
∑ Greek and Latin became official language of the empire which stretched from
Scotland in the West to Euphrates in the East.
∑ To know about the culture of those people whom they brought under their control.
∑ Spectacular games and gladiatoral contests and events were organized.
∑ Sight seeing trips, excursions brought tourists to temples, sanctuaries and work
of art.
∑ Egypt and Asia Minor (present day Turkey) were famous for their magnificient
structure and became popular destinations.
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∑ Travel to mineral spring (Health tourism of today) was popular. They were closely Notes
associated with shrines and pilgrims as well.
e) India. Agricultural economy (export of cash crop) was an important trade link
for India. Iron ores, tools and textile, trading during the Later Vedic Period were traded
from India. Caravan sarais were made during this period. Ritual sacrifices and sports
events were popular and attracted tourists. Arthshastra mentions about the protection
given to the merchants and their high status in society. Insurance, safe passage of goods
price regulations, weights and measures and use of coins made of gold, silver and copper,
as modes of exchange show a developed mode of trade and travel, and merchants came
to the courts of Raja and Maharaja for trading of their goods. Royal capitals were
developed as trading and business centres. Brahamin villages developed into learning
centres and scholars from other countries came to study here. Buddhists ‘Sanghs’
established the tradition of pilgrims. Monks visited from villages to villages and court to
court. Monastries were also used to house the travellers. Several expeditions from
Greece via Persia or Mesopotomia came to India and they have mentioned about goods
roads in the country. Travel on inland waterways were also under the protection of state.
Foreigners were accommodated at the city gate and were provided with facilities and
the travellers were required to carry an official note for safe passage. Gambling was
licensed. Dancing hall and entertainment centres were there but were under the control
of inspectors. Kings and zamidars and so on, travelled for pleasure and holiday on rivers
and hills, and summer retreats such as, Shalimar and Nishant gardens in Srinagar were
developed and Jahangir was a frequent visitor. The culture of travelling in India is evident
from ‘KOS Minars’ (milestones), Baoli, Sarais and a network of roads.
Pilgrimage. Wish fulfilment was an important factor for pilgrimage. People tried
to find solace and solutions to their problems in supernatural powers. Teerthyatras were
undertaken. Religions like Islam is also associated with it. Hajj, the ‘Ajmer Sharif Urs’
and visit to Hazrat Nizzamuddin’s dargah are example of it. Pilgrims in India visited shrines,
rivers, mountains and springs. This practise can be seen even today in different religions
in India. Routes used by the merchants were followed. Monastries provided refreshments
and rest to the pilgrims. Even today this class of tourism constitutes a major portion.
People travel to gain ‘Punya’. Indian religion and cult figures such as ‘Maha Rishi Mahesh
Yogi’ ‘Balyogi’ ‘Bhagwan Rajneesh’ and ‘Satya Sai Baba’ became famous. In the West,
cults like “Hare Rama, Hare Krishna became popular, ‘Bhajan Kirtan’ and ‘Soofi Kalam’
attracted lots of foreigners. The concept of secularization of belief and pleasure are being
added to familiar pilgrim routes. Monastries temples and shrines, etc., have now started
to advertise special tours because of the economic benefits of pilgrim/tourist have become
alluring factors to these trusts. Melas are organized at popular shrines. ‘Kumb Mela’
are held at Allahabad, Nasik, Ujjain and Haridwar.
3. The Grand Tour. The Oxford dictionary defines the Grand Tour as a tour of
principal cities and places of interest in Europe, as essential part of education of young
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Notes men. The grand tour involves the circuit of Western Europe undertaken by wealthy social
elite for culture, education and pleasure. Letters, journals and diaries of tourists full
description of these extensive movements. Travel undertaken mainly by the aristocrats
of Europe, and it was mainly in leisurely pace, but no set pattern of destinations was
followed and usually it rounded off at Oxford and Cambridge. The invention of railways
which made the travel fast and easy. It saw the decline of this leisurely era.
Characteristics of the Grand Tour. It established class tourism which determined
the places and mode of travel. Other diverse reasons of the grand tour were career,
culture, literature, health, science, business, economy and fashion. By the beginning of
19th century commercial facilities were required and hence inns, taverns and rented rooms
became common. During this period a new concept of guide books and trained guides to
help the tourist emerged. Porters were available at the airports and hotels. Banks came
up. Cycling and walking tours were organized. The first travel organizer Thomas Cook
started group travel and various package tours were formed. The Grand Tour made
tourism a family affair and soon women also started travelling.
4. Transition period. This is the period when population started moving from rural
to urban areas which brought more leisure and recreation facilities. People became richer
and had more disposable income which encouraged tourism. Transport and communication
systems improved with revolutionery developments in technology. More travel agents
and tour operaters came up. In India hill station such as Shimla became the summer
capitals of India. Juhu, Marina (the second largest beach in the world) and Gopalpur on
sea beaches were made tourist and pilgim attractions for seaside holidays. Railway lines
were laid to hill stations, such as, Shimla, Ooty and Darjeeling and these destinations
were reachable to tourists and railways network connected the whole country reachable
to tourists. Railways also encouraged tourists by giving them accommodation facilities
in the railways run hotels (A famous hotel was operated at Aurangabad by railway). At
this stage, the elite and middle-class tourists started bifurcating. Rich people started
buildings their second homes at hill stations for their use in summers and also for winters.
By the time India got Independence it became a ‘Travel for change destination’. Civil
aviation linked India to Europe in the 1930s. Circuit houses, dak bungalows and inspection
houses, etc., were made during the British times. Trained manpower from abroad was
called to operate the Hotels, Clubs, and Night Clubs, etc. A committee headed by Sir
John Sargent was constituted and the committes recommended the need of more
International tourists hotels. Also recommended were made to set up tourist offices in
other countries to promote tourism. Other committees, such as the ‘Jha committee’ were
established to give recommendation for attracting tourist. Similarly, under the chairmanship
of Dewan Chaman Lall, a Committee was set up to study the present hotel tariff and to
recommened new tariff structure as well as to submit recommendations in the
classification and standardization of hotels.
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5. Modern period. Basically the period from the Second World War onwards can Notes
be considered under this period. The development of transport such as Jet Airlines, Bullet
Trains, Nuclear power operated ships and fuel efficient and luxury cars gave new
dimension to tourism and brought the destinations to easy reach of the common men
with the increase in income and more leisure time, the concept of luxury hotels and
markets, and the emergence of condominium and time share accommodation as well as
resorts development gave thrust to tourism. War brought people, culture and environment
closer. Universal awareness and interest in people increased. Unionization caused shorter
work weeks, and paid and extended vacations were increased. Package and
supermarketing tour concept and bargain breaks, and so on, were started, large-scale
urbanization resulted in nuclear families which started the concept of visiting friends and
relatives (VFR).
MODERN TOURISM IN INDIA
In India, growth has always been slow (lack of accommodation, communication, local
transport and professionals). Indian Airlines Corporation (now only Indian Airlines)
established an air transport network within the country as well as to some neighbouring
countries. Some private airlines also were allowed to operate (Kalinga airlines is an
example) later in the 90s also more private airlines like Sahara, Jet Airways, ModiLuft,
and East-West Airlines, etc., were permitted to operate in this country. Concessional
rates for the youth, senior citizens and students were also announced by the railways
and airlines to promote domestic tourism. Facilities of budget accommodation such as
Rail Yatri Niwas, Ashok Yatri Niwas, Youth Hostels and Youth Centres, etc., were
established on government and private levels.
In 1964, India Tourism Development Corporation (ITDC) was formed and also Food
Craft Institute (FCI) was formulated.Tourist offices were made in London and Frankfurt.
The need to provide trained and professional manpower was realized and the first institute
to train young men and women in hotel operations and management was established in
Bombay under Food and Agriculture Organization (FAO). UN body. Later in the 1960s,
hotel management institutes at Delhi, Madras and Calcutta were set up. Many FCI and
Hotel Management (almost in all states of the country were started. India Institute of
Tourism and Travel Management (IIT & TM) was started in Delhi. The private sector
was invited to establish hotels (both deluxe and lower category). UN experts were invited
to identify modern India tourist products and destinations. Winter resorts, sea resorts
and hill resorts were developed. Stress was laid on promoting culture and heritage yoga,
dance, music, art and food tourism. Mountaineering and treking tourism was identified.
Goa was developed as a breach resort. Houseboat accommodation concept was made
the USP of J&K state. Travel Agents, such as, SITA began India package tours.
Associations such as Travel Agents Association of India, India Association of Tour
Operators (TAAI), (IATO) and FHRAI, etc., were set up. In 1970 tourism was seperated
from the civil aviation ministry. State tourism development corporation such as Delhi
Tourism Development Corporation (DTDC) and similar corporations of other states were
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Notes formed. In 1980 once again importance was given to international tourism. Development
policy and a target of 1 million foreign tourist was fixed by the government, this figure
was not achieved, although a figure of 40 million domestic tourists was achieved. To
promote sports tourism the first Asian Games were organized and were inagurated by
Pandit Jawahar Lal Nehru, and the famous ‘National Stadium’ was constructed in Delhi.
History repeated itself and again in 1982, the Asian Games were organized in Delhi
(Asiad’82) and the Jawahar Lal Nehru stadium was constructed in Delhi.
It is important to note that inspite of all the efforts India is still far off from achieving
its due shares of world tourism.
The Figure1.1 shows the divisions of tourism industry, i.e., segmentation of tourism
industry
Tourism Industry
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Notes
Components of tourism. Tourism industry can be said to be composed of numerous
components ranging from the travel sector to the accommodation sector, to sight seeing
facilities and all other such allied sectors that provide product and services to the traveller.
Hence, airlines, cruise ships, railways, and road travel organizations are part of it. Similarly,
the total accommodation sector that covers hotels, motels, classified and unclassified
and other accommodation sector, such as supplementary accommodation also belong to
tourism industry. Basically almost all sectors be it steel industry, cement industries, financial
institutions, shopping centres or handicrafts and so on, all directly and indirectly are the
components of tourism industry. Tourism is concerned with providing travel and transport
and tours, accommodation, and beverage products and services entertainment/recreation,
information and assistance, souveniers and guides.
Tourist. People who travel for a variety of reasons and are out of their beat area
for more then 24 hours for various reasons such a pleasure / leisure, cultural activities,
visit to historical places, business, conferences, studies, religion, to persue some hobby
and pilgrimage, etc.
Various categories of tourists. A tourist ia temporarily leisured person who
voluntarily visits a place for the purpose of experiencing a change.
a) Domestic. Tourists coming from various states and other parts of the same
country.
b) International. Tourists coming from other countries.
c) Inbound. Tourists coming from other areas/countries to your area/country.
d) Outbound. Tourists going from their local area to other areas.
Notes iv) The service/product provides also called contractors provide them those needs
through trained, professional and efficient staff in right and healthy environment to this
customer.
Now if the needs and expectations of the customer are fulfiled by the provide to
the full satisfaction and the guest is happy, then he pays for them and ultimately the provider
earns profits. This helps in securing jobs for the local people.
Factors that go against tourism development are as follows:
i) Beggars and touts.
ii) Cheaters, particularly shopkeepers and vendors, and taxi drivers and other transport
operators, etc.
iii) Dust, dirt and flies i.e. the environment.
iv) Improper disposal of wastage, open drains, urinals, and unhygenic and improper
sanitary conditions.
v) Mosquitoes and outbreak of epidemics such as that of malaria, dengue, plague
etc., in the country.
vi) Out break of diseases by the use of adulterated and impure food raw materials.
vii) Poor roads infrastructure, particularly in rainy seasons when the roads are not
able to take up heavy traffic load and also lots of road blocks, jams and congestions.
Manned as well as unmanned road level railway crossing which increase the travelling
line considerably.
viii) Improperly maintained historical monuments, many historical monuments are
in ruins and depleted conditions even in metro cities.
ix) Tideous customs formalities and clearance, and baggage clearance although with
the beginning of green channel some relief is given to the travellers.
x) Delay in local flights and within the country air connection and heavy rush on
major routes. Here also the introduction of private airlines has eased the situation to some
extent.
xi) Lack of economical transports such as rail, connections, roadways and also luxury
coaches and fast and luxurious cars.
xii) Prohibition policies of different states and the country over all.
xiii) Aggressive hawkers.
xiv) Improper and inadequate accommodation facilities in all sectors including five
stars to budget accommodation.
xv) Inadequacy of duty freeshops.
xvi) Lack of trained and professional man power in overall travel and tourism sector
such as transport and hospitality industry.
xvii) Political instability.
xviii) Increasing terrorism in various parts and states of the country and non affluency.
xix) Poor neighbouring countries as their citizens cannot afford travel abroad.
xx) Congested and overpopulated cities particularly the metropolitin cities.
xxi) Located very far off from tourist generating market such as, United States,
Canada and Europe.
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Notes into contact with the places he visits and its population, a social exchange takes place.
His social background affects the social structure and mode of life of his destination, he
is in turn affected by it and sometimes carries back home with him new habits and ways
of life. Travel experiences often are among the most outstanding memories in a traveller’s
life. Family trips are likely to be the most memorable part of one’s life, and may have a
life lasting effect, mostly they can be made into educative with a mix of adventure in
them. The early motivation of travel was regarded as cultural, and tourism has always
stood as a unique carrier for the cultural propagation that is necessary for a deeper
understanding of people and broadening of knowledge. Tourism helps in human being
satisfying their basic urge to know the cultural aspect of other people and since tourism
is concerned about the movement of people it gives more opportunity of communication
among different cultures. The aspiration of people to know about the work of art (painting,
architecture and sculpture, etc.), history (by visiting museums) and heritage, etc., is
achieved by the act of touring as per Madlik ‘When a tourist comes in contract with the
places he visits and its population, a social exchange takes place. His social back ground
affects the social structure and mode of life of his destination, he is in turn affected by it
and some times carries back home with him new habits and ways of life.’ The memories
of the traveller leave a very long lasting, rather a permanent impression on the mind of
the traveller and further on the society because the traveller narrates his experiences to
his society. Tourism has always stood as a career for cultural promotion. The cultural
propagation has always been necessary for greater understanding of people and has been
a good communicator between diversified civilization and hence broadening the limits of
human knowledge.
ECONOMIC IMPACT OF TOURISM
As per Andre Siegfried’ ‘travel is the fourth dimension of modern economics’ one of the
most important economic aspect of tourism is foreign exchange earning for the country;
particularly for developing countries. It provides foreign exchange without exporting
anything out of the country, and it provides more stable earning for the country then any
other industry and increases the export earnings and the rate of growth of the economy,
although the amount contributed in foreign currency per tourist varies greatly because it
depends on various factors such as spending power of the tourist, the period of stay of
the tourist the destination and its attractions. The importance of receipts from tourism in
the balance of payments and of tourist activities in the national revenue has became
considerable for many countries. This income in the form of foreign exchange earning
from an invisible exports helps in offsetting the loss if any, which the country may have
from visible export. The balance of payments may be defined as ‘a statement of income
and expenditure on international account’ and it shows the relationship between a country’s,
total payments to all other countries and its total receipt from all other countries and nations
which do not produce goods and articles required locally and do not have technological
and industrial base for development and have to depend on imports from the countries
and have to pay in foreign exchange. Payments and receipts on international account
are of three kinds.
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a) Visible balance of trade (relating to the import and export of goods and Notes
commodities manufactured)
b) Invisible items (relating to services such as transport, shipping, banking and
insurance
c) Capital transfers
Tourism leakage. The net foreign exchange receipts from tourism are reduced
principally by the import cost of goods and services used, by visitors, foreign exchange
costs of capital investment in tourist amenities and promotion and publicity expenditure
abroad. Similarly, expenditure on import, which are associated with tourist expenditures
must be deduced, the importation of the material and equipment for the construction of
hotels and other amenities, and necessary supplies to run them, foreign currency costs
of imports for consumption by international tourist, remittances interests and profits on
overseas investment in tourism enterprise, such as mainly hotel construction, foreign
currency costs of conducting tourism development programme, including marketing
expenditure overseas. The greater the import substitutions, the greater the sale of goods
and greater will be the impact of tourist expenditure on the economy but also the net
gain of foreign exchange. Further investment resources including foreign exchange are
needed for building more accommodation and other facilities. The extent to which material
and equipment needed to be imported shall depend upon the development of local industries.
Outflow of foreign exchange will also be for the payment of interest on loans, franchise
fees, pay of foreign experts technicians, and foreign marketing and sales promoters.
Hence, the benefit of international tourism should be assessed on net and not on gross
foreign exchange earnings and the balance of payment on travel account. Cost/benefit
ratio also provide a means to compare projects on what a country gets in return for what
it spends.
To the host region/area, travel provides a basis for developing tourism as an export
industry that means that the level of economics activities of the area shall increase through
the sale of products and services to the tourists. Apart from revenue increase the tourism
industry also has impact on employment generation. Both domestic and international
tourism must be considered to evaluate the impact of tourism on the economy. The
following example will explain the point. As per the US Travel Data Centre in America
in 1981 the foreign visitors spend approximately 14.6 billion dollars, directly supported
over 3,20,000 jobs and indirectly it supported over 4,00,000 jobs.
Direct and secondary effects. The direct effect refers to the amount of visitors
expenditure that remains in an area and provides a source of income to residents and
businesses.
The money received by businesses from visitors and further paid by businesses to
suppliers, wages of workers and other items used in producing the products or services
purchased by the visitor is secondary effect.
The initial amount of visitors’ expenditures that remain in the area thus generates
income within the area typically exceeding the initial amount. The successive rounds of
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Notes spending of the income which is made by business which they get from initial spending
of a visiitor creates additional income for many sectors of the economy.
The Economic committee of League of Nations in their survey of tourist traffic
considered as an International economy factor, discussed the economic benefits of tourism
as
a) Its ability to generate foreign exchange
b) Its role as accelerator of development
c) Its assistance in softening the damage of uncertain commodity and price fluctuations
of primary products
The travel industry covers a large variety of traders and industries whose common
function is to supply all that the traveller’s needs. The primary and most important being
transport and accommodation and also travel agents who not only sell tickets but organize
travel in totallity. The secondary one are traders such as retail shops selling souvenirs
and gifts, and so on, and also include entertainment, banks, laundry and suppliers to hotels,
etc. A comparitive study of the value of world exports of primary products and
manufactured goods and international tourism receipts show that though world exports
have been approximately doubling every 10 years, the international tourist receipts have
more than tripled over the same period.
National travel receipts. The payments made by a tourist (both domestic and
international) against the goods and services provided to him are reflected as national
travel receipts. A simple measure is to calculate the percentage of receipts from
international tourists in relation to the gross national product (where domestic tourism is
insignificant).
Foreign tourism balance. It is the difference between the foreign exchange spent
by a foreign tourist in a country and the money spent by the nationals abroad. This can
be achieved by two ways—first by encouraging more tourists to visit the destination and
making them spend more money at the destination and second by developing more
domestic tourism.
International tourism receipts. Payment made by foreign tourist in foreign currency
and received by a country for the goods and services provided to them in the form of
consumption expenditure. These receipts exclude all the collection of international air
and other transportation fare but include the total collection from foreign excurtionists or
day visitors (not treated or tourists as per the International Union of Official Travel
Organization (IUOTO) definition). The total receipts so collected are registered as travel
credits in standard proformas of International Monetary Fund (IMF) which reflects
balance of payment portion.
International tourism expenditure. As opposed to international tourism receipts,
the international tourism expenditure or consumption covers the payment made for goods
and services by own residents in foreign countries they visit, but does not include
remunerations for employment, and international transportationl fare payments, though
at the same time it covers the expenditure of own residents incurred as foreign excursionist
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or day visitors in other countries. Like the international tourism receipts these are also Notes
written in standard pro forma of IMF, but as a travel debit. Hence based on the difference
between travel credits and travel debits, the IMF proforma can tell about the travel
Balance. The purpose of this is that the government can keep control on foreign travels
of their own nationals and impose restrictions to reduce their expenditure on them. Just
as some countries curtails imports.
Tourism and balance of payment: On their travel account the countries have
various fluctuating situations, such as some may have large overall deficit, some preserve
a rough balance while some have surplus balance. Also these situations are very frequently
changing from time-to-time. As a general case, most of the developing countries seek to
improve their balance of payment through tourism. There are various ways of presenting
the contribution of tourism to the balance of payment showing how the revenue earned
from tourism is effecting visible trade.
a) Diminishing or enlarging the current overall deficit
b) Adds further to the surplus
c) Offsets the deficit wholly or partially
In developed countries any of the above three may happen, while in developing
countries where normally a current deficit in the balance of payment and financing
difficulties for their overall deficit is normal, the receipts from tourism shall normally reduce
the deficit. In some of the major tourist countries, the receipts from tourism is very
important in relation to the total goods exported. The importance of tourist receipts in
relation to the total goods exported would also depend upon the volume of visible exports
and volume of tourism.
To find out the total international tourist receipts. International tourist spend
foreign currency and this expenditure is based on serveral factors as follows:
a) The standard of services and types of services
b) Total period of this stay (number of days/night of his stay)
c) Expenditure on shopping and other such amenities that he utilizes. Hence, three
basic elements of travel expenditure can be identified:
i) Number of international tourists arriving in the country
ii) Average spending per head
iii) Average length of stay in the country
i) Number of International tourist arriving in the country: This is an important
factor and the information about this can be obtained from various sources, such as the
entry ports, (airports, seaports, international borders and international railway stations,
etc.) The information can also be obtained through disembarkation cards. Further this
information can further be obtained from accommodation sector, such as hotels, motels,
guest houses, etc. Promotional activities and programmes shall help in increasing the
figure of international tourists. The volume of tourist traffic is ‘aggregate of arrivals length
of stay in the country’.
ii) Average spending per head: Average spending could vary from country to
country or place to place within the country. A high spending and long staying tourist
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Notes would always be the most welcomed because of the larger national gain benefit but this
would also lead to higher per head investment to maintain standards of source and quality.
Economy travellers such as cruise passengers, campers, students, caravan travellers,
and hippies, and so on, would spend modestly. High-spending group of tourist is limited
but should be encouraged. Many countries have good gains from less wealthy tourists,
such as, package tours, chartered flights and inclusive tour, traffic, etc. It is important to
note that in order to increase the average spending power the policy should not only be
on concentrating on one type and category of tourist, but it will be good to make efforts
to attract different types and category of tourists from different countries and places.
iii) Average length of stay in the country: The average length of stay of tourists
may be short or long which will also depend on size of the country, diversity of its
attractions, its facilities and its ability to provide the services that satisfy the guest.
The important point is that the country must ensure to maximize its gross receipts
and net impact on the economy for minimum of outlay on investment. Maximum returns
through the most effective and efficient use of its resources.
Capital output ratio. It is the fixation of priority for the allocation of available
national funds (capital). Heavy investment in tourism sector is necessary to meet
international standards of comforts and sanitation. Tourism is a capital intensive industry.
It is important to study the returns on capital invested before investing. For this the
‘Incremental capital output ratio’ (compare the increase in the output in a given period to
the amount invested during that period) should be calculated. Measuring this is difficult
for ‘whole tourist sector’ when the investment in infrastructure is of general nature for
roads, utilities and other communication facilities or special infrastructure exclusively for
tourism. Hotels and other accommodation sector offer most of their output to tourism
measurement of input–output ratio which tends to be linked to hotels and other
accommodation. Calculating separately the ratio for domestic and International tourists
is also difficult as the hotels cater to both domestic and international tourists. The degree
of utilization of capacity has a bearing on capital input–output ratio. A higher occupancy
rate in a hotel would lower the ratio and hence lower the investment required from a
given increase in income from tourism. Even if the ratio is high, it is not an argument
against investment in tourism and other factors such as foreign exchange earning,
employment opportunities, balance of payment gains and potential as a growth industry
are also important. Factors like airport expensions or new airports making, water,
electricity supply and roads, and so on for a new plant are difficult to assess.
Since tourism involves expenditure of national resources, it is important that proper
returns from the investment is obtained and these return must be calculated in relation to
the goals of the enterprise. Both positive and negative returns, which do not relate to the
objectives of the enterprise should be called as unintented returns.
In developing countries, such as India, the main objective of tourism for the country
is economic returns. In addition to this primary function, another important objective as
Pandit Jawahar Lal Nehru has pointed out, is international understanding. The economy
should also be measured in relation with its results in terms of National Economy of the
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country, and foreign exchange earnings and also on the new employment generating Notes
avenues. The allocation of resources of the country should be with a view to develop
tourism infrastructure and superstructure in order to ehnance the foreign exchange
generation. Here, it is important to note that areas which are preconditions for the growth
of tourism, such as transporation and roads may be excluded as they have to be developed
for the growth of the country even otherwise also. According to P. Defert, ‘Tourism
must no longer remain the flower of surplus economy.’
TOURISM IN WORLD ECONOMY
According to ‘Lickorish and Kershaw’ of the American chamber of commerce, ‘There
are three ways basically of increasing the wealth and business activities of a country
and they are agriculture development, industrial development and tourism development.’
With a view to enhance the economic growth for developing countries in 1964 United
Nations Conference of Trade and Development (UNCTAD) set a growth rate of minimum
5 per cent in their National Income during the decade of 1960–1970, and pointed out that
the developing countries should lay more emphasis on achieving this objective through
tourism development rather than other developments. Getting the hint Yogoslavia was
the first to create a significant tourist market. Similarly Vladimes Ankudinov—head of
foreign tourism board of Russia has pointed out that tourism is one industry where the
rate of growth can compete with any of the new coming up industries, such as electronics,
plastics, and computers etc.’As per Lickorish approximately 7 per cent of the total working
force in a country is employed in tourist industry. In Switzerland, for example, more than
6 per cent are employed in hotels, rail, Airline and restaurant and in addition a large
percentage is employed in indirect industries, such as banks, travel agents and tour
operators, etc. More women are employed in many countries as compared to men in
this industry. Some studies show that 93 per cent of the total tourist move to the developed
areas and also 97 per cent of tourist come from developed area which are economically
stronger. Tourism provides transference of purchase power from one area to another.
Professor ‘Krapfs’ has suggested a five-fold classification towards a country’s
balance of payment which is as follows:
i) Where tourism improves the existing credit balance of net goods and services
minus tourism.
ii) Where tourism reduces the credit balance of net goods and services minus tourism
but not to zero.
iii) Where tourism more than compensate the negative balance of net goods and
services.
iv) Where tourism helps to reduce the negative balance of net goods and services
minus tourism.
v) Where tourism worsens the negative balance of net goods and services minus
tourism.
Factors like rising income, more leisure time, improvements in transportation and
increased holidays, etc., increase and further the demand, while conversely political
uncertainty, economic stringency, epidemics and terrorism, and so on, reduce the demand.
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The economic importance of tourism needs also be judged in the light of world demand Notes
for travel and trend would also influence local demand/supply portion with the increase
in demand supply of goods and services has to be maintained and a balance between the
two has to be made.
Excess of demand if not satisfied would divert to other destination and areas and
regions of other countries and excess of supply would mean lack of utilization of services
and hence loss. Proper planning and accurate assessment of anticipated utilization is
necessary for countries with scarce and limited resources.
Tourism multipliers. Money spent by a tourist, is not exhausted in a single stroke.
It continues to circulate in the economy though at a descending rate for sometimes before
it finally disappears because some of it is exported outside the country for import of goods
and services for sometime before it finally disappears. A study by Chechi and Company
who have built a series of models to show under various conditions, show that the
expenditure by visitors flow through the different economies and the money spent by a
visitor turns over or multiplies 3.2 to 5.5 times before it finally disappears, and in 12 months
period the tourism multiplier works out 3.2 to 5.5 times and hence the figure (in terms of
rupees) of international visitors receipt (say x rupees) would multiply to atleast 3.2 times,
i.e., would become (3.2x rupees) minimum which further would becomes to (5.5x rupees)
maximum, and hence it is actually this amount that must be considered while calculating
its impact upon the economy of the country, for example, suppose the visitors receipts
are estimated at Rs 80 crore (excluding domestic tourism then we should actually be
considering the figure to be 80×3.2, i.e., 2560 crore to 4400 crore.
Further as per Keynes. An increase in ‘Investment (I)’ in any economy leads to an
increase in income (Y) which is more than the initial increase in Investment this is
represented in terms of a multiplier and is denoted by the symbol (K), and hence the K
co-efficient measures the change in ‘Income’ consequent upon the change in
‘Investment’.
The multplier process is possible because of the fact that one man’s consumption is
another man’s income. Thus, when a tourist spends say Rs 1,000/- on food, entertainment
and other activities, this in turn becomes for F and B department, the entertainment
department and any other department that provided the product or service. The money
does not get blocked here because of the fact that money in considered as a liquid asset.
These respective departments then spend this money on various commodities. This
consumption by the departments then again becomes income for some other people. Thus,
the multiplier process continues and trickles down in to the nation’s economy.
Marginal propensity (Inclination or Tendency) to consume—It is the change in
consumption (C) as a result of change in income (Y).
The macroeconomics term multiplier refers to the total effect on economy. Multipliers
can be estimated for sales or output, employments of payroll, among other variables.
The value of multipliers for different areas will not be same and depend on the amount
of local resources in respective areas. This may differ considerably among areas, for
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Notes example, the areas which are not developed will loose a higher percentage which may
be even more than 50 per cent of visitors expenditure as direct payment for infrastructure
development. The increase in number of visitors increases the demand of product and
services, and if the area resources are sufficient to supply the local product as per the
demand the full amount of tourist expenditure will remain in the area. Countries possessing
more advanced economies are less in need of foreign imports. The visitors expenditure
is considered as export earning, because of additional demands or increased imports,
visitors purchase may result in higher prices in an area, creating an inflationary situation.
Economic instability. Pleasure travel is a discretionary item, and this is subjected
to fluctuation in prices and income and, therefore, an area growth may be unstable. Periods
of rapid and slow growth and decline may be experienced and this may affect the economy
of a heavily dependent tourism’s nation on a roller coaster ride.
The benefits from infrastructure investments justified primarily for tourism, such as
airports, roads, water supply and other public service utilities may be shared by other
sectors of the economy and tourist facilities, such as hotels, restaurants, museums, clubs,
sport complex, public transport and national parks are also used by domestic tourists,
business tourists and residents yet a significant portion of the investment may be borne
by international tourists. Tourists also contribute to tax revenue, both directly through
sales tax and indirectly through property, profits and income taxes. The regional
development which is also a part of economic development is also an example of
economic impact of tourisms. The multiplier is an income concept and the multiplier
measures the impact of an extra expenditure introduced into an economy by a person. It
is, therefore, concerned with the marginal rather then average changes. In the case of
tourism the tourists expenditure in a particular area can take various forms, including the
following:
a) Spending on goods and services by tourists visiting the area
b) Investment of external sources in tourism infrastructure or services
c) Government (foreign or domestic) spending, e.g., domestic government spending
on infrastructure in a region or foreign government in terms of aid.
d) Export of goods stimulated by tourism expenditure can be analysed as follows:
i) Direct expenditure. Expenditure such as on goods and services in hotels,
restaurants, transportation and tourism generated export, or by tourism related
investment in the area.
ii) Indirect expenditure. It covers all such successive rounds of inter business
transactions which result from the direct expenditure, such as purchase of goods
by hoteliers from local suppliers and purchases by local suppliers from
wholesalers.
iii) Induced expenditure. This is the increased consumer spending resulting from
the additional personal income generated by the direct expenditure, e.g., hotel
workers using their wages for the purchase of goods and services. Togather
indirect and induced expenditure are called secondary expenditure.
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There are different and conflicitng concepts of multiplier and there are basically Notes
four types of multiplier.
I. Sales (transaction) multiplier. This measures the extra business turnover created
(direct and secondary) by an extra unit of tourist expenditure.
II. Output multiplier. In addition to being the sales multiplier it also takes into account
inventory changes, such as the increase in the stock levels by the hotels, restaurants and
shops because of the increased trade activity.
III. Income multiplier. This measures the income generated by an extra unit of
tourist expenditure. The term income means disposable income (available for spending)
accruing to households within the area. The income multipliers can be expressed in two
ways:
a) Ration method which expresses the direct and indirect income
b) Normal method which expresses total income (direct and secondary) generated in
the concerned area, per unit increase in final demand created within a particular
sector
Ratio multipliers indicate the internal linkages, which exist between various sectors
of economy, but do not relate income generated to extra sales. Hence, ratio multiplier
are useless on their own for the purpose of planning tools.
IV. Employment multiplier. This can be expressed as a ratio of the combination of
direct and secondary employment generated per additional unit of tourists expenditure
to direct employment created by tourism per unit of tourist expenditures.
Tourist expenditures not only supports the tourist industry directly but helps indirectly
to support all the support industries of tourism and ultimately passes through all sectors
of national economy.
TOURISM AND TAX EARNING
The governments of almost all countries have always a vested interest in the financial
gains through tourism industry. The infusion of tourist earning in to the economy as local
income, makes it accessible to income and other taxes. Depending upon the tax and fiscal
policies government derives substantial income from tourist industries and direct and
indirect taxes are levied on different forms of income and economic activities. Hotel
companies are required to pay various taxes on income, social security, payroll, property
and utilities and import and excise duties and sales tax and so on. The employees pay
income tax, social security and indirect taxes, and duties on goods purchased. Tourists
pay airport taxes, luxury tax and duties on items. All these collections are quite substantial.
Infrastructural Development. The infrastructural development of the country is
another important benefit of tourism. Although the investment made in a country on the
infrastructure either by the government or private sector (whichever the case may be as
per the policy of the government) may be attributed as expenditure towards the tourism
sector, yet the benefit are denied by other industries also, for example, roads, water supply,
airports and other public amenities are not only for tourism sector but also stand by all
the sectors of economy infrastructure development not only means increasing new
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Notes infrastructure but also include the development of the present infrastructure and extending
it to meet the need of this hour. At time the new infrastructure, and the developed existing
infrastructure open new services and amenities bring in new and improved services and
amenities to the local resident which are not even thought of by them. A variety of new
and secondary need may emerge out, and this may result in encouragement for greater
economic diversification. Construction of primary infrastructure represents the foundation
of any future economic growth even though they are not directly productive infrastructure
development such as airport, railway transport facilities and roads are basically done at
the government level mainly in our country but at the same time hotels, markets, and
other accommodation sector infrastructure development is done mainly by private sector.
Cultural Importance. Tourism is a big motivator for the promotion of culture and
spreads the cultural values of the host country to the visitors, who in turn when they go
back talk and discuss with others. Although the neighbouring countries have almost similar
culture, such as India and Pakistan, yet it is important that young generations are made
aware of each others culture thourgh cultural exchange programmes. Culture of a country
includes various things, such as lifestyle, music, dance, food, architecture, art and many
other such things. Tourism helps in spreading all these to various parts of the worldover.
India is one country which has very old and rich heritage and culture and is probably the
only country with diversified culture. Properly planned it can be the biggets tourism asset
of India. Tourism is a cultural expression which covers education, recreation and hobbies
which competes for time, money and efforts and provides aspirations or compensatory
satisfaction. It is a part of ‘the management of leisure time’.‘Tourism is also a measure
of the cultural change within a society, because it identifies future trends in social industries,
sports, fashions and entertainment. The historical pattern of tourism show that it is a
dynamic, social and individual force for creating awareness.
Regional Development. Regional development is another very important aspect
of impact of tourism. The more the region or area is visited by the tourists (both domestic
and international) the more the area or region needs to be developed, and thus development
has to be in all fields and sector, be it historical places, hotels, picnic spots, roads, or airports,
railway connections and environment. Such expenditure is of special significance in
marginal areas, which are relatively isolated, economically underdeveloped and have
unemployment problems. Even the United Nations conference on International Travel
and Tourism held in 1963 in Rome has highlighted that tourism is important in the location
of industry and in the development of underdeveloped regions particularly of those regions
which are lacking in other resources.
Every country has many such regions which may be full of natural beauty, and
cultural and heritage attractions such as Andaman and Nicobar island, Lakshdweep islands
and many tribal area which will attract a high percentage of tourists if properly developed
and bring prosperity for the regions local people. This will provide larger job opportunities
and help stopping the exodus of people to more developed region. Tourism expenditure
at a particular tourist area greatly help the development of area around it. Many countries
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TOURISM
(developed as well as underdeveloped have realized this aspect of tourism development Notes
and are creating and developing tourist facilities in underdeveloped regions with a view
to bring prosperity there. In India various such examples are their for Bharatpur a small
city, now very popular for bird watching tourist, Khajuraho a small village now a quite
popular destination among the domestic and international tourist famous for its exotic
temples, many small but beautiful hill resorts such as Manali which have been developed
after the Kashmir valley became a disturbed region. It is important to note that not only
these areas have been developed but at the same time this has resulted in the development
of areas around them, employment for local people, cottage industries, more shops, hotels
and other such developments have taken place in these areas. It is important to note that
India with its wide range of culture and heritage has lots of such underdeveloped regions
and areas in it and they simply have to be identified and if developed properly will definitely
bring in lot of prosperity to the regions.
EDUCATIONAL SIGNIFICANCE OF TOURISM
Not only in the present age tourism has always been of great importance for education.
Many such example of university such as, Takshila, and Nalanda, and so on, are there in
India and also like Alexandria and Greece have been centres of education in ancient
time. Its beneficial effect are in the development of close and friendly contact between
people of different races, cultures and nationalities. Even in modern times educational
tourism is important. Study tours, short time and sandwich courses, in foreign universities,
educational exchange programme such as for commonwealth countries and scholarship
programmes by different developed countries for developing countries, train the trainer
programmes under United Nations Development Programme (UNDP) are part and parcel
of International tourism resulting in better knowledge about the host countries. Even the
sports exchange programmes can be considered under this.
Image Building. Tourism helps in building the image of a country, of course the
same image will be carried over what we project, for example, a tourist coming to India
may carry with him a mixed image of good and bad after visiting the country. The historical
places and monuments form a good image while at the same time the way they are
maintained their approach roads (which if are poorly maintained) the inadequate
transportation facilities, poor accommodation facilities, and so on, might project a bad
image. The age old culture and religion and heritage may project a good image while the
greedy priests and beggar and touts at such places will project a negative image. Each
year millions of people travel to foreign countries, and their visits afford opportunities to
understand each other better and proper cooperation, and these visits help to improve
the image of a country. Indians image abroad has not been very good and has been of a
poor country. Once when Mrs. Jacquiline Kennedy, wife of the US President J.F. Kennedy
was to visit India then the whole party of journalists who were to accompany the entourage
was called for a meeting in the White House, Washington D.C. and lots of ‘Dont’s’ (don’t
do this and don’t to that) were instructed to them by the officials. To this some journalists
asked ‘then why are we going there’. It is the job of not only the department of tourism
to project a positive image abroad of India through tourist offices, fam tours, and briefing
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Notes tours but also of every Indian abroad do the same and also at the same time every citizen
of India who comes in contact with foreign tourist to project a healthy image of country.
TOURISM AND EMPLOYMENT
Tourism is a manpower intensive activity process and one of the major direct economic
effect of tourism relates to employment. It provides both direct and indirect employment
to skilled and unskilled people. Jobs which are in tourism industry economic sector are in
industries such as hospitality (accommodation sector), transportation and travel agencies,
etc. The problem of unemployment and underemployment are more acute in the
developing countries and in such countries particularly is a valuable source of employment.
In addition to those involved in jobs of skilled, semiskilled and unskilled nature such as
waiters, cooks, chambermaids, porters, drivers and gardner’s, and so on a large number
of workers such as managers, marketing and sales executives travel agency staff and
accountants, etc., are also engaged in tourism industry. Other supporting industries and
businesses such as handicraft, and cottage industries which may be small or large and
which may be catering to tourist industry directly or indirectly such as banks and
communication industry also offer great job avenues to people. Further unskilled,
semiskilled, skilled and technologists (engineers in different fields) manpower involved
in construction and providing infrastructure, such as hotels, roads, bridges public utilities,
railroads, ocean terminals, airports etc. should also be taken into account. Also business
men who supply goods and services to those involved in tourism equally are beneficiaries
from tourism example of such cases can be furnishing and equipment industries, souvenir
industry, and farming and food supply, and so on. It is important to understand that the
factor of seasonality also play a great role when considering the employment situation
because a lot of people may be employed only when there is tourist season and may be
retrenched during off season, for example, in off season the small and low budget hotels
on hill stations close down, and reopen only during the season time. Hence, for better
stability off season tourist traffic must also be developed.
As already said tourism brings more employment opportunities in less developed
areas and hence help mitigate regional disequilibrium. Studies of countries like Puerto
Rico, Israel and England, etc., show that the cost of creating job in tourism and hospitability
industries is much less as compared to the cost of creating jobs in industries, such as
agriculture, electricity and other manufacturing industries.
It is estimated that accommodation sector involves more then 50 per cent of the
total employment in tourism industry. World Tourism Organization (WTO) estimates
approximately 11-12 million persons employed in accommodation sector alone. It is also
estimated that nearly 8 to 10 per cent of working population is estimated to be employed
in tourism industry.
MANPOWER DEVELOPMENT FOR TOURISM
All over the world professional tourism manpower development institutes such as Cornell
University in Ithica NewYork and CIA in America, Johonson and Wales University in
United States, Portsmouth College in England, Lusane Hotel school in France and Institute
of Hotel Managements under the apex body of National Council for Hotel Management
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TOURISM
and IITTM Gwalior in India and many universities offering education in tourism and hotel Notes
management are operating to provide professional manpower to serve tourist more
efficiently.
IMPORTANCE OF TOURISM FOR NATIONAL UNDERSTANDING AND
INTERNATIONAL GOODWILL
It is important particularly for developing nations to frame tourism promotions policies,
as tourism is a great promoter of national understanding. Further the interaction of large
number of people specially foreign tourist who come in contract with the local population
who not only provide services and products to tourist but are good provider of the way
of living and culture to them by their friendly and courteous behaviour. People from all
over the world speaking different languages, with different lifestyles come close to each
other breaking down prejudicies, barriers and suspesions that exists between their nations.
Tourism is a vehicle for international understanding by way of bringing diverse people
face-to-face.
Tourism not only helps in spreading the culture and the way of living of the host
country to the tourist but at the same time it also gives the inhabitants of a country to
understand the living style of the tourist and also affects their living patterns. The way
visitors conduct themselves and their personal relationships with citizens of their host
country often have a profound effect on the mode of life and attitudes of local people. A
favourable environment and situation exists when visitors and those of the host country
mingle socially and become better aquainted. This greately increases the awareness of
each other’s character and qualities, building appreciation and effect in both groups.
TOURISM AND ENVIRONMENT
Apart from other impacts tourism has also spillover benefits such as preservation of
environment which covers area of historical sites and cultural values. Careful cleaning
and beautifying of historical places through careful tourism development. Environment
has acquired a broad definition and in addition to land, air, water, flora and fauna it also
covers people their creations, and social economic, and cultural conditions that effect
their lives. Growing concerns of environment and individual quality of life is felt all over
the world. Environment whether natural or man-made is an essential resource for tourism.
Changes in environment are necessary for tourism development, but these changes need
to be done aesthetically without damaging it in anyway. Conservation involves
safeguarding the visual beauty of the countryside and implies wise use of resources. It
also means survival of animals and other living thing such as flora and providing ample
space for them to live, grow and breathe fresh air. Awareness of the problem of
environment balance as a result of growing tourism has been realized by both public and
private sectors all over the world. As early as 1950, IUOTO declared the study and
development of natural tourist resources and protection of tourist heritage as one of their
primary objectives. The quality of the tourism product depend upon on high-quality natural
environment, and hence the environmental amenities quality preservation is very important.
Expanding tourism causes environmental pollution by wrong use of natural resources
without any thought for future. Some cities have described tourists as ‘Barbarians’ who
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Notes ruin ancient monuments by petty vandalism who furtively chip away marble or stones,
etc., to take home as souvenirs, steal artifacts from temples, mosques, church, etc., and
museums and often carve their names into ancients walls of historical monuments.
Environment pollution is a great threat to life both where industry development and tourism
concentration is central, for example, Yugoslavias Adriatre coast, Seychelles and Sochi
beaches, and Black Sea resort of Russia have become ugly and dirty due to lot of tourism.
Destinations once noted for their particular character are reduced to mere unattractive
show pieces due to lack of proper environment protection. Mass tourism has brought
ecological and environmental pollution problem. Now Sochi (the famous black sea resort
of Russia) has proclaimed itself to be the first ‘no smoking’ city of the world, smoking is
banned in cinemas restaurants and public transportation. Great increase in tourism in
many tourist destination has resulted in unplanned construction of hotels and threatens
to destroy these destination, ‘Herman Kahn’ a well-known economic analyst and
futurologist says ‘tourism is next to atomic power in its potential for environmental
destruction.’ Mass tourism and jet travel although has increased tourism, yet it has also
increased environmental problems, brought in ecological and environmental pollution
problems.
