Course Code: Front Office Management Course Placement Year III, Semester I

II
Pre-requisites Front Office Management
Course Code ToHM3063 I
Credit Hours: 3 Course instructor: Mr. Firaol.E (BA)
ECTS: 5

Course description
The course is required to cover with theoretical and practical aspects of front office
operations.
Theoretical aspects of the course include: reservations, check-in and its procedures, front
office accounting, front office Audit, guest accounting, sundry guest services, Inter sales at
Front Office, Check-out and Account Settlement, Credit Control, Dealing with Guest
Problems and front office communication. The practical session covers the daily front office
briefing, telephoning and using different equipment, reservation, check-in, hotel safety and
security, front office accounting, handling mail, message and fax, safe deposit box procedures
and practical on front office software.

Objectives
After completing this course, students will be able to;
 Construct a registration system that helps ensure a hotel’s profitability while meeting
the needs of guests by using effective guestroom sales techniques and efficient credit
establishment
 Identify typical service requests that guests make at the front desk and describe
general approaches to handling guest complaints.
 Identify functions and procedures related to the check-out and account settlement
process.
 Explain elements of effective billing and collection process.
 Identify the functions of front office audit and duties of front office auditor.
 Describe the Management process in terms of the functions of front office managers
perform to achieve organizational objectives.
 Analyze statistics relevant to establishing room rates, forecasting room availability,
budgeting for operations, and evaluating front office operations.
 Apply basic concepts and principles of revenue Management in a front office setting.
 Explain how managers maximize revenue by using forces information in capacity
Management, discount allocation, and duration control.
Contents (chapters)
Chapter 1: Dealing with Guest Problems
1.1 Introduction to dealing with Guest Problems
1.2 Types of guest problems
1.3 Skills necessary for dealing guest problems
1.4 Handling complaint
1.5 The role of guest relation officer
Chapter 2: Inter sales at Front Office
2.1 Meaning of inter sales Selling techniques
2.2 Suggestive selling phrases
2.3 guestroom sales techniques and efficient credit establishment
Chapter 3: Check-out and Account Settlement
3.1 Departmental procedures
3.2 The check-out procedures
3.3 Methods of settlement
3.4 Late check-out and late charges
3.5 Account collection
3.6 Updating front office records
Chapter 4: Credit Control
4.1 Meaning of credit control
4.2 Hotel credit control policy
4.3 Credit control measures
4.4 Credit control measures after guest departure
4.5 Guest ledger high balance report
4.6 Notification of high balance
Chapter 5: Front Office Audit
5.1 Introduction to front office audit
5.2 Functions of front office audit
5.3 The front office audit process
5.4 System update
Chapter 6: Planning and Evaluating Front Office Operations
Planning and evaluating front office operations is a crucial aspect of advance front office
management. In this blog, we will discuss the basics of planning and evaluating front office
operations and how it can benefit your hotel’s success.
The front office is the first point of contact for guests and plays a significant role in their
overall experience at a hotel. Therefore, it is important to plan and evaluate front office
operations effectively to ensure guest satisfaction and business success.

Planning Front Office Operations

Planning front office operations involves creating a roadmap of how the front office will
function. This roadmap includes everything from staffing needs to standard operating
procedures. Some essential steps in planning front office operations include:

1. Establishing Objectives
Before planning, it is crucial to establish objectives for the front office. Objectives can range
from improving guest satisfaction to increasing revenue. Establishing objectives will help in
setting a clear direction and making informed decisions.

2. Identifying Resources
Identifying resources needed for front office operations, such as personnel, equipment, and
technology, is crucial. Proper identification of resources will ensure the efficient functioning
of the front office.

3. Developing Strategies
Developing strategies involves creating a plan to achieve the established objectives. This
includes creating standard operating procedures, determining staff roles, and deciding on
service standards.

Evaluating Front Office Operations

Evaluating front office operations is necessary to ensure that the objectives established in the
planning stage are met. Regular evaluations will help identify areas for improvement and help
in making informed decisions. Here are some steps to effectively evaluate front office
operations:

1. Identifying Key Performance Indicators

Identifying key performance indicators (KPIs) is crucial to evaluate the success of the front
office. KPIs can include occupancy rate, average daily rate, and revenue per available room.
Tracking KPIs will help identify areas for improvement and make informed decisions.

2. Collecting Data
Collecting data on KPIs and other relevant metrics is necessary to evaluate front office
operations. This data can be collected through guest feedback, surveys, and online reviews.
The collected data can be analyzed to identify trends and areas for improvement.

3. Taking Action
Taking action based on the data collected is crucial in improving front office operations. This
can include implementing new standard operating procedures, providing training to staff, or
upgrading technology.

Conclusion
In conclusion, planning and evaluating front office operations is crucial to ensure guest
satisfaction and business success. Proper planning will help in setting a clear direction, and
effective evaluation will help identify areas for improvement. By implementing the steps
mentioned above, you can enhance front office operations and provide exceptional guest
experiences.
6.1 Management functions
6.2 Establishing room rates
6.3 Forecasting room availability
Forecasting is a crucial aspect of front office management in the hospitality industry. It
involves predicting future room availability, occupancy rates, and revenue, which are
essential for efficient operations. In this blog, we’ll delve into the various forecasting
techniques used in front office management, helping you understand how to make informed
decisions and optimize your hotel’s performance.

Why Forecasting is Essential

Forecasting in the hospitality sector is more than just a crystal ball into the future; it’s a
strategic tool for planning and optimizing resources. It helps hotels anticipate demand,
manage bookings, and make informed decisions about pricing and staff requirements.

Types of Forecasting
Occupancy Forecasting
Walking: Estimating the chances of guests without reservations needing a room.
Overstaying: Predicting the likelihood of guests extending their stay beyond their initial
departure date.
Understay: Calculating the percentage of guests who might leave before their scheduled
departure.
Financial Forecasting
Revenue: Projecting future room revenue based on current booking trends and historical data.
Expenses: Anticipating costs to better control budgets and cash flow.
Introduction to Forecasting Techniques
Forecasting is the process of estimating future trends based on historical data and current
conditions. In front office management, it plays a pivotal role in ensuring that a hotel’s rooms
are utilized to their maximum potential. Let’s explore some