The effect of tourism development on environment can be both positive and negative
depending upon the development stage of the nation, for example, in an underdeveloped
and developing country it can be positive because it will result in more and better hygienic
conditions, sanitary conditions, sewage systems, nutrition, and housing conditions while
congestion and pollution may be the result of tourism development in developed areas.
Planning and self-regulations may prove very beneficial in such cases, for example, resort
developer may restrain himself in maintaining a part of the developing resort in conserving
to its natural beauty and environment. One such example is Cheyenne Mountain
Zoological park in Colorado springs in United States. It is one of the biggest and finest
zoo world over. There is a small story about it. Mr Spencer Penrose, the founder of Broad
Moone Hotel started it in the beginning of the 20th century. He used this for housing and
growing his private collection of animals. Later he decided to make this a tourist attraction
also, and for that a miniature, ‘Cog Railroad’ for a three and a half kilometers sceinic
journey of the zoo was made. The zoo now houses over 1000 species of animals from all
over the world and is now owned by ‘Cheynee mountain and zoological society. Another
example is that of ‘Gala Pagos Islands’ approximately west of Ecuador in the Pacific
Ocean. It has an unique collection of species of flora and fauna. Here, the Ecuador
government is taking precaution of not promoting it full throttle considering the promotion
of wildlife and only controlled tourism is being promoted here.
The changes in the physical environment should be made with the objective of creating
a destination that is pleasing to visitors, yet blends into, or even enhances the natural
environment.
One way to achieve this result is using organic material, low rise architecture and
landscaping that completes the national advantages of scenic sites and exceptional land
features.
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TOURISM
Further reinforcement can be provided by using indigenous building material. Two Notes
examples of resorts offering luxury without detracting from the beauty that surrounds
are as follows :
a) Tanzanian government owned ‘Lobo wildlife lodge, nestled into and hewed out
of rock outcropping.
b) Mera serena lodge in east of Kenya blended into a grassy mass of great ‘serenget
plains.’
With tourism developing at a rapid pace, a lot of environmentalists have become
active and protest against the unregulated growth of tourism at the cost of environment.
WTO and Pacific Asia Travel Association (PATA) have laid down guidelines to protect
the environment and some countries have framed laws for its preservation and
conservation. Integerated approach of development and study of ecological impact of
tourism is important and this has now been realized by governments, international agencies
and public ingeneral. IUOTO has, in the General Assembly in 1960 passed a resolution
which read ‘The General Assembly considers that nature is one of the most noble and
unchanging aspect and constitute and shall continue to constitute one of the essential
elements of national or world tourist heritage. Further that time has come that problems
damaging and threatning the nature due to tourism should be dealt with. Further in the
light of the above the General Assembly decides to recommend to all IUOTO member
countries to exercise increased vigilence regarding the attacks made on their natural tourist
resources,’ and recommends to various government, that they should adopt this resolution.
In 1971, the 22nd General Assembly was held in Ankara (Turkey) and a research
paper entitled ‘Study on Human Environment’ was submitted. This paper detailed a policy
made by IUOTO for the implementation of resolution passed in its 15th general meeting
in 1960. The highlights of the policy are as follows:
a) To promote an awareness that instead of the only immediate profitability the
tourism plan should aim at rational utilization of natural resources, and plan should aim at
their development rather than damaging them, and hence long-term benefit policies should
be made.
b) To bring uniformity in environmental protection at national level and to ensure
that tourism interests were represented in bodies responsible for environment and physical
planning, emphasis was given on collaboration of all concerned bodies, and of establishing
a body at National level for nature protection planning. This proposal was later adopted
by the UN conference for human environment at Stockholm.
c) Close international cooperation so that no region is left at a disadvantage because
of implementing environmental control planning.
The main idea of this policy was to establish an inventory of natural resources in
relation to identifying:
a) Protected areas or natural reserves where least efforts are needed to conserve
or re-establish the natural balance such as national parks, forest resources, etc.
b) Areas primarily reserved for tourism due to their natural attractions like beaches
and mountains where industries should be excluded.
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Notes c) Mixed natural areas where industries to a certain extant only may be planned
provided the main tourist area is safe guarded.
Further, it is also important that the classification or zoning of the area should be
done so as to identify sensitive or fragile areas that should not be developed for tourism
or to be developed for only restricted tourism, and areas where large scale tourism is to
be developed, the planning process must consider the adverse effect on environment
resources such as drinking water, bathing water, pollution and sanitary and hygiene
conditions. For this, proper legislation is needed, such as central government, state
government municipal laws and bye-laws regarding the sale of land and construction of
buildings, etc., should be formed and it should be noted that they are enforced strictly.
Proper policy should be made which should be able to guide the planners team which
usually comprises of experts on constructions, legislations, tourism, and ecology on aspects
which are important in deciding following:
a) Capacity. Number of tourists that can be accommodated at the concerned
destination so that further planning, such as communication and transportation
infrastructure area allocation for building and recreational plant, etc., can be done, and
the problems of traffic air, water and noise pollution and congestion, etc., may be avoided
b) Architecture and general building guidelines such as number of floors, etc.
c) Facilities of sports, water games, mountaineering and trekking, etc., can be
provided without disturbing environmental balance.
d) Ecological balance is maintained such as protection of fauna and preservation of
flora, and so on, etc.
e) Setting aside areas for building constructions, paths, roads, and so on, without
harming the beauty of site, i.e., making of Master plans and town planning.’
f) To avoid beach and water pollution by imparing the invading of beaches by hippies,
avoiding camels and horse and elephant rides vendors selling ice creams, bhel puri and
other eatables and banning construction of hotels and resorts within a specific distance
from the beach, etc.
The protection given by many governments, such as India has given a new lease of
life to endangered species of animals by making laws on forbidding hunting of lions, deers,
peacock and many other birds and animals and special permission are to be taken from
government for hunting. However, the present danger is from the poachers. India has
also set up a separate ministry of environment and forests to monitor the use of land
from environment point of view. The ministry is very vigilant about the land which is
under forest department and prior clearance from central government is essential before
any tourist project can be set up in such areas. Similarly for the protection of the monuments
and heritage, we have the archaeological survey department in India.
Another means of enhancing and preserving human environment is historical or
cultural preservation, thus building a bridge between the present and the past. In ‘Colonial
Williamsburg’ in Virginia tourists are often accommodated in renovated resorts or hospitals.
Historical value buildings are being converted into hotels particularly in India and England
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TOURISM
and other countries. Many times museums and other collection houses are being made Notes
near resorts. These have collection of antique furniture and other antique of native folk
art. An example is Smithsonian museum in the US. Another example is of ‘Will Rogers
Shrine of Sun’ at Broadmoor hotel which preserves, American folklore by collecting
exhibiting valuable mementoes of the life of legendary American humorist.
TRAVEL AGENT
a) A travel agent can be described as a go between the product and the principles.
b) Travel agents are those persons who search the unusual as well as the usual, in
order to serve their clients’ needs.
c) An entrepreneur who books space and facilities for clients in hotels and public
carriers and receives commission for placing the business.
d) A travel agent is a trained professional whose experience enables him/her to
counsel a client on how to travel wisely and within the confines of a budget, and he is
supposed to handle and advise clients on details of modern travel and by the use of his
professional knowledge and experience to guide about trains, airlines schedules and hotel
rates.
The following English poem ‘An ode to a travel agent’ explains the concept of travel
agent.
‘Salute to the agents that travel the earth,
Seeking and searching to find you a birth.
Taking nothing for granted and looking instead,
At the lobby, the loo, and under the bed,
Off in pursuit to their tireless rounds,
of restaurants and ships like little blood hounds.
Their elegent nostrils twitching with pleasure,
At the thought of pursuing a trial for you leisure.
With eyes on your welcome, wallet and purse,
They will see that you cheer rather than curse.
Since you have worked hard for each dollar you spend,
A word to your agent saves pound in the end.
So don’t give your plans a chance to unravel,
Ring up these dears the agents of travel’.
To define the functions of a travel agent, it can be said that he is a business man
selling travel. As part of his job, he must accumulate knowledge and skill to help a traveller
to get pleasure, convenience and security.
Travel agency. It is an agency which arranges controlled services needed by a
traveller during the course of his journey. The travel agency business does not have a
long history. Thomas Cook is given the credit for this, when on June 9th 1841 he hired a
train to take the members of the temperance society and travelled a distance of 15 miles
to a temperance meeting at Leicestershire in England. Later organized a trip to
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Notes Loughborough of 570 persons on an excursion. The experiment was a unique one, an
agent bought railways tickets in bulk and resold them to the members of the groups.
Although Mr Cook undertook this project only as a service but soon realized its profit
potential and in 1845 started an excursion agency. Railways company gave him 5 per
cent commission.
Role of travel agency in tourism business. A vital role is played by travel agencies
in the business. They provide a direct link between the traveller and supplier of tourist
facilities such as airlines, transport companies, accommodation sectors and automobile
companies, etc. They have great role to play in the development of countries and promoting
tourist traffic.
Functions of a travel agency. The main functions of a travel agency may be
summarized as follows:
a) Travel information: Information concerning destination such as climate, mode of
transport, fare, timetable, visa, currency and health regulations, etc.
b) Ticketing: Sells tickets on all modes of travel. Normally is paid commission by
the company and not the client for this service.
c) Accommodation: Making arrangements at hotels, motels and resorts etc.
d) Insurance: Insurance covers for death, disablement, and loss or damage of
baggage.
e) Plans itineraries: Advises on destinations for selection and accordingly plans
itinerants under specific budget and time period for travellers.
Places they can visit en route.
f) Information on destination: On location, climate, culture, sightseeing excursion,
accommodation sector, tariff, clothing, health regulation, visa and other such formalities,
currency, transport travel and transfers, customs formalities and necessary geographical
information about the destination.
g) Packaging and selling of tour: Planning package tour to fit the requirements of a
particular group such as trekking, mountaineering and museum tours, etc., organizing a
package tour requires creativity on the part of travel agent.
Some important tourism and travel trade terms:
ABTA Association of British Travel Agents
AGTE Association of Group Travel Executives
AAA American Automobile Association
AGTOA Air Charter Tour Operators of America
ATA Air Transport Association
AAR Association of American Railroads
ARTA Association of Retail Travel Agents
AITO Association of Incentive Travel Operators
AIT Acedemic International du Tourism
ANIA Australian National Travel Association
BIT Bulk Inclusive Tour
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Notes
Tourist visa
It is given for 6 months normally, but it mainly depends on the country of resi-
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TOURISM
dence. The applicant should produce/submit documents in proof of his financial Notes
standing. Tourist travelling in groups of not less than four members under the aus-
pices of a recognized travel agency may be granted of collective tourist visa.
Business visa
It is valid for one or more year. A letter from a sponsoring organization which
indicates the nature of business, probable duration of stay, places and organizations
to be visited incorporating there in a guarantee to meet maintenance expenses, and
so on, should accompany the application.
Student visa
These are issued for the duration of the academic course of study or for a
period of 5 years whichever is less. These are issued on the basis of firm letters of
admission from Universities/recognized colleges or educational institutions in India.
Transit visa
These are issued for a maximum period of 15 days with single/double entry
facilities to bonaire transit passengers only.
Visa to missionaries
These are valid for single entry and duration as permitted by the Government
of India. A letter in triplicate form sponsoring organization that indicates intended
destination in India, probable length of stay, and nature of duties to be discharged
should be submitted along with guarantee for applicant’s maintenance while in In-
dia.
Journalist visa
These are issued to professional journalists and photographers for visiting In-
dia. The applicants are required to contact the External Publicity Division of the
Ministry of External Affairs and in other places, the office of the Government of
India’s Press Information Bureaus on arrival in New Delhi.
Conference visa
These are issued for attending conferences/seminars/meetings in India. A let-
ter of invitation given by the organizer of the conference should be submitted along
with the visa application.
Employment Visa
These are issued to skilled and qualified professionals or persons who are en-
gaged or appointed by companies, organizations, economic undertakings as techni-
cians, technical experts, senior executives, etc. Applicants should submit a proof of
contract/employment/engagement of foreign nationals by the company or organiza-
tion.
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Duration
It depends on the type of visa applied.
Fees
The fee structure depends on the nationality of the passport holder and type/
duration of visa applied.
The existing fee structure is:
Transit visa 5$
Visas with validity up to 6 months 30 $
Visas with validity up to 1 year 50 $
Student visa 50 $
Visas with validity between 1-5 years 100 $
Visa fees mentioned in US$ are payable in local currencies as well. Visa fees
are not refundable except in cases where a visa already issued is cancelled thereaf-
ter.
BASIC VISA INFORMATION
Visa
There are three kinds of visas for tourists. (i) The 15-days single/double-entry
transit visa–this visa is valid for 30 days from the date of its issue. (ii) The 3-months
multiple-entry visa–this visa is valid for 90 days from the date of first entry into
India, which must be within 30 days from the date of its issue. (iii) The 6-months
multiple-entry visa–this visa is valid for 180 days from the date of its issue, not from
the entry into India.
Visa extension
It is virtually impossible to get the extended 15-days or 3-months visa. Only the
6-months tourist visa can be extended. It can be quite a bother to extend it beyond
a 15-day period. Avoid it unless there is an emergency. A 15-days extension on the
6-months visa is issued by the Foreigner’s Regional Registration office (FRRO) at
any of the four metros: Delhi, Kolkata, Mumbai and Chennai. A 15-days extension
is given only if confirmed air tickets are not available. No fee is charged.
Key Terms
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THE HOSPITALITY INDUSTRY
Chapter Objective
The reader is able to convey feelings of welcome to the guest by following traditional
and conventional practices identify the hospitality market and accommodations
sector, and is able to trace the path of its growth and development. The reader
understands the guest’s needs and is able to provide ‘guest satisfaction’ by
professional and efficient delivery of his services.
INTRODUCTION
Hospitality is treating people like you would want to be treated when you are travelling.
In other words, it means making a tourist feel totally welcome not only as your guest, but
also as the guest of the Hotel. Hospitality is genuine smiling face.
Hospitality can be termed as a deliberate, planned and sustained effort to establish
and maintain mutual understanding between an organization and the public, i.e., the
business of making and keeping friends, and promoting an atmosphere of better
understanding. As per the Oxford Dictionary hospitality is defined as ‘Reception and
entertainment of guests, visitors, or strangers with liberality and goodwill.’ The word
hospitality is derived from the latin word ‘Hospitalitias’
Very frequently we hear phrases like ‘He is always hospitable to his visitors’, ‘We
are grateful to friends for their hospitality in putting us up while we were on holiday’,
‘She is so inhospitable that she grudges giving us anything to eat or drink when we visit
her’, and so on . These statements suggest a positive or negative attitude of hospitality
towards visitors, friends or strangers. Hospitality activity covers everything — providing
attentive and courteous services, facilities and amenities to a traveller, meeting and greeting
him at the door, providing efficient and caring service of food and beverage to him in his
room, i.e., providing ‘A Home away from Home’, and making his visit a memorable and
pleasant experience.
Reception, welcome and, in general, the treatment of a guest or a stranger in the
most friendly manner is hospitality. In most of the countries, all over the world, a guest is
received with a great amount of courtesy and warmth and is provided with entertainment.
The basic concept of hospitality is to make the guest feel that he has come among friends
and that GUESTS ARE ALWAYS WELCOME. Although the basic concept of hospitality
has remained the same, yet with the passage of time and development of technology
and science, the needs and wants of travellers have changed greatly thus providing
numerous services and facilities in terms of accommodation and other basic needs such
as food and beverages. In olden days kings, lords, maharajas, landlords and sometimes
the panchayats used to provide food and shelter to travellers and their animals free of
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Notes charge as it used to be a benevolent activity. However, with the passage of time it has
not only remained a benevolent activity but has also become a flourishing business.
A part of hospitality activity is being attentive, alert and cordial with the guest without
forcing yourself and your ideas on him, and at the same time being very polite and
cooperative. All those working in hospitality industry have one common objective—
‘Creating an image of friendly reception and treatment’ for guests and visitors.
As front office personnel, the hotel staff, in order to provide hospitality, should make
his guests feel at home and use a pleasant tone of voice smilingly, and offer his assistance
wherever possible. Do not ignore the guest, and do not be abrupt no matter how busy
you are: anticipate his needs and wants and provide the same without his asking them—
this should be the motto.
As a hotelier, keep on checking the hospitality attitude of your organization. Make
a checklist and be sure that you and your staff are fulfilling each and every point of the
checklist. The checklist may include areas such as front desk and lobby, etc. Make sure
that the front desk is always kept clean, orderly and well lighted. Even the stationery
used should be so designed that it does not create confusion and clearly indicates how it
is to be filled in, and should be inviting. The lobby should be kept clean and furniture kept
at proper place. The lighting system should be soft and appealing. The welcome spirit
that the guest is looking for should be there. Floor covering, pictures, furnishing, and so
on, should be appealing, attractive and aesthetically designed.
Further, the checklist should include the intangibles, such as training of the staff and
willingness and positive attitude of the staff. The arriving guest is always greeted with a
smile and proper salutation to show interest in his trip and his well-being. Hospitality means
anticipating and satisfying a guest’s needs.
ORIGINS OF HOSPITALITY INDUSTRY
Early travellers were either warriors or traders or people in search of knowledge and there
were no hotels. Warriors and conquerors pitched their tents for accommodation while
traders and persons travelling for knowledge placed a high value on hospitality and
sometimes traded their merchandise for lodging.
Innkeeping can be said to be the first commercial enterprise in hospitality, one of
the first service for which money was exchanged. Inns of the Biblical times offered only
a cot or a bench in the corner. Guests stayed in large communal rooms with no sanitation
and privacy. The rates were, of course, reasonable. The company was rough. Travellers
shared the same quarters with their horses and animals.
The King James version of Bible mentions that Mary and Joseph were turned away
by a Bethlehem innkeeper, because there was ‘no room at the inn’. According to Biblical
scholars the innkeeper may have meant that the room was unsuitable for a woman about
to give birth to a child. At that time, and probably for several centuries after that, men
and women shared the same accommodation accompanied by their horses and livestock.
The stable where Mary and Joseph spent the night was probably almost as comfortable
as an inn and at the same time certainly more private than the inn itself.
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In the 3rd century AD, the Roman empire developed an extensive network of brick Notes
paved roads throughout Europe and Asia Minor, and a chain of roadside lodges was
constructed along the major thoroughfare from Spain to Turkey.
Till the Industrial Revolution of the 1700s, no significant improvement was made in
the inns and taverns and they were not very suitable for aristocrats. To accommodate
wealthy travellers, luxurious structures were constructed with private rooms, individual
sanitation and comforts of an European castle. These elegant new establishments adopted
the French word for mansion—‘Hotel’. Their rates were beyond the reach of an ordinary
person.
In America, early inns were modelled after European taverns with sleeping quarters
shared by two or more guests.
Herman Melville in his novel Moby Dick has mentioned a seaman who checked
into a room of a nineteenth century inn and next morning woke up to find out that he was
sharing the bed with a cannibal. Sharing beds was a very common practice in early
American and European inns. Throughout the 1800s American innkeepers improved their
services and continued to build larger and more amply equipped properties and most of
these properties were located in towns near seaport.
The tendency of Americans to travel more provided an inspiration to lodging
operators. The nation’s democratic spirit also led to the development of comfortable and
sanitary lodging within the reach of an ordinary person.
Hospitality Industry can be broadly defined as the collection of businesses providing
accommodation and/or food and beverages to people who are away from home.
NATURE OF THE HOSPITALITY INDUSTRY
Basically for all those who are away from their home, the hospitality industry provides
services. The hospitality industry consists of all those businesses and institutions that
provide food and lodging—such as hotels, motels, lodges, inns, cruise ships, restaurants,
etc. To some extent it also includes the airlines industry. In a broad sense, any group
engaged in tourism, entertainment, transportation and lodging are covered under the
hospitality industry. The hospitality industry provides services for people who are away
from home. The services vary with the needs of the user, for example, the needs of a tourist
are different as compared to the needs of a business man, and hence, the provider must
understand the needs of user before providing the services.
The hospitality industry is a part of the travel and tourism industry. As you may be
aware, early travellers were mostly warriors, businessmen, scholars in search of
knowledge or people in search of occupation. The warriors would pitch their tents for
accommodation while businessmen would look for a comfortable and safe place, and
would often pay through their merchandise or cash to people providing them
accommodation and food. The poor people travelling to far off places in search of job or
occupation were provided with the facilities of food and accommodation free of charges.
As per some authentic sources, to facilitate travel throughout Western Europe a highway
was constructed in 312 BC. People could travel on this highway by chariots. Later in AD
117 this roadway was reconstructed and covered a distance of nearly 50,000 miles.
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In different parts of the world, traditional style hospitality is provided, for example,
ladies decorated with flowers greet guests in Honolulu. In some countries, local people
Notes
gather to welcome visitors at airports. Providing shoeshine service for every guest in the
morning in hotels in Bangkok is a part of welcome to the guests. In one of the hotels in
Mauritius, after the dinner service is over the staff collects in the dining area and sings
local songs in honour of the guests. Memorizing the names of the guests and addressing
them by their names is another way of providing hospitality in one of the hotels in France.
Singing melodious songs at the time of departure of a guest is done in one of the resorts
in Fiji.
All the above mentioned examples along with many others reflect the concept of
hospitality provided by highly trained and experienced staff. Through their sincere efforts
every guest feels like a VIP and a welcome syndrome is generated.
The past, present and future of the hospitality industry are linked together.
Comfortable and sanitary lodging was once considered the exclusive privilege of only
the wealthy, but with the rise of industry and democracy, hospitality has now become
available to common men also. Hospitality has both influenced and is being influenced
by cultural, social and economical changes in the society. Hospitality business tends to
satisfy human needs and also play an important role in the satisfaction of social needs
such as belongingness, love, esteem and status. It is important that all industries share
resources. Tourism is everybody’s business. Hospitality and tourism are not only dependent
on external factors but hospitality and tourism industry is directly responsible for the health
of other industries.
HOSPITALITY MARKET
Hospitality has a very vast market. All those who have stayed in hotels or have plans to
stay in hotels or any other lodging can be put under hospitality market. Hence, all travellers
including tourists, visitors, businessmen, leisure travellers, pilgrims and company executives
can come under the hospitality market. Depending upon the purpose of travel, people can
be classified under either commercial hospitality market or leisure hospitality market.
HOSPITALITY INDUSTRY AND TOURISM
Tourism refers to all those industries that provide all the necessary and essential services
to travelling people. They include transportation, food and beverage operations,
accommodation, leisure activities, gift and Souvenir shops, etc.
HOTEL
As per the Hotel Proprietors Act, 1956, a hotel is an ‘Establishment held out by the
proprietor as offering food, drink and if so required, sleeping accommodation, without
special contract to any traveller presenting himself who appears able and willing to pay
a reasonable sum for the services and facilities provided and who is in a fit state to be
received.’ As a result of this definition establishments such as hospitals, hostels,
apartments and prisons, although provide accommodation to people yet do not come under
hotels.
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Notes Common Law states that a ‘Hotel is a place where all who conduct themselves
properly, and who being able to pay and ready to pay for their entertainment, are received,
if there be accommodation for them, and who without any stipulated engagement as to
the duration of their stay or as to the rate of compensation, are while there, supplied at
a reasonable cost with their meals, lodging and other services and attention as are
necessarily incident to the use as a temporary home.’
A hotel may be called as an establishment where the primary business is to provide
to the general public lodging facilities and which may also furnish one or more of the
various services such as food, beverage, laundry, uniformed services, etc. Hence, hotel
can also be called as home multiplied by commercial activities.
As per the Reader’s Digest Dictionary the term ‘Hotel’ refers to ‘a house of
entertainment of travellers’.
According to the Encyclopaedia Britannica the word ‘Hotel’ is of ancient origin,
but its use in English for a house offering lodging and food for travellers is recent. The
Hostlers of London took the name of Innkeeping in 1473. The word ‘Hostler’ or ‘Ostler’
having come to mean an inn servant.
The term ‘Hotel’ was used in England in about 1760. Hotel or inn is defined by
British law as a ‘place where a bonafide traveller can receive food and shelter, provided
he is in a position to pay for and is in a fit condition to be received’.
A hotel or an inn may also be defined as an establishment whose primary business
is providing lodging facilities for the general public and which furnishes one or more of
the following services (a) Food and Beverage service (b) Room service (c) Uniformed
service (d) Laundry service and (e) use of furniture and fixture, etc.
In legal terminology a hotel is an inn and is required under common law to offer to
its visitors lodging, food and protection to their baggage. Hotel service is generally based
on these three fundamental necessity of life. In addition to these a modern hotel provides
its visitors many luxuries of modern urban city living, all under one roof.
1. Inns—Public houses in early times in England were called inns. Normally the
term ‘Inn’ was meant for the finer establishments catering to nobilities and clergy.
In France these were called ‘Hotelleries’.
2. Taverns—The house frequented by common man were known as taverns. The
less important establishments in France were called ‘Cabarets’.
3. Hostel—Derived from the word ‘Host’ and was used very late. The head of
the hostel was called ‘Hosteler’ in French, while in England he was called ‘Inn
Keeper’.
customs visitors were not encouraged, yet goddess Athena was considered as protector Notes
of strangers and hence her name was ‘Xenia Athena’.
In this period travellers were mainly diplomats, philosophers, intellectuals and
researchers. Guests were invited to stay with noblemen. In ancient Olympia, buildings
constructed with the aim to accommodate strangers can be seen. They were called
‘Leonidio’ and were built in 4th century BC The concept of hospitality can also be drawn
back to ancient times. Mention of it is found in ‘Iliad’ and ‘The odyssey’ by Homer.
Hotelkeeping can also be traced back to many centuries and its evolution through the
ages has been brought about by Britain’s economical and industrial changes and develop-
ments.
During the 7th and 8th centuries, it was the monasteries that supplied hospitality to
strangers and, as no charge was made for the accommodation, all travellers were expected
to contribute according to their means to the Abbey funds. As more people began to
travel they grouped themselves together, not only for company, but for mutual protection
from highwaymen and robbers. Consequently, travellers arrived in groups at a monastery
and it was often difficult to accommodate them all. In the early 19th century the concept
of a hotel room was a sitting room in the front, a bedroom behind it and a store room to
keep trunks behind the bedroom and this period is known as ‘Golden Age of Hotel of the
Hotels in Great Britain and the World.”. To overcome this, separate lodging houses called
‘Inns’ (a Saxon word) were built. The word ‘Inn’ came to mean a ‘Lodging House’ and
until the passing of the Hotel Proprietors Act in 1956, it was the legal term for ‘Hotel’
and hotel proprietors were legally referred to as ‘Common Innkeepers’. ‘Common’ in
this sense referred to Common Law.
In the 13th and 14th centuries, manor houses, being hospitable places, willingly gave
accommodation to travellers. As no payment was expected, travellers tipped the servants
as a ‘thank you’ for the generous hospitality received—thus the practice of tipping was
born.
When high taxes crippled the generosity and hospitality of the owners of the manor
houses, many became commercial inns. During Elizabeth I’s reign, posting houses were
established and travellers, in addition to getting refreshment were able to change horses
before continuing their journey.
The turn of the century saw an era that was called the ‘Belle Epoch’ when grand
and luxurious hotels flourished. A few hotels are still operating today. In London and
some other cities attempts have been made to recapture some of the grandeur of the
past era in the making of modern hotels, and bring back the memories the grand hotels
of olden days.
The next stage in the cycle of evolution of the hotel industry was the coming of the
motor car. It enabled people to visit those parts of the country which could not be reached
by railways. This gave birth to inland resorts and the hotel industry began to flourish.
International air travel has helped create the modern ‘stop-over’ hotel. With the
increase in this form of travel, the number of hotels built close to airports has multiplied.
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Notes Another trend in hotelkeeping is the motel which is the 20th-century version of the
old ‘Coach Inn’. People travelling the country by car, stop overnight here and there, require
not only refreshment for themselves, but also safe parking for their cars. Post Houses,
developed by the Trust Houses Forte Group are in fact the modern version of the old
coaching inns. Great Britain is considered as ‘Motherland of the Hotel Industry.’
AN ACCOUNT OF THE DEVELOPMENT AND GROWTH OF HOTEL
INDUSTRY
Hotel industry has followed the path of the traveller
z Travel by foot
z Travel by animal
z Rest for both (rest houses, monasteries and inns)
Innkeeping
z An outgrowth of man’s urge to travel. Roads used by merchants and warriors.
z Believed started 12,000 years ago.
z Concept of hospitality mentioned in writings dating back to Greece, ancient Rome
and Biblical times.
z 6th century BC (Establishment of money).
z 7th and 8th century monasteries provided hospitality and as no charges were made
all travellers were expected to pay as per their capacity to the ‘Abbey Fund’.
z Rest stops were made near or accessible to water.
Rest Houses
z All along ‘Roman Highway’ (for troops, civilians and merchants).
z Later ‘Coach Inns’ were brought by stage coaches and travellers were put in
‘Hostelries.’
In Florence (Italy) 1282
z It is believed a rest house was build here.
z In 13th and 14th centuries, manor houses gave accommodation to travellers willingly.
z Gradually with high taxes manor houses became commercial and during the period
of Elizabeth I, posting houses were created and travellers were able to change horses
here before continuing their journey.
Paris (1312)
z It is believed a hotel in true classical sense was built in this year.
Early Inns
(Inn is a Saxon word meaning a lodging house and the word remained in use until
Hotel Proprietors Act was passed in 1956—a legal term for hotel. Hotel proprietor
were legally referred to as ‘Common Inn Keepers’. The word common referring a
Common Law.)
z Fairly clean.
z Self-service unit (guest making their own bed).
z Small part of a self-dwelling unit.
z Run by unreputed and unprogressive persons.
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z Unheated rooms, straw beds for nobilities and stone beds for servants. Notes
z Protection from robbers and pirates.
Pascal (1650)
z Cafe and coffee house were opened by him in Paris and London respectively.
Industrial Revolution (1750–1820)
z English inns—finest in the world.
z Development centred in and around London.
David Low (English Inn)
z English inn—was opened in London.
Hotel de Henri IV
z Built in Nantes in 1788 for a sum of £7500 (one of the first European hotels). It
had 60 rooms.
Francis Tavern (1783)
z General George Washington gave farewell party to his top ranking officers here.
Colonial Inns
z Early inns were located at seaports and were established in their mother country
style.
z Sleeping on floor, feet towards fire and head on rolled coat with a dozen or more
people of both sexes sleeping together.
z Quick cold water bath in an outside basin.
z Use of communal towel.
Charlemagne Laws
z Free accommodation for travellers and free food bonus to travellers for 3 nights at
one place in a continuous time period.
European Inns
z Formal atmosphere and patronized by aristocrats.
z Out of reach of common public.
z Mainly for aristocrats only.
American Inns
z The US assumed leadership after 1850. More progressive inns were used for
gatherings, court of law, schools and town meetings, etc., and the Massachusettes
passed a law – ‘Penalty on towns that did not provide these facilities.’
z Inns based on equalitarian enjoyment concept with ‘informal’ atmosphere.
z Informal atmosphere.
z Accommodation for all who could pay.
z Developed faster because of the
(i) Free and informal nature of Americans
(ii) Their pioneering spirit and
(iii) Their love for travelling
Growth of Organized Hotel Industry
z Switzerland and other emerging nations of Europe helped in more organized growth
of hotel industry.
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z Two seaside resort seasonal hotels ‘Grand’ at Scarborough in 1865, ‘South Port Notes
the Palace’ in 1866, ‘East Bourne the Cavendish’ in 1873 and ‘Granville’, St.
Lawrence-By-Sea’ in Ramsgate were made in England.
z ‘Dumfries’ hotel was made in Cardiff which was later taken over by a retired
commercial traveller called Mr. Wynn and he called it Wynn’s.
By the end of 19th Century
z In 1880 one of the best hotels in London was ‘BRISTOL’.
z Many elegant hotels such as ‘Waldorf Astoria’ in New York, Denvels Brown Palace,
San Francisco Palace, Palmers House in Chicago, Planters House in St. Louis, etc.
were made.
z ‘Grand’ hotel in Trafalgar square was made on the site of Northumber land and
was opened on 29th May 1881 by the Lord Mayor of London. The hotel was made
by Mr Gordon.
Cesar Ritz (1889)
z Introduced luxury hotels such as Savoy, Carlton and Hyde Park hotels in England.
z Started Gordon Hotels in London.
Sir George Reeves Smith
z Took over Savoy from Ritz and named it Savoy London. Savoy hotel was built by
Richard d’Oyly Carte in 1889.
z Also managed Metropole, London.
Berkley and Claridges
z Two famous chains emerged in England.
Sir Isador Salmon
z Chairman, J. Lyons and Company, started Cumberland, Strand and Regent Palace
under Popular Hotel Company, London.
Fredrick Gordon (Former Solicitor)
z Built Holborn Restaurant
Sir Blundel Maple (Furniture Manufacturer)
z Fredrick Gordon and Sir Blundel Maple became partners and launched two
companies.
z Gordon Hotels, 1890 and Fredrick Hotels Ltd, 1899.
z By the turn of the century a new era called ‘Belle Epoch’ emerged which saw
grand and luxurious hotels development.
Ellsworth, M. Statler
z Started a new chain and made his first hotel Buffalo Statler on 18th January. 1908.
z Gave the slogan, ‘Room and a bath for a dollar and a half.’ Free newspaper,
circulating ice water and full length mirror were provided.
Conrad N. Hilton (Born in St. Antorio, Mexico)
z Purchased a hotel called Mobley in Cisco (Texas) somewhere around 1920.
z Opened a company Hilton Hotels Corp. in 1946.
z Purchased Statler chain in 1954.
1910–1920
z Period of relative inactivity
z Then came N.Y. Pennsylvania (Largest hotel of that time)
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Notes 1927
z Stevens Hotel (3000 Rooms). Now named Chicago Hilton, was made.
z Then came Pierre Hotel, N.Y., a very famous hotel of its time.
1930
z The US depression affected the hotel industry in particular and occupancy fell down
to nearly 50 per cent, and 85 per cent hotels went into liquidation. This period was
useful to hotel chains such as Hilton and Sheraton, etc., who acquired properties
from out of business hoteliers.
1940
z Situation improved and outbreak of World War II.
1950
z New concepts, such as motels, boatels, floatels, rotels and loatels, etc., developed.
Second World War
z Many trained staff joined the army hence standards of service lowered. However
occupancy improved with mass movement to approximately 90 per cent.
1952
z Kemmons Wilson formed ‘Holiday Inn’ chain and first Holiday Inn was made in
1952 at Memphis-Tennesse.
1. Motels: Motels or motor hotels were born during this period. More and more
American families travelled by their own automobiles. Moreover, habits, tastes
and desires underwent a considerable change. A new mode of informality had
come into the American way of life. Suddenly, there was a way out to eliminate
formal dress, tipping and parking problems. The rooms were well-furnished in
a modern way, wall-to-wall carpeting was provided, and T.V., a swimming pool
and the convenience of one’s own transportation was an added attraction.
2. Boatels: These are hotels on boats, sometimes named as houseboats.
3. Floatels: Hotels on ships giving the facilities and conveniences of a luxury hotel.
4. Roatels: These are hotels on wheels. A limited number of rooms or cabins are
there for couples. All conveniences of guests are looked into.
5. Loatels: Refers to 5-star deluxe properties with the facility of helicopter landing
on the terrace.
1960
z Development of Atrium Hotels of Hyatt.
z Many individual owners merged themselves with large chains such as Sheratons,
Hiltons, Hyatt, Holiday Inns, Ramada Inns, etc. for franchise by paying a fee and
then they could use the name, logo, reservation systems, national and international
advertisement and operation manuals.
z Budget Hotel/Motels: In the later part of 1960s hostelries offered accommodation
at prices significantly lower than the prevailing rates of first class motor-hotels by
incorporating three important factors as follows.
1. Lower initial investment cost (due to the following)
(i) Smaller guest room : 250 sq ft. as against 335 sq. ft. Less expenses on
land (1.6 acre of land as compared to 2.5 acre for a 100 room hotel),
decoration, etc.
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THE HOSPITALITY INDUSTRY
(ii) Minimum public space: Cutting down on large executive offices, large Notes
lobbies, etc.
(iii) Simple and no frills designs.
2. Operating efficiency
(i) Compact facilities: Less time required to clean and maintain and less power
consumed for heating and lighting.
(ii) Fewer guest services : Elimination of valet services, etc.
3. High volume
(i) Price location: Reduction in price increases the business volume. Many
budget hotels are situated next or adjacent to higher price hotels to attract
price conscious travellers.
(ii) Value: The budget hotel provides clean, good quality guest room,
comfortable bed, full baths, colour T.V., carpeting, standard furniture and
fixtures, wall covering, bedspreads and cheerful drapes, etc.
1970s Hotel Boom
z Reminiscent of the 1920s boom, the hotel industry experienced the start of
construction boom in the 1970s. Hilton, Sheraton and Westin Corp. opened
convention oriented hotels. Airport hotels location also appeared in 1970s and also
the Marriott location of major properties outside of central city area in the same
year.
Large amount of finances were made available by money lenders particularly by
Real Estate Investment Trust (REIT).
Readily available franchise resulted in overbuilding many poorly located and under-
capitalized properties with inexperienced owners.
(i) Later there was energy crisis that curtailed travel.
(ii) Inflation caused construction cost and interest rate became very high.
(iii) Recession curtailed the business trips, conferences and conventions.
(iv) Marginal properties could not pay the mortgage amount and the lenders became
owners. They either hired experienced hoteliers or contracted professional
management companies to assume operational responsibilities.
Since then a lot of changes in technological and management approach has taken
place and today’s hotel industry is progressing day-by-day. International business is rapidly
developing and with this a lot of business executives are travelling out. Modern hotels
are developing as per the needs and wants of the tourist and business class guests. Many
international hotel chains such as Inter Continental, Sheraton, Park Royal, Hilton, Trust
House Forte, Holiday Inn, Ramada Inns, Meridien, Sofitel, SRS Hotels, UTell International,
Howard Jonsons, Wolfe International, Hyatt, Golden Tulip, Marriott, American
International Hotel & Travelodge, Quality Inns, Accor, Imperial, Motel 6, CEDOK, Club
Mediterranean, Red Roof Inns, Friendship Inn, Red Carpet Inn, Western International
Hotel, United Inn, Super 8 Motels & Topeka Inns and a lot more have emerged from
time-to-time.
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Notes
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Notes An example of Hotel Advertisment and Tariff Card in 19th Century England is given on
the next page.
VISITORS TO LONDON
TRANTER’S
(Private, Family & Commercial)
TEMPERANCE HOTEL
7, 8, 9 Bridgewater Sq. Barbican, London, E.C.
RECENTLY ENLARGED
Visitors to London will find many advantages by staying at this quiet, clean and home-like
hotel.
MOST CENTRAL FOR BUSINESS OR PLEASURE
Near St. Paul’s Cathedral, G.P.O. and all places of interest: 3 minutes walk from Aldersgate Street, and
5 from Moorgate Street Metropolitan Railway Stations; Termini of the Great Western, Great Northern,
Great Eastern, Midland, L and N.W., L.C. and Dover and in connection with All Railways. 15 minutes
walk to the Law Courts. Trains, Cars, Buses, every three minutes to all parts of London and Suburbs.
Highly recommended. Established 1859.
Write for ‘Visitors Guide’ showing ‘How to spend a week in London’ (Regd.) with Tariff and
Testimonials, post free on application to C.T.S. Tranter, proprietor.
TARIFF
Apartments, etc.
Clean and well-ventilated bedrooms
Bed room for one person..................1/6, 2/-, 2/6 per night.
Bed room for two persons..........................3/-, 3/6, 4/- per night.
According to the size and position of room taken.
The above charges include use of Spacious Coffee, Smoking and Reading Rooms, Fire, Lavatories,
&c., &c. Electric Light in Public Rooms.
Private sitting rooms, from 4/- per day, including Gas and attendance.
Breakfast or Tea
Plain with Preserves, &c., &c. 1/-
Ditto with Cake ......................1/3 Ditto with 2 Eggs or Bacon ....1/4
Ditto with Cold Meat........1/6 Plain with 2 Eggs Poached on Toast 1/6
Ditto with Rump Steak, Chop, Fish or Ham & 2 Eggs........1/9
With choice of Tea, Coffee or Cocoa.
Luncheons and Suppers
Chop, Steak, or Cold Meat with Potatoes, Bread, Butter and Cheese 1/6
Basin Bread and Milk, Gruel, or Oatmeal Porridge .....-/6
Dinners
Weekdays, as per arrangement. Sundays, at 1.30 consisting of
Soup, Joints, Vegetables, Sweets and cheese 2/-
Hot or Cold Baths, Hot 9d., Cold 6d.
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Temperance hotels competed with the licensed variety and very often with missionary zeal.
The telegraphic address was probably inaccurate during the cholera epidemic in 1860s.
Notes 1. Qutub Sarai: At the entrance of the tomb of Kamali Jamali, it had a 50 feet
deep baoli in its courtyard.
2. Ladha Sarai: Also called as Baghi-Nazir, it is 300 yards south of the tomb of
Jamali. It was built in 1748.
3. Lado Sarai: Also in the same vicinity, it was originally a caravan sarai.
4. Sarban Sarai: It is in Kamlapati Garden, very close to Delhi-Qutub Road.
5. Daud Sarai: It is situated about 500 yards south of the tomb of Maulana Quli
Khan in Qutub area.
6. Kallu Sarai: Built during Tughlaq period, it is in the vicinity of Sarvpriya Vihar
area. Its main feature, a rubble masonry building, is called as Bijay Mandal.
7. Arab ki Sarai: It was built in 1560–61 by Hamida Banu Begam, wife of
Humayun, as a settlement of 300 Arabs (whom she had brought with her while
returning from a pilgrimage to Mecca)
8. Sheikh Sarai: It was named after a popular saint Sheikh Allauddin who lived
there and had his tomb during his own lifetime.
Some more popular sarais of Delhi are Sarai Shahji built in Mughal period, Gur
ki Sarai on the eastern side of Karnal Road with its mosque of Hyrewali, Sarai
Bangash near Fatehpuri mosque, Sarai Topkhana, the Dargha Shah Sabi Baksh
with its musafirkhana on Faiz Bazar road, Jai Sarai on southeast of Hauz Khas
village, Katwaria Sarai in the centre of the village, Phus ki Sarai, Ghatu Sarai,
Nepa Sarai and the famous Yusuf Sarai, etc.
z Journeys undertaken by some famous thinkers and philosophers in olden
days in India: Fa Hien (visited India in AD 402), Hieun Tsang (AD 626–643), Marco
Polo (1273).
These people have also mentioned of shelters for travellers in their accounts on
India.
z Sarais started developing into inns and western style hotels with the coming of
Britishers in important cities like Calcutta and Bombay.
z During this period boats were kept ready at ports. Agents took care of travellers
and their luggage. Private carriage would take them to hotel on their arrival at the
shore.
z As early as 18th century there were excellent inns (taverns) in India. Some famous
inns were: Portuguese Georges, Parsee Georges and Paddy Georges.
z Some famous hotels of that time: Albion Hotel, Victory Hotel, Hope Hall (Rs 6 per
day for room and meals).
Records are available showing that Philip Stanhope (1778), a traveller, stayed in a
luxurious and excellent tavern in Bombay. David Prince, who visited India, stayed
at Mac Farlanes Hotel.
A dinner to commemorate the capture of Shrirangapatnam was served at Maclean’s
Hotel in 1800 at Bombay. The same remained a resort for many years of Sans
Souci Club which entertained Duke of Wellington, Lord Nelson and Sir Arthur
Wellesley.
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z Pallanjee Pestonjee (1840) started the first luxurious hotel in Bombay. It was Notes
famous for its excellent cuisine, beers and wines and its excellent management.
Later he opened another hotel at Fort in Bombay.
z Auckland Hotel (1843) was established in Calcutta.
Later it was renamed as Great Eastern Hotel in 1858 and later renovated for a
sum of Rs 10 lakh.
z Esplanade Hotel (1871) was built in Calcutta by John Wakson (Britisher), a silk
drapery merchant (also believed to be an architect and builder). The hotel had 130
rooms.
z Dak Bunglows were made during British period for official touring for various
purposes which were later replaced into a modified Circuit House.
z Later, some Swiss and other families also owned hotels in India. One such example
was Hotel Fonseca in New Delhi which was later demolished and Hotel Taj Mahal
at Mansingh Road was built there.
z Taj Group of Hotels. In 1903, JRD Tata constructed the Taj Mahal Hotel in
Bombay the flagship hotel of Indian hotels company. It was the first hotel of
international standards and repute, built by an Indian for Indians. For quite a long
time the Taj Bombay was the only hotel of Tatas. It is also said that the earning of
this hotel were used for the development of Tata Memorial Research Institute
Bombay for the development of medicines and treatment of diseases like cancer.
Later the company expended its wings with taking over Ram Bagh Palace in Jaipur
and Lake Palace, Udaipur. Ram Bagh palace remained one of the best 10 hotels of
world for quite a long time. Later the group opened hotels in Delhi, Madras, Goa,
Varanasi, Calcutta, Bangalore and many other places. The group also operated
abroad with hotel in England Taj also operated Flight catering service.
z The government realized the importance of tourism in 1962 when there was a drop
in tourist arrivals from 1,39,804 to 1,34,360.
z Incentives were offered by the Department of Tourism (DOT).
z Hotel Corporation and Tourism Corporations were established.
z Ashoka Hotel Ltd and Vigyan Bhawan were made in 1956 in a record time of one
year.
z Later, the Union Ministry of Housing and Welfare constructed three hotels: Lodhi
Hotel, Hotel Janpath and Ranjit Hotel.
z In 1963 an ad hoc committee (Jha Committee) was set up by the Government of
India to give recommendations about the development of Hotel & Tourism Industry
and one of its major recommendations was that ‘if adequate hotel accommodation
of the right type for the kind of growth of tourism ... is to be provided, public sector
will have to play a major role in this field.’
z Later in 1956, the Dewan Chaman Lall Committee was set up by the Government
of India (Hotel Standard and Rate Structure Committee) to:
1. Lay down criteria for classification of hotels in view of international standard.
2. Suggest guidelines for the promotion of tourism to India and within India.
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sole, absolute and exclusive owner of Clarke’s Hotel, Simla and Delhi. Mr Oberoi Notes
later took over the Grand Hotel at Calcutta on lease and by the end of World War
II, the Grand Hotel became a byword for good service and elegant comfort in hotels.
He established Oberoi Hotel Pvt. Ltd in 1946 and later, on 26th May 1949, established
East India Hotel Ltd (EIHL) at Calcutta. Many hotels were added to EIHL during
the period. Later two very important hotels were added—Oberoi Intercontinental
in August 1965 in New Delhi and Oberoi Sheraton in 1973 in Bombay. EIHL is
now one of the largest and one of the most reputed hotel chains of India with hotels
not only in India but also abroad. Oberoi has a hotel training institute at Delhi and
future plans of expansion.
z Hotel Ambassador, New Delhi: One of the flagship hotels belonging to Lala Ram
Parshad who is considered as one of the pioneers of the Hotel Industry in India
(now managed by Taj Hotel in Delhi). In 1946, he purchased two hotels in Mussoorie,
U.P. and operated one hotel in Bokaro. Lala Ram Parshad was appointed Technical
Director of Hotel Ashok, New Delhi during its construction stage and was the first
Asian to be elected as an executive member of International Hotel Association
(I.H.A) in 1969. He was among the first few hoteliers to realize the importance of
trained manpower in hotel industry and was associated with various Hotel
Management Institutes and Food Craft Institute in India.
z U.P. Hotels and Restaurants Ltd: Famous as Clarke’s Group of Hotels, it was
established on 13th February, 1961. It started with its flagship hotel Clarke Shiraz
Agra. Later hotels—Clarke’s Awadh, Clarke’s Amer, and Clarke’s Varanasi at
Lucknow, Jaipur and Varanasi, respectively, were added to this chain.
z Ritz Chain: A chain belonging to R.N. Kapoor family with hotels at Mumbai,
Hyderabad, Kolkata and Coonoor (in South India). Specialized in Italian cuisine.
z Spencers: Started hotel business in 1912 in Calcutta. Purchased Connamera Hotel
in Madras and opened West End in Bangalore, Malabar at Cochin and Trivandrum,
Blue Mountains at Kotagiri in 1942 and Savoy in Ooty in 1943. Vegetarian hotels in
Madras (Geetha, Ashoka and Ajanta) and Hotel Arakua in Bangalore.
z Sinclairs: A chain of hotels operating in eastern part of the country with hotels at
Darjeeling, Takdah, Siliguri, Ooty, Port Blair and Dooras.
z Hotel Corporation of India (HCI): A corporation set up in 1971. It started with
its first hotel at Bombay in 1974. Later hotels in Delhi, Srinagar, Rajgir, and so on,
were added to this group.
z Leela Chain of Hotels: The chain is owned by Captt. C.P. Krishnan Nair of Kerala.
The USP of this chain is Butler service where Butlers trained by former members
of royal House of Windsor pamper the guests of the hotel. It has hotels at Mumbai
and Goa and Leela Palace at Bangalore.
z Asian Hotels: The group has tied up with Hyatt chain and has two hotels in Delhi.
It plans to have property in Jaipur and Agra.
z Apeejay Surendra Group : (Park Hotel): It started with its first hotel Park Calcutta
in 1967. Later a large hotel was added in Delhi and Resort hotel at Visakhapatnam
was added to the group.
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Notes z J.P. Hotels: The group has hotels in Delhi, Agra and Mussoorie.
z Palace Hotels
1. Maharaja Hari Singh Palace was the first to be converted into Oberoi Hotel in
Srinagar.
2. Maharaja of Jaipur converted his palace Ram Bagh to Hotel.
3. Maharaja of Udaipur was third in line (Taj) Lake Palace in Pichola Lake.
4. Later Jodhpur Palace (Oberoi), Jaisalmer Palace and Bikaner Palace were also
converted into hotels.
5. Lakshmi Vilas Palace of Jaipur (of Maharaja Bhupal Singh).
6. Lalitha Mahal Palace of Mysore and Halcyon Castle of Travancore Maharaja.
7. Ushakiran Palace of Gwalior.
8. Hotel Jai Mahal Palace, Jal Mahal and Raj Mahal Palace in Jaipur are also
converted or being converted to hotels.
9. Chamundi Hill Palace has also been converted to a hotel.
10. Bolghathy Palace near Cochin Port (Residence of former British Resident of
Southern States) is also being converted into a hotel.
z Star Hotels: Nainital, New Delhi and Allahabad.
z Roop Kumaon: Hotel Roop Kumaon near Ramgarh Uttranchal and Corbett Roop,
Resort Mohan near Ram Nagar, Uttranchal.
z Chevron Hotels and Resort: Rosemount, Ranikhet, Fairheavens, Nainital and
at Kumaon.
HOTELS OF MADRAS AND OTHER CITIES OF SOUTH INDIA
Connemara Hotel. Originally belonged to Nawab of Wallajah. The hotel was later
owned by ‘John Binny Sr.’. Later the hotel was purchased by E.P. Oakshot in 1891.
Further SPENCERS bought it in 1912. Now it is managed by TAJ group of Hotels.
Many western style hotels were made by the end of 19th century such as Belgrania,
Albany, Bunkingham, Central Dent Gardens, Copper House, New Woodland, Ashoka
Oceanic, Savera, Esplanade, Elphinstone, Napier, Stay Longer and Shilton etc.
In other cities of south the following hotels were famous.
Pandyan (Madurai), Westend and Bangore International (Bangalore), Krishna Raja
Sagar (Mysore) Sea Land and International (Ernakulam), Dasa Prakash, Ritz and Savoy
(Hyderabad), Sun And Sand And Palm Beach (Vishakhapatnam).
HOTEL BUSINESS
Many economists have often described ‘Hotel Business’ as unique and different from
many other businesses. Hotel is selling both goods and services. It not only provides
both tangible and intangible services, but one of its unusual characteristic is also that it is
one of the very few places where production and consumption occur simultaneously; for
example, ordering and subsequent preparation, services and consumption of food items.
Both the products and services are offered on credit transaction. No other business allows
the customer an immediate line of credit, for example, the moment he registers, his credit
purchase starts with the room and a sequence of financial charges throughout the facilities
without immediately paying for them at the ‘point of purchase’. For example, purchase
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of food in restaurant, drinks in bar, valet services, etc. No other business offers as varied Notes
a range of services and products at the same place as hotel business. Customers choose
one establishment from another for a variety of reasons. Some such factors are service
standards, amenities, products, building location, economy and staff attitude, etc. Factors
like location and building are of course beyond the control of the hotel but factors such
as decor, creation of atmosphere, service standard and attitude, and so on, can be adapted
to suit the customer and hence give him satisfaction. A satisfied customer is one who is
not only likely to come back but is also expected to speak good about the hotel to his friends
and relatives, etc.
Each hotel must offer lodging, food and protection to their guest and assume a liability
for guest property, provide a high standard of hygiene, cleanliness and sanitation and
should confirm to the minimum requirements of the state regarding safe hotel construction
such as height of the building, municipal by-laws, fire and safety standards, and so on.
Hotel managers must analyse the wishes and needs of their patrons regarding
accommodation, services and facilities and should plan their operations to satisfy these
wishes of the guests.
HOTEL SERVICES
The present day modern concept of the hotel is not just a place to provide accommodation,
food and beverage, but is like a city within a city and offering to its guests every possible
facility, accommodation, service and convenience, such as rooms, (with equipment such
as minibar, roomsafes, in room tea and coffee kettles, room ironing centres, trouser press,
etc.) and bathrooms (with equipment and accessories such as hairdryers, shaving and
cosmetic mirror, towel warmers, restaurants, bars, cocktail lounges, banqueting facilities,
convention and conference facilities, telephones, radio and TV, laundry, valets, cigars,
cigarettes, book shops, banking, parking, florists, chemists, gym, beauty parlours, travel
agents and business centre, etc. Apart from these a vast shopping arcade providing various
items like jewellery, men’s wear, ladies’ wear, toys, books, news-stands and magazine, etc.
are also provided. In addition to these, personal services like babysitting, private detectives,
planning of tour itineraries, railway/air booking and accommodation, booking in other hotels
may also be provided. Further additional services as given below may also be given:
1. Fruits, flowers and vegetable garden 8. Library
2. Club and night club 9. Service station
3. Health club 10. Post office
4. Bank services (foreign exchange) 11. Poultry farms
5. Swimming pool 12. Car rental and chauffeurs
6. Theatre 13. Cinema ticket
7. Hospital
All these facilities may occasionally be without additional charges to the guest but
generally specifically charged.
Five Star deluxe hotels go all out to provide every conceivable service and amenities
to their guests in the hotel and their rooms. The following is a list of all such services
which are provided these days:
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Notes given on rent to outside operators to operate because usually the hotel does not
want to operate those areas in which they do not have expertise. But in some
cases where the hotel is operating in a leased out building, i.e., rented building,
and where the hotel cannot further give the shops to some outside operator on
rent the hotel operates these shops also. Primarily this is a minor revenue
producing sector of the hotel. Further, we may say that it is a non-operative
department of the hotel. The revenue comes either in the form of monthly rent
or yearly lease basis. Sometimes, the hotel may also change a percentage of
sales from the concessionaire in addition to monthly rent.
SOME PROBLEMS OF THE HOTEL
Some common problems that a hotel faces are as follows:
1. Market
To determine whether there is demand for a hotel in the area where the site is located,
certain very important factors must be considered, such as:
(i) Determine if the existing tourist capacity is adequate or not
(ii) Find out if the location of the hotel is a positive factor or a negative factor in creating
demand
(iii) Find out if it is worthwhile to invest further in increasing the number of rooms over
and above the existing number in the area
(iv) Determine if the present guest structure is future-oriented, and above all
(v) Determine if the national and international economic situation allows to expand the
business or not
2. Labour situation
Problem of labour is very important in hotel industry. For successfully developing new hotel
projects it is the lack of adequate labour supply which creates problems rather than the
problem from labour such as their demands, etc. For this the two important points to study
are union situation and the labour wage trend.
3. Sources of financing
This is another very important factor and a big problem. Arranging of finances and control
of credit line is a very serious problem confronting business today.
The major sources of financing are:
(i) Long-term mortgages.
(ii) Loans provided by government, semi-government and/or tourism promotion bodies.
(iii) Loans provided by financial institutions such as banks, etc.
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Notes remember it and should not leave any opportunity to keep repeating the guest’s name. The
receptionist should concentrate on the name of the guest when he hears it by listening to
the sound. Do not hesitate to ask if you miss the name in the first instance. Associate or
link the person’s name with his appearance, business or some other interest. Tie his name
to his height, hair, mouth, attitude, clothes and shoes or to any other thing that strikes you.
Repeat the guest’s name during conversation as many times as possible, but make sure
you do not make it very obvious.
Guest relation is an integral part of the hotel. It is a means for the management to
reach out to the guest and convey to him the feeling of warmth and welcome.
Initially a guest/customer comes to a hotel for its good name and reputation about
service and food, second time he comes to confirm his experiences and then further
keeps on coming for its comfortable and emphatic atmosphere and becomes a regular
customer, because by now he is pretty confident about the hotel.
As compared to other industries, hotel industry which is a service industry and a
part of hospitality industry, requires greater personal touch and courtesy. A hotel guest is
a customer and unlike a family or social guest, he pays for his stay, food and beverage
consumption at the hotel. Why is he referred to as a guest instead of a customer? The
idea behind referring to hotel customer or client as guest is offering homely as well as
professional service in order to keep him happy and satisfied and make his experience
as memorable as possible. The special treatment of allowing a line of credit for various
services and products offered by the hotel industry gives a special status to the guest of
the hotel. Guest satisfaction is a very relative term. It basically means knowing and
understanding guest needs and then providing them at least to that standard which he
expects.
Guest Classification
Once a visitor or caller is identified as a prospective user of hotel services, he may be
studied under different headings such as:
1. Guests on the basis of status: For example, (i) an expected guest, (ii) an in-house
guest and (iii) checkout guest.
2. Guests on the basis of recognition: Such as, (i) regular guest, (ii) V.I.P., special
attention and distinguished guest and (iii) new guests, and
3. Guests on the basis of revenue: For example, (i) paying guests, and (ii)
complimentary guests.
Types of Guests/Customers
Unlike other organizations and industries where the customers are very specific in nature,
the customer profile in hotel business varies greatly. For example the facilities and services
needed by a sportsman, a honeymoon couple, and a business executive staying at the hotel
would be greatly different, and it is always useful to group customers as per their profile.
1. Tourist/Resort hotel guest : The guests will usually be on holiday and the objective
of their visit will generally be relaxation and enjoyment. They would be looking for
friendly, informal and relaxed services to suit their mood and leisure service and
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facilities such as swimming pool, health club, sports facilities like tennis, golf, water Notes
games, etc.
2. Transient hotel guest : Hotels where the guest does not need to sign a lease and
can register for a day or even less. Generally fully equipped business centre,
convention centres, conference and meeting rooms, audio and visual equipment,
and so on are essential. Mostly this group of hotels are situated downtown.
What Does the Guest Staying in a Hotel Expect?
A guest coming to a hotel expects a unique and attractive property with friendly, courteous
and competent service. He expects clean and well-appointed rooms and public areas as
per the standard, safe quality food with personal touch and safety to him and his
belongings. He also expects trained, skilled and caring staff, good entertainment
programmes, floor shows, etc. He expects TV, radio, and telephone, etc., in the room. He
appreciates hassles free and speedy check in and checkout. Further, some added frills such
as efficient room service, newspaper, wake call, shoe shine, laundry, valet services, car
parking and video films, and so on, are expected by the guest.
The personality of the person coming in contact with the guest is very important.
He should have friendly and positive attitude, i.e., he should be tolerant, willing to accept
the responsibility and should be people oriented. He should be helpful to the guests and
should be in the business with his body and spirit. He should have neat appearance. He
should be courteous and efficient.
Sometimes the guest may make special requests. Special requests of the guest can
be classified into two groups.
1. Equipment needs: Such as roll away beds, banquet table in the guest room, bed
boards, additional blankets, pillows, iron and ironing boards, hair driers, hangers,
special equipment for handicapped guest.
2. Procedural requests: Such as split folio, wake calls, transportation arrangement,
reservation in airlines, hotels and for entertainment shows, cinema and theatre, etc.,
special newspaper, etc.
Some important factors that the guest keeps in mind while returning back to a hotel
are price, cleanliness, good service, facilities, convenience/location, quiet and
private accommodation.
Guest Satisfaction
A hotel guest’s significance can be seen from the fact that all activities and innovations
in a hotel revolve around one term—guest satisfaction. Basically guest needs can be
classified as follows:
1. Physiological needs: Related to protection against heat, cold, rain, etc., in the form
of room and related to his appetite/thirst and special food requirement.
2. Economic needs: Value for money, i.e., is he getting returns worth the value of
money spent by him? How much can he afford?
3. Social needs: Attending functions and gatherings, to meet others, going out with
friends.
4. Psychological needs: Enhancement of self-pride, the need for variety.
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from you. Treat your staff in a friendly and fair way. Do not tell your problems to
your customers; it does not help in building a happy and successful image of your
Notes
establishment.
4. Genuineness: Genuineness cannot be preached and taught. It comes from within
like positive attitude. Wherever possible address the guest by name. Use self-
involvement techniques, such as address the guest by name, and so on. Genuineness
means accepting the guest for what he is without judgement or censor.
5. Customer’s expectation: It is a very important point because normally a customer
dissatisfaction is not related to the actual level of service provided but to the fact
that the customer did not get what he expected and perceived.
The above points are very important in providing psychological service and hence
maintaining good guest relation.
Often in large hotels there is a position called Guest Relations Officer. He/she is
directly under either the Front Office Manager or the General Manager. It is a sales-
oriented position. His job is to create an image of credibility which will go a long way in
building up business, especially repeat client. He is also expected to know the likes and
dislikes as well as complaints of the guest and to keep a record of these. As a part of the
process of maintaining guest relation, the Guest Relations Officers should see that welcome
drink and welcome activities such as pooja, aarti, and applying of tika and garlanding,
etc., is done. Photographs of VIPs are to be taken and published in House Magazine. A
personal check of the room of expected VIP arrivals should be done by the Guest Relations
Officer. Frequent calls to check the comforts of the guest should be made. Complaints
and enquiries and feed back are also very important.
‘Sherman House’ in San Fransico’s Pacific Heights with only 15 rooms is probably
the smallest hotel. It is one of the most elegant hotels in the world and celebrities such as
Jack Valenti, Enrico Caruso, Lillian Russel, Victor Herbert and Jan Paderewski have
patronized this hotel. It provides a host of services such as tailoring and shoe repair, airport
pick up and drops in vintage chauffer driven Limousines, personalized shopping, tour of
wine countryside, chartering of yachts for one day tour with in ‘Golden Gate’.
Key Terms
Hospitality market Guest needs Chalets
Inns Taverns Hostel
Guest satisfaction Choultry V.F.M. Value for Money
(VFM)
Boatels Motels Roatels
Loatels
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Chapter Objective
Based on various criteria, the reader is able to put hotels in various groups, which
is easily understood by a guest. Understands the importance of ‘franchising’ and
is able to identify various type of rooms.
Since the hotel industry comprises of numerous hotels, and they provide numerous services,
facilities and goods, the hotel industry lacks a single identity. Although the basic concept of
hospitality, food and accommodation are same, yet hotels may have different characteristics
and assets and each hotel would like to attempt to cash on its assets and develop its share
of the particular market, and gain more and more recognition because of that asset. Placing
a hotel into a particular group is not easy because of the diversity of services, facilities and
amenities provided or not provided. Most of the hotels do not fit in any specific well-defined
category. Nonetheless, several general classifications do exist.
BASIS OF CLASSIFICATION OF HOTELS
Hotels are classified into several distinct categories to help the prospective guest in
identifying the right type of hotel matching his standard and requirement. However, for
the sake of convenience, we shall put them under four broad categories as given below.
1. On the basis of size.
2. On the basis of star system.
3. On the basis of ownership.
4. Other categories.
SIZE
Classification on the basis of size refers to the number of rooms (bed capacity) and should
not be confused with the building height, or the area of the property, or the gross sales,
etc. The term number of rooms refers to the lettable rooms and does not include those
rooms which are converted for other use such as for manager, housekeeper, accounts,
etc., and rooms on the ground floor and basement which are generally used for offices,
rentals, support services or other operational facilities leased for businesses and
associations.
Usually the distribution is,
(i) A hotel of 25 rooms or less is called a small hotel
(ii) One with 26 to 99 rooms is an average hotel
(iii) From 100 to 299 it is called as above average
(iv) A hotel of more than 300 rooms is classified as a large hotel
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Notes scored by the hotel, the hotel is either approved or rejected for the applied star category.
Approved hotels become eligible for various fiscal reliefs and benefits. The department
interacts on behalf of such hotels whenever necessary to ensure that their needs get
priority consideration.
Eligibility for Star Classification
To be eligible to apply for classification, a functioning hotel must fulfil the following
minimum basic requirements:
(i) The hotel must have at least 10 lettable bedrooms.
(ii) Carpet areas in respect of rooms and areas of bathrooms should by and large adhere
to the following limits:
Failure to satisfy the above conditions will disqualify a hotel for consideration.
or 2 star category is, therefore, required to approach the concerned State Government/ Notes
Union Territory.
Classification Criteria of Star Hotels
The general features, facilities and services expected of hotels in the different star
categories, are broadly described below:
Five Star Deluxe Category
A hotel which applies for 5 star deluxe category has basically the same number of features
as a five star hotel but is superior in quality of service, amenities and facilities, etc., to a
five star hotel’s requirement.
Five Star Category
General Features
The facade, architectural features and general construction of the hotel building should
have the distinctive qualities of a luxury hotel of this category. The locality including the
immediate approach and environs should be of the highest and of international standard
and should be suitable for a luxury hotel of this category. There should be adequate parking
space for cars. The hotel should have at least 25 lettable bedrooms, all with attached
bathrooms with long baths or the most modern shower chambers. All public rooms and
private rooms should be fully air-conditioned and should be well equipped with superior
quality carpets, curtains, luxurious furniture of high standards, fittings, and so on, in good
taste. It would be advisable to employ the services of professionally qualified and
experienced interior designers of repute for this purpose. There should be an adequate
number of efficient lifts in buildings of more than two storeys (including the ground floor)
with 24 hours service. There should be a well-appointed lobby and ladies’and gentlemen’s
cloakrooms equipped with fittings and furniture of the highest standard, adequate parking
space and swimming pool.
Facilities
There should be a reception, cash and information counter attended by highly qualified,
trained and experienced personnel and conference facilities in the form of one each or
more of the conference rooms, banquet halls and private dining rooms. There should be
a shopping arcade and bookstall, beauty parlour, barber shop, recognized travel agency,
money change and safe deposit facilities, left luggage room, florist and a shop for toilet
requisites and medicines on the premises. There should be a telephone in each room and
telephone for the use of guests and visitors and provision for a radio or relayed music in
each room. There should be a well-equipped, well-furnished and well-maintained dining
room/restaurant on the premises and wherever permissible by law, there should be an
elegant, well-equipped bar/permit room. The pantry and cold storage should be
professionally designed to ensure efficiency of operation and should be well equipped.
There should be dancing facility and orchestra in dining hall.
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Notes Services
The hotel should offer both international and Indian cuisine and the food and beverage
service should be of the highest standard. There should be professionally qualified, highly
trained, experienced, efficient and courteous staff in smart, clean uniforms, and the staff
coming in contact with guests should understand English. The supervisory and senior staff
should possess good knowledge of English and staff knowing at least one continental
language should be rotated on duty at all times. There should be 24 hours service for
reception, information and telephones. There should be provision for reliable laundry and
drycleaning service, 24 hours housekeeping at the hotel should also be of the highest
possible standard and there should be a plentiful supply of linen, blankets, towels, and so
on, which should be of the highest quality available. Each bedroom should be provided with
good vacuum jug/thermos flask with ice cold, boiled drinking water except where centrally
chilled purified drinking water is provided. There should be a special restaurant/dining room
where facilities for dancing are also available.
QUESTIONNAIRE FOR 5-STAR CATEGORY HOTEL
Form 5-Star
Government of India
Ministry of Tourism, Department of Tourism
Hotel and Restaurant Approval and Classification Committee (HRACC)
Questionnaire for 5-Star Category Hotel
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Notes (a) Does your swimming pool has its own system for filtration, chlorination and
changing of water?
(b) How often is the water changed?
(c) What arrangements does your hotel have for heating the pool in the winter?
5. Bathrooms 30E
All bathrooms should be modern in design and should be equipped with fittings
of the highest quality available befitting a luxury hotel of this category, with 24
hours service of hot and cold running water. The floors and walls should be
covered with impervious material of elegant design and high-quality
workmanship. It is desirable that sockets for electric shaver should be provided.
(a) Do the bathrooms have sockets for electric shavers?
(b) Do the bathrooms have running hot and cold water for 24 hours?
6. Reception 15N
There should be a reception, cash and information counter, attended by highly
qualified, trained and experienced personnel.
Please state in detail the qualification, training and experience of the personnel
employed at reception, cash and information counters. (Separate sheets provided
at the end of the questionnaire may be used for answering this question).
7. Lobby 10N
There should be a well-appointed lobby.
Please state the area of the lobby.
8. Conference Facilities 10N
There should be one each or more of conference rooms/banquet halls and private
dinning rooms.
Please give the number of conference rooms/banquet halls and private dining
rooms with area of each.
9. Shopping Facilities 20N
There should be bookstall, left luggage rooms, barber shop, recognized travel
agency, beauty parlour, money changing and safe deposit facilities.
Note:
1. There should be a florist in a hotel of 100 rooms and above.
2. A store selling toilet requisites and medicines should be available in the
premise.
(a) Is there a bookstall in your hotel? Yes/No
(b) Is there a left luggage room in your hotel? Yes/No
(c) Is there a barber shop in your hotel? Yes/No
(d) Is there a recognized travel agency in your hotel? Yes/No
(e) Is there a beauty parlour in your hotel? Yes/No
(f) Are there money changing facilities in your hotel? Yes/No
(Continued ...)
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(g) Do you have safe deposit facilities for guests? Yes/No Notes
(h) Is there a florist in your hotel? Yes/No
(i) Is there a store selling toilet requisites and medicines
in your hotel? Yes/No
10. Lifts 10N
There should be an adequate number of efficient lifts in buildings of more than
two storeys including the ground floor, with 24 hours service.
(a) How many floors are there in the building?
(b) How many lifts are there in the building?
(c) Please state their speed and capacity.
(d) Are these available 24 hours?
11. Furnishing of Bedrooms 25E
All guest rooms should be comfortable and spacious and well furnished with
good quality, properly hung curtains, carpets, etc., in good taste.
Note: New hotels are advised to employ the services of professionally qualified
and experienced interior designers of repute in the designing and decoration of
bedrooms.
12. Lighting 10N
Lighting arrangements and fixtures in the rooms/bathrooms/public rooms/
corridors, etc., should be so designed as to ensure aesthetic as well as functional
excellence.
13. Telephones 10N
There should a telephone in each room and telephone for the use of guests and
visitors.
(a) Is there a telephone in each room?
(b) Is/are there a telephone(s) separately for the use of guests and visitors?
(c) How many telephone lines does your hotel have on the switchboard?
(d) What is the maximum number of operators on duty and for how many hours?
Please use separate sheet provided at the end of the questionnaire for giving
the educational background and training of the telephone operators, also
stating their pay scales with allowances.
14. Radios 5D
There should be provision for radio or relayed music in each room.
(a) Is there a radio in each room?
(b) Is there relayed music? If so, how many channels?
15. Vacuum Jugs/Flasks 5N
There should be a vacuum jug or thermos flask with ice-cold boiled drinking
water in each bedroom except where centrally chilled purified drinking water is
provided.
(Continued ...)
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experienced and efficient and courteous staff in smart, clean uniform and the staff coming Notes
into contact with the guests should possess good knowledge of English. It will be desirable
for some of the staff to possess knowledge of foreign language and staff knowing at least
one continental language should be rotated on duty at all times. There should be 24 hours
service for reception, information and telephones. There should be provision of reliable
laundry and drycleaning service. Housekeeping at the hotel should be a plentiful supply
of linen, blankets, towels, etc., which should be of the highest quality available. Similarly,
the cutlery and glassware should be of the highest quality available. Each bedroom should
be provided with vacuum jug/flask with ice cold, boiled drinking water. There should be
a special restaurant/dining room where facilities for dancing, orchestra are provided.
Three Star Category
General Features
The architectural features and general construction of the building should be of a very good
standard and the locality, including the immediate approach and environs should be suitable
for a very good hotel, and there should be adequate parking facilities for cars. The hotel
should have at least 20 lettable bedrooms, all with attached bathrooms with bathtubs and/
or showers and should be modern in design and equipped with fittings of a good standard,
with hot and cold running water. At least 50 per cent of the rooms should be air-conditioned
and the furniture and furnishings such as carpets, curtains, etc., should be of a very good
standard and design. There should be adequate number of lifts in buildings with more than
two storeys (including the ground floor). There should be a well-appointed lounge and
separate ladies’ and gentlemen’s cloakrooms equipped with fittings of a good standard.
Facilities
There should be a reception and information counter attended by qualified and experienced
staff and a bookstall, recognized travel agency, money changing and safe deposit facilities
on the premises. There should be a telephone in each room (except in seasonal hotels
where there should be a call bell in each room and a telephone on each floor for the use
of hotel guests) and a telephone for the use of guests and visitors to the hotel. There should
be a well-equipped and well-maintained air-conditioned dining room/ restaurant and
wherever permissible by law, there should be a bar/permit room. The kitchen, pantry and
cold storage should be clean and organized for orderliness and efficiency.
Service
The hotel should offer good quality cuisine both Indian as well as continental, and the food
and beverage service should be of good standard. There should be qualified, trained,
experienced, efficient and courteous staff in smart and clean uniforms and the supervisory
staff coming in contact with the guests should understand English. The senior staff should
possess good knowledge of English. There should be provision for laundry and drycleaning
service. Housekeeping at the hotel should be of very good standard and there should be
adequate supply of the blankets, towels, etc., of good quality. Similarly, cutlery, crockery,
glassware should be of good quality. Each bedroom should be provided with vacuum jug/
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Notes thermos flask with cold, boiled drinking water. The hotel should provide orchestra and hall
room facilities and should attempt to present specially choreographed Indian dance.
Two Star Category
General Features
The building should be well constructed and the locality and environs including the
approach should be suitable for a good hotel. The hotel should have at least 10 lettable
bed rooms of which at least 75 per cent should have attached bathrooms with showers
and a bathroom for every four of the remaining rooms and should be with modern sanitation
and running cold water with adequate supply of hot water, soap and toilet papers. At least
25 per cent of the rooms should be air-conditioned (where necessary there should be
heating arrangements in all the rooms) and all rooms must be properly ventilated, clean
and comfortable with all the necessary items of furniture. There should be a well-furnished
lounge.
Facilities
There should be a reception counter with a telephone. There should be a telephone or call
bell in each room, and there should be a telephone on each floor unless each room has a
separate telephone. There should be a well-maintained and well-equipped dining room/
restaurant serving good, clean, wholesome food and a clean, hygienic and well-equipped
kitchen and pantry.
Service
There should be experienced, courteous and efficient staff in smart and clean uniforms.
The supervisory staff coming in contact with guests should understand English. There
should be provision for laundry and dry cleaning services. Housekeeping at the hotel should
be of a good standard and clean and good quality.
One Star Category
General Features
The general construction of the building should be good and locality and environs including
immediate approach should be suitable. The hotel should have at least 10 lettable bedrooms
of which at least 25 per cent should have attached bathrooms. Bathrooms should have
western style wc. All bathrooms should have modern sanitation and running cold water
with adequate supply of hot water, soap and toilet paper. The rooms should be properly
ventilated and should have clean and comfortable bed and furniture.
Facilities
There should be a reception counter with a telephone and a telephone for the use of guests
and visitors. There should be a clean and moderately well-equipped dining room/restaurant
serving clean, wholesome food, and there should be a clean, well-equipped kitchen and
pantry.
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Service Notes
There should be experienced, courteous and efficient staff in smart and clean uniforms
and the senior staff coming in contact with guests should possess working knowledge of
English. Housekeeping at the hotel should be of a good standard and clean and good quality
linen, blankets, towels, etc., should be supplied. Similarly crockery, cutlery and glassware
should be of good quality.
Heritage Hotel Category in Rajasthan
The Department of Tourism has introduced a new category of ‘Heritage Hotels’ in
Rajasthan, which is proposed to be extended to other states in due course. It covers
running hotels in palaces/castles/forts/havelies/residences of any size.
The guidelines for this additional new category in Rajasthan and application form
for this particular star category (applied for Heritage Hotel category in Rajasthan) can
be taken from the Member Secretary, HRACC, Department of Tourism, Government
of India.
REGULATORY CONDITIONS FOR APPROVAL OF HOTEL PROJECTS
All hotels approved by the Department of Tourism are required to furnish the following
information.
1. The hotel will furnish documents relating to its legal status, i.e.,
(a) If the company is incorporated under the Companies Act, a copy of its
Memorandum and Articles of Association.
(b) If it is a partnership firm a copy of the partnership deed and the certificate of
registration under the partnership Act.
(c) If it is a proprietary concern, name and address of the proprietor, etc.
2. The hotel will submit the following information to the Director General, Department
of Tourism so as to reach on or before 31st May each year for the preceding financial
years:
(a) A bank certificate in regard to foreign exchange deposited by the hotel.
(b) Total bed capacity offered by the hotel as under:
(i) Single rooms:
(ii) Double rooms:
(iii) Suites:
(c) Number of rooms occupied on a permanent/semi-permanent basis by residents/
staff/offices, etc.
(d) A specimen copy of the current tariff card.
(e) List of the names of the following officers with their designation, experience,
etc. (department wise).
(i) Senior executives
(ii) Junior executives
(iii) Other staff
(f) Total number of persons employed, indicating separately the number of Indian
and foreign staff.
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Notes (g) Annual report of the hotel and a statement showing the audited balance sheet
and profit and loss account within 4 months of the close of the financial year.
(h) Statistical returns in regard to the number of guests, rooms, occupancy, income
and employment on regular basis as prescribed by the Department of Tourism
from time-to-time. Release of exchange, issue of import licences, grant of
approval for fiscal benefits including income-tax relief, and so on, will be cleared
only if the concerned hotel has submitted updated statistical returns.
3. The Regional Director/Director/Manager of the Government of India tourism offices
of the region and the Director General, Department of Tourism should be kept
informed from time-to-time of facilities introduced or withdrawn and of any additions
or alterations made in regard to the bed capacity of the hotels.
4. The hotel tariff should be fixed in consultation with the Department of Tourism.
Prior approval of the Department of Tourism should be obtained for any revision of
hotel rates. The hotel tariff should be prominently displayed in each room. This card
shall also indicate sales tax, service charges, etc.
5. Normally, no rooms will be let out for purposes other than residential. However, with
the prior permission of the Department of Tourism not more than 10 percent of the
rooms in a hotel can be let out to any person or company for residential or commercial
purposes.
6. Any licence and/or approvals required from the local administration/police and or
other concerned authorities for the construction/operation of the hotel should be
obtained directly by the promoters from the concerned authorities. The approval
by the Department will not in any way substitute for them. The Department’s
approval will be deemed to have been withdrawn in case of violation of this condition
when brought to its notice.
7. In the event of the promoters making any changes in the plans of the project as
submitted earlier, the approval of the Department will have to be applied for afresh.
8. In case the hotel is required to provide guides for tourists, only approved guides of
the Department of Tourism should be employed.
9. The hotel should at all times adhere to the high standards of maintenance and services
for which it has been recognized and in all dealings with its guests observe business
practices worthy of an establishment of repute.
10. Officers of the Department of Tourism or any other officer deputed by the
Department to inspect the hotel premises from time to time will be allowed free
access with or without prior notice.
11. As a project which has been approved from the point of view of its suitability for
foreign tourists, the promoters will be entitled to grant of loan from Central/State
financial institutions and priority in the procurement of building material, telephone
and telex connections, etc. However, this approval should not in any way be
considered as an assurance for the grant of these facilities since this would fall
within the jurisdiction of the concerned authorities.
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Notes between the owner and the operator and usually as per the contract
• Owner retains the legal and financial responsibilities.
• Operator pays for the operating expenses and recovers from the owner an agreed
upon fees.
• Owner is responsible for paying taxes, insurance and debts.
3. Chains
There are many single owned hotels, yet more and more hotels and motels are now getting
affiliated to each other. This gives them the advantage of a large central organization
providing reservation system, management aids, financial strength, expertise, manpower
specialities, merchandises and promotional help.
Affiliation
(i) Two or more operations belonging to some organizations; for example, Holiday Inns,
Ramada, Sheraton Corp., Trusthouse Forte, Hilton Corp., Howard Johnson,
Balkantourist, Day Inns, Travel Lodge, Intercontinental Hotels, Hyatt, Marriott Corp,
etc. Within one chain the type of affiliation may vary.
(ii) A ‘Referral Chain’ is made up of independently owned and operated hotel and motel
and provides shared advertisement, joint reservation system and standardized quality.
Virtually no shared managements or financial functions.
(iii) Another chain operation is ‘Multi-Unit Company’ usually with a head office and
several operations across the country and abroad.
Concept of Franchise
The word franchise means that one company ties up with another company, taking help
of the other company to run a business. It is a method of distribution where by one
property that has developed a particular pattern for doing business gives the benefit to other
properties. Further, francise can be called as system of distribution in which the francises
owner grants another the rights or privalages to merchandise the product or services for
specified returns. The most important benefit is of belonging to one already known group.
Franchise is a system in which the franchise owner grants another the right or
privilege to merchandise a product or service for a specified return.
Franchise Agreement
It is an agreement under which the owner operates as a member of the chain, utilizing
the brand image, name, goodwill and obtaining for a certain fee some services of
marketing and operating nature support from resources of a large organization,
advertising, sales promotion, technical and financial help, etc. The franchise can be
described as the selling by the franchiser of the right to market a proven product. Hence,
major franchisers in hotel and motel business first established the quality of their product
and their expertise in the field by operating company owned properties and only after
demonstrating the success of their properties were they able to make their franchises
marketable packages. Banks and lending institutions look with favour on the better
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known franchises, and are in fact reluctant to make time to potential investors, unless Notes
an affiliation with a referral organization has been established.
The most successful franchiser in the hotel industry is Holiday Inns. Other successful
organizations in the field of franchise are Hilton, Marriott, Howard Johnson, Ramada
Inns, etc.
Franchising must be looked at as a two-way benefit scheme. The franchiser provides
certain services, and conveys certain rights to the franchisee and the franchisee has in
turn certain obligations to the franchiser. For uniformity franchised units are generally
standardized. Constituted to a specific standard of furniture and decor specification, fitting,
fixture and equipment specification. Site selection and feasibility and appointment of
architect.
Franchise Services
The franchiser provide services in 3 general categories: (i) Methods and Systems,
(ii) Technical Assistance, (iii) Marketing Methods. (Active selling chain benefits.
Reservation tie ups on payment of marketing fees).
(i) Methods and Systems
(a) Proven systems and established operating procedures of a franchiser are
provided to a franchisee in the form of operating manuals are given. These
manuals cover each phase of operation and must be updated constantly.
(b) Training programmes and sessions conducted by the franchiser to the employees
of the franchisee.
(c) Based on their study the franchiser recommends how to cut down on pay bill
reduction of operating cost on food and beverage, purchasing, equipment, etc.
The quality of food and beverage preperation and service should be discussed
and advice should be given about marketing techniques.
(ii) Technical Services
The franchiser provides various technical assistance in various forms such as
assistance during development and construction phases, study of potential sites and
its selection in obtaining finances by introducing the financers to the franchiser, making
of capital budget, feasibility studies, architectural services, purchasing services
(crockery, cutlery, furniture, equipment, linen, glass ware, and consumables, etc.)
These may be provided for a fee (which may be consolidated or separate for each
service).
(iii) Marketing
Marketing techniques, name of the franchiser and its goodwill, logo, signs reservation
system marketing, advertisement programmes benefits (joint advertisement
campaign) with the franchiser, marketing packages, regional sales offices at strategic
points, logo and signs appear on crockery, cutlery and napkins, etc.
Obligations of Franchisee
(i) Definitive standard (which define physical characteristics), for example, size of
room, size of beds, type and number of furniture, T.V. VCR and VCD, etc., and
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Notes (ii) Operational quality standard such as cleanliness, behaviour and attitude of staff,
politness of staff, quality of service, tariff, frequency of changing of linen, use of
identity items (stationary items bearing the name and logos)
The franchisee is required to maintain both the above types of standards as per the
franchiser’s requirement.
Franchise Costs and Fees
(i) Payment of an initial fee which is non-refundable in the event of the termination of
agreement due to the action or as a result of violation by the franchisee. It is based
on number of rooms.
(ii) In addition to the initial fee a monthly fee is also payable to the franchiser.
(iii) Royalty based on room sales, advertising fees, reservation fees, training fees etc.
Methods of Computing
(i) Fixed monthly fee
(ii) Fixed monthly fee plus an amount per reservation originating from reservation
system
(iii) Percentage of room sales
(iv) Percentage of total sale
(v) Fixed rupee amount per available room
(vi) Fixed rupee amount per occupied room
A combination of two or more of these is also possible.
The franchiser rent on a monthly basis the principal sign, identifying the hotel as a
member of the chain rather than selling it outright.
Some Common Requirements for Franchise Membership
z Minimum number of rooms required
z Architectural design in conformation to the franchisor’s head office specification
z Scrutinization of location (checking and rechecking) before giving franchise
z Certain services must be provided (which are decided by the franchiser)
z Centralized training programmes for management
z Highest calibre establishment in its category
z Certain standards regarding maintenance, operations, staffing and services.
Some Benefits of Franchise System
z Feasibility study
z Opening assistance
z On the job training (OJT) for staff
z Accounting services
z Advertising
z Central purchasing (raw material, equipment, furnishing and linen, etc.)
z CRS benefits
z Financial assistance
z Discount on services and supplies
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Notes or even more. This group of hotels is called residential hotels. Guest usually do
not pay on daily basis in this type of hotels. The guest of a purely residential hotel
must sign a lease which is a mandatory requirement that describe in details the terms
(including the rent which may be on week fortnightly or monthly basis) or duties
and responsibilities of both the guest and the hotel. In other words the lessor and
lessee, and both the parties have to honour the lease in its full respect.
The third group under the classification is of those hotels which incorporates the
features of both the transient and residential hotels which means that in addition to
taking guests on transit basis they have some rooms for housing guests an permanent
basis, (i.e.,) on lease basis also. This type of hotels are called semi-residential
hotels.
4. In Europe star classification by Automobile Association (AA) is often regarded
as an accepted mark of quality like in India and stars five to one are awarded.
AA Rosette are also awarded in certain cases which depend upon specially
recommended food. For example:
Single Rosette: Food standard higher than expected of the hotels of their standard.
Double Rosette: Much higher food standard than expected of the hotels of that
standard.
Three Rosette: Outstanding standard food than expected of the hotels of that
standard.
5. According to Guide Michelin symbols as follows are used—
Best hotels 2nd 3rd 4th 5th
6. In some of the European countries hotels are classified according to the standard
as deluxe, first class, second class, third class and fourth class also. Another
way of categorization in UK is as deluxe for best, first class for second grade,
middle class for third grade and moderate class for fourth and fifth grade hotels.
7. Residential Hotels
Residential hotels are also called as apartment hotels or apartment house. Room in
a residential hotel are sold on a monthly or yearly basis. Rooms may be furnished
or unfurnished, single or en suite. Almost all residential hotels operate a restaurant,
offer telephone service, laundry and valet service. Advance rents are usually
collected while other charges are billed weekly. These type of hotels normally operate
on European plan. Recent developments in this area include cooperative hotels and
condominiums in which the tenants own the apartment and pay the management a
fee for maintenance. When the rooms are not occupied by the owner the
management often has the right to rent them on temporary basis, so that the hotel
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will contain both residential and transient guests. They are also called as ‘en Notes
pension’. Such establishments are very popular in the US and Europe. Long staying
guests generally stay from months to year and rent may be paid per week or per
month. Facilities are less than that of commercial hotels.
8. Semi-Residential Hotels
These hotels provide accommodation to guests on weekly or monthly basis like
residential hotels as well as on per day basis like transient hotels. Reduced rates
are provided to long staying guests. Transient guests who want to take the advantage
of reduced rates for longer stay also come to such establishments.
9. Transient/Transit Hotels
Hotel guests who fall under the category of transient guests are those who are en
route guests, i.e., who are in the process of moving from one destination to another
and stop at the hotel for a short period of time as against a terminal guest who has
reached his final destination. Hence hotels, which cater to a transient/transit guest
are called transient hotels. They find their origin in olden days inns. Examples of
transient hotels are motels, motor hotels, airport hotels, etc. The rates of rooms are
fixed on ‘per diem’ basis. In large cities, they operate on European plan generally
while in small towns they may operate on American plan. The olden days
establishments such as theatrical hotels popular in rural areas are also included under
this heading. Transient hotels, such as airport hotels attract its clientele from layover
passengers and crew members of the airlines. Such hotels are situated generally
near port of entry, i.e., airport or seaport, or international bus terminal, etc. Generally
the length of stay is short, i.e., few hours to few days.
10. Resort Hotels
Resort hotels are located at resort places such as islands, exotic locations, hill
stations, beaches and health resorts and spas, i.e., summer resorts, winter sports
resorts and all season resorts, etc., with breathtaking beauty and typical scenery.
People go to these places for relaxation, to enjoy themselves, and to get away from
the hectic city or for health reasons away from hectic city life or to pursue a specific
interest/activity. Depending upon the location specially designed activity programmes
are made. In order to get close to or communicate better with guests the Resort
Hotel Manager must ‘Throw off the uniform and join in the fun’, for example, eating
in the same dining room is one way of making sure that management and guests
are likely to meet, share food and appreciate the old hotel cliche of ‘being there’
for the guest. This should be reinterpreted as ‘being with’ as opposed to simply
there. In Resort hotels guests develop patterns of behaviour, and it is for the
management to organize the staffing schedule to concede with those patterns. The
manager who sits with guest in lobby for say half an hour is in fact not wasting his
time but is also working as hard as another manager who is sitting in office and
doing other organizational job. A resort manager, along with other office job, should
focus upon meeting and greeting guests. Getting close to the guest can be achieved
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Notes by arranging formal get together parties may be once a week with all managers in
attendance. The focus should be on practical communication methods to enhance
the guest stay in the hope that they will become a much appreciated ‘Repeat Guest’.
Creativity is critical to the success of the hotel. An entertainment menu that is
sensitive to the needs of various market segments coupled with ideas to reinforce
the status of a repeater, e.g., the planting of small trees with the guest name and
address printed on a plaque beside it can provide final touch.
Generally, a guest stay is long, such as a week or more and normally holidaymakers,
sportsmen and patients who have been advised by doctors go to the resort hotels.
In resort hotels, such as hill resort hotels, business is dependent on season and they
have off season and full season tariff. Resort hotels have homely and informal
atmosphere. No dress code is required; more social contact with guests, lot of
entertainment items such as housie, beauty contest, floor shows, cabarets, fancy
dress parties and stage shows, etc., are popular. In addition recreational facilities
like table tennis, badminton, golf, water games, etc., can be there. Growth of resort
hotels in the US took place due to vast highway construction programmes, as more
people started travelling by cars. Many resort properties are at Florida, California,
Arizona, Michigan, Wisconsin and Carolina, etc. Resort hotels are not very popular
in India because of various causes, the main reason being highways are not very
well developed in India. Fuel for cars is very costly, automobile industry is not as
developed as in Europe and America and, most important, people are not so rich
and do not have as much spare and leisure time to enjoy.
Resort hotels have facilities like
(i) Extensive entertainment program
(ii) Tennis court, golf course with trainer
(iii) Saddled horses with trainer
(iv) Car parking and garaging and service facilities
(v) Mini golf course, squash, billiards, etc.
11. Commercial Hotels
Commercial hotels are situated in the heart of the city, i.e., downtown busy
commercial areas and urban areas. Mainly businessmen and commercial executives
patronize these hotels. Generally duration of stay is a few days only and weekend
business is slack. Best possible facilities of high standard are provided in commercial
hotels. These days, business centre in a commercial hotel is a must. They must
have services like facilities to meet the basic business demands, swimming pool,
speciality restaurant, bar, disco, 24 hours room service, health club, etc. Commercial
hotels are sometimes also called downtown hotels. In addition to businessmen these
hotels also accommodate tour groups small conference groups, and individual guest.
12. Suburban Hotels
Suburban hotels are situated in suburbs, with quiet surroundings. They have moderate
to low tariff and are generally patronized by budget guests.
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tune with the theme. ‘Guest needs understanding’ is the highlight of this type of Notes
hotel.
28. Level of Service
America hotels are also classified on the basis of range of services provided by the
hotels to their guest. The size of the hotel does not matter in this case. Hotels under
this group are usually classified into 3 groups (a) Full range or world class service
hotels which provide all possible services and can be compared to a five star or a
five star deluxe hotel, (b) Mid range service hotels which can be compared to a
3–4 star hotel and (c) Limited service or an economy hotel which may be compared
to a one or two star hotel of India.
29. Conference Hotels
These are hotels which are specially designed to accommodate group meetings.
Most full service hotels of this category offer overnight stay facilities to the
conference delegates to make the meeting a success. They also provide extensive
leisure facilities, such as golf course, swimming pool, fitness centre, jogging and
hiking facility and may be spas also. They may usually operate on special tariff for
group such as an all inclusive tariff which include room, meals, meeting room, audio
visual and other related services. Taj palace in New Delhi is an example of
conference/convention centre.
30. All suite hotels
It is a relatively new concept in which the guestroom, of the hotel are with living
room or parlor. These rooms sometime have a small kitchnette, a refrigerator and
a sink for washing of dishes. The clientelee of such hotels are business people,
vacationers and professionals such as accountant and lawyers, etc. People are more
attracted to such hotels as they get two rooms instead of one and can work and
entertain in an area which is seperate from bed room. Usually such hotels provide
complimentary continental breakfast.
TYPES OF ROOMS
One of the most important knowledge that a salesman should have is the ‘Product
knowledge’. Similarly, it is very important that all those involved in selling/booking of rooms
such as reservation section staff and front desk staff and also the marketing and sales
division staff has full and comprehensive knowledge of rooms which they are trying to
sell and their availability and non-availability position. They should know what are the
various types of rooms, their location and situation, and also the features of the rooms—
can extra beds be provided in the rooms or not, facilities such as TV, mini bar, telephone,
bedside lights, and so on, in the rooms. Also knowledge of the room rates and plans which
the hotel is operating on is important. Given below are some typical rooms that the hotels
have:
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Single-Bedded Room
2. Double room
Double room term refers to a room which has a double bed and provides sleeping comforts
for two persons. A double bed is a large bed. The size of a double bed is generally
6' × 6'.
Double-Bedded Room
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Twin-Bedded Room
4. Interconnected rooms
These are rooms which are connected to each other. They have a common wall and a
door in the common wall to go from one room to another. They can be used for a family
by opening the connecting door as well as can be given to two separate individual persons
by closing the common door.
5. Triple room
This room offers sleeping accommodation facilities to three persons and has either a
double bed (or two-twin beds) and an extra bed in it.
6. Quad
This room provides sleeping accommodation for 4 persons and accordingly has four beds.
7. Double-double
This type of room has two double beds in it and provides sleeping comforts for four
persons, such as a family of husband, wife and two children. Also called a family or twin
double room.
8. Suite
The term suite refers to a set of two rooms out of which one is a bedroom and the other
is a sitting room or living room. For going from one room to another the use of corridor
is not required. Suite is a costly room of the hotel. There are various types of suites such
as:
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Notes (a) Single suite: It is a single room with a sitting room attached to it and meant
for one person’s sleeping comfort.
Single Suite
(b) Double suite: It is a double room with a sitting room attached to it.
Double Suite
(c) Junior suite: A large room with a partition separating the bedroom furnished Notes
from sitting area.
(d) Duplex suite: This type of suite has two rooms on two successive floors and
is connected to each other with a common staircase. Generally the sitting room
or living room is situated on a lower floor while the bedroom is on the next floor.
This is one of the costliest accommodations of the hotel. (Please notice the
staircase going from sitting room to bedroom in the photo below).
Duplex Suite
(e) Penthouse suite: Very luxurious suite of the hotel and is situated on the terrace
of the building. Mostly hired by top executives of companies, businessmen,
famous writers, film personalities and sometimes by retired people who want
peaceful life. These are away from the hustle and bustle of the hotel.
(f) Luxury suite or deluxe suite: These are the best possible suites that a hotel
can have. May have more than one bedroom, along with a sitting room. Also,
sometimes these may have a small kitchenette and a small dining room, a
changing room and an office room attached to them. The best possible furnishing
and decoration are used in these rooms. The bathroom attached will also have
the best possible sanitary fitments in it. These suites can be given exclusive
names such as Presidential suite, Maharaja suite, etc. Additional facilities that
may be provided are: (a) mini bar, (b) objects d’art, (c) valet service, etc.
9. Studio rooms
These are rooms which are called multi-utility rooms also. They have utility furniture
such as sofa-cum-bed, sofa convertible-bed, Murphy bed, closet bed or roll-away beds.
The furniture is such which is used for sitting purposes during the day and for sleeping
during night.
Notes
Closet Bed
Notes
Murphy bed
A dual sleeping-living facility, ideal for the business person who uses the
room as an office.
– At Arizona’s four seasons Resort Scott Star Charts are placed in rooms at Notes
turndown to enable guests to identify the constelations visible in the vast skies
over the Sunoran Deserts.
Hotels are also changing in character and operational style. More and more
automation in services provided are taking place. Way back in 1971 Hotel Schipol Frommer
in Holland was designed with self-operated room facilities and this helped in reducing
the staff and guest ratio to 0.04:1
Another important point worth mentioning is that the age long distinction and
difference between accommodation at hotels and hospitals is also getting blurred. Many
modern private hospitals abroad and in India provide individual room facilities comparable
and at times even better than a 5 star hotel room.
Another growing concept these days is of self-financed accommodation. With
increasing affluence and improvements in travel and access facilities the trend in recent
years has been towards the purchase of holiday accommodation such as apartments,
chalets, villas, farmhouses, etc. The development of high proportion of self-owned
properties has certain disadvantages. Apart from low percentage of occupancy local
employment and other benefits to the community are poor.
Service Apartments: A New Trend
As an alternative to hotel accommodation which are becoming costly day-by-day, most
visitors are looking for facilities that provide a home like ambience. A number of real estate
developers and hospitality providers are coming up with new concept of service
apartments— a growing segment of Indian hospitality sector. The concept which initially
started from Mumbai and Bangalore is now becoming popular in Delhi with apartment
like Avlon, Silver Oaks, Vasant Apartments, Hillview and Residency USI. A service
apartment is a fully furnished studio or two to three room unit with a small pantry with
housekeeping maintenance services, utility charges, fridge, microwave, heater, telephone,
air-conditioner and other such facilities. Also provides valet service, a cook, a kitchen (for
home-like food) and a chauffeur driven car. Usually they are rented on weekly/monthly
basis. They make long staying guest feel at home. This is a niche sector and has
tremendous potential. Since they are economical, service apartments are a home away
from home for families and transients in city for a week or more. They help avoid tiresome
transactions required to lease flats. Presently, these service apartments are catering
basically to NRI’s, foreigners and corporate clientele. They usually provide larger living
space at economical price. Apart from the above mentioned service apartments of Delhi
some popular ones are Lake Side Chalet, Mumbai; Home Stead, Bangalore; Tara Niwas,
Jaipur; Riviere Heights, Kochi and Sand Pebbles, Goa.
‘SPA’ development in India, basic concept of SPA is a place of relaxation and
rejuvenation for people, who are ill Evian is France is a very famous SPA. However,
with the change in time the SPA of today is a place for keeping the body fit and healthy
not only though fitness centre but also supplemented by nutritionally balanced food. In
this direction many SPA have come up. To mention few are Sanjay Khan a famous actor
Notes has built one on the outskirts of Bangalore. Hotel Crown Plaza Surya has launched a
fitness and SPA at there health club Grand Hyatt’s Oasis SPA has also become
operational. A health SPA called ‘Anand’ has been made in Rishikesh.
SPA prove essentially uses of therapeutic and physical properties of water therapy to relax
tense bodies and minds, some of the centres in South India combine Ayurvedic massages
with essential oils and also use aroma therapy.
Number of room in some popular hotels
Ashok 550 Maurya 516
Hyatt 508 Le Meridean 355
Taj Mahal 296 Oberoi 287
Radisson 256
Key Terms
Heritage hotels Retirement hotels Rosette classification
Franchise Boutique hotels Holiday villages
Condominiums Quad Green hotels
Efficiency room Apartotel Lanai
Murphy bed Roll-away bed Object d’art
Auberge Gastoft SPA
Chapter Objective
The reader is able to plan organizational structure and develop organizational
culture for hotels of various sizes and standards and is able to orient, motivate
and train human resource to the maximum benefit for both the hotel as well as
employees. Also understand the importance of the first and last contact area of the
guest with the hotel and is able to plan and design the lobby.
INTRODUCTION
However small, no hotel business can be operated by a single individual and hence the
hotel is always a product of organization of two or more persons. A guest coming to the
hotel is interested in professional and efficient delivery of service and good quality product.
He is interested that the receptionist who receives him should be well mannered, the bell
boy who carries the luggage should be courteous, the room in which he is going to stay
should be comfortable and the food that he is going to eat should be delicious and nutritious.
He does not have to visualize the complexities involved in the day-to-day working of the
hotel and that a well coordinated staff network is needed for it.
Organization is a concept and hence defies a definite and unanimously acceptable
definition. Many organizational theorists have defined organization as per their own
concepts. As per one definition, ‘Organizations are social units (or human groupings)
deliberately constructed and reconstructed to seek specific goals.’
Organization is an activity process that provides mechanism or apparatus for the
purpose of integrated and cooperative action by two or more people with a view to
implementing any plan.
Organization involves division and subdivision into departments, sub-departments
and sections.
Organization means the process of understanding the job, dividing the job into small
components, grouping responsibilities and authorities among staff, establishing relationships
in the activities and staff for the achievement of a common goal. In other words, the
division of activities covers:
(i) Identification and determination of activity in totality,
(ii) Division and grouping of activities and
(iii) Assignment of tasks or jobs to both managers and operators.
As per Pfiffner and Sherwood, organization is ‘Pattern of ways in large number of
people, too many to have intimate face-to-face contact with all others engaged in a
complexity of tasks relate themselves to each other in the conscious, systematic
establishment of mutually agreed purpose.’
Notes According to Amitai Etzioni, ‘Organizations are social units (or human grouping)
deliberately constructed and reconstructed to seek specific goals. Corporations, armies,
schools, hospitals, churches and prisons are included: tribes, classes, ethnic groups,
friendship groups, and families are excluded. Organizations are characterized by (i)
Division of labour, power and communication, responsibilities divisions, which are not
random or traditionally patterned, but deliberately planned to enhance the realization of
specific goals; (ii) the presence of one or more power centres which control the goals of
concerned efforts of the organization and directs them towards its goals, these power
centres also must review continuously the organization’s performance and repattern its
structure, where necessary, to increase its efficiency. (iii) Substitution of personnel, i.e.,
unsatisfactory persons can be removed and others assigned their tasks.’
Nature and Scope of Organization Analysis. Organizational analysis, or the study
of organizations is of recent origin and adopts multidisciplinary approach as its method
of study. Sociology, economics, political science, psychology and public administration
are some of the disciplines which are involved in the analysis of organizational functioning
i.e., the working of a large number of persons towards achieving the goals. We can say
that organization denotes the coming together (or brings up together) of a large number
of people with a view to achieving the given goal. These individuals are required to work
in groups. In addition, the individuals form their own groups. Thus, we have organizations,
individuals and formal and informal groups. The behaviour of groups and individuals as
also the functioning of organization depends very much on environment within which the
organization, the individual and the groups operate. Hence, organizational analysis consists
of the inter-relationship among these broad variables. Organization, ondividual and groups,
and their efforts at having the best possible balance between, and among the different,
and at times conflicting interest of theirs.
In other words, organization is the process of communication and coordination
between different segments of a company, concern or establishment, enabling the
management to get the maximum use of its resources thereby satisfying customers of
its products and professional services.
IMPORTANCE OF ORGANIZATION
It is the foundation for building hotel management structure and the evolution of all form
of life of human society show the need for organization.
It is the mechanism that enables living things to live and work effectively and efficiently
together and hence organization may be called as the arrangement of personnel and
assignment of duties and responsibilities to them so the entire establishment functions as
one unit. It is important that there are clear lines of authority and effective lines of
communication.
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ORGANIZATION CHART
All organizations require a formal structure to meet their mission and objectives. A
common way to represent that organization chart is a schematic representation of the
relationship between positions within an organization.
An organization chart is an illustrative presentation of the grouping of responsibilities
and of some of the authorities and relations that arise among certain groups like managerial,
supervisory and specialists. Such a chart may represent either position titles such as
production manager, service manager, marketing and sales manager and finance manager,
and so on, or functions such as production, service, marketing and sales and finance,
etc. Organization charts range from very simple drawings which merely outline the
structure of major units to complex drawings which attempt to include all minor units as
well as which purport to show minor variations in the levels of authority, cross relationship
amongst departments and sometimes other features.
According to Pfiffner and Sherwood when the relations between different jobs and
positions are represented as a capsule and abbreviated representation is given then it is
called organization chart and according to them there are three main types of
organizational charts.
1. Skeleton chart
A graphical presentation of the hierarchical framework. It contains principal sub-units.
These are arranged in levels of hierarchical status connected by lines suggesting the
different types of authority. The line of communication is usually indicated by a solid black
line, while a broken or hatched line represents staff or functional relationship.
2. Functional chart
Functional charts usually apply to sub-units showing smaller breakdowns into divisions,
units or sections. Sometimes, they go down far enough to depict every first line supervisor.
Boxes are made to write down duties, activities or functions of that particular sub-unit
executive or supervisor.
3. Personal chart
It is of the same graphic design as the functional chart but the boxes contain personal
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Notes information. This may consist of the job title of the supervisor and each subordinate and
in some cases the names of the incumbents are listed. Sometimes, the authorized personnel
are compared with the actual personnel on a given date.
Uses of organization chart
(i) Gives a bird’s eye view of the organizational structure.
(ii) Indicates line, (direct) staff (lateral) and functional relationship and any
misunderstanding can be cleared.
(iii) Shows channels of communication and are useful in training new employees.
(iv) Indicates the various job positions and levels of management.
(v) Line of responsibilities and authority made definite and formal.
Job analysis
A job is a collection of tasks, duties, responsibilities which as a whole, is regarded as the
established assignment to individual employee. Job analysis is a procedure by which the
facts with respect to each job are systematically disovered and noted (also called as Job
study). It suggests the care with which task processes, responsibilities and personnel
requirements are investigated.
The job information provided by job analysis is used in
(i) Organization and integration of the whole workforce and in organizational planning
(ii) Recruitment, selection and placement
(iii) Transfers and promotions
(iv) Training programmes
(v) Wage and salary administration
(vi) Settlement of grievances
(vii) Improvement of working conditions
(viii) Setting production standards
(ix) Improvement of employees, productivity through work simiplification and
methods improvements
The purposes and uses to be made of job analysis determine the procedure to be
followed in the job analysis programme with respect to each job. Job analysis seeks to
discover
(i) What the worker in the job is expected to do.
(ii) How the job is performed.
(iii) Skills required for effective performance.
(iv) Job relationships.
Disadvantages and limitations
(i) Compartmentalized thinking
(ii) Only a limited picture is given
(iii) Not easy to keep up-to-date
(iv) Shows relationships which are supposed to exist but may not exist in reality.
(v) It may cause status problems by showing someone as subordinate (inferior) to
someone else. These problems may be overcome by charts made in inverted Notes
order, i.e., by placing the top at the bottom, or by horizontal charts or putting it
into a circle.
DEVELOPMENT OF ORGANIZATION CULTURE
Reward management
(Reinforcing the culture)
Notes
Banquet Saucier Poissionier Patisseur Legumier Garde Rotisseur Breakfast Tournant Staff Indian
chef Boulangier manger cook cook cook
LOBBY Notes
The atmosphere, decors and the staffs are suggestive of what the guest is going to get
on his visit to the hotel. Lobby should be spacious but not wasteful. The natural flow of
guests should be towards the reception/information counter on their arrival in the hotel.
Sufficient space should be in the lobby for short time keeping of luggage in the lobby before
either sending them to room or to the car.
The lobby of the hotel includes general circulation and waiting area which lead to check
in, information and cashier’s counter and also to desks such as concierge, bell desk, travel
counter and elevators, etc. Front office is situated in the front of the house, i.e., the lobby
of the hotel. This area is controlled by a senior front office official called lobby manager
whose counter is also in the lobby. The shopping arcade may also be either in one part of
the lobby or near the lobby. The various restaurants, and other food and beverage outlets
may also be reached through the lobby. Location of cloakrooms and washroom for public
are also in the lobby. It usually serves as a gathering point for guests and their visitors.
Since all guests and visitors to guest staying in hotel first pass through this area, it must
be very well planned, designed and decorated from inside and outside to give the first
impression to the guest. The reception desk is in the lobby and should be so located that
it is in clear view of the guest entering the lobby of the hotel. Another important point is
that in addition to the entry from the porche or drive-in, there must be an entrance to lobby
from the car parking area which usually is in the basement. Also the front office staff
should be able to oversee the activities in the lobby, entrance, exits, elevators, shops, and
so on, and if possible, the dining area and restaurant. Lobby of a large hotel is also required
to accommodate travel desk, G.R. office, the lobby manager’s desk, bank counter and
public as well as house telephone booths.
Size of Lobby
The size of the lobby depends upon the size and type of the hotel. The lobby should be
spaciously designed, of course without wasting any valuable space. Cocktail lounge can
also be made in the lobby. Principles of space management should be followed while
designing the lobby. Avoid pillars as far as possible as they obstruct the view and may
create problem in the movement. The lobby in some hotel is used as a feature around which
whole activity of the hotel takes place. It may form a part of an atrium extending the full
height of the building and containing garden landscapes, exhibition space, displays, etc.
It should provide relaxing atmosphere for guests and their visitors. The structural layout
of the building also plays an important role. The systems used, such as manual, mechanical
or automatic will also be important while deciding the size of the lobby. If pillars are to be
used to give support to superimposed floors, then they may be made multifunctional by
arranging service ducts through them. Also they may be used for display of items such
as jewellery and other small but expensive items. The lobby of the hotel is subject to
continuous traffic following route of circulation from the entrance to the front desk, to
staircase, and elevators leading to guest rooms and public areas. Proper and regular
maintenance is very important to avoid any loss of goodwill and shabby looks of lobby.
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FRONT OFFICE OPERATIONS
Notes
A Hotel Lobby
The selection of finishes including floors, walls, doors, furniture and counter, and so on,
should have a high degree of permanence and be able to withstand wear and tear likely
to be in the lobby because of use for 24 hours a day. The selection of material used and
furnishing and finishing used should be in harmony with the theme and design of the hotel.
While selecting the material to be used for the construction of lobby the points, such as
extent of traffic, i.e., man and secondary circulation paths and nature of traffic, i.e., foot,
trolley, etc, carry over of dirt and dampness, should be considered. Also factors such as
marking (scuff marks from shoe soles, etc) appearance and the maintenance and cleaning
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of the material used should be considered before selection. Further, factors, such as cost, Notes
safety and noise created should also be considered. Various flooring material such as
marble, tiles of mosaic and slate etc., wood, cement and granite, etc., can be used. Carpet
can also be used to cover cement floor but wear and tear is very great in this case. Walls
must be very well maintained. Material used can be bricks, stones and cement, etc. Colour
of paint or distemper used must be in harmony with the colour of material such as counter
and furniture, etc. Ceiling of the lobby and its height is also important. It should give the
impression of spaciousness. As far as possible maximum utilization of natural light and air
should be done for lobby planning. The ceiling of the lobby may be made the focal point
of the lobby, for example, the lobby ceiling of Kanishka Hotel in New Delhi has a matching
painting and similarly the lobby ceiling of Maurya Sheraton, New Delhi, has a painting
matching with the name of the hotel. The design and shape of lobby such as flat or dome
shape should also match the architectural theme of the hotel.
HOSPITALITY DESK
The hospitality desk deals in all such services that are offered to the guest either
complimentary or are available at very little charge, such as (i) Aarti, tikka, garlanding,
(ii) Babysitting, (iii) Personalized stationery, (iv) Flowers/fruits, (v) Free airport
pick-up/drop to airport, (vi) Assistance in shopping, (vii) Guiding foreign guests on tours
and shopping etc.
Functions : (i) Courtesy call to VIP, (ii) Ensuring comfortable stay, (iii) Escorting VIP
to rooms.
EQUIPMENT AND FURNITURE
Here is a list of equipment and furniture, racks and
cabinets, etc. usually used in hotels run on manual/
mechanical and automatic system, i.e., non-automated,
semi-automatic and automatic systems.
1. Front desk/counter (for all systems)
2. Bell desk and concierge desk (for all systems)
3. Lobby desk (for all systems)
4. Travel counter (for all systems)
Key and Mail Rack
5. Key and mail rack
(semi-automatic and non-automatic system)
6. Mail sorting rack
(non-automatic, semi-automatic system)
7. Mail forwarding file (semi-automatic and non-
automatic system)
8. Duplicate key rack (non-automatic, semi-automatic
system)
9. Guest history filing cabinet (non-automatic, semi-
In-Room Safe
automatic system)
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40. Cash Register (semi-automatic system). These are designed primarily to record Notes
sales transactions and to hold cash. Most cash registers also include printing devices
for producing transaction tapes, sales receipts, and inventory and price controls. A
variety of operations can be performed by the use of various keys. Some of them
are:
• Recording the amount of the transaction
• Recording the affected departments
• Recording the type of transactions
• Recording the identity of the cashier
• Correcting totalling and computing change for a transaction
An indicator panel allows the guest and operator to follow the progress of the
transaction.
41. Stencil duplicator
Cash drawer
Notes
Cashier’s Well
Telex Machine
Notes
Hotel ABC
113, Zero Road, New Delhi-110001
Please supply
Fruit Basket-Single-Double-Special
Flowers
Soft Drinks
Notes Depending upon the status of the guest, a number of amenities can be provided in
the room and bathroom, such as fruits, flowers, pastries, cookies, pralines, cake,
champagne bottle, mini bar complimentary, dryfruits, cigarettes and cigars, personalized
stationery, bathrobe, weighing scale, moisturizer, soaps, talcum powder, toothpaste,
toothbrush and shaving kit, etc.
Each VIP guest should receive four sheets of personalized stationery and two
envelopes in a stationery folder. The initial and surname of the guest should be embossed
in gold in the top left hand corner of the sheets.
Stationery should be prepared by the manager one day in advance of the guest’s
arrival, and should be placed in the guestroom with the welcome letter at least one hour
prior to the guest’s expected arrival.
DUTY ROTAS AND WORK SCHEDULE
Duty rotas are necessary:
1. To ensure that there is sufficient staff on duty at any given period
in order that work may be covered.
2. To ensure that the staff work the correct number of hours as
stipulated in the contract of employment.
3. To ensure that days off are as regular as possible; giving staff
adequate rest periods and ensuring that work output remains at a
constant level.
4. To plan days off for the staff in a fair manner.
5. To aid in preparation of attendance and payroll reports.
6. To know who is on the premises in case of fire.
Before completing a duty rota it is necessary to ascertain:
1. The average hours (those working hours when the housekeeping
department is operational).
2. The number of full-time and part-time staff on the payroll.
3. Whether casual or agency staff are available.
4. The number of hours worked per day, per week, per person.
5. Meal and tea break time allowances.
6. Expected productivity rate per employee, per day, per working period.
7. Staff requests such as special day offs or holiday periods. Periods
of illness must also be taken into consideration and sometimes
provision has to be made for last minute sickness or absence.
8. Quantity of expected workload per day.
9. Special operational factors, e.g., spring cleaning or refurbishment
project.
Duty rosters control the hours of work and should be drawn up well in
advance, so that all the staff know when they will or will not be required on
duty. As far as possible, the roster should show an equal distribution of
weekend offs, early and late duty-turns and split shifts. There should be an
overlap of duties sufficient to provide for a handover of duties and to ensure
that any area is not left unmanned. Relief staff is used to replace absentees, Notes
or those who are sick and are not always rostered, but have their duties
allocated as the need arises.
Duty roster – Duty roster is allotment of work or job, which will specify
1. Job
2. Place
3. Timings
4. Breaks and lunch time off, etc.
5. Immediate supervisor
6. Indicator of special duties
The following points are essential while making the duty roster:
z Knowledge of duty roster
z Human relations
z Aspirations
z Working conditions
z Types of shift
Types of Shift
1. Straight shift: Staff work a specific number of hours continually
depending on whether they are full time, part-time or casual, on
permanent days, afternoon or night.
2. Split shift: They are still quite common in the areas of cleaning.
Housekeeping department staff work a specified number of hours
during the peak period, then have a few hours of rest and return to
cover the next peak period.
In all, they may not work more than 8 hours but a shift may cover
a span of 12 hours during the day.
3. Rotating shift: Another of the staff will usually cover a work period
of 24 hours 7 days per week for 52 weeks of the year. Three shifts
of 8 hours rotation in a pre-arranged manner, e.g., 6 a.m. to 2 p.m.,
2 p.m. to 10 p.m. and 10 p.m. to 6 a.m. They may have 4 days work
and 2 days off. Then they move into the next shift and so on. The
length of shift, or cycle will depend on the number of staff, the
average working hours per week or fortnight and the number of
working days in rotation to off duty periods.
4. Alternating shift: Staff work, either a specified number of early or
late shifts each week or once a week. An early shift followed by one
week on a late shift.
UNIFORM SERVICES
Uniform services encompass the areas within the front office other than the
front desk. Sometimes referred to as guest services, the areas within uniform
services include:
Notes • Bellstand
• PBX
• Valet parking/Garage
• Shuttle driver
• Concierge
• Door persons
The name derives from the fact that each of these employees used to wear a
uniform of some sort. The garage and valet parking groups manage guests’
automobiles. The bell staff assists guests to and from their rooms. The concierge
tends to special guest needs of any sort. The private branch exchange or PBX
manages communications into and out of the hotel.
Confusion may arise in identifying this department because today it is uncommon
to find PBX, for example, in uniform, as they never actually greet a guest in person.
Also, although housekeepers wear uniforms, they are not considered uniform services
in this definition.
Key Terms
Organization models Strategies Counselling
Orientation Organizational objectives Organizational mission
Goals Training Motivation
Job breakdown Job analysis Job lists
Lobby Hospitality desk Job specification
FRONT OFFICE
The front office may be regarded as the show window of the hotel and hence must be
well designed in the first place and maintained in a well organized and orderly manner.
Regardless of how the hotel is organized, the front office is always an essential ‘focal
point’. The front office is the name given to all the offices situated in the front of the house,
that is, the lobby, such offices where the guest is received, provided information, his luggage
is handled, his accounts are settled at departure, and his problems, complaints and
suggestions are looked after. The front desk is the link between the guest and the hotel
and represents the hotel to the guest and is a liaison between the hotel management and
the coordination of all guest services. It serves as a main channel of two way
communication, i.e., from hotel to guest and guest to hotel. Hotel terminology includes
terms such as ‘front-of-the-house’ and ‘back-of-the-house’. This ‘front-of-the-house’ term
includes those portions of the hotel with which the guest comes in direct contact during
his period of occupation, such as building exterior, lobby, front desk, guest room, function
rooms, etc. The ‘back-of-the-house’ areas are those with which the guest generally do
not come in contact such as the payroll, accounting department, food preparation centre,
repairs and maintenance and laundry, etc. The front office is the main controlling centre
of all guest services, and also coordinates the back office functions with these services.
Functions and Importance of Front Office
Fredrick Gordon, a famous hotelier and the owner of one of the biggest chain of hotels,
has said, ‘You can rely on it that the backbone of the hotel business is selling apartments.’
The front office is one of the two major departments which produces revenue in a hotel,
the other being food and beverage. Out of these two, front office generates nearly 60 to
70 per cent of revenue for a hotel and is responsible for achieving high occupancy of the
hotel. One of the major functions of the front office is selling accommodation. Through
this department, hotels help in developing the economy of the country and earn foreign
exchange for the nation. The percentage of food and beverage revenue is much lower
as compared to front office revenue and, if we consider the resident guests eating in the
hotel, this percentage of profit goes down still lower. A hotel cannot survive with food and
beverage sales only and has to have a minimum percentage of room sales. The front office
is like a show window of the business organization. It coordinates as a link between the
hotel and the guests and at times is the only area which comes in contact with the guest
and the guest knows the hotel by the front desk of the hotel only. The front office is like
a dispensing post to handle complaints and suggestions of the guest. It is indeed the nerve
centre, the hub and the heart of the hotel. It coordinates with other departments of the
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Notes PRE-SALE
1. Reservations
2. Advance payments
3. Guest account initialization
4. Preregistration
5. Awaited mail
FRONT OFFICE
FUNCTIONS
DURING GUEST
CYCLE PHASES
hotel in order to provide more efficient service to guests. Communication with every other
department flows from the front office, as well as instruction and directions for services,
care and relations with guest also originates from here. Many times the front office
represents the whole hotel for a guest. To its employees the front office provides the best
environment and working conditions and opportunity to come in contact with the best and
the most elite members of society, not only of its own country but the whole world. It
provides them opportunity for self-development and generally managers are groomed from
the front office department. It monitors guest cycle and coordinates all guest services such
as information, mail and message handling, guest accounting and bill settlement, telephone,
telex and other communication services. Safety and security of guest and his belonging
are also functions of front office. The front office maintains relations with travel agents,
tour operators, airlines and other hotels within and outside the city. It is the front office
which gives the first and last impression about the hotel to the guest. The answer to the
question ‘what is front office’ can be summed up from three points of view, i.e., (a)
organizational, which means a sum total of subsections, such as reservation, reception,
information, bell desks, cash and bills, etc. (b) guest, for whom at times the front office
is the whole hotel and is image builder and (c) the hotel, for whom the front office is the
largest revenue generating centre.
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The functions of the front office during various phases of guest cycle can be explained Notes
as follows:
Various Sections of Front Office Department
Usually the front office department of a hotel comprises of subsections, such as
(a) Reservation, which is responsible for booking of rooms in advance, (b) Check in,
which is responsible for receiving the guest, allocating and assigning the room and
registering of a guest and is also a source of information for government offices such as
FRRO, etc. (c) Information, as the name suggests, the main function of this subsection
is to provide information about the hotel, its services and amenities, city, town, country,
travel and transport, banks and receiving and distribution of mail and message, packets,
room key, etc., to the guest. (d) Bell desk, which is mainly responsible for luggage handling,
etc., and (e) Cash and bills, responsible for maintaining and recording guest accounts
and bills and folio of guest and either cash or credit settlement of guest folios at the time
of departure.
In addition to the above, telephone and telex section of the hotel, business centre,
and sometime PRO and GRO also come under the front office department in many hotels.
Staff Requirement
Staff requirement of a hotel depends on various factors. Some of them are as follows:
1. Type of establishment (hotel, motel, etc.)
2. Clientele (transient, residential)
3. Location of the establishment (city, urban, business centre, etc.)
4. Mechanization/Semi automatization/Automatic (systems)
5. Nature of the business (size of the establishment, etc.)
How to analyze the requirement
1. There must be a balance between the human resources and logistics systems.
2. Workforce analysis should match workload analysis.
3. Does work divide?
4. Keep provision for idle time (hidden rest) overall efficiency 70–72 per cent.
5. Use of string pins or movement method for measuring work.
6. Follow the labour regulations like weekly off, number of hours, in between rest,
etc.
STAFF ORGANIZATION IN HOTELS
Reservation
Senior Senior Business Night Manager
Supervisor
Receptionist/ Informationist Centre Conci- Senior
Shift In- erge Bell
Manager Night Auditor Captain
charge Junior
Reser- Telephone or Head
Informationist Business Senior Front
vation & Computer Junior Hall
Clerk Centre Cashier
Clerks Operator Porter
Receptionist Clerks
(For Trainees
attending to Trainees Operators Bills Cashiers
reservation Clerks
requests)
6. Reliever/any other person deputed to check mail. Shift-in-charge to check mail Notes
in expected arrivals mail box.
7. Evening newspapers to be marked out for VIP’s.
8. Evening discrepancy to be done by reliever, name and time to be noted.
9. All walk-ins to be entered at the end of the shift and VIP walk-ins to be informed
to housekeeping and room service by name and number.
10. Re-check all brought forward work.
11. Collect afternoon reports and file.
Night Shift Functions
1. Read the logbook.
2. Read arrival list and tally all blocked rooms, and special regards with FIT assignment
list.
3. Block night groups and have retention open.
4. Reliever to take handover at information and back office.
5. Reliever/any person deputed to do mail check and parcel register check, parcel
register to be tallied physically with every item.
6. Paging report to be printed and paging deleted at 0100 hrs.
7. Slots to be cleared for messages at midnight.
8. An information report to be compiled of all the above activities.
9. Pre-registering of next day’s arrivals, entries in register making of key cards, meal
cards and making of instructions on registration card to be done in the back office.
10. C form break-up, shift in-charge to block/keep aside for next day’s VIPs and send
intimations.
11. Shift-in-charge to check all night arrivals requisitions by their registration cards.
12. Key at counter check to be done at 0100 hrs, after checking all keys are in correct
slots.
13. No shows to be done early morning and their cards to be voided and bracketing to
be completed.
14. All registration cards to be arranged serially and checked for missing cards and
filed.
15. Shift-in-charge to check that arrival register for the day has been completely filled
in.
16. Early check out auditing and FIT auto audit to be done before 0700 hrs. position is
taken.
17. Brought forward list to be updated.
18. Walk-ins for the day to be tallied against the register, previous ones carried forward
and the outstanding amounts noted.
19. Prepare and collect night reports and file.
Night Report
This report is prepared daily by night receptionist from the information obtained from
different racks maintained at front desk and the cashier. This report along with bill control
chart is used by night auditor to prepare his report.
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Chapter Objective
The reader is able to understand the job descriptions and job specifications of
front office personnel and salesmanship.
INTRODUCTION
One of the most important commodity that a hotel sales is rooms, and we know that
rooms are most perishable, much more then the food and beverage even. Hence, it is
very important that we are so geared that we are able to sell all the rooms at all times,
and if not that, we are able to sell the maximum number of rooms at all time and not only
that we are able to sell them at the optimum revenue generation situation. Although the
liberalization policy of the government has helped in bringing more foreign visitors, yet to
get and maintain a competitive edge over others every hotel needs to be sold and marketed
very well. Hotels even in a monoply market needs to listen to the customers and constantly
upgrade its facilities and services and products, particularly rooms to combat competition
in the future.
Hotel is a ‘proactive business’ that means a hotel customer must be welcomed,
made comfortable and secure, looked after and made to feel special because given a
choice between two similar quality properties (product wise) a guest would prefer to go
to the one which presents a more hospitable or friendly and caring face to him. Of course
of he will learn about this by his experience of staying at the hotel once and also on hearing
from some friend or relative who has stayed in that property earlier. The hotel should be
appealing to different types of guests/traveller (be they are on business trip, on a vacation,
or enroute to some other destination) or a group market.
What actually a hotel is selling to its customer/guests? Is it a product such as room,
or is it services? Is it attention and pampering or is it the facilities and amenities, or is it
both service as well as product? Actually, a hotel means different things to different people.
To be able to sell better a hotel salesperson must understand the specific needs of the
customer, for example, a receptionist shall be able to sell a room to a walk-in guest only
if he is able to judge and assess the requirements of the guest. Apart from its main functions
of handling check ins and checkouts, the front desk staff is also responsible for the sale
of rooms of the hotel.
In general, when we talk about the marketing and sales department of a hotel we
understand that the function of this department is to sell the hotel in totality, i.e., the sales
of its product and services such as rooms, restaurants, conferences, banqueting space,
etc. Further, when we talk about the sales of rooms in particular we find that the aspect
of sales is normally taken care of by marketing and sales department, reservation section
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and front desk section of front office. For improved and enhanced sales of rooms the Notes
front desk staff must know about nearly every guest who stays at the hotel. During the
stay the front desk must make efforts to know what all amenities and services other
than room, the guest needs, such as extra towels or may be a wake up call. The front
desk staff is truly instrumental in ensuring the guests comforts. More than any other
group of employees, the front desk staff really feels the pulse of marketplace most. The
front desk employees, which are the first and last persons always to come in contact
with the guests, have tremendous opportunity to make those impressions that keep guest
coming back.
As already said, the responsibility of selling of rooms in hotels is the one of the primary
functions of the front office department. Further, depending upon the size of the hotel
this function may also be taken care of by marketing and sales in a large hotel. Also in
small hotels where there is no separate reservation section the sale of room may be looked
after by the front desk of the hotel.
Selling is individualized and personal. Effective salesman does not sell, infact he
induces people to buy. Successful salesman have known for a longtime that productive
selling involves a continual exchange of values. The reason any business, including the
hospitality business exists today is that it provides certain values that the customer wants.
The values may be, distinctive and luxurious lodging, convenient location and courteous
service, etc. Hence, the basic purpose of the front office staff is to relate the values in
terms of rooms that the staff offers in response to the demands of his values in terms of
rooms. The degree of success enjoyed by any hotel is measured by this relationship, in
other words on this continual exchange of value. This will be reflected when the guest
keeps coming back. The selling efforts of the room by the staff are made keeping in
mind primarily the interest of the seller which means the hotel, while marketing identifies
existing or anticipated needs of customer and then attempts to satisfy them. The hotel
must decide which segment of the diverse marketplace it wants to do the business with
and find out the specific needs of each of these segments and then should cater to these
needs (For this the hotel may have to change its service amenities and facilities from
time-to-time). Hotel should market itself to the desired segment. Marketing and sales
(with in the frame work of the hotel) are two distinct, yet interrelated functions, and both
are equally important.
The hospitality industry is concerned with basically the provision of two things, (a)
lodging and (b) food and beverage. The term lodging means room, and lodging is directly
sold to guests either by the central reservation office or by the marketing department
and the reservation staff of the hotel. Sometimes an outside agency such as meeting
planner, conference organizers, travel agents, tour operators and hotel representatives
also are instrumental in room sales. Anything that is offered for sale is a product, for
example, a room in case of a hotel. Further, the term market refers to the potential
population from which the customers for a product are derived. A source that sells
products directly to the public is a retail outlet, for example, individual guests, whereas a
source that sells to retail sources but not to the public is a wholesale outlet, for example,
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Notes a tour operator who purchases rooms space from the hotel, and in turn sells them to
retail travel agent. The person who purchases and use the product are called consumers
or end users. A tour operator who purchases rooms from the hotel is the customer and
further the individual persons to whom he sells the rooms and who come and stay in the
hotel (guests) are called end users.
RECOGNIZE CUSTOMERS MOTIVE FOR BUYING
Means get a fair understanding of why a customer wants to buy:
i) Keep your eyes and ears open
ii) Ask questions
iii) Think
iv) Clarify
Avoid prejudices, biases and prenotions,
for example, guest is poor, he cannot afford, and the guest is fussy, etc.
— A good receptionist should be able
∑ Greet the guest in a manner that will create positive image of the property.
∑ Match product and needs.
∑ Provide correct and upto date information.
PRODUCT KNOWLEDGE (KNOW WHAT YOU ARE SELLING)
For efficient and profitable selling ‘Product Knowledge’ is essential.
Product knowledge for a receptionist is as follows:
The Receptionist is selling the whole hotel. So the product knowledge in this
case will be rooms, services, amenities and facilities:
i) Various types of rooms–
facilities, situation, amenities, etc., and the USP of the rooms.
ii) Services–
Bank, T.A. Courier, IRS, CRS, etc.
iii) Facilities–
∑ Medical, shopping, travel and tour, sports, conference facilities
∑ Book and magazines, etc.
The Modern trend is know the product you are selling by your own first-hand
experience
iv) F and B outlets and banquets
v) Meeting and exhibition facility
vi) Entertainment
vii) Transport service
Because: Notes
∑ Customers may not always ask for what they want.
∑ They may not realize what is available.
∑ Products and services may have changed since their last visit.
∑ They may not have made up their mind.
∑ They may be embarrassed to ask.
∑ They may have forgotten what is available.
So in order to create sales lead you may need to:
∑ Tell them what is available.
∑ Describe what is available
∑ Suggest or recommend
∑ Ask what they would like.
∑ Offer alternatives (if needed)
UNDERSTANDING WHAT YOU ARE SELLING
— Try to understand why customer is making an inquiry or visiting the establishment.
Selling will become easy when the receptionist understands his:
∑ Culture (nationality, etc.)
∑ Business standing (position he holds in working life)
∑ Social class (his perception and experience of what is socially acceptable)
∑ Group influences (desire to be seen to be doing the right things)
∑ Colleagues friends and associates
Overcoming obstacles to sales. Various factors that are considered as hindrance
to sales may be summarized as (i) the prime and most important is price, (ii) space and
time, (iii) knowledge, (iv) value and (v) ownership.
i) The price. Price is the biggest obstacles to sales. Even though the price may be
competitive, yet when it is told to the prospective buyer, he gets a psychological feeling
that it is high. While quoting the price the receptionist/salesperson should give it in such
a way that the guest gets a feeling that he is getting the product for a reasonable price,
for example, the price may be quoted as Rs 4990/- plus taxes instead of Rs 5,000/- plus
taxes.
ii) Space and time. The space and time obstacle are important in case group sales
allotment is not enough to accommodate the requirement of the organization.
iii) Knowledge. When the client does not have enough information about the product
and hence is hesitant to commit then this is termed as knowledge obstacle.
iv) Value. When the client does not agree to the price, and objects to the price, then
this is called value obstacle and finally,
v) Ownership. When the organization is not willing to pay advance (requested by
the hotel) than the hindrance is termed as ownership obstacle.
It is important to remove these obstacles for making a sale and this can be achieved
by the efforts of the salesperson by his focusing the attention of the prospective buyer
on the benefits of the product and still if he is not satisfied then by making alternative
Notes offer. Further, it is important to note that no matter how well you have understood the
needs of the client and are able to fulfil the needs of the guest by presenting the benefits
of your product yet there still will be some unavoidable obstacles which may be hindrance
to sale. In this case, the positive attitude of the seller about the obstacles makes it easier
to deal with them. Also, at the same time a client who may not be interested in making
a purchase would also actively seek solutions to obstacles.
FEATURES AND BENEFITS
— Features. These are general characteristics/traits of a product.
— Benefits. When a feature is of some use to a prospective client then it is benefit
to the customer.
For example. A hotel having secretarial service and swimming pool both. Now
the swimming pool is just a feature to a business traveller while secretarial
service feature is also a benefit to him. At the same time the secretarial service
is just a feature for a sportsman while swimming pool will be benefit for him.
— A feature can be perceived as negative or positive, whereas a benefit is always
positive. To explain, in the above example for the businessman the swimming
pool feature is perceived as negative, while the secretarial service feature as
positive and vice versa for the sportsman.
— Features deal with the product/service where as benefit deals with customers
needs and wants.
— A feature can do without any reference to the customers needs (wants), whereas
a benefit always has reference to customers needs and wants.
— A client/guest purchases a product because of the benefits he derives from them
and not because of the features, for example, the businessman takes room in
the hotel because of the benefits he would derive from the sectarial services,
restaurant and not because of swimming pool.
— A feature is of no use unless it is used as a benefit by the guest for a tennis
court (feature) of a hotel is of no use unless utilized by the guest.
Objectives. The objective is to understand the difference between features and
benefits and to translate the features of your product into benefits for the guest.
Prepare an effective presentation of benefits which should be fact finding as well
as feel finding
1. Fact finding question.
a) What type of room you want?
b) What date you are arriving?
2. Feel finding questions. Try to find out emotion of person:
a) You enjoy playing golf?
3. Why is it necessary to know fact finding question early in conversation? It gives
the basics first.
4. Once we know some facts, is it necessary to find feel finding question?
Yes. So that the features may be converted into benefits.
Notes ii) Interesting. Make the presentation interesting using films, posters,
brochures, slides and such other things. Presentations should be such
so as to create interest in the client.
iii) Believable. Presentation should be such that the customer has faith
in what the salesperson is saying. For this the presenter himself should
have faith in what he is saying about the benefits and features of his
organization otherwise he will make a poor presentation.
iv) Persuasive. The salesperson must be persuasive in his presentation
to attract the attention of the customer to elicit a positive response
from him.
Pregnant Pause. Salesperson also earns the right to close if there is state of
‘Pregnant Pause’. Pregnant pause is a stage when the guest is concerned about the
amount of benefits he is going to obtain from the features, for example, a corporate
client has been given the talk about the executive club facilities of a hotel by the
salesperson. After the client is convinced, there is a pause and then the sales person
knows that he can close.
FRONT OFFICE SELLING TIPS
Telephone salesmanship. Since the caller is not directly in contact with the
front desk staff and cannot see him. It is very important that the person handling the
telephone call (either a reservation assistant of a large hotel or the receptionist in
case of a small hotel) is able to give a warm and courteous telephonic reception to
the caller, and is able to convey the same through his voice, which become his principal
sales tool. The receptions or the reservation clerk should not have a tendency to
treat such enquiries lightly, and should give his full and undivided attention. The
approach of the staff will be instrumental in gaining or loosing a potential sale for
the hotel. Since the prospective guest is on telephone the receptionist/reservationist
must be able to communicate to the prospective guest the product or service in such
a way that the guest is able to perceive a picture of this product which matches his
requirement and is immediately ready to buy it. The person describing the product
should be specific while describing the room, for example, size, location, furnishing,
fixtures, etc. For making an effective and acceptable proposition it is important to
understand the needs and wants of the prospective guest.
Selling rooms to prospective guest who is concerned about the price. A guest
who is not ready to pay more but at the same time expecting a superior product is
very difficult job, and hence it becomes very important for the receptionist to picture
or describe the product (accommodation) when quoting any rate. The receptionist
should not begin with quoting a lower rate, and he should offers a range of product
with ranging price and should allow the guest to make the selection. Do not under
sell, try upselling, if the receptionist is a good salesman and is able to highlight features
and facilities he would always be able to make a higher sales, while upselling be
careful that you are not pushing the guest towards a higher rate because if the guest
gets a feeling that he has been cheated then although the hotel might get the higher
rate sale it but will not get the repeat business.
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Selling during rush hours. Usually hotels have set pattern of arrivals load, for Notes
example, in case of an airport hotel the load of the guest usually is in night and there is
heavy load of arrivals during night periods. The selling ability and skills of a receptionist,
to an unannounced guest, are put to test in such rush hours. His patience with the guest
and how calmly and efficiently, he is able to deal with such guest is of great importance.
The organizing capability of the staff (to be able to arrange extra help in rush hour) is
also important. Give guest your individual, undivided attention. In order to be able to attend
to unannounced guest efficiently the hotel may open a new and extra arrival registration
counter for the heavy check ins.
An undecided guest. This category guest provides an excellent opportunity to the
receptionist to upsell the room.
When such a guest arrives without any prenotion it will be easy for the receptionist
to convince him to buy a higher priced room. For such a guest, the receptionist should
first try to find out why is he in the city. This could provide him lead for promoting certain
types of accommodations. Offer the guest a variety of rooms, explaining the features
and merits of them. Always promote a higher rate accommodation first, as it is easier to
back down some what rather then to try to sell up. If possible the prospective guest may
be shown the room also. This may help him in deciding positively.
The basic concept of selling is to relate the values that the business offers to the
values demanded by its customers. Productive salesmanship is very essential for this.
The productive salesmanship involves a continual exchange of values. The values in terms
of a hotel product, i.e., room covers usually, convenient location, distinctive
accommodation, good ambience and atmosphere, and courteous service. The productive
salesmanship is the exchange of values plus a room in such a manner that a continuous,
mutually advantageous relationship is established — the guest wants to return again and
again to the same hotel because the receptionist in addition to a room has given him other
benefits and values through his personnel contact with him.
In the context of a guest returning to a hotel it is important to note that in addition to
his attitude, and service and behaviour the selling skills of the receptionist and other factors,
such as his feeling, which he gets through his nose, ears, eyes, and so on, are also very
important for the guest to make a decision.
The Procedure used to sell a room. Basically three ingredients are needed to
make a sell, (a) product, (b) a customer, and (c) a salesman.
No salesman can be successful unless the salesman has (i) in-depth knowledge and
the value of the product which he is trying to sell, (ii) and his knowledge and understanding
of the buyer and (iii) possesses an attitude and desire of the salesman to serve his
customer.
The term knowledge of product for a front office person not only includes the
knowledge of room (location, type, size, furnishing and rate, etc.) but the knowledge of
all other features of hotel, because he is not only selling the room, but is selling the hotel
in totality. It is for the front office staff to make the guest aware of the other services,
amenities and facilities, and so on, (other than room) to a prospective guest.
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Notes Sales and Marketing Teams. For improving the sales of rooms it is important
that a large hotel has a separate marketing and sales division which usually is headed by
a Marketing and Sales Director, assistant sales manager and a team of marketing
executives. The marketing and Sales Director is the highest ranking officer/executive of
marketing division. He is responsible for supervising, evaluating, and coordinating the
performance of staff of the department. Makes both short and long-term marketing
plans and strategies. He holds meetings with the staff regularly. He establishes the goals
of the department. He also holds regular meeting with Front Office Managers, Reservation
Manager, Food and Beverage Manager, General Manager for marketing strategies. The
hotels’ face in the market is the team of sales executives which cover the market (which
are most vital part of the team). Sales manager is behind the scene usually. Size of the
team will depend upon size of the hotel and business of hotel. Assistant manager of this
division controls the executives and supervises their daily activities. He is a link between
the executives and manager.
The sales executives should have sharp intellegence and product knowledge which
include technical knowledge, such as how it works, what could go wrong, dangers and
maintenance, etc. He must have some basic attributes, such as courtsey, politeness and
communication skills. Further to this, he must have perfect professional knowledge (steps
involved in making sales with ethical code). These can be summarized as follows:
Profile of a salesman
Courtsey. Combination of friendliness, politeness, tempered by consideration, respect
and interest in the other person.
Deportment. Physical posture.
Appearance. Dress sense.
Knowledge of product or service. Learning to tell sales story.
Willingness to work. Continuous work.
Personality. Sincerety and all the other above mentioned attributes.
Ten commandments of a good salesperson
1. Greet people. There is nothing as nice as a cheerful word of greeting.
2. Smile at people. Smile begets smile
3. Call people by name. The sweetest music to every ear is to hear one’s own
name.
4. Be friendly and helpful. But never be too intimate with a prospective buyer.
5. Be cordial. Speak and act as if everything you do were a genuine pleasure.
6. Be genuinely interested in people. You can like everybody if you try.
7. Praise. Be generous with praise but be cautious with criticism.
8. Considerate with others’ feeling. It will always be appreciated.
9. Be thoughtful of others’ opinion. Be considerate to the feelings of others,
there are always three sides to a controversy—yours—the other fellows—and
the rightone.
10. Be alert to give service. What counts most in life is what we do for others.
Notes — Never show anger even if he infuriates you. You are there to get his business.
— Keep record of what happened on the last visit of your prospect. What transpired
on each follow up. You can stay away from possible sore areas or have the
answer ready for an objection you might have failed to answer satisfactorily
before. Have confidence in yourself and think of the successes you have already
achieved and establish a success pattern. Analyse the sales you missed and try
to find out why. Emphasize the approach and the style of selling that have been
most successful.
D. Faults to guard against in the sales presentation.
— Never make a promise which you cannot fulfil. There is no surer way to kill
repeat business than to fail to live up to promise.
— Do not try to be tricky or unusual. The ‘solid, stout, feet’ on the ground approach
is always best. Do not try to fool the customer.
— Do not try to be a big shot. No matter what your position is in your organization,
do not try to impress the customer with your importance. He is the only important
person is this deal.
— One strong sales point is better than a dozen ‘so-so’ sales points. If your product
has one outstanding quality, emphasize it.
Do not hope that the prospect will hand you an order. Plan to build upto actual
point of signing an order. Do not leave the actual order for sometime in future.
— Do not loose your nerve. Ask him to buy.
E. Physical Faults. This grouping lists things which can be corrected, but which are
sufficiently glaring faults in a salesman to nullify or damage his sales presentation
no matter how good his sales ‘pitch’ might be.
— Sloppy clothes
— Decayed teeth
— Fingers heavily stained with nicotine
— Offensive breath
— Shifty eyes
— Serious grammatical errors
— Poor carriage, drooping shoulders, hollow chest. Any physical action that reflects
laziness or sloppiness—slumping when standing sprawling out in chair when
sitting, walking lazily
— Speech impediments
Usually the job of a salesperson covers the following three main areas:
a) Product (which he is selling)
b) Process (of selling)
c) The result that he must achieve
The two of the most important out of these three seems to be the selling process
that consumes most of time and ultimately the result that he must achieve, but both these
factors depend upon the product. Apart from spending most of his time on developing
selling skills he should spend his time on helping the production team on product
development, product analysis and also on forecasting of results. There never is either a
perfect customer or a perfect product, and it is the job of the salesman to bring together Notes
the product and the customer, with whatever imperfections there might be, at the best
possible price. Beyond this basic activity, the salesperson must understand the environment
in which he operates and should also realize that he can influence it by keeping himself
informed, alert and proactive. In this respect information collection as to what the business
is where it exists and how it can be directed to his hotel is very important. This can be
done by market research or personal interaction. Secondary data can also help to a great
extent.
JOB DESCRIPTIONS
1. Front Office Manager
Time Management:
One of the most important function of the Front Office Manager is time management.
The nature of Front Office Job is such that he is almost always crowded with various
jobs and he often looses control over his time. He should be able to match job needs to
time available for effective and efficient performance. Time is a unique resource (24 hrs
a day) and is highly perishable resource. For maximum utility, the manager should first
understand how he is utilizing his time currently and then decide how he should spend his
time.
Further, he should be able to identify the wastage of time that he is doing currently.
He should then master his time wasters. After this he should make new plan of action
and then make sure he follows that. He should be able to fix the priorities of job. For
proper analyses he should keep record of the time spent on tasks and daily/weekly time
spent on them and for this he should prepare a work distribution chart for each task. He
should identify key result areas of his job for effective performance. Assess desirable
time against each activity and note in work distribution chart. The activities showing wide
difference between actual and desirable are possibly time problem areas of the manager.
Further, he should understand that some of the time wasters are:
(i) Interruptions
(ii) Meetings
(iii) Crises management
(iv) Lack of objectives, priorities and deadlines
(v) Personal disorganization
(vi) Ineffective delegation
(vii) In decision and procrastination
(viii) Complicated procedure and
(ix) Commuting, and so on
The strategies for time management include and means
(i) Increase you discretionary time
(ii) Be time conscious
(iii) Plan days work
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– Receives articles and maintains ledger of articles turned-in for Lost and Found Notes
Department. Maintains logbook noting unusual occurrences.
– Checks function board for accuracy.
– Keeps close watch on night clerks.
8. Night Clerk
– Registers and assigns rooms to guests.
– Gives and receives keys—maintaining a ‘key control’.
– Answers inquiries over the telephone and in person pertaining to hotel services
and registration of guests.
– Arranges for room changes as necessary.
– Makes and confirms reservations received in person, over the phone or over
teletype machine.
– Balances room revenue with night auditor.
– Completes numerous reports for management analysis through the following
procedures. Prepares night clerks summary, 3 day, 7 days or 15 days forecast
and VIP list.
– Verifies guest origin and source of business on previous day checkout cards.
– Completes report on geographical survey.
– Checks the room racks against the information board (Concierge) and telephone
operator’s board for omissions and sleepers.
9. Bell Captain
Job summary
– To organize, supervise and control all lobby services to guest satisfaction in a
shift.
Job specification
– Supervise the lobby attendants. Control their movement and activities on the
lobby attendants control sheet.
– Take attendance and prepare staff schedules to meet exigencies of work.
– Advise the assistant manager-lobby periodically on the performance of lobby
attendants, and at times provides information to the guest.
– Attend to guest complaints and handle telephone calls in the absence of assistant
manager-lobby.
– Handle left luggage formalities and maintain the baggage check room.
– Train lobby attendants to maximize departmental efficiency.
– Organize and supervise check in/out baggage formalities of groups, crews, etc.
– Control the sale of postage stamps and stationery to guests.
– Maintain record of all guests with ‘scanty baggage’ and inform assistant
manager-lobby and front office.
– Assist security in lobby surveillance.
– Conduct daily briefing of lobby attendants.
– Coordinate and control the distribution of morning newspaper.
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Notes – Supervise the storage of essential medicine prescribed by the house doctor and
be accountable of the issues made. Keep the lobby clean at all times.
– Keep baggage neatly and orderly at the specified places.
Coordinates with
– Front office: To execute efficiently the arrivals and departure formalities.
– Telephone: To arrange for wake calls especially for airline crews/groups.
– Security: To help protect hotel property services and image from undesirable
persons.
– Front office cash: For receiving clearance to remove baggage out of the hotel
as a consequence of guests paying their bill.
– Housekeeping: For cleanliness and uniforms.
– All departments: Concerning transport arrangements if applicable.
Job Qualifications
Minimum educational qualification: Matriculate. 10+2 preferred.
Experience required: Three years as a bell boy of a reputed hotel.
Other experiences:
– Knowledge of lobby systems and procedures.
– Good command on the English language. Knowledge of foreign languages
preferred.
– Physically sturdy and stamina to stand for long hours and lift heavy luggage.
– Presentable and well groomed as the job involves continuous guest contact.
– Willingness to be of help and assistance to guests all the time.
10. Bell Boy and Night Porter
The night porter will specifically take care of cleaning of walls, carpets, furniture,
etc., and may also take charge of some snacks and hot and cold beverages service in a
small hotel to make sure that the doors, windows, etc., are closed at a specific time and
also make a note of all the midnight and early morning departure rooms so that properly
their luggage may be handed.
Job summary
– To execute porter and other lobby services as determined by the management
during day and night shift.
Job performed
– Report to bell captain.
– Handle guest arrival.
– Take the baggage from the car in the porch/gate to the room.
– Escort the guest to the room on arrival.
– Place the baggage in the room, on the luggage rack.
– Explain the operation and control of light switches/air-conditioning, etc., to the
guests and switch them on.
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Notes
Notes
Notes – Information: For clearance when key is received as well as for mails and
messages of the guests.
– Housekeeping: For cleanliness and uniforms.
Job qualifications
Minimum educational qualification: Matriculation. 10+2 preferred.
Other Qualifications
– Knowledge of English language. Additional knowledge of foreign language
preferred.
– Personable and well groomed.
– Physically sturdy to carry heavy luggage and stamina to stand for long hours.
– Willingness to be of help and assistance to guests all the time.
11. Page Boy
Job summary
– Welcomes guests, opens/closes the front entrance doors. Assists guests in
elevators.
Key responsibilities
– Stations himself at the side of the main door alongwith the doorman; opens and
closes lobby door for guests and assists them.
– Pages guests in the lobby.
– Performs any other duties as may be assigned, usually all duties of bell boy or
porter.
Minimum requirements
– Ability to communicate in English.
– Pleasing personality.
Time Room Complaints Given Done Time 1. Room ........... Air India ........... 1. Restt. ...........
To By Time Doctor B.A. .................. Time: ............
Called ........... KLM ................ PAX .............
Reason ......... Lufthansa ......... Room ...........
..................... JAL ................... Name ............
Action ..........
2. Room ........... Group wake call 2. Restt. ...........
Time Doctor .......................... Time: ............
Called ........... .......................... PAX .............
Reason ......... .......................... Room ...........
..................... .......................... Name ............
Action ..........
3. Room ........... Guest wake call 3. Restt. ...........
Time Doctor .......................... Time: ............
Called ........... .......................... PAX .............
Reason ......... .......................... Room ...........
..................... .......................... Name ............
Action .......... ..........................
4. Room ........... .......................... 4. Restt. ...........
Time Doctor .......................... Time: ............
Called ........... .......................... PAX .............
Reason ......... .......................... Room ...........
..................... .......................... Name ............
Action ..........
5. Room ........... Driver waiting Scratch
Time Doctor Room No ......... Room No .........
Called ...........
Car No. ............ Car No. ............
Reason .........
..................... Room No ......... Room No .........
Action .......... Car No. ............ Car No. ............
– The role of concierge is highly visible as it involves all guest contact and a diverse
range of responsibilities from recommending facilities and services and arranging
personal shopping, confirming travel arrangements to the coordination of guest
requirment with all the relevant departments.
The concierge is required to maintain and prepare
– Comparative hotel analysis
– Daily function sheet
– Concierge hot log
– Airport pickups and drops record
– Complaints record
13. Doorman/Commissionnaire/Link Man/Carriage Attendant
Job summary
– To greet guests upon arrival and welcome them.
– To bid farewell upon departure and thank all the guests.
– His place of duty is outside the main entrance of the hotel.
Notes
Notes Responsibilities
– First staff to greet the guest in a hotel.
– Calls taxis for guests and flags down the meter to ensure maximum guest
satisfaction.
– Opens doors of arrival cars and taxis and greets and welcomes guests with a
smile.
– Brings umbrella if needed.
– Checks baggage before the car or taxi leaves.
– Ensures smooth traffic flow in the porch and ensures that the porch is always
clear.
– Provides other information about the hotel and city. No information should be
given unless appropriate and correct.
– Calls for cars parked in the basement.
– Keeps the keys of incoming guest car orderly.
– Checks taxis to ensure that the guest has not left any belongings.
– Should know driving to assist the guest in case of emergency.
– Performs any other duties as may be assigned.
– Responsible for cleanliness and orderliness of the front area of the hotel and
area around it.
– Checks the luggage before allowing the bellboy to load luggage in car or taxi at
the time of departure and maintains car register.
Minimum Requirements
– Pleasing personality (strong and robust built in clean uniform)
14. Airport Representative
Job summary
– Greeting, welcoming guests.
– Coordinating and contacting all airlines counter staffs and airport staffs to
generate business.
Key responsibilities
– To keep informed of hotel rates and facilities.
– Keeps informed of local events and practices.
– Meets all booked guests at the airport, welcomes them and assists in arranging
transport to the hotel.
– Meets and maintains rapport with airline counter staff on a continuous basis to
generate layover/FIT business for hotel.
– Meets counter staff of various travel agencies, etc., and keeps friendly rapport
to get business.
– Meets crew on arrival and liaison with transport.
– Receives, meets VIP guests on arrival and escorts them to the hotel.
– Sees off VIP guests at the airport.
– Maintains liaison and good rapport with custom authorities and helps in quick
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clearance of VIPs and any other persons as directed by the Front Office Notes
Manager.
– Keeps informed of room position.
– Assists hotel VIP guests, in case of excess luggage, ticket reconfirmation and
securing seats. If desired, checks in VIP guests at airport in advance.
– Keeps record of all business generated by airport counter staffs. Pages guest
if required at the airport.
– Provides constant feedback to the Front Office Manager on airport happenings.
– Reports competitive activity.
– Meets groups upon arrival at airport.
– Keeps in contact with the lobby manager for room availability on telephone.
– Prepares weekly reports and submits to the front office manager.
– Undertakes any other assignment from front office manager/lobby manager.
– Attends sales meeting every week.
– Generates FIT business on individual sales effort.
– Checks airport pick ups.
– Keeps in touch with assistant manager for any additional follow-up.
– Any other assignments as directed by the Front Office Manager.
Minimum Requirements
– Good personality. (Two years’ experience in sales/hotel/travel agency.)
– Good command over English.
15. Guest Relations Executive
He or she can also be called as Business Manager.
Significant internal linkages and nature of relationship
Room service : For supply of fruits, cookies and bar to VIP rooms.
Housekeeping : For follow-up on getting VIP rooms ready on time; for
supply of flowers.
Security : To handle emergencies.
Sales : To receive information on company rates/discounts, guests
with sales potential, group policies.
Purpose of job : To energize the personalization policy of the hotel by
effectively handling guests and being a source of
information to them.
Managerial results expected and level of knowledge/skills/attitude
Results will be deemed to have been achieved when:
Planning
– Up-to-date information is collated on expected VIP arrivals for the day.
– Guest history cards are collated.
– Personal suggestions are forwarded to management.
– Job holder is up-to-date on hotel facilities, functions so as to give correct
information to guests.
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Notes Organizing
– All necessary facilities have been provided to VIP rooms such as fruits/flowers/
cookies/bars stationery.
– Personalized stationery of VIPs have been printed by printer well in time.
– Guest requests are complied with to their satisfaction.
– Instant reservation facility is provided and followed up promptly for reservations
in all units of hotel chain.
Knowledge/Skills/Attitudes
– Knowledge of VIP arrival notice and identification on reservation rack according
to appropriate colour code.
– Skills in preparing guest history cards.
– Knowledge of personalization policy and attitude for innovation.
– Knowledge of where to procure relevant information.
– Knowledge of policy on what is to be provided to VIPs.
– Knowledge of name and address of printer.
– Knowledge on city, hotel, entertainment and other information.
– Knowledge of room status of all hotels and procedures of instant reservations.
– Directing.
– Warm welcome is extended to VIPs on arrival through traditional Indian customs
of aarti and garlands.
– Guest complaints and problems are dealt with effectively to their satisfaction
without undermining the interests of the management.
– Guest enquiries are converted into significant proposals.
– Knowledge of Indian welcome procedure.
– Knowledge of all hotel policies, procedures, rules and systems.
– Guest handling skills.
– Salesmanship.
– Controlling.
– Personalization as prescribed is extended to ailing guests in the house.
– Overstay is permitted in the absence of the lobby manager upon request, with
minimum risk to management.
– Personal letters are sent on time.
– There are no disputes on gifts given by guests to employees.
– Diplomacy and correct tact is used in dealing with guests exceeding the limits
of management regarding their bills.
– Personalization policy.
– Knowledge of overstay policy.
– Personalization policy on letters.
– Knowledge of policy regarding gifts and employees.
– Skills in guest handling.
– Gate-passes are signed safeguarding interests of hotel property (in the absence
of lobby manager).
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– Registration cards are properly checked and billing instructions checked to avoid Notes
risk to management in the absence of lobby manager.
– Personalization to VIPs have ensured goodwill.
– Knowledge of gate-pass procedure.
– Guest relations ability.
– Man management.
– Jobs which require human coordination is executed smoothly because of good
staff relations.
– Human relations.
– Limits of authority.
– Stationery printing.
– Complimentary fruits/flowers.
– Outside agencies.
– Overstay.
– Gate-passes.
– Instant reservation for VIPs.
– Personalized stationery for VIPs.
– For tour facilities/airlines, etc.
– Authority to permit guests for few hours of stay.
– Authority to sign.
– Authority to make booking on behalf of guest.
16. Guest service manager. Responsible for guest services such as bell desk,
concierge desk and guest transportation and ensures smooth running of these areas.
Key responsibilities–Prepares duty schedules for the above area staff and
supervises their routine and special work. Keeps information folder updated and
keeps the G.R. cards and room keys of pre-registered guests ready. Also looks after
the training programme of new staff. Handles complaints. Keeps an eye on the
tideness of the lobby area. Prepares daily summary report and circulates them to
EAM, and FOM, etc. Ensures that amenities are sent in time to the VIP rooms
prior to their arrival. Meets and escorts VIP to their room at check in.
17. Crew coordinator. Responsible for keeping the crew lounge clean and ensures
that all services are planned, and he is in constant touch with the crew to answer
their queries. Helps them to arranges sight seeings, tours and shopping for crew
and group members and handles their complaints and suggestions. Ensures their
‘Wake up call’ are given on time. Also ensures that the ‘crew rooms’ are blocked
before their arrival and are ready on time. Keeps liasion with crew members. He
is responsible for the necessary equipment in crew lounge.
Shift Incharge
Bell Captain
Lobby Mgr./Assistant F.O. Mgr./Duty
Manager
Resident Manager
General Manager
18. Be careful with expressions, e.g., ‘One moment please’, and ‘I beg your pardon’ Notes
are pleasantly received. Avoid using expressions like ‘What can I do for you’. ‘What’
sounds like sandpaper. Avoid using phrases like ‘I think you will get a taxi round the
corner’. Instead, be positive by saying, ‘Taxi stand is round the corner, Sir’.
19. Refer to males as gentlemen and females as ladies; address them as sir and madam.
Do not talk loudly.
20. The receptionists meet many celebrities at close quarters, for example, film stars
and VVIPs. He should not show any curiosity about them. Do not stare at them,
Do not try to listen to their conversation or laugh on their jokes. Do not show any
curiosity. Photographs and autographs should be avoided.
21. Information regarding guest and his movements should not be given to outsiders or
other guests. Any caller should not be shown to the guest room without the
permission of the guest and no visitor should be allowed to enter the room of the
guest in his absence unless instructed by the guest. On no condition should the visitor
be allowed into the room at night.
22. Do not enter the guest’s room without his permission.
23. Follow strictly the rules of the hotel regarding pets.
24. Keep all records properly as the efficiency and guest services depend greatly on
them.
25. Always refer to the guest by his name and never by his room number.
26. Many times guests ask unreasonable/foolish questions. In such cases be very patient
and careful.
27. Any policy regarding the bill settlement such as ‘No personal cheques will be
accepted’ or ‘Advance payment from scanty baggage guest’ should be
communicated very tactfully and diplomatically to the guest.
28. Do not reveal information about a guest to a visitor including the room number
without permission of the guest.
29. Put the guest to receptive mood first before trying to sell rooms to guest and offer
higher priced accommodation first.
30. No employee unless authorized by G.M. should use public facilities such as
restaurants, bars, swimming pool, etc., of the hotel.
31. Employees should punch their time card while coming on duty and going off duty.
They should not punch cards of others and allow others to punch their cards.
32. Report on duty in your department in full uniform. Do not leave until your shift
finishes.
33. Security checks are important for safety of the hotel. Cooperate with time office
for the same.
34. Do not shout or talk loudly, use cheerful and pleasant look.
Key Terms
Hospitality industry Time management Reservation assistants
Registration assistants Bell captain Night porter
Concierge Crew coordinator
Salesman’s by-laws
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Chapter Objective
The reader understands the use of front desk, its equipment in use and
various ways of fixation of room tariff and other rates. He is able to plan
and design the hotel tariff card. He is also able to design, secure and
effective key control system and safe deposit system for guest valuables.
INTRODUCTION
Many times in addition to the building ambience, the main entrance and approach
play a very important role in the selection of hotel for a guest. When a guest
enters a hotel it is the entrance and thereafter the lobby, which is subjected to
scrutiny. The main entrance must be identifiable and directly lead to reception
area, i.e., lobby of the hotel. Care should be taken that the main entrance area
is able to accommodate guests of the hotel who may come by a car or taxi or
may at times walk up to the hotel, and also may reach by coach. To complicate
the situation, a number of guests may arrive by several modes of conveyance at
the same time. As a general rule the driveway in front of the lobby entrance
should be at least 18 feet wide so as to allow at least two cars to pass easily.
Sufficient height clearance to allow coaches loaded with luggage on top should
also be given consideration. A minimum of 16 feet high clearance from road
should be allowed. Another important point to be considered is the number of
steps for entrance into the lobby area, as generally a raised entrance approach
by steps is used. To avoid the problem of carrying of luggage through steps it is
advisable to have separate luggage entrance in the form of a ramp starting from
driveway to the main entrance. The ramp should not be very steep. The
recommended inclination with road of the ramp for luggage trolleys and wheel
chair is 1:10 as most convenient.
RECEPTION COUNTER
Various activities connected with guests, such as arrival, information, departure,
mail handling, luggage handling, etc., are done from the reception counter which
is situated in the lobby. The counter must be fully functional and operational and
well planned. The following points are important.
Luggage
Doorman Room
TRAVEL DESK
BELL DESK
COFFEE SHOP
BANK CENTRE
HOUSE
TELEPHONE
ARRIVALS INFORMATION
CASHIER
LOBBY MANAGER MESSAGE CENTRE
BILLS SAFE
SECTION VAULTS
TELEX RESERVATIONS
ROOM SECTION
1. Size: Basically size depends upon the size and systems used by the hotel. For a
large hotel using automatic system the size may be small while for a small hotel on
Whitney rack system or manual system the size may be comparatively big.
2. Shape: Another important factor is that the counter should be designed matching
with the shape of the lobby, for example, ‘L’ shape, straight shape, curve shape
(semi-circular) or circular shape, etc.
3. Dimension: Usually the counter dimensions are: height between 38" to 42"; width
is 30" approximately and the length depending on various factors such as size of
lobby, type of hotel, business profile of the hotel and the systems used, etc.
Material used for making the counter varies from wood and cement to concrete
with finishing of laminated surfaces, stone, marble, granite, etc. depending upon various
factors such as cost and design, etc.
A new concept of separation of counters into separate sections, for example, a
separate section for each, i.e., arrival, information, cash and bills section is being used by
some hotels. Communication network has to be very efficient in such cases and computer
communication system is usually used.
Apart from the front desk other counter and offices which are in the lobby of a
large hotel are, lobby manager’s desk, concierge desk, bell desk, travel counter, GRO
desk, public telephone counter, bank, etc., and right behind the counter the reservation
area, safe deposit lockers, bills section, telephones telex and message centre may be
situated.
Notes
Notes
It is not possible to emphasize too strongly the importance of an attractive reception Notes
counter or desk. The guest’s first impression should be one of business efficiency coupled
with a friendly manner. A junior member of the staff may be made responsible for keeping
the counter tidy and clean.
Visitors often arrive feeling tired and a little disgruntled after a tiring journey by air,
rail or road and a pleasant receptionist can do much to ease this feeling and to create
one of being all-important and the only visitor in the hotel who really matters.
Many receptionists stand at the counter looking bored or dumb and wait for the
approaching visitor to state his or her requirements. Even worse, the receptionist might
carry on with the work in hand, ignoring the customer. A few seconds waiting at the
desk may seem like hours to a tired guest. A receptionist should realize that it is his job to
step forward and receive the people and on seeing a person or party arriving, he/she
should go to the counter and say ‘Good afternoon, sir/madam, can I help you?’ to which
the visitor will usually reply ‘Yes, we have booked accommodation, Mr and Mrs Gupta.’ If
booked, details of the reservation should be checked with existing records and confirmed
with the guest. ‘We have a twin-bedded room with private bath situated on the third floor
facing the park, reserved for you for five nights’. If no reservation has been made, i.e., in
case of a chance booking, the visitor’s requirements should be ascertained and suitable
accommodation offered.
All activities of the receptionist should be service oriented and should give an
impression to the guest that he/she cares about the arriving guest’s needs.
Say, for example, if a visitor is arriving at say, 4.45 p.m. and tea finishes at 5 p.m.,
the receptionist should make a point of asking if tea is required; if so, should it be served
in the room or will it be taken in the lounge before 5 p.m.? If the answer is that it will be
taken in the lounge, the lounge waiter must be told that the visitor will be down as soon
as possible, which means that an afternoon tea will be prepared. If it is to be served in
the bedroom, the bell for the appropriate floor service should be pressed, or a message
sent through to the service concerned. This applies to all other meals and it is important.
It gives the arriving visitor the impression that the hotel is anxious to do everything possible
for his or her comfort. In many of the smaller, less expensive hotels, the service is limited
to definite hours, in which case the receptionist can do very little to assist the guest who
arrives a few minutes after the meal is over; and the only advice one can give is that he/
she must be as tactful and polite as possible when explaining that the service is closed.
Ladies must not be kept standing about in the foyer of the hotel. Often the husband
will sign the register and then return to the car to supervise the unloading of the luggage
before parking the car. The receptionist will know, from arrival and departure list, that
the second person is a lady and he/she should step into the hall, greet the lady and ask if
she wishes to be shown to her room. If the receptionist is busy when the gentleman
Notes returns, he/she can inform him that ‘Madam has been shown to her room’, and instruct
the porter or page to escort him.
The receptionist can be very helpful in advising the lady visitor as to which
of her smaller cases she can leave in the hands of the porter. A good receptionist will
indicate to the visitor, before leaving the hall, that she can safely leave these in the hands of
the porter, or he/she will put a page in charge of them until the porter is ready to take all the
luggage to the bedroom.
As already stated, the receptionist’s manner must be pleasant without any trace of
familiarity. A calm, level-headed attitude must be maintained no matter how many
complications arise, and the impression conveyed should be that nothing is too much trouble
for this important visitor. Some visitors are difficult but the receptionist must do his/her
best to meet their requirements and if he/she cannot improve upon the room already
reserved, he/she can only state that he/she regrets his/her inability to be more helpful. In
some hotels there is a marked tendency towards indifference on the part of the reception
staff. This is poor business policy and can do irreparable harm to the hotel’s reputation.
In many of the less expensive hotels the porters take over the duty of escorting
visitors to their rooms. This procedure is also followed when the number of reception
staffs is not large enough to cope up with such duties in addition to the office work, but
in either case, the receptionist should extend the same attention and courtesy to the arriving
visitor.
Strict attention must be paid to the matter of having the register correctly signed. It
is important that in case of small hotels the practice of putting the room number in the
register is not recommended as it immediately becomes public information. The register
should not remain on the counter so that visitors can inspect it and take names and address
from it. The hotel should protect its visitors in this respect and if the register is kept on a
shelf under the counter it can be produced for arriving visitors and put back on the shelf
as soon as the registrations have been made. Failure to do this often results in the head
receptionist having the unpleasant task of telling a visitor that he or she is not allowed to
take information from the register.
If any telephone messages have been received to the effect that the guests will be
late and would like a cold meal or sandwiches put in the bedroom, care should be taken
to see that the order is put through to the appropriate department and the fact mentioned
to the night porter, who will see that tea and milk are available for him to make the visitors
a hot drink, if required, when they arrive.
The Reasons Why the Receptionist’s Job is Considered to be Better than Many
Others
– Better amenities.
– Pleasant atmosphere.
–
–
Interesting work.
Contacts with people of all types.
Notes
– Accommodation, food and service is provided.
– Opportunities to live in many parts of the country. Hotels are always situated in
places of some attraction.
– Has an opportunity to work with better types of people than working in any other
department.
The Importance of Receptionist
– Link between the establishment and the visitor.
– Many a times the only representative of the house supervisory staff official whom
the visitors meet. Not the chef or the housekeeper or the accountant or even the
manager gets this privilege.
– Makes first and the last impression.
– Usually managerial selections are made from among the receptionists.
– They are usually people with comprehensive knowledge, capable of taking over
the duties of others on their off days, hence an asset to the establishment.
– The way in which you carry out your duties will influence upon every other person
with whom you work and will reflect upon the whole reputation of your hotel.
– He is the principal selling agency of the hotel.
– He is the liaison within the hotel departments which supplies other departments with
such information as is necessary.
Qualifications of a Good Receptionist/Front Office Assistant
– Gracious manners—pleasant, quiet and dignified, personable and socially confident.
– Efficiency and high mental stability.
– Must be capable of meeting any situation.
– Pleasant voice.
– Tactfulness.
– Willingness to help others and assist guests at all times.
– Sympathetic.
– Great patience.
– Inherent courtesy, respect for others.
– He must neither become familiar nor be insulting. Addition of ‘Sir’ to a refusal tones
it down.
– Knowledge of foreign languages and command of English language.
– Cooperativness.
– Friendliness.
– Good appearance, grooming and personal hygiene.
– Confidence.
– Clear communication.
– Diplomacy.
– Quick decision making ability.
– Ability to stand for long hours, physically strong and sturdy.
– Calm and cheerful to guests in spite of physical and mental strain.
Notes – Honesty.
– Ability to remember names and faces.
– Ready smile.
Receptionist’s Checklist
– Credit policy–profiles
– Room types and rates
– Individual check in
– Group check in
– Charge booking
– Checking in a share booking
– Checking in a family booking
– Room status
– Room availabilities
– Moving guest to a new room
– Assigning rooms
– Registration card
– Keycard (Identity booklet)
– House status report
– Master folio list
– VIP booking
– Special discount
– Supplementary bills
– Point of sale and origin
– Chance booking
– Extended chance booking
– Show rooms
– Travel agents vouchers
– Safety deposit boxes
– Wait list box
– Bleep numbers
– Use of telephones
– No show report
– Voucher booking (a) all charge voucher (b) room only voucher (c) food and beverage
voucher
– How extras are payed on vouchers
– Posting commission
– Book out procedure
– Shift supervisiors diary
– Posting laundry
– Credit card print out
– Memo board
– Checkout statement
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A Guide to Success
– Define your private life (at home) and work goals clearly and maintain a balance in
between them.
– Understand your strength and make full use of them.
– Understand how your brain works and how to make better use of its unlimited of
resources.
– Understand and analyse your weaknesses and try to overcome these.
– Improve your communication skills.
– Be a winner and not a looser.
– Think positive.
– Understand the kind of person you are.
– Recognize that you can control your own life.
– Remember it is only you who can stop yourself from becoming what you want to
become.
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KEY CARD
The receptionist summons the bellboy and instructs him to take the guest to the
room by saying, ‘Front, please take Mr Ram to Room Number 317.’ The bellboy
will fill up an arrival errand card and come to the counter and the bell captain shall
prepare the bell captain control sheet (pro formas of bellboy errand card for arrival
and bell captain control sheet given on page 180). The receptionist hands over the
room key to the bellboy. The bellboy along with the luggage and guest will reach the
elevator, open the door of the elevator and would allow the guest to enter first and
then follow him with luggage. He will then press the button for the required floor.
He should be a good salesman and now it is his duty to ‘break the ice’ and try to sell
the facilities, services and amenities of the hotel, i.e., try to sell the hotel in totality.
Once the lift reaches the floor he should open the lift and let the guest come out of Notes
the lift first and come out of the lift after the guest along with the luggage and should
now take the lead. On reaching the door the bellboy should knock the door, wait for
a few seconds and then open the door and enter the room first with luggage. He
should put the luggage on luggage rack, switch on the light and the air-conditioner.
He should draw the curtains of the balcony, if any, and open the lock of the balcony.
He should then check everything such as ashtray, television, mini bar, bathroom and
its fittings, etc. He should check whether the WC is disinfected or not. By doing so
he checks that all control buttons, etc., are working properly and at the same time
he also demonstrates the control of all fittings, etc., to the guest. Further, if the guest
wishes so, he arranges the luggage in the cupboard of the room and vanity box in
the bathroom (in case of ladies). After that he tells the guest about ‘room service’
facility, puts the room key on the table, wishes the guest ‘happy stay’ and time of
the day and leaves the room, closing the door behind him. Any tips given by the guest
should be accepted with gratitude. Some hotels like ‘Holiday Inn’ give ‘No Excuse’
Room Guarantee Card to guest. A sample format of the same is given on page 181.
Meanwhile, the receptionist completes his job such as informing all
concerned departments about the arrival of the guest.
Many hotels these days are using computer and are using various computer
software for registration of the guest.
The registration module should have the following key elements.
I. Room allocation
l The correspondence file
II. Registration
l Pre-registration
l Group registration
l Chance arrival
Hotel ABC
Room No................ Name of the Guest ........................... (Arrival) ...................
If you are not satisfied with your room, call the manager on duty, who
will make every effort to correct the problem or move you to another room. If
these efforts are not satisfactory, and you believe the problem is serious enough
to warrant a refund, you must discuss the problem with the manager and ask
for a refund request card. If you have any questions or problems obtaining
this card, then call our Toll Free No. .............. and ask for guest services.
Again thank you for giving us the opportunity to take care of you.
Yours sincerely,
(President)
Hotel Group
Holiday Inn
Notes To ensure the highest standard of service to VVIP guests, it is important that guest
contact is maintained for the duration of their stay and that their needs are constantly
monitored, viz. arranging tours, re-confirmation of air tickets, etc.
In order to help achieve this, the manager should endeavour to make contact
with each guest on a daily basis.
Care must be taken that the approach is low key, friendly and unobtrusive. Ideally,
contact can be maintained while the guest is using the VIP loungs facilities. However,
this is not always possible.
Name: ..................................................................................................
Status: ..................................................................................................
Manager Reservations
BELL DESK
Bell desk is an extended arm of front desk. There are many activities at the time
of arrival, during stay and at the time of departure of guest which cannot be
carried out from the front desk but are to be carried out essentially, in order to
provide services to the guest. As the name suggests, it is a small desk/counter
in the lobby near the main entrance of the hotel. The bell desk should be situated
in clear view of the front desk, cashier and particularly the doorman standing
outside the lobby, so that the doorman may signal for a bellboy at the arrival of
a guest. Further, it is also important that the bell desk is situated near the luggage
centre and luggage entrance.
Front desk staff should have close relation with tourist information bureau.
If possible, there should be reference books in the form of a small library.
Reference book for answering questions about people like telephone directory,
‘who’s who guide’, ‘yellow pages’, etc., should be available.
In addition, the following should also be there:
1. City maps, time tables, city guides, etc.
2. Hotel guide, fodor’s guide, hotel and restaurant guide
3. Travel agents of the city
4. Hotel rules and regulations/House rules
Notes 5. Hotel literature such as brochures, tariff cards and picture postcards, etc.
A large amount of a clerks’ time is usually spent in providing information
to the visitors of the guest about guest. An upto date information rack is essential.
This may be rotatory type, vertical rack, or the latest computer VDU.
Message should be collected in the absence of the guest and delivered to
him on his return.
The staff should be organized to encourage ‘in-house sales’ and trained to
recommend their own hotel facilities to the guest. The folder in the guest bedroom
must contain an information sheet.
In a small hotel packed food and lunch may also be supplied from
information counter at times. A close liaison with restaurant manager and chef
is necessary. In such cases, guests are encouraged to order in advance through
‘carriage hamper’.
Successful handling of enquiries and information will make guest stay
enjoyable and memorable. At the same time, for the staff it may lead to a great
degree of job satisfaction when the staff comes to know that help provided by
him has made their stay enjoyable.
Follow the following basic principles when answering enquiries:
1. Be ready to answer any question the guest may have.
2. Find out the answer as early as possible if not immediately.
3. Be interested in guest and his or her problems.
ADDRESS ……......................................................................................................................…….
…….......................................................................……...................................................................
MAIL TELEPHONE
DATE
CABLES
TELEGRAMS
AIRMAIL
LETTER
POSTCARDS
NEWSPAPERS
MAGAZINES
LARGE ENVELOPE
PACKAGES
Remarks
Date &
Room Name of of the mail & Time Received Delivery Sign
S.No. From (parcel, letter, Time of of
No. the guest of rece- by To
Delivery Guest
telegram, etc.) iving
2. Mail for the hotel and mail concerning the hotel is again classified into
two heads, (i) Mail for staff, (ii) Mail concerning management of the hotel and
senior staff.
(i) Mail for the junior staff is sent to the time office where the staff coming on
duty or going off duty is delivered the mail.
(ii) Mail for the hotel’s senior staff is sent to their office through bellboys. Mail
concerning the various departments of the hotel such as accounts, personnel,
food and beverages, reservations, etc., is sent to the concerned departments.
Outgoing mail
The outgoing mail can again be of two types (i) In-house guest, (ii) hotel staff and
concerning the management.
(i) In-house guest: In case the guest wishes to send a mail through front office,
then normally this is done by the senior bell captain who weighs it, puts appropriate
value postage stamps on it and posts it on behalf of the guest. A V.P.O. voucher
is made for the same and guest’s signatures are obtained on it and is finally
posted in guest folio. For registered or recorded mail also the same procedure
is followed. Some hotels use a book called Postage Book to keep the account
of postage used for guests. Franking machine for stamping the envelope can
also be used by hotels.
(ii) Hotel staff mail: The hotel staff is usually not encouraged to send mail through
the hotel and is required to send mail on their own, while any mail can be sent
out of the various departments of the hotel is sent by the department directly
such as accounts, food and beverage and reservations, etc. (The flow chart
showing incoming mail handling procedure is given on page 188).
2. Message Handling
Receiving messages for in-house guests in their absence, recording them and
communicating them to the guests as soon as possible is an important function of the
front desk staff. The efficiency and professionalism of the hotel and the attitude of
the staff is reflected by the way this function is carried out by the staff. The need for
receiving message for the in-house guest is when the guest is not in the room. Usually
when a guest goes out of his room he would leave his room key at the counter where
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First sorting
the information clerk would put it in appropriate room numbers pigeon holes.
Sometimes, the guest may leave his whereabouts at the reception counter through a
yellow card also called as a locator/location form/whereabouts card. In case a phone
call comes or a visitor comes to the hotel to see the guest, the receptionist will first
confirm from the key and mail rack whether the guest is in the room or not. He will
look for any location form left by the guest also. Suppose a visitor comes and the in-
house guest has left a location form indicating that he will be in the bar/dining hall,
etc., then the paging in that particular area will be done for him either by public address
system or by traditional page board system. In case the guest has not left any
whereabouts but has returned the key to the counter, the visitor would be asked to
leave a message for the in-house guest. A special pro forma called a message slip is
prepared and is filled in by the visitor.
Usually hotels prepare the slip in triplicate on behalf of the visitor. The top one
or the original is kept in the key and mail rack in an envelope and is delivered to the
guest when he comes to collect his room key. First copy of the message is slipped in
the room; and the second copy remains in the message book as a reference copy Notes
(pro forma of message slip is given below). In case the guest has neither left any
location form nor has given the key of the room to the reception counter, same system
is followed for recording but, in addition, either an ‘attention card’ or a ‘mail and
message advise slip’ is put on the door knob of the room or message light is activated
in those hotels which use electronic systems. The message details may also be fed
into computer and the guest may view it on the screen of the TV in his room.
A similar system is followed in case of telephone message. The important point
to be noted here is that whenever the receptionist receives information about guest
whereabouts (through location form) he/she must immediately pass on the same
information to the telephone department so that the call may be diverted to the
message centre without delay. As a policy matter in some hotels the telephone
operators are usually instructed to transfer the calls of guests staying in the hotel, if
they are not attended to within 5 beeps. (Refer to message flow chart on
next page).
MESSAGE SLIP
HOTEL
TO ........................................................ ROOM .........................................
DATE .................................................. TIME .............................................
Mr./Mrs./Miss ................................................................................................................................
of......................................................................................................................................................
MESSAGE......................................................................................................................................
........................................................................................................................................................
RECEIVED BY ....................................................
Guest not in the hotel Guest in the hotel, but not in room
1st copy for 2nd copy for 3 rd copy for 4th copy for 5th copy for 6th copy for
reception to bell captain telephone
F.O. cashier H.K. R.S.
arrange numerically department
Collect keys of room no. from Remove guest folio Change room no. To be
information (if guest is in the room) Change room no. and rearrange passed on
Attach shifting slip the slip. food &
Proceed to the guest room with guest folio and re- beverage
arrange the guest folio
Guest not in the room (Dead Move) Guest is in the room (Live Move)
facilities is levied some charges according to the duration while resident guests are
usually provided free parking facility.
Security checks must be made and a proper system installed. The security
measures must be taken for the safety of the parking area of the hotel. Particularly
when it is in the basement, it is all the more important.
A car docket (pro forma given above) in two copies is made. One is given to
guest and second is attached with the car, the car is delivered on the production of
the card to the guest.
In many hotels the car parking area is operated by the hotel it self. Sometime,
it may be given to an outside agency also on rent or commission or both bases. As
already said it may be made into a minor revenue producing area.
Hotels which do not have in house parking facility make arrangements with the
near by municipal or private parking lot on payment. The terms and conditions are
negotiated as per the prevalent system and agreement between the parking lot owner/
operater and the hotel.
5. Room Key Control
A control system by which it is ensured that room keys are always at the proper place,
i.e., if the room is occupied and the guest is in the room then the key is with him, and
if the guest is not in the room or the room is unsold then the room key is in its proper
pigeon hole of key and mail rack. A lack of proper system may result in loss of revenue
as a room which is vacant may be shown occupied and may also cause confusion and
chaos as an occupied room may be accessed by an unauthorized guest. Key control
also provides security to guest and his belonging.
Two locking systems are used in hotels:
Hard key system (metallic keys)
In this system the key fits into a keyhole in a lock; preset tumblers inside the lock are
turned by designated keys. The system is less expensive at the time of initial purchase.
Often the guest forgets to return the key at the time of departure and hence guest
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Notes security may be jeopardized. Regular maintenance and rekeying of lock tumblers are
important as necessary part of preventive maintenance plan.
To provide safety, hotels usually do not put the name of the hotel on the key. In
some cases the keys are not numbered numerically but are marked alphabetically.
For example, the word ‘PROFITABLE’ is used where each alphabet of this word
represents numerals starting from 0 to 9 respectively, for example, room no. 228
will be represented by ‘RRB’, and so on.
Process of key control
The process of key control in case of hard keys is done by receptionist who
prepares a key control sheet (please refer to pro forma on next page) at around
midnight or 1.00 a.m. through night receptionist report which contains details such
as room not to be assigned, vacant, occupied, double lock, etc.
Ring or Collar
Cylinder
Key
Latch
The keys of vacant room should be at the key and mail rack in the appropriate
pigeon hole and if it is not there and also if the bill is settled, then ‘departure’ is shown
in the various registers as per bills and housekeeping.
The missing keys of the vacant rooms are tried to be located which could be
with housekeeping or bell desk. It is checked, and if not found, is entered in the report.
Details of missing keys list is made. It could be that the guest did a self departure
and mistakenly took away the key. Such room numbers are noted. Name of the guest,
his check out date and time is also noted. His address is taken from the registration
card.
This discrepancy report is sent to the front office manager the next morning
who investigates and corrects the discrepancy.
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2. Vacant Room Keys which are not at the counter (With details of missing
key)
503, 306, 212
3. Keys without key tags
Nil
4. Details of missing keys
Name of the Check out Page boy Receptionist
R.No. Guest who last responsible on duty at
stayed Date Time for checkout Dep. Time
503 Mr ABC 12/7 12.30 Ram Mr Jain
306 Mr KLM 12/7 13.00 John
212 Mr PIN 12/7 14.00 Kishan
TARIFF Notes
The term tariff means rate and when applied to rooms of a hotel it means rooms, rate.
Hotel room rates fixation is a difficult task. They are both qualifiable and quantifiable.
The quantifiable aspect is that they can be measured and structured to meet certain
criteria and qualifiable aspect is that large amounts of discretion are allowed in which
rates are implemented and when. The combination of all the rates offered at a hotel
is called ‘Rate Structure’.
Basis of Charging
Various basis of charging room tariff are used by the hotel. Most important is that the
hotel shall fix the room tariff keeping in mind the following factors.
1. Competition: Rates must be competitive (at the same time it should be able to
produce adequate revenue to meet fixed obligations) with other hotels of the
same standard and providing almost similar services and facilities as provided
by other hotels situated in the same vicinity of the city.
2. Customers’ profile: The category of customers coming to your hotel must also
be considered. Their social status and financial status, i.e., paying capacity,
should be kept in mind.
3. Standards of services: Standards of services provided by the hotel are also
important while fixing room tariff. The USP of hotel should be kept in mind while
deciding the room tariff. More the amenities, higher the standard, so also higher
the room rate.
4. Price cuts for special business: At times price cuts for special business may
be done. The price cut makes sense only if,
(i) It is necessary to cut the price in order to get business,
(ii) The price of business is income which you wouldn’t otherwise get,
(iii) It comes at a time of the year or day of the week when you need business,
(iv) It does not replace other more profitable business.
5. Locality: The locality in which the hotel is situated gains prominence while fixing
room rates. If the hotel is situated in a posh locality where all the shopping and
other facilities, approaches to airports and railway stations are worthy, the room-
rate would be comparably higher than those situated in backward and far-off
localities. Naturally, the guest would not mind paying more if he gets amenities
and facilities to his taste and liking.
6. The surroundings, cost of land and building architecture, constructions:
Surroundings need also a great deal of consideration because the hotel proprietor
spends lakhs of rupees in décor and furnishing and thus needs a fair and
equitable return on his spendings.
7. Various amenities: Various amenities the hotel is going to provide to the guests
Notes such as air conditioning in all rooms, carpeting, provision of swimming pool,
tennis-court equipment, arrangements for floor-shows, dancing, games,
banqueting, conference halls, lobbies, lawns, parking spaces, special aspects
of continental and Indian cuisine, cutlery and crockery, modern equipment and
machinery. These things do count when factors of room-rates are considered.
8. Room location: The location of the room also matters a lot. Front rooms and
rooms opening to better views would cost more than dark rooms, corner rooms
or opening to indifferent chambers.
9. Publicity: The amount of publicity done by a hotel and special budgets
prescribed for hotel publicity also matters in deciding the room rates. This type
of expense has to be adjusted somehow as it has no source of return but is a
must in popularizing the various services of a hotel.
Tariff Fixation
The tariff fixation can be done on the following basis:
1. Check in and checkout basis: It is the most common way of fixation of tariff.
The hotel fixes a specific time usually 12.00 noon as checkout time which means
the guest charging cycle begins from 12.00 noon and finishes at 12.00 noon on
the next day. For a guest staying in the hotel after 12.00 noon, next day’s charge
may be levied, for example, a guest coming at 6.00 a.m. on a particular day
and leaving at say 6.00 p.m. on the same day may be charged for 2 days.
Accounts keeping is simple in this system.
2. Twenty-four hour basis: In this system the charges of room starts from the
time when the guest checks in and he has to pay for one day upto 24 hrs from
the time of arrival. For example, if a guest arrives at 10.00 a.m. on a particular
day, then his one day charges shall be upto 10.00 a.m. on the next day and if he
continues to occupy the room of the hotel even after 10.00 a.m. on the next
day, then charges for the next day will be charged. This system is good for small
and budget hotels only.
3. On the basis of competitors rate: Some hotels fix their room tariff on the basis
of what their competitors in the neighbourhood are charging. This is most
unrealistic method and does not include any consideration of the features and
facilities of its own organization. The guest may find himself cheated sometimes
if the hotel is not able to give him the value for money. Also sometime where
the hotels services and amenities are higher then the ones given by the
neighbouring hotels and tariff is same as that of the competitor then the hotel
will run in loss. In this case the hotel usually takes the comptitors rate as standard
and fix their rate a little higher or lower then the competitors rates (usually 5-
10% variation). This method may also be included in ‘Marketing based group’
because the competitors who has been taken as guide line for fixation of tariff Notes
must also have fixed its rates initially on the basis of market study. The hotel
which is considered as a guide line is called as ‘price maker’. The price maker
is usually a large organization. This method usually does not cover factors such
as capital structure, profit targets, or operating cost of the follower. If the price
maker is much efficient because of better room design and better and economical
facilities such as economical heating and power saving devices, etc. then the
‘price maker’ who may not be so very economical in operation will find it difficult
to their rate at approximately 5–10 per cent lower (because of their higher over
head may be)
4. Night basis: In this system the guest is charged on the basis of number of nights
that he spends in the hotel irrespective of time of arrival, i.e., if he spends two
nights he will be charged for two nights with a minimum of one day charges.
5. Day rate: Sometimes a guest may stay in the hotel for a few hours only and
may not spend the night in the hotel at all. In such cases where he stays only
for six hours maximum hotels may charge special discounted rate (which is
usually 50 per cent of the rack rate) and the rate is called ‘day rate or day use
rate’.
6. Inclusive and non inclusive rates also called on the basis of meal plans:
Hotels also charge room rates on the basis of meals provided or not provided
along with room to the guest, for example, (a) European plan where the tariff
of room includes only the room rate and any meals such as breakfast, lunch
and dinner, etc., provided will be charged extra also called non-inclusive rate
becuse it was the characteristic of the European hotel, where Americans stay
on their travel. (b) Continental plan where the room tariff includes alongwith
room rate the continental breakfast also. (c) American plan (so called because
19th century US hotels often catered for long stay, full board residents) where
the room tariff includes along with room rates the English breakfast, table d’hote
lunch and dinner and may also include early morning tea and afternoon tea with
snacks. (d) Modified American plan where the room tariff alongwith room rates
includes English breakfast, and one of the two major meals, i.e., either lunch or
dinner only suitable for groups, and individual guests who arrive late evening
and take dinner and leave hotel after taking breakfast next morning. (e) Bermuda
plan which is a modification of continental plan where the breakfast included is
American (which is quite heavy) in place of continental breakfast.
7. Rule of thumb: Another very traditional way of charging room rate. In this
system ‘One Rupee’ rate is fixed for every Rs 1000/- spent on room construction
cost. This is also called as ‘cost rate formula’.
8. Upside down method: In this method, the hotel first estimates its sales volume
in terms of money and then calculates all the expenses. Then the hotel estimates
the room sales. Now from the total sales volume, i.e., the amount the expenses
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Notes are deducted, to arrive at the net profit figure, and then on the basis of projected
net profit, projected room sales, the projected gross sales and projected
expenses the room tarrif is calculated. This method is always not reliable as it
is based heavily on projected figures only. Also called as Top down price method.
In this method
∑ Potential market is identified.
∑ An estimated figure of number of rooms that we shall be able to sell annually
on a pre determined rate is reached.
∑ Work down wards through the cost figure to see whether this will result in
acceptable rate of rate return or not.
∑ This method emphasizes on the customers wants and stimulates new and
innovative ideas about various cost elements and how these (cost factors)
may be reduced.
∑ Often suitable when an organization wants to enter a new market.
∑ We may put this method also under cost based group because here also
ultimately it is the cost only that decides that whether we can achieve our
targeted Return on Investment (R.O.I.) or not.
(a) SPA hotels. Here the residents usually in addition to all meals also takes other
services such as laundry, etc., and hence may be on special tariff such as
residential/contract tariff.
(b) Airport hotel. Usually transit guests who stay for few hours or a very short
time stay here and opt for either an European plan or day rate only.
(c) That class of guests who are adventurous types and experimenting type and
who may want to experiences food and its quality of various restaurants of the
hotel may stay on European plan.
(d) Guests of a remotely situated resort who usually have no choice but to eat meals
in the hotel may stay in the resort on A.P.
(e) An A.P. hotel usually offers table d’hote menu (same price range), i.e., standard
means. Usually the menus are low cost and hence low budget guest (spending
power of the guest). Both the hotel and guest can budget their expenses in
advance.
(f) Hotel characteristics. Some hotels prefer to operate on inclusive tariff. The main
characteristics are:
i) Grade. The guest and staff ratio is the main considerations. A five
star hotel will have a higher staff guest ratio then a lower category
because extra staff is needed in providing direct guest services. In
such cases itemized bills are more useful.
ii) Size. The larger the hotel, it is possible that it will have a more modern
and computerised costing system and this is another reason that it
should have itemised bills. The number of staff does not depend upon
the size, it mainly depends upon the systems for example a hotel on
computer system would have low ratio of staff and guest.
iii) Length of stay. Another important consideration. A long stay guest Notes
on itemized bill will be a long one, for example let us consider he
makes only four charge purchases (room, breakfast, lunch and dinner)
per day and stays for a week, then there will be minimum 28 entries
in a week and it we say that we accommodate him on a per day
charge basis, then only one entry per day will be made (i.e.) seven
entries per week.
iv) Marketing consideration. When the guest is on full baord plan
(meals inclusion) and suppose does note want to eat meal, then he
may expect a reduction in the rate (which usually is not given). Many
hotels offering inclusive rates allow guests to choose either the
standard table d’hote menu or to set off the cost against an a’la carte
meal. This often encourags guests to lake advantage of the latter’s
wider choice because they feel they are getting a substantial
allowance towards the cost and thus helps to increase restaurant sales
figures.
ROOM TARIFF CARD
Room tariff (card) is a document published by the hotel for use by the travel trade,
organization and individual prospective guest and the list includes prices of rooms classified
into different categories, such as single room, double room, twin room, suites, and so on,
and meal plans such as American, European, and Continental, etc.
Group Rate
A published tariff price given to group operators which is commissionable only to
retail travel agents, tour operators and wholesalers. Generally commissionable at 10 per
cent of the published rack rate.
Volume Rate
These may be based on production of business for the entire year or for selected time
periods coinciding with seasonal rate. Also called preferred rate. Usually a further discount
rate on corporate rate and is given when a guaranteed number of room nights within a
specific time frame is required. Usually those companies which have a certain level of
transient business volume which they want to be accommodated to the hotel are given
this ratio. It is important that the company ensures that the room night production level is
maintained.
Rack Rate
Rack rate is a term which refers to the normal room rate of the hotel. This is the rate of
the room which is published in the room tariff card. This is also the rate which is written
on the shannon slip which is slipped in room rack of those hotels which operate on Whitney
system. This rate is usually negotiable and many types of discount can be given to various
categories of guests such as travel agents, tour operators, corporate companies, airlines
groups students, conference organizers FHRAI members. IAAI members, and so on, the
list is endless. Normally, free individual/ independent traveller (FIT) guests are those guests
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Notes who are not sponsored by any company or organization and come to the hotel directly for
getting their rooms. It is also the highest published rate of the rooms. Usually given to walk-
in and is that case it is called walk-in rate.
Executive Business Service Rates
Special rates available to preferred business accounts.
Tour Group (Series Group) Wholesale Rates
A tariff rate, discounted in advance (and inclusive of tax and services) applicable to
wholesalers who operate a series of tours with group arriving and departing together.
Government rate
Usually government employees are given per day allowance for their travelling and
accommodation and food by their office and some hotels offer them a rate which give
them room and accommodation with in that price.
FIT Wholesale Net Rates
These rates are applicable to a wholesaler travel agent who publishes packages whereby
an individual guest may arrive any day and stay as long as he wishes. Since these packages
are normally sold through retail travel agents they are normally constructed at 15 per cent
off the individual rate.
Discounted Rates
Airlines, travel agent discounts; discount rates should be fixed in competition to other hotels
of the area.
Seasonal Rate
Season and resort hotels which usually have fluctuating demand change their rate usually
as per the seasonality and offer different rates for in season and off season.
Crib Rate
A special rate applicable to children below 12 years of age and accompanying their
parents.
Extra Bed Rate
Generally one fourth of the published room rate.
Family Rate
Special rates for families, for example, one couple and a child below 5 years, then the rate
may be for one double room. One couple with two children below 12 years, the rate may
be of one double room plus one extra bed rate etc.
Crew Rates
Special rates for airlines crew, depending upon the total room night on consistent and
continuous basis given by the airlines over a period of generally one year.
Week day/Weekend Rates
Another factor on which the rate fixation can be done for example on a hill station where
the guest are more on friday to Sunday the rates may be higher and from Monday to
Thursday the rate may be lower. Similarly the rates of a down town hotel during weekdays,
i.e., from Monday to Thursday may be higher and from Friday to Sunday may be lower.
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Traditionally hotel location types see their week days and weekend demands levels Notes
differently and fix their rates accordingly.
Membership Rates
Some hotels give special rates to the members of various esteemed organizations such
as esteemed clubs, etc. These may vary from 50 per cent to complementary on
accomodation only some rebate may also be given on Food and Beverage service also.
This is called ‘Industry Rate’ when it is offered to hospitality trade organisation such as
FHRAI and TAAI, etc.
Executives of the Other Units of the Same Chain
Under the programme usually a 50 per cent discount on accommodation and 30 per cent
discount of food and soft drink and on alcoholic beverages may be given to executives
of the other units of the same chain.
Corporate Rate Programme
This programme covers corporate offices and usually 10–15 per cent discount (on the rack
rate) can be given to the officers coming from corporates. The corporate rate is widely
accepted as the transient target rate for most hotels. This is simply an average rate goal
a hotel fixes achieve for a certain day or market segment.
Students-Faculty Programme
A very special programme run by some hotels offering discounted rates to students and
faculty members of various educational institutions, etc. These are negotiable.
Special discounted rates are also given usually to UN employees, FHRAI members,
TAAI members and travel writers, executives of travel agents and airlines, etc. The
discounts may be on accommodation, accommodation and food and soft drinks or on
alcoholic beverages, etc.
Commercial Rate
A rate agreed upon by a travel agent and the hotel for all individual room reservation.
Advance Purchase Rate
Some hotels have started using the new concept of charging. Under this more and more
discounted rate may be given depending upon the factor that how early the booking is made,
for example, a hotel may give more discount to a booking which is done one month before
as compared to a booking which may be only one week in advance.
Package Rate
A package offered by the hotel on a combination of one or more hotel product or services.
Also called as Bundling. A Bundling entails pricing the package below the cost of
purchasing the items seperately. When the bundling includes meals it becomes an
American plan or MAP depending upon the meals offered and is called ‘meal package’.
Further, a package will be called an meeting package’, (which is usually offered to meeting
planners) where the complete meeting package (CPM) would include, coffee breaks,
lunch, dinners, and or/audiovisual equipment, meeting room charges, and the room charges.
Similarly, a vacation package will include along with room rate, the airlines tickets
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Notes transporation charges, tickets to local attraction or shows and themed aminities, for example
a themed beach vacation bundle in addition to the above may include sun glasses, sun
tan lotions, beach umbrella, snacks on beach and other such amenities which may be
necessary for a vacationer. Similiarly many other such special vacation packages/bundles
may be organized.
SAMPLE TARIFF CARD
HOTEL ABC
F.I.T. TARIFF GROUP TARIFF FIXED MENU MEALS
European Plan (Room Only) (For 15 persons or more) (For Groups only)
Indian Rupees European Plan American Breakfast Rs. 70/-
Single Room 1150/- Single Room 900/- Lunch 135/-
Double Room 1250/- Double Room 1000/- Dinner 135/-
Double Suites 1800/- For MAP & AP application add
Executive Suites 2500/- as per meal rates quoted below:
Deluxe Suites 3000/-
Luxury Suites 3500/-
Group tariff is applicable for groups of 15 paying members or more. After every 15 paying members,
one person accommodated complimentary.
LOCATION: Situated in an elite residential area of New Delhi. Hotel is 8 kms from Palam Airport,
6 kms from the main city shopping centre and 8 kms from New Delhi Railway Station. All rooms
are centrally air-conditioned with attached bath and shower, direct dial telephone; 4 channel music,
refrigerators and close circuit televisions.
SERVICE & FACILITIES: 4 Restaurants, 3 Conference/Banquet rooms to accommodate upto
500 persons; 24 hour room service; same day Laundry and Dry Cleaning Services; Barber Shop
and Beauty Parlour; Swimming Pool, Business Centre and Secretarial Services; Travel Agency,
Pastry Shop, Shopping Arcade; Safe Deposit Lockers; Currency Exchange; Doctor on Call; Baby
Sitters on request. Extensive Car Park; Credit Cards—American Express, Diners Club; Visa and
Mastercharge.
DINING& ENTERTAINMENT
A RUSTIC HIGHWAY THE 10th CENTURY
STOPOVER: Treat your palate to EATERY: Truly
the delicacies of the ‘rugged English tradition is at
roadside’ cuisine. This Indian its best here. Situated
restaurant, one of its kind, is at the lobby level, our
reminiscent of the cherished rural 24-hour eatery offers
folklore. the choicest snacks
and meals.
IN HIGH SPIRITS: Make spirits
soar in this regal bar, overlooking A TASTE OF
the sprawling green lawns. DIFFERENCE : Set
JUNGLE A HUNTING CAMP: Enter the
your mood in the
midst of a bamboo
VIEW world of wild-life and hunting grove with emerald
camps, brought to you in a specially leaves, and savour the
created jungle atmosphere. The food exotic Szechwan and
is bar-be-que, served in a setting of
Cantonese cuisine.
log-huts, pit-fires, and flowing
streams.
SWIMMING POOLS: Situated amidst spacious lawns. Take a dip or sunbathe along the pool
side. Also a mini pool for the kids.
Notes
HEALTH CLUB: Equipped on modern lines with sauna, steam bath and gym.
Key Terms
Whole sale rates Bermuda plan European plan
American plan Modified American plan Continental plan
Check in-Checkout USP Rule of thumb
Crib rate Hubbart formula Day rate
FIT Family rate Commercial rate
Chapter Objective
The reader understands how beneficial or damaging communication can be for the
business, and the importance of inter- and intra-departmental communication for
hotel.
COMMUNICATION
According to Oxford Dictionary, communication means, ‘the imparting, conveying or
exchange of ideas or knowledge whether by speech, writing or signs.’ In common terms,
two persons communicate when they transfer information or exchange ideas, knowledge
or emotions. For communication to be effective, it is important that the information
transferred is understood by the receiver. ‘Communication is something so simple and
difficult that we can never put it in simple words,’ says T.S. Matthews. However, Peter
Little defines communication as ‘the process by which the information is transmitted
between individuals and/or organizations so that an understanding response results.’As
per W.H. Newman and C.F. Summer Jr., ‘Communication is an exchange of ideas, facts,
views, opinions, information and emotions by two or more persons.’ ‘H.A. Simon defines
communication as any process whereby decision premises are transmitted from one
member of organization to another member,’ while as per Mac Farland, ‘Communication
is a process of meaningful interaction among human beings. Moreover, it is the process
by which meanings are perceived and understandings are reached among human beings’
and ‘Theo Haimann has defined communication as the process of passing information and
understanding from one person to another. Communication, fundamental and vital to all
managerial functions, is the process of imparting ideas and making oneself understood by
others.’ The word ‘communication’ seems to have been derived from the Latin word
commune. Communication is not just talking, it is much more than that. Every time we
talk/deal with a person, we are talking not just with a voice over the phone, or a face on
the other side of the reception counter but we are communicating with a whole person
who has complex sets of emotions, thoughts, values and past experiences. The end result
of communication is understanding and its main purpose is to motivate a response.
BASIC CONCEPT OF INTERACTION BETWEEN TWO PEOPLE
The behaviour which a person wants to show to other persons is influenced by his
intentions, ideas and feelings and is possible only when there are atleast two persons.
Communication flow involves four aspects:
1. Sender
2. Receiver
3. Message
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Notes the intentions of the sender. In other words, the receiver decodes (listen and read) the
message.
The receiver then responds internally and makes his own interpretation of the
message. This interpretation is based on his own intentions, ideas and feelings. This is
also called as some kind of feedback. Use of an appropriate channel such as face to
face, letter, telephone, telegram, newspaper, etc. The channel should not distort the
message. Usually, we learn 11 per cent through hearing and 83 per cent through seeing
and we retain 20 per cent of what we hear, 30 per cent of what we see and 50 per cent
of what we see and hear and 70 per cent of what we do.
During communication process there usually is certain amount of noise. The word
‘noise’ refers to obstacles (anything that obstructs free flow of communiction is called
noise) during the process, and it has different meanings for sender, receiver and channels
of communication as follows:
For sender: The term noise means his attitude, prejudices or past experiences, type
of expression he gives to the message.
For receiver: The term noise means his attitude, prejudices, background and
experiences, which affects his translation of the message.
For channels of communication: The term noise means environmental
disturbances, such as traffic noise disturbance, telephone bell, loud conversation of others,
speech or language problem, annoying or distracting mannerism, etc.
For effective and successful communication, it is important that the degree of noise
in all three, i.e., sender, receiver and media be controlled to the maximum possible because
it causes miscommunication. Noise also refers to physical factors such as poor handwriting,
dirty pages and use of very dull ink, etc. Too small a handwriting is also noise.
Purpose: To establish the significance of non-verbal communication.
What to do? Imagine you are meeting someone for the first time. Ask yourself how
much you make impression on others by
• Actual words you say
• The way you say these words (tone, speed, etc.)
• Your body language
Process of communication: This involves what is to be transferred and how, when
and where this is to be done. Follow the steps given below:
(a) Clarify the problem or idea
(b) Take help of others in formulating the solution to the problem
(c) Transfer the idea or decision
(d) Motivate sender to take the required action
(e) Measure the effectiveness of communication
FOUR COMMUNICATION SKILLS
Application of four communication skills is important when two or more people are
communicating to each other, in order to understand each other clearly.
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1. Paraphrasing Notes
This skill is used to make sure that I have understood the ideas, information and questions
of other person.
‘To paraphrase,’ means to understand the ideas of others and to be able to put in
our own words or explain with the help of an example.
A good paraphrasing may sometimes be more specific and easily understood than
the original statement.
Examples of paraphrasing (simple situation)
Paraphrase A
Guest: I am looking for a room.
Receptionist: For how many nights, Sir?
Analysis of paraphrase A
Paraphrase A is too general. It is not clear. In fact the guest may not be even thinking
of staying in the hotel and might be looking for the banquet room where he might
be expecting to meet his friend.
Paraphrase B
Guest: I am looking for a room.
Receptionist: Do you have a reservation, Sir?
Analysis of paraphrase B
Paraphrase B is more clear and specific. To this the guest may now clarify—
‘No, I am looking for the banquet room.’
Another Example of paraphrasing (slightly more complex)
Paraphrase A
Guest: I am unhappy with my room.
Clerk: You would like me to change you to another room, Madam?
Analysis of Paraphrase A
(i) Paraphrase A is too general a statement.
(ii) Receptionist attitude of ‘BAND AIDING’ without even knowing the problem.
(iii) If the guest agrees to change his room, the receptionist or other management
staff will never come to know about the real problem.
(iv) The situation will end in an ‘illusion of understanding’.
Paraphrase B
Guest: I am unhappy with my room.
Receptionist: I am sorry Ma’am. May I know what is the problem Ma’am? Perhaps
the air-conditioner is not working?
Analysis of Paraphrase B
(i) More specific.
(ii) Little committed (perhaps the air-conditioner gives problem frequently).
(iii) Suppose the guest says ‘No, it’s not the air-conditioner, but it’s the TV’
(iv) Action can be repair or replacement of TV rather than change of room.
Notes they are supposed to do, what their authorities are and how their work can come upto
the expectation of their superiors. This will make the workers feel more satisfied in their
job. This results in better efficiency and loyalty.
8. Communication is essential for effective leadership: Communication is more
closely related to directing and helps creating understanding between different personnel
in organization and thus helps bring about cooperation between employees and
management. Manager influences the behaviour and attitude of subordinates by appeal
to both logic and emotions and by creating an understanding with them.
IMPORTANCE OF EFFECTIVE COMMUNICATION IN HOTEL
INDUSTRY
No hotel can develop in the absence of effective communication—both internal as well
as external communications. Besides, communication skills of the employee are given high
weightage at the time of appointment and promotion of employees.
1. Internal communication
It is basically communication within the hotel itself, i.e., transmitting information within the
organization, its departments, sections, etc., and between the units of the same chain. In
this case the central organization of the large chain is its nerve centre and maintains a
thorough and up to date knowledge of various activities at the branch offices, and keeps
the branch offices well informed. This is possible only through an effective network of
communication. Further, it is important for maintaining coordination and avoiding
embarrassing situations between the various departments and between the departments
of the hotel and the management, for example, when the production is fully geared up the
stores may report shortage or non-availability of raw material. Effective communication
creates an atmosphere of mutual trust and confidence, and also a spirit of understanding
and cooperation. The employees know what exactly is expected out of them and the
management is aware of the potentialities and limitations of the employees. The
management gets better returns and the employees get job satisfaction.
Internal communication may be of three types—formal (official), informal and
consensus.
(i) Formal communication
This line of communication is meant for transmission of official messages or
information within or outside the organization. Formal communication flows along
prescribed channels which the staff members wanting to communicate are obliged
to follow, for example, the bellboy cannot directly communicate to the M.D. of the
hotel. Formal communication may move vertically or horizontally. Vertical
communication is from supervisor to subordinate and vice versa. Horizontal
communication flows between employees of equal or comparable status; for
example, from executive housekeeper to front office manager and vice versa.
(a) Vertical communication
Usually associated with formal structural relationship of the enterprise set ups.
Follow the chain of command of formal organization and are usually in writing.
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Internal
Communication
Downwards Upwards
coordination among various departments. Let us consider an example that the Notes
store reports the shortage of raw material when production is fully geared up.
The shortage of raw material would hamper the production while the sales
department may continue booking orders. Free flow of horizontal communication
among various departments can easily avert such situations. Some managers
may discourage horizontal communication feeling that the workers may get
friendly with one another and may cause problems for the management. Useful
for coordination in the working of different departments through mutual
understanding between departmental managers.
Methods of horizontal communication
Face-to-face exchange of views or telephone conversation is very convenient
for horizontal communication. The congenial atmosphere in which oral
communication takes place allows freedom of expression. There is immediate
feedback and all doubts and misunderstandings are sorted out. Periodical
meetings among the departmental heads are also used for oral communication.
Among written means letters, memorandum and reports are most frequently
used. Short memos are found very convenient for transmitting small bits of
information.
(ii) Informal Communication
In addition to these formal channels of communication, there exists in every
organization an informal channel that does not arise out of organization needs but is
an integral part of communication. Rumours that are all the time spreading in any
organization follow this. It is characterized by the network of interpersonal relations
among personnel not formally as people have tendency to cut across formal channels,
and communicate informally with different parts of organization.
Advantages of informal communication: (a) Since it is a man-to-man personal
relationship, communication provides larger opportunities to people to form social
groups. (b) Helps in satisfying the psychological need of people to know what is
happening in other parts of organisation. (c) Information passes very quickly.
Limitations of informal communication: (a) Half, incomplete and distorted
information may be carried as people add their personal interpretations to the
information, this is because people’s personal motives are very dominant in
transmitting information. (b) The paths and behaviour of this communication is very
uncertain and quite unpredictable. (c) Mostly the information communicated by this
mode is highly unreliable.
Grapevine
It is an important channel of communication. It is of four types:
1. Single strand – Flows like a chain.
2. Gossip – One person tells everybody else.
3. Probability – Information may move from anybody to anybody.
4. Cluster – Moves through selected groups.
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Notes 7. D.N.D. (Do Not Disturb): He could not check the room because of DND
sign on the door.
8. O.O.O.: Room not for sale, an out of order room.
9. U.R.: Under Repair.
10. S.B.: Scanty Baggage.
GUEST HISTORY
Consider a situation where a guest has picked up his luggage from the luggage belt
at the airport and steps out of the airport to the ground transportation stop to be greeted
and welcomed by the hotel representative with the hotel courtesy van waiting for him.
His favourite soft drink is offered to him in the van. Further arriving at the front desk
the receptionist greets him by name, his G.R. card is ready for the signatures only as
he has been pre-registered. The assigned room is same in which he stayed and
enjoyed his previous stay because he highly appreciated the view of sea from his room
window. Entering the room the bellboy turns on the TV showing his favourite channel
already set in. The room air-conditioner set to the temperature most comfortable for
him. The fruit basket full of fresh seasonal fruits but with no bananas as he dislikes
bananas and a flower arrangement of only roses because he likes roses only. The
wardrobe has much needed extra hangers, plus a personally monogrammed bathrobe
for him. His favourite newspaper and magazine are on the table. Mini bar is with
plenty of swiss chocolates, as he had consumed all that were kept in the mini bar on
his last visit. A hard bed is already prepared for him which he had to request on his
last visit and, to top all, a ticket to the night’s performance at the same famous theatre
of the town, which he frequently visited during his last stay at the hotel.
Now imagine how happy and satisfied the guest would be when he will get all
that he wanted even without asking for it. All the services and amenities provided
and care shown by the hotel in the above case is possible because the hotel is well
aware of the needs and wants of the service and facilities of the guest in advance,
and which the hotel has come to know because its staff was taking interest in knowing
his likes and dislikes on the previous visit/s and were recorded down for future
reference.
Service excellence will always be the key factor in the success of hotels, not
only now but always. This involves remembering frequent guest’s needs and desires,
and to be able to provide them even before the guest asks for them. Service quality
has become synonymous with ‘brand image’ these days because the hotel
accommodation in a given class are looking more and alike. Before the computer
age, guest information was recorded manually sometimes in registers or cards but
now with larger number of rooms and with increasing labour cost and with increasing
capacity of computer, not only written records are gone but hotel can no longer rely
on their employees to remember frequent guests. Another factor is guest stays now
are relatively short and the employees turnover is also very high these days. Excellent
service will be enough now to convince the guest to stay at a given hotel. In fact the Notes
3 factors, namely incentives, individual attention and recognition will determine the
guest choice of a hotel.
A possible format of guest history card is given below.
NAME : NATIONALIT Y:
WEDDING ANNIVERSARY:
NORMALLY BOOKED
ARRIVAL DATE NO. OF DAYS ROOM NO. PREFERENCE IF ANY THROUGH
AGENT/CO.
CONTACT
NORMAL BILLING
INSTRUCTIONS
COMMENTS:
Incentives
Frequent customer programmes that reward regular guests with gifts, room upgrades
or airlines tickets, etc. Although as compared to airlines sector these incentive
programmes are not providing as much result as is expected out of such programmes.
Personal attention
Most of the hotels these days are now being able to bring under control the tangible
aspect of the hotel product and the challenge now is to make service as tangible as
possible. Giving the guest personal attention has more potential as a competitive
strategy.
Recognition
Recognizing the guest is not only noting preferences and rewarding repeat business,
but it also means building long-term relationship with guests by knowing and translating
their expectations. Maintaining dialogues with customers, finding out exactly what
they are looking for and making sure that what he wants he will find it in the hotel and
checking back to make sure that the guest’s expectation are met is very important.
Building relationship with guests is no longer a good business policy but has now
become a matter of survival.
Unlike other industries, in hotel industry the customer gives marketing Notes
information about himself before and during the consumption of product, i.e.,
(i) at the time of booking them, (ii) more information is added when they register,
(iii) during their stay, when they express their room, food and service preference
to the staff and (iv) finally something through comment cards which they fill at
the time of departure.
Hotels should try to close the above mentioned gaps to improve their guest
history management. The following points can be considered to close each one.
System design gap
Be sure to tap all possible sources and ask all guests as many questions as
possible. All staff members should be trained to ask questions as and when
they get the opportunity to do so throughout the guest stay and then add
the gathered information to data base. Arriving guests may be asked to fill
up preference card giving their special amenities and services requirements.
Capacity gap
Make sure that the system has accurate storage need. Storing information
is not enough, however. Access to it must be fast and simple.
Analysis gap
Look at the information you already have and think of creative ways to
use it. Recognize guests on birthdays. Send a handwritten note with flowers
in the room. Examine from where your guests are coming and, the nature
and profile of the company they represent. Apply a statistical analysis
package to do a regression analysis with total expenditure as a dependent
variable, so you can determine where the money is coming from and find
the big spender. Use guest comment cards to match stay patterns with guest
satisfaction. Food and beverages, favourite room preferences, and other
preferred amenities, and so on, being kept ready and waiting without the
customers asking for them should be provided. Apart from preferences,
guests will be surprised and happy when special dates such as wedding
anniver sar y, d ate of b ir th, and s o on, ar e remember ed . S p ecial
monogrammed stationery, bath robes or glassware, and so on, would be
highly appreciated. Personal information can help hotel employees make
pleasant conversation with guests, e.g., favourite hobbies and sports, etc.
With the help of computer systems the information collected can very easily
be diverted to concerned departments such as housekeeping, food and
beverage, and so on, to take action at their end leaving the front office
department with sufficient time to concentrate on services and direct
interaction with guest. Through computer networking, customers can be
recognized at any of the chain’s unit worldwide.
Some customers may not like this recognition and many consider this as
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Data Source
(Guest/History Representative)
Gap 1: System Design Gap
All information asked from cutomer
before, during and after their stay
Gap 2: Process Gap
overly familiar or invasion of their privacy and this may lead to embarrassing
situations at times. Another problem that may arise is when the guest would
see that you know so much about him, his expectations would rise, and even
a minute gap in meeting his or her expectation would result in gross
dissatisfaction.
RELATIONSHIP MARKETING
Relationship marketing is a form of marketing that evolved from direct response
marketing in the 1960s and emerged in the 1980s, in which emphasis is placed on
building longer term relationships with customers rather than on individual
transactions. It involves understanding the customer’s needs as they go through their
life cycles. It emphasizes providing a range of products or services to existing
customers as they need them.
Development of relationship marketing
The origins of relationship marketing observes: ‘What is surprising is that researchers
and businessmen have concentrated far more on how to attract customers to products
and services than on how to retain customers.’ The initial research was done by
Len Berry at Texas A&M (Berry, L. 1982) and Jag Sheth at Emory, both of whom
were early users of the term relationship marketing, and by marketing theorist
Theodore Levitt at Harvard (Levitt, T. 1983) who broadened the scope of marketing
beyond individual transactions.
In practice, relationship marketing originated in industrial and b-2-b markets
where long-term contracts have been quite common for many years. Academics
like Barbara Bund Jackson at Harvard re-examined these industrial marketing Notes
practices and applied them to marketing proper (Jackson, B.B. 1985).
According to Len Berry (1983), relationship marketing can be applied, when there
are alternatives to choose from; when the customer makes the selection decision;
and when there is an ongoing and periodic desire for the product or service.
Fornell and Wernerfet (1987) used the term defensive marketing to describe
attempts to reduce customer turnover and increase customer loyalty. This customer-
retention approach was contrasted with offensive marketing which involved
obtaining new customers and increasing customers’ purchase frequency. Defensive
marketing focused on reducing or managing the dissatisfaction of your customers,
while offensive marketing focused on liberating dissatisfied customers from your
competition and generating new customers. There are two components to defensive
marketing, i.e., increasing customer satisfaction and increasing switching barriers.
Traditional marketing originated in the 1960s and 1970s as companies found it
more difficult to sell consumer products. Its consumer market origins molded
traditional marketing into a system suitable for selling relatively low-value products
to masses of customers. Over the decades, attempts have been made to broaden
the scope of marketing, relationship marketing being one of these attempts. Marketing
has been greatly enriched by these contributions.
The practice of relationship marketing has been greatly facilitated by several
generations of customer relationship management software.
CUSTOMER RETENTION
At the core of relationship marketing is the notion of customer retention. According
to Gordon (1999), relationship marketing involves the creation of new and mutual
value between a supplier and individual customer. Novelty and mutuality deepen,
extend and prolong relationships, creating yet more opportunities for customer and
supplier to benefit one another.
Studies in several industries have shown that the cost of retaining an existing
customer is only about 10 per cent of the cost of acquiring a new customer so it can
often make economic sense to pay more attention to existing customers.
It is claimed by Reichheld and Sasser (1990) that a 5 per cent improvement in
customer retention can cause an increase in profitability of between 25 per cent and
85 percent (in terms of net present value) depending on the industry. However, Carrol
(Carrol, P. and Reichheld, F. 1992) disputes these calculations, claiming they result
from faulty cross-sectional analysis.
According to Buchanan and Gilles (1990), the increased profitability associated
with customer retention efforts occurs because:
• The cost of acquisition occur only at the beginning of a relationship, so the
longer the relationship, the lower the amortized cost.
• Account maintenance costs decline as a percentage of total costs (or as a
percentage of revenue).
Notes • Long-term customers tend to be less inclined to switch, and also tend to be
less price sensitive. This can result in stable unit sales volume and increases
in dollar-sales volume.
• Long-term customers may initiate free word of mouth promotions and
referrals.
• Long-term customers are more likely to purchase ancillary products and high
margin supplemental products.
• Customers that stay with you tend to be satisfied with the relationship and
are less likely to switch to competitors, making it difficult for competitors to
enter the market or gain market share.
• Regular customers tend to be less expensive to service because they are
familiar with the process, require less ‘education’, and are consistent in their
order placement.
• Increased customer retention and loyalty makes the employees’ jobs easier
and more satisfying. In turn, happy employees feed back into better customer
satisfaction in a virtuous circle.
Relationship marketers speak of the relationship ladder of customer loyalty.
It groups types of customers according to their level of loyalty. The ladder’s first
rung consists of ‘prospects’, that is, people that have not purchased yet but are likely
to in the future. This is followed by the successive rungs of ‘customer’, ‘client’,
‘supporter’, ‘advocate’, and ‘partner’. The relationship marketer’s objective is to
help customers get as high up the ladder as possible. This usually involves providing
more personalized service and by providing service quality that exceeds expectations
at each step.
Customer retention efforts involve considerations such as the following:
1. Customer valuation: Gordon (1999) describes how to value customers and
categorize them according to their financial and strategic value so that
companies can decide where to invest for deeper relationships and which
relationships served differently or even terminated.
2. Customer retention measurement: Dawkins and Reichheld (1990) calculated
a company’s ‘customer retention rate’. This is simply the percentage of
customers at the beginning of the year that are still customers by the end of
the year. In accordance with this statistic, an increase in retention rate from
80 per cent to 90 per cent is associated with a doubling of the average life
of a customer relationship from 5 to 10 years. This ratio can be used to make
comparisons between products, between market segments, and over time.
3. Determine reasons for defection: Look for the root causes, not mere
symptoms. This involves probing for details when talking to former customers.
Other techniques include the analysis of customers’ complaints and
competitive benchmarking.
4. Develop and implement a corrective plan: This could involve actions to
improve employee practices, using benchmarking to determine best corrective
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Notes of the organization. Every employee is said to be a ‘part-time marketer’. The way
Regis McKenna (1991) puts it:
‘Marketing is not a function, it is a way of doing business . . . marketing has to
be all pervasive, part of everyone’s job description, from the receptionist to the board
of directors.’
Due to this, it is claimed that relationship marketing is a more pure form of
marketing than traditional marketing.
INTERNAL MARKETING
Relationship marketing stresses what it calls internal marketing. This refers to using
marketing techniques within the organization itself. It is claimed that many of the
traditional marketing concepts can be used to determine what the needs of ‘internal
customers are. According to this theory, every employee, team, or department in
the company is simultaneously a supplier and a customer of services and products.
An employee obtains a service at a point in the value chain and then provides a service
to another employee further along the value chain. If internal marketing is effective,
every employee will both provide and receive exceptional service from and to other
employees. It also helps employees understand the significance of their roles and
how their roles relate to others. If implemented well, it can also encourage every
employee to see the process in terms of the customer’s perception of value added,
and the organization’s strategic mission. Further, it is claimed that an effective internal
marketing programme is a prerequisite for effective external marketing efforts.
THE SIX MARKETS MODEL
Adrian Payne (1991) from Cranfield University goes further. He identifies six markets
which he claims are central to relationship marketing. They are: internal markets,
supplier markets, recruitment markets, referral markets, influence markets and
customer markets.
Referral marketing is developing and implementing a marketing plan to stimulate
referrals. Although it may take months before you see the effect of referral
marketing, this is often the most effective part of an overall marketing plan and the
best use of resources.
Marketing to suppliers is aimed at ensuring a long-term conflict-free relationship
in which all parties understand each other’s needs and exceed each other’s
expectations. Such a strategy can reduce costs and improve quality.
Influence markets involve a wide range of sub-markets including: government
regulators, standard bodies, lobbyists, stockholders, bankers, venture capitalists,
financial analysts, stockbrokers, consumer associations, environmental associations,
and labour associations. These activities are typically carried out by the public relations
department, but relationship marketers feel that marketing to all six markets is the
responsibility of everyone in the organization. At times Payne sub-divides customer
markets into existing customers and potential customer, yielding seven rather than
six markets. He claims that each market will require its own strategies and Notes
recommends separate marketing mixes for each of the seven.
WHEN TO USE RELATIONSHIP MARKETING
Relationship marketing and transactional marketing are not mutually exclusive
and there is no need for a conflict between them. However, one approach may be
more suitable in some situations than in others. Transactional marketing is most
appropriate when marketing relatively low value consumer products, when the
product is a commodity, when switching costs are low, when customers prefer single
transactions to relationships, and when customer involvement in production is low.
When the reverse of all the above is true, as in typical industrial and service markets,
then relationship marketing can be more appropriate. Most firms should be blending
the two approaches to match their portfolio of products and services. Virtually all
products have a service component to them and this service component has been
getting larger in recent decades.
CRITICISMS OF RELATIONSHIP MARKETING
Internal marketing and the six markets model has been criticized as not really being
marketing at all. At the core of marketing is the marketing philosophy of first
determining what the market wants, then providing it. It is doubtful that this is what
is occurring in influence markets, supplier markets, recruitment markets, or internal
markets. What is occurring is closer to public relations, persuasion, and management.
It appears to be marketing because it uses some marketing techniques, but it would
more accurately be described as salesmanship. Relationship theorists tend to compare
themselves to traditional marketing. In doing so they frequently present traditional
marketing in an unfavourable light, for example, Adrian Payne (1991) claims that
traditional marketing concentrates on product features, has minimal interest in
customer service, limited customer contact, and quality is primarily a concern of
production. Although there may still be some marketers that think this way, these
statements have not reflected marketing best practices for more than three decades.
HANDLING EMERGENCY SITUATION
Apart from fire and bomb threat, the front office staff at time has to handle a lot of
other unusual situations also. Some such situations may be death and illness of guest,
theft in the hotel, and so on. The following is a brief explanation as to how to handle
them. These are only guidelines and the final decision depends on the situation and
the person handling it.
I. Death of guest in a hotel
Out of the several unusual situations that the front office staff has to face from time-
to-time and one of the most harrowing situation is handling of death of a guest in a
room. Front office being the hub of the hotel, report about the death would come to
the front office usually. This usually is reported by the house keeping or room service
staff. Once the information comes to the front desk then it must be immediately
Notes reported to the front office manager by the receptionist, as on his level he is not
authorized to take any action. Usually, the front office manager will then inform the
G.M. or Resident Manager. The security officer should also be informed immediately.
Normally in such situations, the police is also informed. The hotel doctor is also
summoned, who actually will establish and confirm the death. Meanwhile the hotel
will locate the residential address of the deceased and will try to inform the relative
or people known to him. After the police completes their formalities and activities
and gives permission the dead body is removed from the room. Before removing the
body must be fully covered and then removed, preferably on a stretcher from the
room. Care should be taken not to use the guest elevator while removing the body
and only the service lift should be used for this purpose. A death certificate should
be obtained from the doctor. A report should be prepared covering who informed of
the death, time, the room number and the date of the death. In case there is luggage
and other belonging of the deceased guest then they all must be collected, a list
prepared, kept in the luggage room with a note and the person performing this activity
shall sign the report. The report should be submitted to the GM immediately. Finally,
once the dead body is removed, the room should be locked and sealed. Later when
the police gives clearance only then the room should be opened, thoroughly disinfected
and spring cleaned and only after the permission of police and subsequently the G.M.
or resident manager the room should be sold.
Some important points in this regards are as follows:
1. Do not enter the room alone, always take the lobby manager and security
officer with you.
2. In case you know that the deceased was under the treatment of any specific
doctor, the same should be called instead of the hotel doctor. His physician will also
be helpful in knowing and notifying the incident to the relatives and people known to
him.
3. Do not disturb the body or touch anything before the arrival of police, this
may be a murder or suicide case.
II. Handling accident situations
Accidents as the name says are mishappenings and the handling depends upon the
gravity and seriousness of the accident, for example spilling of water on the guest
coat is an accident and also slipping of a guest on the highly polished floor of the
lobby and as a result breaking one’s pelvic girdle is also an accident. The approach
of the hotel staff in both the cases will be different and according to the situation.
Hence, what is more important when we talk about handling an accidential situation
is the attitude of the person attending to the accident. Basically the attitude must be
of helping, and sympathy and at the same time the person attending must be able to
convey a sincere concern to the guest who has met with an accident. A knowledge
of first aid would come very handy in such situations, but at the same time he should
restrain himself in going too far off and avoid giving specialist, advise and medicine.
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FRONT OFFICE RESPONSIBILITIES
His words, gestures and actions would also play very important role in the handling Notes
of situations. Here specific cases like, fracture, burns cuts, bleeding, heart problem,
and so on, are not discussed individually, because then it will be more like a first-aid
book. However, since the hotel staff is usually given the first aid drill and classes,
hence he should apply that knowledge as per the situation.
In general the following points should be taken care of:
1. Remove the person who has met with accident from the site of accident (if
possible) as early as possible and take him to a more comfortable area, use a stretcher
in case the need be.
2. Call the doctor and if possible give him the details of accident and gravity of
the accident and where the patient is so that he may come prepared without wasting
time.
3. Preferably take some one with you to the site of accident as you may need
help.
4. Keep alert, you must serve the victim immediately by providing first aid
(remember you have to provide first aid and only for temporary relief and not medical
aid).
5. Keep calm, but do not take too much time to decide as it may be an emergency
case.
6. Try to protect your establishment against any false allegations.
7. Prepare a full report of the whole incident giving details such as date and
time, who reported the accident, name of person, his room number, the site of
accident the action taken (doctors name, what the doctor told, whether he was
removed to hospital or not, and so on.) the names of witness involved, etc. Also make
your comments as to the reason of accident and how it could have been prevented
and what acition should be taken for future prevention of the accident.
Notes securities officer of one of the Marriott hotel’s 50 per cent of the theft can be avoided
if the management is concious about the security and is able to design a security
system which best suits its requirement. The police points out that not only is there
a possibility that the thief will not be caught but also that the stolen property would
ever be recovered. It is possible to prevent the loss to a great extent by using organized
security.
Theft in hotels are usually divided under four categories.
(a) Theft by employees of the hotel
(b) Damage of the hotel properly by guest
(c) Theft by guest
(d) Theft by outside thieves.
Each of these four categories should be treated separately and the security system
accordingly should be designed.
(a) Theft by employees of the hotel. Thefts by the employees of the hotel,
especially those who come in contact with the guests or who in pursuit of
their duties are allowed to enter a guest room, could be kept to a minimum
by the following procedure.
Work business and personal references should be checked before they are
employed. Keep a detailed record of all employees who enter the guest room
such as chambermaid, bellboys, room boys, maintenance and engineering
department, etc. Make it a policy that no employee of the hotel will ever
keep the key of hotel and he must return it to front desk immediately. All
room key of rooms must be kept under strict control particularly when it in
use, and should be issued to staff only on written authority, computerized or
magnatic card key should be used.
(b) Damage of hotel property by guest. Damage to hotel property by guest
is a very common occurance in hotels. This may be intentional without any
apparent reason and under the influence of alcohol during a conference/
convention or party, or sometime accidently. The hotel management should
try to analyse the root cause of the damage. The damage caused accidently
and without any intentions to damage the property may be overlooked, while
in case where it is evident that the guest has damaged the property of the
hotel intentionally the hotel may ask the guest to pay the compensation for
the same. In this case, it is the responsibility of the front office staff to charge
the guest with the value of the damaged property and for this it is important
that the front desk staff is well versed with the cost of damaged item. A
voucher for the amount should be made and given to the guest.
(c) Theft of the hotel property by guest. Very common items which usually
are stolen by the guests from the room are pillow covers, towels, bedsheets,
bed covers and other room items such as ash trays, openers, water tumblers
soap cases, small but costly object d’art, stationery folders, etc. When the
230 Self-Instructional Material
FRONT OFFICE RESPONSIBILITIES
housekeeping department suspects that the guest is leaving with some hotel Notes
property then the first decision which is to be made as to what is the appereut
cost of it. If it is a small item the hotel management do not bother much, but
if it is a costly item then it is a tough situation. If we allow the guest to go
away with the item it will be a loss to the hotel and at the same time if we
ask him to open his luggage, we may loose the guest forever. If the hotel
staff if fairly certain that the guest has kept hotel property in his luggage
then he may politely ask the guest. Sir, I believe you have liked the hotel
bed sheet, and kept that in your luggage by mistake, would you like to return
the same or shall I add up the cost of the same in your bill?’ or the front
office staff may say, ‘Have you inadvertantly taken any hotel property and
packed that in your bag?’ Sometimes this question is enough but usually it
is not. In such situation if the front office manager has definite information
that the guest is taking away hotel property, he may request the guest to
open the luggage. However, if there is slighest doubt this step should not be
taken because if the guest luggage is clean, he may sue the hotel for
defamation.
One of a very polite way of telling a guest that he is taking hotel property
with him and the hotel is adding the cost of item on his bill.
Sometime another situation may arise where a guest’s property may be stolen
by another guest. Such situation may be avoided by taking the following steps.
(i) If a guest leaves the hotel without returning the key of the room in which
he was staying. In such case, a report in duplicate indicating the name,
address, the room numbers and the description of the identity of the
guest should be made and the two copies so made of the report should
be kept in alphabetical and numerical records respectively.
(ii) Cashier should be instructed to ask the departure guest for the keys of
his room. The bellboy should not be depended upon although it used to
be the practice in all hotels for bellboys to collect the room keys from
departure guest and deposit them at the counter.
(iii) Many such thefts are caused by guests or employees carelessness
where either they leave the key in the door knobs, or leave the doors
open of the room; although they are not in the room.
(iv) Install automatic locks on the room doors.
(v) Appoint a security officer who should walk and take rounds at regular
intervals in the corridors.
(vi) Inform guests to use safe vault of the hotel to not to keep valuables in
the room also place notice about these lockers in rooms and also mention
it on G.R. cards.
(vii) Keep watch on ‘walk in’ as their likelihood of being a thief is more as
compared to a guest who has undergone a process of making reservation
in hotel.
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FRONT OFFICE OPERATIONS
Notes (viii) Avoid giving room numbers of the resident guests to visitors and
telephone callers unless they give the name of the resident.
(ix) The staff should be given training to associate the names, physical
features of the guest so that the key of the room is handed over to the
right guest and not to the unknown guest.
(x) Use of key/cards/welcome cards which have guest signatures, should
be done and in case of doubt the guest may be requested to produce
the key card for identification.
(xi) Any suspicious charaiter if found moving in the hotel must immediately
be reported to security department.
(xii) Keep all enternances and staircases well lit.
(xiii) Post security staff in corridors and floors.
(xiv) Housekeeping staff should be forbidden to open guest rooms for them.
In case guest looses his room key and asks the housekeeper to open
the room for him, the housekeeper should direct him to the front desk.
(xv) Master key must be under strict supervision and control.
(xvi) Use of card key (punched or magnetic) should be encouraged.
(d) Theft by outside thieves. Theft by criminals, other than the employees
or guests can be reduced by setting security measure which are dangerous
for prospective thief. These include the following:
(i) Look for suspicious persons who prefer to use staircase instead of
elevators. These who use lifts usually select either one floor higher or
one floor lower then the actual floor where the room which they want
to ransack, is situated.
(ii) Criminals who come without keys usually walk down the corridor trying
to find a room where the door is accidently left open by the guest or
until they find a careless employer. Keep all corridors well lit. The house
office should follow a regular and irregular schedule of vigil and rounds.
(iii) Stagger lunch and rest periods of employees so as to keep at least one
person on duty on each floor as most thefts occur between 10.00 a.m.
and 11.30 a.m and in the afternoons.
(iv) Instruct the telephone operator not to connect the calls of outsider to
the rooms of guest if the request is made by the caller by room number.
She must insist on knowing the name of the guest to whom he wants to
talk.
(v) The receptionist should not send the visitors to the rooms of guest
directly and on the contrary should contact the guest in the room and
tell him about the visitor and only when the guest says to send him to
the room he should tell him the way to room. He may also ask the visitor
to use the house phone.
(vi) Guest should be told to keep the balcony door closed to avoid any one Notes
entering the rooms from the balcony.
(vii) House detective should be appointed who should sit in the lobby.
(viii) Use of close circuit television also are quite useful.
(ix) Receptionist should make it a point not to give the room key to any first
presentable person who may say ‘Keys of room no.......please’,
(x) Use of key drop on the reception counter also helps in avoiding keys
going to wrong hand and the staff should ask for his key card/welcome
card.
Key Terms
Channels of communication Communication skills
Internal communication External communication
Discrepancy report Technical competence
Process gap Capacity gap
Notes RESERVATIONS
9
Chapter Objective
The reader is able to understand the various stages of guest contact with the hotel.
He is also able to book rooms for the prospective guest by using one of the various
methods, understands the importance of ‘full house’ and overbooking. He is able
to design reservation section for a hotel, and select an efficient system of reservation;
He can also handle telephone courteously. He is also able to prepare for guest
arrivals and is capable of providing warm reception to the arriving guest efficiently.
He is also able to install the luggage of guest in the room.
GUEST CYCLE
The term guest cycle represents various stages of activities when a hotel provides services
or keeps contact or maintains records during the various stages of its contact with a
guest such as before the arrival, at the time of arrival, during stay, at departure and after
departure. Out of these five stages the first and last stage, i.e., during the stages before
arrival (when the guest shows his intentions to come to the hotel) and after departure
(i.e., when the guest after staying in the hotel has already left) are those where there is
no personal contact with the guest of the hotel and it is only through the effective record
keeping and communication network such as telephone, telex, fax, computer, letter,
telegram and the Internet, and so on, can efficient and satisfactory services can be given
to the guest. Further, if we consider the
other three stages of the guest cycle, i.e., Before arrival stage
arrival, during stay, and the stage of >
Arrival
departure we notice that the hotel has direct > stage
contact with the guest, and since during
After
these three stages there is a direct personal departure
contact of guest with hotel, it is very stage During
>
to serve and satisfy the guest in one way or the other, but it is the last stage, i.e., the after Notes
departure stage when the real challenge comes. It is during this stage that the activities
of the hotel will bring back the guest to the hotel. For this is important that the hotel
management creates occassions of contacting guests and keep reminding him about the
hotel from time to time. This can be done by sending letters, mailers and feelers to the
guest on his birthday, his wife’s birthday, his marriage anniversary and other such occassion
which may be important for him and his family. For these hotels must keep guest history
card.
STAGES OF GUEST CONTACT WITH THE HOTEL
The guest is the most important person for the hotel and the guest’s stay determines the
flow of business through the property.
Four major points can be considered in this context, such as (a) pre-arrival,
(b) arrival, (c) during stay, and (d) departure.
Pre-arrival
During the pre-arrival stage, the prospective customer makes a decision as to which
hotel to patronize. Some of the factors that effect the selection of hotel and considered
as buying influence are, location and convenience of reaching it and availability of transport
to and from hotel, its ambience and appearance, rate/and plan, reputation, facilities such
as accommodation, its decor, furnishing and food and beverage facilities, recreation and
entertainment facility and shopping arcade. Finally, one more important factor is service
standard. The marketing and sales department of the hotel makes extensive marketing
programmes through advertisement to attract more and more clients. Hotels set aside
annual budgets for hoarding signs, advertisement in newspapers, trade magazine, mail
shots, public relations, etc. How effectively the reservation clerk is able to explain the
features (benefits) of the hotel to the prospective guest and his positive attitude is another
important factor which helps the prospective guest in finalizing his selection of the hotel.
Arrival
This is the second major stage of guest contact with the hotel. The major activities at this
time are registration and rooming and both the guest and the hotel enter with a binding
contract.
obligations in reserving accommodation. The staff should be aware of the fact that they Notes
represent the management while dealing with guests; and their actions, decisions and
conversations are all binding on the management/proprietor. The hotel management/staff
should be aware of the ‘law of contract’. The arrangement made during booking by both
the hotel and prospective guest must be honoured by both the parties and if any one of
the two parties default the contract, the other party can claim compensation. Hence, as
per the ‘law of contract’ the hotel is bound to provide the reserved accommodation to
the guest on his arrival and the guest is obliged to pay for the same. In order that a contract
is formed it is important that an ‘offer’ is made by the hotel to the guest and an
‘acceptance’ is received from the guest. The offer must be clear in terms such as type
of room, dates of booking, checkout time, room price per night and that the same is not
transferable etc. Since many reservations are made over the telephone, it is important to
understand that although it is preferable to confirm the conversation for reservation held
between the prospective guest and hotel in writing, yet a verbal conversational contract,
provided it contained an offer and an acceptance, is a binding legal contract that is
enforceable by law. The problem with contracts come only when either of the two parties,
that is, the guest or hotel wishes to cancel the contract. This generally happens from
guest side. For various reasons the guests might not want to take up the offer of
accommodation which the hotel made and he accepted. Legally the hotel can claim
compensation from the guest for not honouring the contract. The hotel may claim
‘retention charges’ from the guest in such cases. The decision to charge or not to charge
retention charges depends upon the management. The decision is generally made by
looking in to factors such as the reason for not honouring the contract by the guest and
also if the individual or organization is persistently cancelling the rooms. Sometimes, the
hotel may not be in a position to provide room to a guest who has made reservation in the
hotel. In such cases it is the legal and moral responsibility of the hotel to provide him
accommodation at some other hotel of the same standard. In case the hotel fails to do so
the guest may claim compensation from the hotel. In large hotels reservation section is
a separate section, although it is a part of front office department only.
1. Reservation Section—Location, Planning and Layout
Since the reservation section normally does not come in direct contact with guests, it need
not be in the lobby, but at the same time it must be very close to the reception area, i.e.,
the lobby of the hotel. Ideally, the reservation section should be situated behind the
reception counter and there should be direct access of the reception staff to this area
through a door, preferably a swing door. If due to structural problems of the building, it is
not possible to have the reservation section behind the counter, it may be located on either
side of the reception counter area. In certain cases, it has also been observed that the
reservation section is situated on the floor just above the lobby and is connected through
a staircase/elevator to the front desk in the lobby.
The reservation section of a large hotel is headed by a reservation manager who is
assisted by reservation assistants/clerks and other junior clerical staff. The size of the
reservation room shall vary according to the size of hotel, and also the systems used. A
Notes large hotel with automatic reservation system will require a smaller area as compared to
a hotel operating on manual or semi-automatic system. However, the basic requirements
will remain the same. The reservation room should have an office for the reservation
manager. All that is necessary for knowing room status such as status board and/or racks
(Whitney Rack), or computers, and so on, should be there. Proper storage place in the
form of filing racks, cabinets, etc., should be there for storing stationery and reference
materials such as reservation form, reservation slips, files of various category of guests
such as companies and embassies, travel agents, airlines, and so on, who provide business
to the hotel very frequently. Work-tables and comfortable office chairs, filing systems,
typewriters, telephones, telex and fax machine, electronic room status board, etc., should
be provided. Proper lighting and ventilation system should be there. Principle of motion
study must be kept in mind while planning the layout of the section. Care should be taken
that flow of work and the movement of staff is in one line and is not creating any
hinderance to each other.
MESSAGE CENTRE
MANAGER
RECEPTION INFORMATION
OFFICE
FRONT
RESERVATION
ENTRANCE
ASSISTANT
MANAGER
TO THE
ROOM STATUS
HOTEL
BOARD ON
THE WALL
LOBBY
BILLS
CASHIER
HOUSE
FILING
RACKS
TELEPHONE
FILING CABINETS VAULTS TELEX
AREA ROOM
Verbal Written
(Telephone and in person) (Letter, Telex,Telegram,
Fax,E-mail, etc.)
(i) When confirming reservation it is important to fix arrival time. The guest should be
informed, ‘We only hold the room till 6.p.m. unless a deposit of Rs….. is sent’.
(ii) In case of late arrival, hold room only till one hour later than the said time.
(iii) When the guest intends to arrive before check in time inform that he will have to
pay for preceding night too.
5. Channels/sources of reservation
It means, from what source the reservation request has come to the hotel. The request
may be made by an individual, i.e., FIT, a tour operator (wholesale or retailer), a travel
agent (local or foreign), an airlines, corporate companies, embassies and high commissions,
Notes government and semi-government offices, NGOs, other units of the same chain,
competitors, CRO & IRS, or international marketing systems, such as UTELL, sales office
of the hotel and organizations with franchise. A means by which a guest is able to make
a reservation at a hotel is called ‘Reservation Avenue’.
6. Types of Reservations
One may come across various terms such as guaranteed payment reservation (credit card,
commercial contract), tentative, confirmed and deposit reservations.
GUEST
Hotels/Motels, etc.
The above mentioned and other various types of reservations can thus be classified
as follows:
Types of Reservations
makes the tentative booking into confirmed booking otherwise the tentative booking is Notes
cancelled and the records updated.
Confirmed booking. It is usually when the prospective guest does not send any
guarantee but simply confirm through a letter. In such cases the hotel holds the reservations
upto 6.00 p.m. only on the day of arrival of the prospective guest and release the
accommodation after that time and may sell it to a walk-in or a waiting guest, and in
case the guest who has made the reservation arrives after 6.00 p.m. the hotel is not
bound to provide him accommodation. The hotel informs the guest about this system
through its offer letter.
Advance payment or deposit reservation. In this case, the hotel requests the
prospective guest to either send the complete deposit or a partial deposit and on receiving
that makes the booking for the prospective guest. In this case, even if the guest does not
come till late or does not come at all on the date of arrival, the room is not released and
is kept for him for at least 24 hrs. because the payment for the same has already been
received and the hotel can always forfeit the advance received from the guest in case of
his no show.
Credit card guarantee. It is the case where a prospective guest makes booking
and gives the hotel his credit card number. The hotel confirms that from the credit card
company and then blocks the room for the prospective guest, of course the concerned
hotel must also be a member of the same credit card company. In case of the ‘No Show’
of the guest the hotel will make the charge to the guests credit card number and the
credit card company will bill the card holder.
Airlines guarantee. In this case, the airlines management takes the responsibility
of payment of the accommodation booked by them for their passengers, and crew and
in case of their no show. Although this situation rarely arise.
Company or corporate guarantee. In this case, a corporation, company or
embassy, etc., who makes a booking for their executives guests and visitors, in the hotel
hold the responsibility of paying the retention charges to the hotel in case of No show of
the guest for whom the booking has been made by them.
Travel agent guarantee. Sometime some travel agents have arrangement with
hotels chains to book room for their clients (travellers) and executives travelling to various
destination and take up the responsibility of payment in case of there no show. These
arrangements assure the guest’s a room, and the property its room rent whether or not
the guest arrives. Usually the travel agency is billed after the guest’s stay is completed.
In-house voucher guarantee. This is a special arrangement and this is designed
to attract return guests or new business.
7. Handling reservation requests
(i) Telephonic handling (Refer to the flow chart showing telephonic request made
by the guest on page 243.)
Notes Reservation request may come to the hotel through telephone. When a guest makes
a phone call it shows the urgency on behalf of the guest. The phone call may be a
long distance call costing money to the prospective guest. The reservation assistant
should always be well equipped for such situations and without wasting any time
should be able to quickly and at the same time completely and effectively handle
this inquiry/request of the guest. The booking and availability status of the rooms
must be handy to him. This may be in the form of diary, advance booking charts,
density control chart, room-status board or through computers, depending upon the
size and standard of the hotel. Pen, pencil, reservation forms and amendment/
cancellation forms should be handy.
As communication is a very important skill, the reservationist should be aware of
and follow the basic telephone manner. He should remember that he cannot be seen
but can only be heard, and hence he should be able to convey to the prospective
guest the welcome through his voice and tone of speech. First and foremost, he
should keep a pencil or pen and reservation form or a pad near the telephone ready
and must pick up the phone receiver immediately, preferably within five beeps and
should immediately identify the establishment, the reservation section and himself,
wishing the caller as per the time of the day. In case he is busy, he should inform
the caller that he would be back very shortly. He should not leave the caller on hold
music for long as it will irritate him to a great degree. In a well-modulated voice,
with friendly, interested and helpful tone and with clear, distinct and appropriate
words and phrases he should talk to the guest over the phone. He should not sound
mechanical, tired, indifferent, uninterested and impatient. He should listen attentively
and note down all the information clearly. He should refer to the reservation card
as a check list. For details on telephone communication refer to Chapter 10.
(i) Reservation record—reservation form/card
Once the request from the prospective guest is received (through any mode) and
this has been decided to accept the request as the room is available. The reservation
clerk/assistant records the information received as this initiates the hotel guest cycle.
The record is noted on the reservation card/form.
The reservation form is important and base document for any reservation system.
Hotels design their own reservation forms based on their needs. It is a good practice
to fill this form for all reservation no matter how the reservation request is received,
i.e., verbally or in writing. This is a sort of checklist of the information that must be
collected from the guest before making any booking by the hotel. In case of the
written mode, the request may come in various forms and styles such as letter, telex,
e-mail, fax, etc., and may be in different formats and may also be incomplete at
times. The reservation assistant should transfer all the information needed for making
the reservation from the letter, telex, telegram, etc., to the reservation form so that
a consolidated information document needed for making the booking is available.
2
Requirements are ascertained
3a 3
Alternative dates suggested and an alternative Reservation form filled
accommodation offered to guest
5a Confirmation 5
In case some cancellation or amendment is not received
Confirmation received
received and room becomes available, wait
listed guest is confirmed and informed. Reservation
Charts and racks, etc., are also updated. form transferred 6
to anoth er file Reservation confirmed in
mentioned ‘con- records and confirmation
firmation not letter sent to guest
received’
7
5a 4b 4a 8
Guest requested to send
acknowledgement
8
Documents filed till the arrival of guest
Notes In case of a verbal request which may be through a telephone call or a personal
contact, this form becomes very essential. The entire reservation system revolves
around this form. This is an easy reference document and acts as a checklist to the
reservation assistant.
The form must have the following columns:
1. Name of the guest.
2. Mailing address of the prospective guest which can be his permanent residential
address or his office or business address along with his telephone number.
3. Date and time of arrival and date and time of expected departure.
4. Number of persons.
5. Type of rooms, such as single, double or suite, etc., and number of rooms to be
booked.
6. Booked by—that is, the source of booking like travel agent, airlines, companies
or individual, etc., is very important.
7. Billing instruction—such as credit card payment, advance/deposit to be taken,
all payment cash at departure time or bill to company, etc. This information is
very important to avoid any revenue loss problem.
8. Terms and conditions—such as checkout time, 6 p.m. release of room,
written confirmation needed and option date, etc., which are to be informed
to the guest.
9. Reservation status—like a guaranteed payment, advance payment, credit card
payment, confirmed reservation, and wait-listed reservation, etc.
10. Special remarks—such as the car is required at the airport, the luggage to be
received in advance, late arrival, food to be kept, room facing swimming pool,
quiet room, etc.
11. Finally, the form should also have the column for signature of the reservation
clerk/assistant and the column for the date of receiving the reservation request.
In addition to the above, some hotels may also have the classification of prospective
guest according to their profile, to indicate market mix, and may put them under
various categories and groups such as: (i) corporate, (ii) package group, (iii) travel
agents, (iv) central reservation office, and (v) airlines, etc.
Sometimes, the reservation cards may be coloured to indicate different types of
reservations, for example, a white-colour card may be used to indicate a regular
reservation (a 6 p.m. release reservation), blue-colour card for late arrival, a pink
colour card for Spatts, etc. Reservation forms may also be numbered and have a
cross reference G.R. Card (arrival) number on it.
A sample reservation form is as given as follows:
RESERVATION FORM
Notes
NAME NUMBER OF PERSONS DATE
ARRIVAL
ADDRESS/COMPANY FLT. NO
DEPARTURE
BOOKED BY DATE
ADDRESS
TIME
DATE OF BOOKING
BILLING INSTRUCTIONS
He should make sure to spell the name correctly. Once all the details are collected,
he should find out about the room availability and whether the request of reservation
can be accepted or not. In case the accommodation is available he should repeat
back the information collected from the guest to make sure that nothing has been
missed. He should spell out the necessary terms and conditions such as check-out
time, 6 p.m. release, cancellation policies, retention charges and option date, and
room rate, etc., to the guest and, if the need be, request for a written confirmation
(see sample confirmation letter sent by the prospective guest given on the next page,
i.e., page No. 247). Some hotels at this time assign the guest with a confirmation
number, which serves as a reference to reservation record.
Rate quoting. While quoting the room rate, the reservation clerks should also give
proper consideration to factors such as (i) charges for extra services or amenities,
(ii) Applicable foreign currency exchange rates (iii) any extra taxes such as luxury
tax, etc.
In case the accommodation requested by the guest is not available for the days
needed by him, an alternative accommodation may be suggested. Otherwise the
request may politely be denied by saying, ‘Sorry, Sir, the hotel is full for the period
you requested for. However, we have put you on wait list and if there is any
cancellation we will inform you immediately.’ The disadvantage of this system is
that unless the letter from the prospective guest confirming the telephone
conversation comes, there is no written proof of communication and that is why
the guest is requested to send written confirmation if there is time.
Self-Instructional Material 245
FRONT OFFICE OPERATIONS
Royal Club
173, New Street,
Chennai.
Tel......................
Fax.....................
Request letter from customer to the reservation department for the confirmation
of booking for guests.
Dear Sandy
Please book and confirm two single rooms at Rs 5,000.00 each for tomorrow
evening (18th July, 2001) in the names of Mr F. Heatley and Mr J Bartlett. To
be paid on departure by cash.
Please note that Mr Heatley and Mr Bartlett are travelling from London
and may be a little late in checking in. Please keep rooms available.
Yours sincerely,
MEL MELVINI
Branch Secretary
Notes
Confirmation Confirmation
6a not received 6 received
Notes
1
First letter received from prospective guest
2
Requirements are ascertained
3a 3
Guest informed. A letter Offer sent to guest
making an alternative offer
may be sent.
4
Guest does Guest
Documents filled and filed temporarily
not accept accepts
the offer the offer
5 5a
Documents Steps 5,6,7 Offer accepted by guest Offer not
filed in a & 8 follow- accepted by guest
separate file. ed and set of 6
documents Guest letter received
filed.
7
Entries made in chart/diary/computer
8
Confirmation sent to guest
4/8
Set of documents filed
Notes
1
Telegram received
2
Requirements ascertained
3
3b 3a Reservation form filled
Guest informed through Accommodation
a telegram arranged in some other
4
hotel
Entries made in diaries/
charts/racks,etc.
4a
Entry in diary only
5
Reservation confirmed
4/8
Set of documents filed
Hotel ABC
123, Church Street,
Mumbai
Dear Sandy,
Further to our telephone conversation this morning, I confirm the booking of a
single room with en suite facilities for the night of Wednesday, 3rd October
for Mr W. K. Bradfield.
Please make this room a guaranteed late arrived and all bills connected to this
stay should be sent to myself at the above address.
Yours sincerely
Maria Dallorzo (Mrs.)
Company Personnel
or on account of its obligations to other guests, the Management may without giving Notes
notice or assigning reason shift a guest to other accommodation or even terminate
the occupancy. The responsibility and liability of the Hotel Management will be
restricted and limited to the refund of deposits, if any, received and still lying
unavailed of.
6. Deposits
Notwithstanding the foregoing, the Hotel Management will have the undisputed Right
to cancel without notice any reservation, in case the client has Not made a deposit
for the period of proposed stay. A guest will have the Right to claim accommodation
only for the period for which the management has accepted deposit from him in
accordance with the Presenting Tariff.
7. Settlement of bills
All bills should be settled immediately on presentation. The hotel will have lien on the
Baggage/Property of the guests until the dues are cleared. If the bills are endorsed
in favour of a Booking Agency, Travel Agent, Company or a person and does Not
cease until the payment has actually been received by the hotel.
8. Right of admission
The right of admission in the hotel precincts is strictly reserved by the Hotel
Management. Occupation of accommodation and entry into the hotel will be on the
understanding that the guest’s visitors have accepted to abide by the rules and
tradition of the hotel.
9. Disputes
Disputes and or difference of opinion regarding the application interpretation of these
and or other rules in vogue in the hotel will be referred to the sole arbitration of the
Managing Director of the hotel and his decision will be final and binding. In case of
litigation only Delhi Courts will have the jurisdiction.
Reservation map
This is a general term used by some hotel to determine what types of rooms are available
and when they are available.
Advance letting chart/Conventional booking chart
This chart is commonly known as ALC and is also called as Conventional Booking Chart
or Room Letting Chart. This is an old system and is used only by small hotels and also
those which do not have computerized systems. The system uses charts on monthly basis.
Since there are maximum of 31 days in a month, the chart has 31 vertical columns which
Self-Instructional Material 253
FRONT OFFICE OPERATIONS
Notes indicate dates and on the horizontal columns the room numbers are mentioned. The number
of horizontal columns will depend on the number of rooms in the hotel like single, double,
etc. Feature furnishing details and other highlights can be mentioned along with the room
number in abbreviations such as 'SR' for Single Room, 'DR' for Double Room, 'SP' for
facing swimming pool and 'AF' for antique furniture, etc. Blocking, cancellation and
amendment entries are generally made by pencil on the chart, so that the chart does not
become messy by frequent usage and maintain records effectively. An efficient staff team
is required to avoid problems. On receiving the request of booking from the prospective
guest which include the type of room and period for which the booking is required, the
reservationist checks up the position from the chart and then blocks the room on the chart
with the help of a pencil by drawing a line from the concerned dates against the room
numbers. The name of the prospective guest may be written on the line. (Refer to chart
given on page 255). The small arrow head are placed at the end of each reservation to
indicate when a particular reservation starts and finishes. All housekeeping status such
as out of order rooms, rooms under maintenance, and so on, for that period are also
recorded on the chart so as to avoid booking of such rooms. The provisional booking may
be shown by dotted lines on the chart. The chart is a visual reference of future expected
business of the hotel. The chart is useful for small hotels where the guest length of stay
is long and also good for seasonal hotel. For transit and short stay guests this type of chart
is not very useful. It is not easy to find out how many rooms are booked and how many
are available for booking at a glance from the chart in case of a large transit hotel. Also,
if there are overbooking it will be difficult to show them on the chart.
Density control chart
For large hotels not operated on automatic system and hotels with short stay of guest, a
better system than advance letting chart is Density Chart which is used as a part of
reservation system. This chart is designed on the principle that each reservation reduces
the availability of the rooms and each cancellation increases the availability, (of course
up to the maximum only). Here all the rooms of the same type are grouped together
irrespective of their location in the building and are put on one chart, for example, if the
hotel has 200 single rooms, then all will be shown on one chart and similarly the other
category rooms will be shown on another chart. (Sample format for density control chart
is given on page 256.)
Like conventional booking chart, 31 vertical columns are made for dates. The first
vertical column on the left side of the chart does not indicate specific room numbers but
shows the number of rooms of a particular type of the hotel and are written in descending
order. This chart does not book individual rooms but books the rooms of a specific type.
Let us suppose a hotel has 25 double rooms with bathroom attached. Then the first
vertical column of the chart will be showing the number 25 at the top left hand corner
going down in descending order as shown in the chart. With every booking the first available
block of the chart for that period is crossed with a slash line and that decreases the availability
and for every cancellation the slash of the last booked block is removed. The figure below
the line of the cross block on the left hand side scale show the number of rooms available
254 Self-Instructional Material
CONVENTIONAL BOOKING CHART
Date
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
om
Ro No .
SR MR. ‘A’ MR. ‘D’ MAR’ 2002
101
DR MR/S ‘B’ (a) MR ‘A’ booked
102 from 1st to 4th
DR MR/S ‘C’ MR/S‘E’ (b) MR/S ‘B’
103 booked from
DR 13th to 24th
104
SR (c) MR/S ‘C’
booked from
105
3rd to 13th
SS
106 (d) MR ‘D’ booked
SS from 5th to 12th
107 (e) MR/S ‘E’
DS booked from
108 18th to 21st
SR
109
DR
110
201 Symbol Used
SS – Single Suite
202 DS – Double Suite
” SR – Single Room
DR – Double Room
”
210
301
Notes
for booking. Once the slashes reach the last block, it means availability of rooms is zero for Notes
that day.
Any further booking for that date will be overbooking, and are shown by negative
position.
The density chart works well in those hotels where all rooms of a particular type
are similar in their physical facilities and prices. The room number is assigned at the time
of actual arrival. One of the advantages of the chart is that no specific room is allocated
to the guest prior on his arrival and whichever room of that type is available from the list
of available rooms by the housekeeper at the time of his arrival, the guest is allotted the
same. If we study the chart given on the previous page, we find that the chart is for the
month of March in the year 2002. The hotel has 25 double rooms with bathroom attached.
On 5th, 6th and 7th of the month all rooms are booked and on 5th overbooking of 2 rooms
and on 6th and 7th overbooking of 4 rooms has been done. Similarly, the position on 1st,
2nd and 3rd on the chart shows 5, 7 and 1 rooms booked and the respective availability
of the rooms for these days are 20, 18 and 24 (the figure on the scale shows that clearly).
It is much easier and quicker to use this chart than trying to find out the same information
on a conventional chart where all types of rooms are intermingled.
Room status board/perpetual year planner/stop and go board
As the name suggests, this chart shows the rooms booking position for one year on
continuous basis. The status are shown under three categories: sold out, on request and
free sales by three different coloured plastic discs. Sold out means no rooms are available
for booking for that period. On request means rooms can be blocked subject to cancellation
and the guest is given this status of wait list. Free sales means that the rooms are freely
available for booking. The bookings keep coming.The free sale status changes to on
request and further to sold out and with the cancellation the status changes from sold out
to on request and further to free sales.
Wall chart
As the name suggests, it is a wall-mounted chart and is used by some small hotels for
knowing the availability and non-availability of room for furture period like perpetual year
planner it is a peg board which shows hotel rooms vertically and days of the month
horizontally. All appropriate room number, rates and codes are marked on it. In addition
to these information, it also has information about various types of rooms. To identify
various types of rooms the hotels usually use different colour ink pens. The working on
the wall chart is simple, when a prospective guest calls the reservation section, the clerk
checks the board for the availability (date of arrival, length of stay, and type of
accommodation) and if the room is available, then the booking taken and confirmed to the
guest and at the same time the chart is also up dated so as to avoid any confusion. Similarly,
cancellations and amendments are also recorded on the chart.
Control book
It is also an important document in the form of file in which loose leaves can be adjusted
(that is to say can be added and removed) with the help of two, three or four ring clips.
Self-Instructional Material 257
FRONT OFFICE OPERATIONS
Notes Usually, it is for one year which means it contains one tally page for each day of the year.
On each page, the hotels rooms are marked under different categories with their specific
numbers, for example, singles, doubles and deluxe, etc. Further, it works like density chart
and when a request for booking comes an X mark is placed over the highest unmarked
number for the requested room category on the expected arrival date. If the reservation
is for more than one night, then for the subsequent days, circles are put in place of X on
the following pages. The circles are used to denote stay over guests, rather then guests
expected to register.
10. Need for an efficient reservation system
Reservations handling depends mainly on size, type and nature of the hotel. The choice
of system of recording reservations depends on the management of the hotel. Greater the
hotel’s dependence on reservations business more and more systematized and efficient
should be the reservations procedure. Rooms are considered to be one of the most
perishable commodities and room that are not sold on a particular night lose revenue
forever for that specific night and yet expenses for maintaining the same remains there.
An efficient reservation system is that which is able to utilize the resources such as
money and manpower fully without any wastage. Its first objective should be to collect
all information necessary for booking and maintain it into a uniform record (reservation
form). Secondly, to know at a glance, the position of available rooms for booking, there
should be a visual reference. Thirdly, to have a detailed record of each particular booking,
like preferences, in diaries or computers, and fourthly, it must be adaptable for not only
to indicate reservations but also the cancellations, amendments, overbookings, early
departures, and stayovers etc. The system should be inexpensive, simple, requiring simple
equipment with simple and less time consuming procedures. At the same time it should
not require large manpower, should be competent to collect all relevant and necessary
information independently about booking and provide quick visual reference to staff about
all rooms and their status. It should be able to provide detailed record of each booking
such as billing instructions, reports, source and late arrivals etc. Further, it should be able
to adopt allied jobs such as cancellations and amendments, etc. The system should be
expandable to cope up the increased load of business of future. The system should also
be extendable and capable of integration with allied industries such as travel agents, airlines,
ground transportation and cruises, etc.
11. Systems of reservation
All over the world various hotels are following different reservation systems depending
upon their size and finance. The major systems are as follows:
1. Cardex system (Non-automatic)
2. Card system (Non-automatic)
3. Diary system (Non-automatic)
4. Whitney system (Semi-automatic)
5. Computer reservation system (Automatic system)
6. Central reservation system (Fully automatic system)
7. Instant reservation system (Fully automatic system)
258 Self-Instructional Material
RESERVATIONS
RESERVATION SYSTEM
Notes
Small hotel Medium sized city Large international
(Resort type) hotel of approx. 150 hotel of more than
generally up to 25 rooms 400 rooms
rooms
Uniform method Reservation Reser- VDU Reservation Com-
Whitney form
of recording of form vation (compu- puter
card
incoming form ter) VDU
reservation
Notes course after confirming from the status board or by consulting the charts and deciding to
book the room for the prospective guest). Next the Cardex reservation sheet is filled up
and are arranged in the drawer of the month of booking and as per the date. A Cardex
reservation rack with 12 drawers can take booking for a period up to one year. If we
want to have a lead period (future booking period) we will have 24 drawers. In case we
have a Cardex system with 12 racks (i.e., for one year reservation lead time) and we
get a request for a period beyond 12 months then the same is recorded in the reservation
form and is stored in the office filing cabinet till such time their reservation lead time
reaches one year when these should be recorded in the appropriate Cardex sheet. (The
pro forma is given below)
Once the booking is recorded in the Cardex
sheet and the sheet is filed the next step is to update
the charts/status board accordingly. In case of any
amendments or cancellations requests made by the
prospective guests the same are also entered in the
Cardex sheet and then in the charts/status board.
After this as per the case of either booking, or
cancellation or amendment a letter of confirmation,
cancellation or amendment is typed on the hotel
letter head and sent to the prospective guest. The
Cardex Rack
copy of the same along with the reservation form
and request letter (if any) is filed in the appropriate file and ultimately filed in filing rack.
One day prior to the date of arrival a movement list is prepared and sent with rack
to front desk for next days arrivals.
At the end of the month the expired the Cardex sheet is removed from the drawer
and kept in the ring folder. Usually for 3 months they are stored in a ring folder and after
that these are bound in a hard binding folder and kept in record.
Fresh sheets are inserted in the vacant slots of the drawer and booking of the month
following the last drawer are now recorded in these cardex sheets. Dates, month and
year are written on the Cardex sheets and also month/year indicator marked on top of
the drawer is changed accordingly.
Card Systems (Non-automatic systems)
In this system, a four compartment metal rack carrier for placing the reservation cards
260 Self-Instructional Material
RESERVATIONS
is used. The design varies from hotel to hotel. Reservation cards are arranged in the racks Notes
in datewise order. Current month in one rack, the following months in other rack followed
by the following years and the expired cards are kept in the next two racks. In this system
of reservation, the reservation requests made by the prospective guest are recorded on
reservation card form (already explained on page 245). The request may come by any
mode. Different colour cards are used to identify the different categories of prospective
guest, for example, white for FIT guests yellow for groups and pink for VIP’s, etc. After
recording the details on the card the relevant documents such as the diary letter of request
are attached with the card. Then an entry is made in the booking register/diary of this
request. The register/diary is maintained in datewise order, this the charts (whichever in
use) is completed and then the status board is updated. Next the card is placed at the
respective place in the card rack in alphabetical sequences. Racks are arranged in
datewise order, current months rack and rack for following will contain 31 metal divider,
thus dividing space for 31 dates. On the top of each divider the date is mentioned . Rack
for the following months of the year and following year contains 12 dividers thus making
space for cards to be arranged for each following months of the year and following years.
On the top of the divider the month (name) is written in the flap. Expired cards for the
current months are clipped together for each expired date of the month and are placed
in the rack for expired cards.
Then after this the guest is sent with a confirmation letter and the copy of the letter
is attached to the card. The number of card is written on all the documents (letters, etc.)
concerning that booking.
The next step taken in the reservation room is to prepare the movement list for the
next day. This list is prepared on the basis of the cards which are taken out of the rack.
Then along with the movement list and correspondence file the cards are sent to front
desk for next days arrivals and reference. Further, on the arrival of guest the Number of
G.R. card, which is filed in by the guest is transferrred on this reservation card of that
guest and the number of reservation card of the guest is transferred on to his G.R. card.
This procedure is called ‘Playing of the cards’ and after that all such cards are kept in
a separate drawer.
In case of a walk in guest or chance guest also, a reservation card is prepared at
the time of arrival and also the process of playing of cards is done, i.e., the number of
G.R. card and reservation cards are swiped. In such cases a different colour say green,
colour reservation cards are made.
In case of amendments the cards are removed from the original place, entries updated
and replaced at the new place in appropriate drawer. The charts are also updated and a
letter to this respect is sent to the guest.
In case of cancellation the card is withdrawn from its place. The word ‘cancelled’
is marked across its face alongwith details who and when cancelled the booking and
thus placed in a separate rack which is meant for keeping all cancelled cards. Then the
charts are updated and a letter to this respect is sent to the guest.
Self-Instructional Material 261
FRONT OFFICE OPERATIONS
Notes At the end of the month, all racks are rearranged by bringing in respective cards in
each rack. Expired cards for the month are tied together and kept in the record room.
A suggested design of four compartment rack is drawn below.
Da te or Month
Flag
Rack Carrier
No. of Persons
Booked by Tel
Expected time
Address
Instructions
Type Room
Signature
Departure
S. Date of Name of
of Clerk
Remarks
of Arrival
No. Add.
Date of
& Tel.
Billing
No. Booking the Guest and No. Rate
of the of &
Guest Rooms Plan
block the room. Further, the diary is updated and the reservation form is filled and filed
temporarily. One night before the arrival of the guest a movement list of all expected
arrivals is made from the diary for next day arrivals and the same is sent to front desk.
All the relevant records such as diary and reservation forms are kept available for any
further reference.
Advantages of diary system
It is useful for small and resort hotels. All the reservation records are available in one
consolidated book, and chances of loosing the records are very less and hence it is safe.
The book is easy to store.
Disadvantages of diary system
FLOW CHART OF DIARY SYSTEM OF
Since the diary is bulky, its movement for RESERVATION
reference from reservation section to
Guest inquiry
front desk is difficult. Only one person
can work on the diary at one time. At a Check room availability
glance the diary will not be able to tell
about the status of the guest. Diary can Fill up reservation form
be maintained in date and time sequence
Update room status in charts
only and it is not possible to arrange it in
alphabetical order, and quick reference Entry made in diary
of a reservation request alphabetically is
not possible. Cancellations and Reservation form filled
amendment also create problem and
Letter of confirmation sent
disturb the sequence of the diary. Due to
constant and frequent use for recording reservations, cancellations and amendments, the
diary may become messy and dirty.
Self-Instructional Material 263
FRONT OFFICE OPERATIONS
2 1 4 5 3
7
6
9 8 10
Notes
Room rack provides descriptive inventory of guest room, i.e., it tells about the type of Notes
room, location of room and rack rate. There are two types of Room racks: (i) with window
in the centre in which the symbols and abbreviations are shown. This type of rack is
permanent rack, and (ii) windowless or plain with the information written on a card that
is placed in the rack. In this type of rack pockets are removable for changing room numbers
or symbols. In some modified Room racks different coloured light signals are used to
indicate room status.
The alphabetical rack is placed on the information counter in alphabetical order.
The rack and the carrier size are similar to the one at reception, but for the fact that
the slips of the guests staying in the hotel are arranged in alphabetical order and hence
it will be easy to locate the name of the guest staying in hotel, for example, the slip of
Nanda, Mr R, will be found under the slips with alphabet ‘N’ and the slip of Govindrajan
Mr R, will be found under the slips with alphabet ‘G’ and likewise.
Advantages
Unlike the diary system,
reservation for off pe-
riod can be taken and
since it is a dual check-
ing system, chances of
mistake are very less.
This can be used for a
large hotel. Since the
slips are arranged in al-
phabetical order, refer-
ence is easy. Cancella- Reservation Rack—Arranged Datewise for One Month
tion and amendments are easy as only the removal and readjustment of slip or rack is
needed. The status of the guest can be seen at a glance as coloured slips are used.
Self-Instructional Material 267
FRONT OFFICE OPERATIONS
Since reservation section plays a very important role in the revenue generation of Notes
the hotel, hence a lot of efforts and work has been done in the field of computerization
of booking of rooms area, and as a result of this various computerization centre of various
hotel chains have been established such as Holidex, Omaha and Marsha belonging to
Holiday Inns, The best western international and Mariott hotels chains respectively. Apart
from these some more popular reservation and front office systems such as fidelio,
Amadeus, Galileo, Sabre, etc. have been developed and are being successfully used by
these chains; although some of these systems were basically developed to serve travel
and tour sector.
Further if we study and analyse, we find that usually the same information regarding
the guest is used more than once by the same department and also by various departments
of the hotel and sometimes it is transformed in some way so that it becomes a part of
another report in the effective front office operations and management, for example, if
we consider the name of the guest it is used several times in several reports such as
reservation form, reservation slip, G.R. Card, ANC, ‘C’ form guest history card and
many other documents. In semi-automatic and manual system this involves making of
several documents. In fully automatic systems, it is possible to take advantage of these
constant references to the same sets of data by means of a technique called integrated
data processing. In this the attempt is made to record each piece of data once, to record
it correctly, and then to utilize it in that same form in every possible way to elicit information
for the planning and control purpose of the operation.
In computer reservation system the computer is so linked that the guest history
module becomes available when a request from the prospective guest is received. This
would help the reservation assistant to decide to accept or refuse the reservation in the
expectation of a more profitable business because the history card would reveal his past
record of booking and materialization pattern.
The managers obtain information from computer each day about the room status
(i.e., the availability). Through computer the manager may find out what is going to be
the effect of cancellation, no shows, early departure, overstay and roll ons. The adjustment
in the availability of rooms after the house keeper returns the ready rooms by entering
on one of the systems remote terminal to front desk can be done.
The reservation module consists of the following key elements:
a) Collection of information. The first objective is to collect the information from
the prospective guest which is necessary for processing the reservation request. There
are systems where the request made by the guest over the phone for booking and the
pertaining information which he gives is directly recorded in the system in the format of
a reservation form. This process is called as ‘keying in the data’. (of course before keying
in the information, the availability or non availability of the required room is first confirmed
and also the decision regarding the acceptence or denial is taken). The format should be
designed logically. Here, it is also important that a guest can contact the hotel through a
telephone operator, who communicates with computer by means of typewriter and CRT.
The guest can contact the hotel directly without the help of operator at inter sell centres,
Self-Instructional Material 269
FRONT OFFICE OPERATIONS
Notes central reservation centres strategically located, such as at airport as the CRT display
questions in logical sequence which any guest who may not be having computer
knowledge may answer by typing on the key board. Some successful researches have
been made where the computer responds to spoken voice and take in wide area telephone
service without any operator on duty. The computer asks questions such as name, rate
‘time’ of arrival and departure, type of accommodation, etc., and it then displays on the
screen the room status rates and in case the required room is not available or dates
requested are not available then alternates are offered. Depending upon the system the
reservation horizon varies.
b) Once the request is accepted it goes into computer memory and can be retrived
whenever needed in future for any change or cancellation. This is called online and
once the guest arrives the same information can be transformed into a registration card,
for making arrival notifications slip, for billing statement, for ‘C’ form and for guest history
card, etc. In fully computerized systems there is no need to take out hard copies but all
the information and reports are available in computer memory always.
c) Even the night auditors functions can be performed through computer.
d) Finally, the computer system of reservation also has a module of communicating
with the prospective guest, that means the system prints the replies such as offer letters,
confirmation letters, cancellation letters, amendment letter or any other letter to be sent
to guest, and not only that it is also capable of sending fax or e-mail to the prospective
guest and is also capable of retrieval the information whenever needed.
The main features that the computer reservation system should cover are
as follows:
(a) Receive enquiry. VDU keyboard should be able to feed the information.
(b) Display room status. Computer system should be able to display, the type of
rooms, number of each type of rooms, their location, their availability and non
availability for the requested dates, the USP of the rooms, such as facing
swimmings pool, antique furniture, the rates (various type), should be able to
present the alternates if the required room availability is not there. Also the
computer programming should be such so as to help the the referrals business
also and the system should also cover information about the other unit of the
chain.
(c) Guest history. This will accelerates the reservation process. Correct recording
is important for efficiency, for example, a guest say Mr S.K. Chowdhary who
has stayed in the hotel on some previous occassion may now be requesting room
under the name Mr S.Chowdhary. In this case, the guest history may not be
useful and the system should be so programmed so as to cover such problems.
(d) Decision-making capability. The computer should be so programmed so as
to take decision on accepting or denying the request, based on factors such as
(i) Status of the prospective guest (hotel may have to displace the existing
reservation in order to accommodate a prospective VIP guest request)
(ii) Credit status of the prospective guest making request. The credit status Notes
should always be updated on the history card,
(iii) Occupancy status. The system should be able to provide upto minute
position of room occupancy. The conversion ratio (the ratio between
the provisional and confirmed business) is an important factor.
(iv) Load of reservations. The occupancy forcast must consider the current
level of enquries in comparison with similar period of the past and the
system should be capable of doing so. The computer sofware should be
able to tell the number of reservations in comparison to the number of
reservations for the same person for last year or any other specified period.
If the figure is high then it is a guideline in dealing with heavily discounted
business such as group reservation.
(v) Market segmentation policy. The system should be able to consider this
factor in filling up the hotel and decide which segment market business
should be accepted and which one to be denied.
(vi) En bloc booking.The system should be able to make en bloc booking
for groups where the participants come at different times bat on the same
date to attend some seminar and the total number of rooms with their
numbers be given to the group organizer for allotment to individual
participant as and when they arrive.
(vii) Revision/Amendments and cancellation. The system should be capable
of making the required changes and cancellations as requested by guest
from time-to-time.
(viii) Accounts. Any advance money or deposit paid by the prospective guest
to the hotel and its record, and any other mode of payment such as credit
card payment, company accounts payment, travel agents voucher, etc.
Record should always be available through the system.
(a) Communication. The computer should be able to print documents/
letters of offer, confirmation, cancellation, and amendments, etc.
(b) Reports and list. The system should be able to generate various
reports and lists such as room availability, reservation forecast,
special events, movement list (expected arrivals and departures), VIP
in house, VIP’s expected, groups in house, groups expected, extra
beds report, no show list (of previous day for retention charge
decision) pre-registration of guests lists, central reservation reports,
referrals reports, convention (group/en bloc) reservation reports, daily
analysis report, deposit report, overbooking report, and regret report,
etc.
Notes Hence the key elements of reservation module can be summarized as follows:
1. Receive enquiry
· Guest history
· Room vise enquity
· Name vise enquiry
2. Check room availability
3. Make accept or refuse decision
· Guest status
· Credit status
· Occupancy/booking status
· Pressure of business
· Effect on the room rate
· Policy
· Blocked rooms
· Room allocation
4. Communication (confirmation letter)
5. Amendments
6. Deposits
7. Immediate check in
8. Reports
Central reservation system (CRS) (Fully automatic system)
Also known as central reservation office (CRO), it is generally used by chains. The concept
of central reservation office is simple. A chain of hotel which has a CRO system has
reservation office in different cities although they may have no unit operating in that city.
All the units of the chain are interlinked with CRO/CRS of the chain. The units allocate
a particular percentage of the total number of rooms to CRO/CRS. It becomes the
responsibility of CRO/CRS to book these rooms for the hotel. For providing this service,
the units give a particular percentage of commission to CRO/CRS. Over a period of time
a close watch on the performance of CRO/CRS is kept. If the CRO is not able to book
the allocated number of rooms then the unit can withdraw rooms from CRO and also if
the CRO is able to book more rooms than allocated to them, more rooms can be given to
CRO for booking. If any such changes in the allocated number of rooms are made, both
the parties must very clearly understand this so as to avoid any double booking. CRO can
also be an independent organization unattached to any chain or hotel company. This type
of CRO offers a greater range of hotels over a wide area. This gives each member a wider
market of prospective customers. The biggest example of one such CRO is Omaha
(Western International). How big and wide is the scope depends upon the number of
hotels participating in it. CRO is usually located in flagship hotel of the chain. CRO is very
useful for those units of the chain in which normally are not doing well on their own.
Notes facilities. Overflow facilities receive reservation requests only after all room
availabilities in chain properties within a geographic area have ben exhausted.
(b) A non-affiliate reservation system connects non chain properties and enables
independent hotel operators to get the benefit of reservation which the units of
chain get and this system also take care of advertising of the properties.
Cancellation and amendment, if any, must be done at both places, i.e., at the CRO
as well as at the hotel concerned. This will help the CRO to update the room status
immediately in their computers. Communicate the cancellation policy in advance to CRO
and follow the following procedure:
– Assign cancellation code number
– Date cancellation received
– Name of the guest
– Scheduled arrival date
– Source of cancellation notification
– Initials of the clerk logging cancellation
For example, say the cancellation code is 217, 08, RL–122. Now this may be
explained as 217th day of the year, 08 means property code number, RL is the initials of
the clerk and 122 is 122nd cancellation till date.
‘No shows’ are also treated the same way. Since every booking made through CRO
involves commission to be paid by the hotel to CRO hence information about any ‘no
show’ guest must be sent immediately by the hotel to CRO so that they do not claim
commission for the same.
Central Reservation Systems/Offices
Central reservation system can be applied to travel agents business also. ‘It is an electronic
sales channel which are used by travel agencies to sell worldwide service of airlines, car
rental companies and hotels.’ The various CRS networks available in India are :
(i) Amadeus-Hires
This facility provides accurate information on hotel accommodation at a multitude
of properties the world over. All the major hotel chains, international as well as Indian,
are connected to the Amadeus system directly or through a reservation system like
Utell. Properties represented on the Amadeus network can be booked from 11,8990
Amadeus terminals from around the world.
(ii) Galileo-Room Master
Room Master US part of the Galileo reservations worldwide with a listing of 37,000
properties worldwide. The system allows the possibility of instant and secure access
to rack, corporate, special, or any other rates.
(iii) Abacus Hotel Net
Services include updates on room availability status via fax/phone. Reservations
will be confirmed to the user with a reference number which would hold good at
the respective hotel booked for.
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Reservations in IR office are taken down in triplicate copies. The first copy is kept
in the book and the next two are sent to telex room. Each reservation is noted down in
a large register under the name of the particular hotel. However, before taking down the
reservation, first the room status is to be checked with the concerned unit. If rooms are
freely available, free sales is to be marked on the reservation. For ‘on request’ status,
R/Q is marked and this reservation cannot be confirmed. Similarly, reservation forms
are marked with code words in case of ‘amendments’ and ‘cancellations’. Any special
request such as car (A/c, non A/c, Indian or foreign) should also be marked on the
reservation form. A very efficient communication network is essential for the effective
operation of instant reservation service.
In case of package reservation, advance cash payment is required. Confirmation
can only be made after payment has been received.
After the telex has been sent to the respective hotels, the acknowledgement telex
are received and the number of these telex are marked against the reservation in the
register and on confirmation, the guest is given a confirmation voucher. If no
acknowledgement is received, then a fresh telex is sent. Generally, an instant reservation
counter is provided in one corner of the reservation room. The instant reservation service
can confirm the booking immediately. The difference between CRS and IRS is mainly
that CRS need not be located in any hotel while IRS is located in the hotel. IRS is useful
for guests who are staying in the hotels while CRS can be approached by prospective
guests through toll free telephone number from their homes and offices.
For several reasons such as cost effectiveness, labour and time saving and accuracy,
hotel chains prefer to have their own reservation system. Many systems are used. One
such very useful system is ‘Pierre Reddisson World Wide Reservations System’. The
system is very efficient and is capable of answering to guest’s queries within three minutes
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in 10 different languages. Five hundred people work round the clock at Omaha in Notes
Nebraska, USA, where the main centre of the system is situated. The system works on
satellite connectivity. Any incoming reservation inquiry at this center is received by the
reservation agent and he inquires about the area, city and state for which the reservation
is required. Further dates of arrival and departure are noted, their number of rooms
required, number of adults and children in the group, etc., are recorded. If the guest has
booked before with Pierre, his profile is stored in the system. The system than scans the
availability, quotes rates and offers any other relevant information if the client asks for it.
One of the most important features of this system is its capability to ascertain the
room availability status for all the properties linked to it, at any given time. The guest
does not have to make long distance calls for various bookings and other services; the
system does this for him. Pierre system has interface with other worldwide systems such
as Galileo, Sabre, Amadeus, Access, Abacus, etc. for providing larger network of service
to a guest.
New developments: Self reservation
Researches are going on by which a prospective guest may be able to make airlines flights,
car rentals and hotel reservations by the use of their house telephone and TV by using
an interactive system to dial up computer-restored reservation package and have them
displayed on their own TV screen.
12. Preventing common reservation problems
1. Manunal mechanical errors made when completing reservation form.
– Reservation clerk records the wrong arrival/departure date, time, etc.
– Misspells the guest’s name, or changes surname to first name.
Solution—Be more attentive and confirm back from the guest by repeating.
2. Reservation filed under wrong date, name, or property (in case of a change)
Solution—Double check.
3. Misunderstanding due to use of jargon of industry
Examples:
(i) A family (with confirmed reservation) arrives 2 hours after cut-off time, thinking
confirmed and guaranteed reservation is same.
(ii) Double room and double-double room
(iii) Adjacent and connected room terminology.
Solution—Use of intelligence and quick acumen of the requirement of the
prospective guest.
4. Errors made by CRO clerk
Example: Reservation clerk of CRO might book guest in a unit of chain other than
required by guest.
Solution—Repeat to guest the name and address of the property after booking.
5. Poor and faulty communication system
Examples:
(i) Miscommunication, (ii) Lack of communication, (iii) Delay in communication.
Solution—Attitude development and systems improvement
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Notes 6. Lack of updated room tariff (Rack Rate) which has been revised and hence
providing wrong information to the prospective guest.
Solution—Improve attitude development and communication system within the
hotel.
7. Inability to accurately predict the number of ‘no shows’, ‘understays’ and
‘overstays’ and also not updated room status which will have cumulative effects
on expected guests load and may create a big chaos.
Solution—Analysis of previous reservation, ‘no shows’, ‘understays’ and
‘overstays’ record and history and positive attitude development and efficient
information system.
13. Group reservation
Thesedays, hotels get a large percentage of business from groups. A hotel usually divides
its reservation business into two categories—(i) individuals and (ii) groups.
A group, as the name suggests, is a number of people travelling together and booking
a number of rooms in advance. Group bookings constitute a great responsibility on the
hotel and needs a great deal of planning and organization.
Normally, a hotel gets group business from travel agents, tour operators, housing or
convention bureaus, meeting planners, embassies and other business organizations. The
group coordinator keeps in touch with them to make sure that they send their group to
the hotel. Travel agents and tour operators plan the group movement very much in
advance. Usually, sales manager or reservation manager is contacted by the travel agent
and is requested to set aside an agreed number of rooms called ‘Block’ for group members,
and as request from individual members come, they are reserved from the ‘Block’ and
the process is called ‘Block Booking’. Collect as much information as possible from the
booking source about the group. Write that down on a ‘Bulk Reservation Form’ or ‘Group
Booking Form’. (Refer to pro forma given below)
No.............................
Group No. ........................................... Tour operator .........................................
Group leader ....................................... Telephone No. .......................................
Number in the group ............................ Telex No. ..............................................
Arrival date ......................................... Arrival time ...........................................
Departure date .................................... Departure time ......................................
Accommodation Meals Break up
Rooms No. Rate Days Breakfast Lunch Dinner
Single Mon. 3.4
Double Tue 4.4
Triple Wed 5.4
Thurs 6.4
Special requirements
Date................................... Signature....................................
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The group is given a code number. Since the groups are normally accommodated Notes
on modified American Plan, it is important to get the meals break up of the group in
advance so as to arrange the number of meals and plan of the venue for food service for
the group.
The group coordinator should give special care to the following documents:
1. Group file: A file that contains all details of group, with name of the group on
top.
2. Register for confirmed groups.
3. Group materialization sheet: Also called ‘group production report’. It shows
materialization of booked groups from various travel agents and other sources.
This report guides the management in deciding their future policy for each travel
agent in terms of commission percentage. Generally, the percentage of
commission is 10 per cent but may change from one agent to other depending
upon the business given by them in the past.
4. Group information sheet: This sheet is circulated to all the coordinating
departments at least a week in advance of the arrival date to prepare themselves
for group arrival.
The acceptance or refusal of request for booking for a group by the hotel will depend
upon the management’s business policy which should be formed on the basis of business
pattern, for example, more groups can be booked during off season and at a lower or
discounted rate so as to achieve a higher percentage of occupancy during off season,
Notes while during season a lower percentage of groups may be taken at discounted rate. A
very clever balancing is necessary while formulating the policy.
Once the booking is received from the travel agent or other source, the booking is
shown on chart, diary, racks or computer (whichever system is used). A ‘cut off date’
or option date is given to the source of booking (generally 30 days before the arrival of
group). If certain number of rooms are not picked up by the agreed deadline, they are
made available to other guests.
A cancellation deadline is also fixed to safeguard against the cancellation of a large
number of room bookings at the last minute. In some hotels, a term cut off date is used
to mean the day when the buyer/travel agent should return or add to function room or
bed rooms already committed. Before the deadline date, a reminder is sent to the source
of booking of group of about the number of rooms, date of booking, date of departure,
and the source of booking is requested to reconfirm the booking before the deadline.
After the deadline date if the travel agent (or any other source of booking) wants to
reduce the number of rooms booked, the management may charge for the same. After
the confirmation, the travel agent is required to send the following details:
1. Name of the group, and names of all the group members.
2. Details about the number of rooms and sharing rooms.
3. Passport details.
4. Nationality of the members, etc.
5. Billing instructions.
6. Meal plan.
7. Date and time of arrival/departure.
8. Special instructions.
9. A rooming list is sent by the travel agent in advance.
The hotel sends a ‘Group Meal Information Format’ to the travel agent to be
completed and sent back.
Along with the rooming list the travel agent (source of booking) will also send ‘Travel
Agent Vouchers’. These vouchers must be handled by the reservation department to
avoid any confusion. The voucher gives details about the facilities and services included
in the package. (Any service/aminity/facility, not mentioned in the voucher shall have to
be paid extra by the guest availing of that service.) This ‘Travel Voucher’ will be kept
ready on the day of arrival given by the travel agent of the group. A duplicate copy of
the same will be brought by the group leader on the day of arrival. The two will be tallied
by the front desk clerk.
Group booking needs extra care. Management offers special discounted rate. The
discount depends upon size of the group and number of room nights, and meal plans such
as American or Modified American. Generally, following discounted rates are given:
(i) Ten to fourteen full paying PAX — 50 per cent on one PAX.
(ii) Fifteen to thirty full paying PAX — complimentary one PAX
(iii) Thirty-one to forty-five full paying PAX — complimentary two PAX.
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The rates and discount is always negotiable. A close relationship and coordination Notes
right from the beginning between the group planner and the hotel is essential.
Points to be considered while dealing with convention booking
Convention booking is also a type of group booking and following points should be
considered while dealing with convention booking.
– Learn about the ‘group profile’—its cancellation, no show and last minute
reservation history.
– Communicate all the relevant policies of the hotel to the planner.
– Executives to be introduced to the convention planners.
– Inform the reservation department staff immediately after the deal is made.
– Keep the planner informed of the block position at regular intervals (90 days, 60
days, 30 days—(how many reservations have been made;) 90 days—the report
shows early interest and commitment on the part of registrants, 60 days—how fast
reservations are coming in and 30 days—what portion of block has already been
picked up and also of the names of the members, so that necessary correction such
as spelling, etc., if any, may be made in time.
– Make corrections accordingly.
– Mail reservation confirmation to delegates immediately (within 3 days of receiving
it).
– Return cancelled rooms to block (if cancelled before cut-off date) and inform
planner,
– Precise time of arrival and departure to be noted.
Large conventions may involve more than one hotel for housing the members.
Convention bureau in this case shall coordinate with all the hotels. One hotel may be
made as convention headquarter.
Amendments
Amendments of group is a continuous process till the group finally checks in. These
amendments are made through local travel agents. After receiving the amendment request
the group coordinator confirms whether the request for amendment can be met with or
not. In case it can be accepted, proper entries are made on reservation charts or computer
and the group folder and the same is intimated to all concerned including the travel agent.
Cancellation
Cancellation policy for the group depends from hotel to hotel and on the size of the group.
Generally the cancellation should be received 30 days in advance. The relationship between
the hotel and the travel agent is also important. Also the inconvenience caused to hotel
and possible loss of revenue is also considered while considering the cancellation policy.
Depending upon the management policy retention charges may or may not be charged.
Some hotels have long-term agreement with travel agents and tour operators and
book room on consistent and permanent basis. For example, in case of ‘Back to Back
Tour’ for travel agents where a group of same number of persons arrive, and a group of
same number of people who have finished their tour, leave. Similarly, airlines may book
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Notes rooms for their crew members on permanent basis. Special discounted rates are given
in such cases. It is important that the hotel fix the rate after considering the break even
point.
Group market
Generally group market comprises of the following:
1. Holiday makers.
2. Conference delegates and convention participants—a close working relationship
between the hotels sales staff and the groups meeting planner. It is one of the critical
elements of hosting a successful convention or conference good communication
and coordination between the hotel planner is important.
3. Sports teams.
4. Businessmen attending trade fairs.
5. Doctors attending doctors’ meetings, etc.
6. Salespersons attending sales meetings, etc.
7. Housing/Convention bureaus. Larger conventions usually require a large number
of rooms which may not be provided by one hotel only and rooms at various hotels
may be required. This is coordinated by a separate housing or convention bureau.
On a daily basis the housing bureau will communicate the reservation requests the
cancellations hotel involved. In return each hotel will inform the cancellations
requests communicated direct by to it, to the bureau.
For their convenience, hotels classify groups as follows:
1. Series group: Group in this category arrive in series and follow the same itinerary
one after another for a specific period of time, say one year. Similar packages and
arrangements—such as types of rooms and food—are given to groups. Generally,
the number of persons in the group are also same. Generally, brochure programmes
are used and are sold by tour operators. Series groups are booked through a travel
agent on a discounted tariff.
2. Ad hoc group: These are one-time groups and are booked through a travel agent
to avail of special rates. They do not make a part of series. For every group under
this category the packages may be different. They are also booked through travel
agents.
3. Incentive group: This category consists of groups sent to the hotel by various
multinational companies and national corporations, etc. The staff are given incentives
and are paid by the company or organization to which they belong and are sent by
their companies, as incentive for meeting the production or sales targets, etc. These
are very lucrative groups for the hotel. Hotels give special rates to them.
4. Fam groups: They are also called as familiarization groups. This type of group is
composed of travel agents, tour operators and travel writers, who come to familiarize
them with the destination and its tourism product. They are important because they
are the people who would be sending groups in future. They are generally provided
complimentary rooms. Sometimes, the hotel may not have sufficient rooms to book Notes
for the groups requested by the travel agent. In such cases the hotel sends the
following letter to the travel agent group suggesting alternate dates.
Wait listing: Sometimes when the lead time is more and many groups are booked
and a hotel gets a request for booking of a new group, which can not be confirmed,
and at the same time hotel does not want to say no to this business, then in this case
the reservation manager may send a letter to the group organizer that his
request of reservation has been put on wait listing. (Please refer to the pro forma
given below)
While dealing with group booking one may come across various technical trade terms
used in travel trade, for example,
1. Contractor: These are all those agencies or organizations which provide contracted
services such as accommodation, food, beverage, transport, sightseeing, and so on,
to the traveller, during the course of his travel as and when he needs them. Hence,
a hotel which provides accommodation, food and beverage can be called a
Notes contractor and also a transporter who provides bus to the group for sight seeing or
for transfer can be called a contractor.
2. Carrier: Carrier is a trade term which refers to the airlines, railway, shipping-lines
and buses, which carry tourist from one place to other, for example, Indian Airlines
and Air India are air carriers of India. Similarly, Lufthansa is a German air carrier.
3. Courier: This term refers to the travel agent’s representative who goes in advance
to make all the land and ground and other arrangements for the group in advance
at the destination, before the group reaches there.
4. Escort/Conductor/Manager: An escort or a conductor or a manager is the person
who accompanies the tour from the beginning to the end and looks after the
arrangement, and that is why the groups are called escorted tours, conducted tours
or managed tours.
5. Itinerary: An itinerary is a detailed programme of tour of the group and spells out
details such as date and time of assembly, departure mode, arrival at destination,
details of sight-seeing, etc.
6. Guide: A guide is an authorized and licensed local person of the destination who is
hired to explain the details of the destination such as historical places, culturally
important places, etc. He should have knowledge of different languages.
Key Terms
Reservation controller Rental agencies Rate quoting
Activity flow chart Conventional booking chart
Density control chart Wall chart Whitney system
En bloc booking Central reservation system
Intersell agency
TELECOMMUNICATIONS Notes
10
Chapter Objective
The reader is able to understand the various communication skills through different
methods of communication like conversation over telephones, and so on.
INTRODUCTION
The telephone is a telecommunications device designed to transmit speech by
means of electric signals. It was invented by Antonio Meucci around 1860, who
called it teletrophone, as recently recognized by the US Congress in the resolution
269 on June 15th, 2002. Before that resolution, it was generally attributed to
Alexander Graham Bell. The first recorded public demonstration of Meucci’s
invention took place in 1860, and had a description of it published in New York’s
Italian language newspaper.
Notes United States, the Bell System was vertically integrated: it fully or partially owned
the telephone companies that provided service to about 80 per cent of the telephones
in the country and also owned Western Electric, which manufactured or purchased
virtually all the equipment and supplies used by the local telephone companies.
TELEPHONE EQUIPMENT
Landline-based phone systems
The network that connects most phones together is known as the public switched
telephone network (PSTN). Phone lines are usually copper wires that form a
circuit between the subscriber and the exchange, although some recent installations
may use optical fibre for part of the distance. An analog line typically uses
frequencies of 0–3.5 kHz, with frequencies higher than this filtered at the exchange.
The analog speech signals are carried over the digital backbone network as a
stream of digitally encoded samples at a sample rate of 8 kHz. The frequences
above 4 kHz can be utilized for DSL connections.
A line is a single voice communications circuit between the subscriber and the
central switching office. A trunk is a single circuit between central offices and
may be analog or digital and is transmitted via copper, microwave, or fiber optics.
A trunk group is a grouping of identical trunk circuits between two specific central
offices.
Trunk Group
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Automatic telephone systems generally use numeric addresses, more commonly Notes
known as telephone numbers. The addressing system often distinguishes local,
long-distance and international calls. Local calls are initiated by dialling the local
number. A long-distance number is indicated by a long-distance prefix (CCITT
recommended ‘0’) followed by area code and a number local to that area.
International phone calls require an international prefix (CCITT recommended
‘00’) followed by area code and local number.
Notes Between switches in the PSTN, most signalling is now digital using Signalling
System 7 (‘SS7’).
Most wireless phone systems are cell structured. Wireless communication is used
between the handsets and the cell. Communication between cells can be wireless,
or overground cables. When an active handset moves from one cell to another,
the call is automatically transferred to the next cell without interrupting the call.
There are now multiple standards for common carrier wireless telephony, often
with multiple incompatable standards used in the same nation:
• Analog first generation
— marine and mobile radio telephony
— AMPS
§ CDPD data service on AMPS
— NMTS
• Digital second generation (2G)
— CDMA IS-95A
— GSM
§ (different frequencies for different continents: see GSM
article)
— iDEN
— TDMA IS-136
• Digital 2.5G
— CDMA IS-95B
— GSM GPRS
— i-Mode
• Digital 3G
— CDMA 2000
— GSM EDGE
— W-CDMA
TELEPHONE COMMUNICATION
The Importance of Telephone Services
The telephone service is very important for effective communication for both the hotel
and the guest no matter what the size or standard of the hotel is.
When dealing with people on the phone, remember:
The caller cannot see you, and can only listen to your voice; verbal communication can
be misheard; the caller has a reason and a need for calling; you may be the first contact
of the caller with the hotel; you represent the hotel; the caller is paying money for the
call.
Notes Don’ts
– Do not consider the telephone as a toy.
– Do not be wasteful, time on telephone cost money.
– Do not transfer the call just to get rid of the caller.
– Do not forget that the caller may become impatient if you do not attend him promptly.
Before your telephone rings
1. Ensure that the instrument is placed correctly.
– reachability
– placing of the handset
2. Be sure that you know how to hold the instrument (neither too near nor too far).
3. Keep the instrument clean – disinfected (dettol wipe).
4. Learn the use of any special attachments or buttons on the telephone instrument.
– paging
– call transfer
– hold with music
– call recall
– conference
While your telephone is ringing
1. Pick up your pencil and poise it over the message pad.
2. Eliminate excessive noise (where possible) by closing a door or turning off the power
or equipment that cause a problem.
3. If you have a visitor, or if you are talking on another line, excuse yourself and
determine who is calling. The action you take will be determined by the
circumstances and people involved who ‘were there first’.
How and when to transfer a call
First of all, be sure that the caller knows the name and number of the person to whom the
call is being transferred. You should also be sure that the person to whom you are
transferring the call can answer the caller’s request. (If you are not sure who should take
the call, tell the caller you will check and have the appropriate person return his call. Then
you should follow up to see that the call has been made.)
Tell Mr Singh : Mr Singh, I am going to transfer you to Mr Raj.
Tell Mr Raj : Mr Raj. Mr Singh wanted to talk to Mr Nair who is not here.
I am transferring his call to you.
Tell Mr Singh : Mr Singh, if you get disconnected, please call again and ask
for Mr Raj.
Making outgoing calls
Before dialing that number
Planning ahead is as appropriate for making a telephone call as for making a speech. You
should know before you make your call why you are making it. A few advance reminders
would include:
– Be sure you have the correct number. Each wrong number costs money.
– Be sure you know the name of the person to whom you want to talk. Notes
– Be sure you know the specific questions you want to ask. Jot them down on your
telephone pad.
– Be sure you use the most efficient method (PP, STD, etc.) if it is a long distance
call.
– For a long-distance call be sure to say that ‘this is a call from New Delhi’ so that
the other party realizes it is relatively urgent, and expensive.
– Be sure, if you are making a call for another person, that the person for whom you
are making the call is ready to talk before getting the other party on the line. It is
considered very poor manners to ask the person called to wait once he has answered.
Suggested greeting: ‘Mr Sharma, Mr Joshi from Hotel Ambassador would like to
talk to you. Just a moment please’ and inform Mr Joshi, ‘Sir, Mr Sharma is on the
line.’
How to screen calls
Most of us like to know to whom we are talking. In some cases, this may present a problem
but in most instances if you ask for the caller’s name in a courteous manner, you will have
no difficulty. You might say:
‘May I have your name, please?’ Or, ‘May I know who is calling, please?’ Phrasing
the question this way does not imply the boss is in.
Never ask, ‘Who is calling?’ This implies to the caller that the boss is in but would
decide whether to talk or not to talk on knowing who is on the line.
What to say if the person being called is busy on another line
‘I am sorry, sir, Mr Gupta is busy on another line; do you wish to wait, or may he call you
back?’
If the caller prefers to wait and Mr Gupta continues his other conversation, go back
on the line after a short interval (a minute or less) and say, ‘Mr Gupta is still busy on
another call. Do you still wish to wait?’ Repeat this procedure until the call is completed.
Note: If you have a message which must be delivered to a person engaged in a
telephone conversation, write it down and give him the note.
What to say if the person being called is bot in his office
You might offer to help by saying, ‘I’m sorry, Mr Sharma is not in. This is Ms Monica
speaking from the reception (or ‘from the telephone exchange’). May I help you?’ Or,
‘Mr. Sharma will be out of the office until four o’clock. Would you like to leave a message
or could I help you?’ Or, ‘Mr Sharma will not be in today. Will you like to talk with someone
else?’ Or, ‘Mr Sharma is not here at present. If you let me know what it’s about then I
can put you on to someone who can help you.’
However protect your colleague
If he/she is late, say, ‘He is not at his desk just now.’ Do not say, ‘He/she has not come
in yet.’ If he is out of town say, ‘He/she is out of the city.’ Do not say, ‘He/she is in
Mumbai.’
Note: In some cases, your colleague may tell you to let certain individuals know
how to reach him when he/she is out of town.
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Notes What to say if the party being called doesn’t want to talk to a caller
The situation to this constant problem is best handled by having an understanding with your
employer as to the method he wants you to follow:
For example, ‘Mr Sharma is not free at the moment.’ Or, ‘Mr Sharma is not available.’
Or, ‘Mr Sharma is not at his desk at the moment.’
What to do if you must leave the phone during a call – (‘Please hold on’)
Time flies for the doer. It drags for the person who waits. When you tell someone on the
phone ‘Just a moment’ and then you leave to get information from a file or another person,
it seems like really a long time to the person who is waiting on the other end of the line.
In such a case—
1. Tell your caller how long it will take you to get the information and ask him if he
would prefer to wait or have you call him later.
2. If he decides to wait, check back with him within two minutes, and tell him honestly
‘It will take me about five minutes to get the information. Do you want to continue
waiting, or would you prefer that I call you when I have the information, Sir."
3. When you return to the line, say, ‘Thank you for waiting.’ Or ‘I’m sorry to keep
you waiting.’
A Few ‘Don’ts’
1. Do not answer the phone with ‘Hello’.
2. Do not leave the line ‘open’ while you are talking to someone else—your caller
may hear something confidential or insulting to him.
3. Do not slam the receiver, no matter how irritated you might be with the caller—or
‘by accident’.
4. Do not embarrass your colleague by telling a caller he will call back within a certain
time unless you are positive he will.
5. Do not eat, drink, chew, or smoke while talking on the phone. Sounds are magnified
and are very distracting, as well as being impolite.
6. Do not end a phone call without a pleasant close.
Close the call pleasantly
1. ‘Have a pleasant day, Sir.’
2. ‘I’m glad I could help, Madam.’
3. ‘Thank you very much, Sir.’
4. ‘You are welcome, Madam.’
5. ‘Good-bye and thank you, Sir.’
After closing the call
1. Go over the written message. Be sure the time of the message and the date are
included and wherever possible, the phone number, so that the call can be returned
easily.
2. Deliver the written message. Be sure that the guest receives it in person. Or, be
sure that you have a conspicuous spot where you leave telephone messages, such
as Key & Mail Rack. Deliver all written messages immediately. Do not let it get Notes
‘buried’ on your desk.
3. Advise all parties that might be concerned with the content of the call what action
has been or will be taken.
NEW TECHNOLOGIES IN TELEPHONES
1. Electronic Private Automatic Branch Exchange (EPABX) System: This system is
a modern system where many functions such as call transfer, call barring, call
monitoring, fixed-time call, conferencing facility, DND, wake call facility, etc., are
available. The system requires very little space as compared to manually operated
system.
2. IRIDIUM : Another most modern telephone communication system used these
days.
Features
(a) It is a global telecommunication network which provides 100 per cent and a 24
hours-a-day coverage of the earth’s surface.
(b) Mobile subscribers are interconnected via shortest route using inter-satellite links.
(c) Number of low Earth orbits are used.
Benefits/Capabilities
(a) Easy communication in remote areas with undeveloped communication
infrastructure.
(b) No laying of cables and huge antenna structure required.
3. VOXTRON Voice Mail System
Features
(a) Built-in infoline
(b) Built-in auto attendant
(c) Multilingual support
Benefits
(a) No need of hand written messages
(b) Helps communications across zones
(c) Provides 24 hours telephone cover
(d) Improves communication within the organization
(e) Improves customer services and increases efficiency dramatically.
Key Terms
Communication skills Body language Voxtron
Sign language Perception checking Paraphrasing
Noise Consensus Grapevine
Iridium
1. Any answer should be corresponding to the marks allotted, i.e., excessive elaboration is
not desirable.
2. Point-wise explanation and that too in the student’s own words/style is more appreciated.
5. As far as possible follow the pattern of ‘Introduction’, ‘Text’ and ‘Conclusion’ in respect of
all answers.
Total Marks : 25
Notes
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300 Self-Instructional Material
Punjab Technical University
LADOWALI ROAD, JALANDHAR
ASSIGNMENT SHEET
(To be attached with each Assignment)
Total Marks:________/25
Remarks by Evaluator: ____________________________________________________________________________________
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Note: Please ensure that your correct Registration Number is mentioned on the Assignment Sheet.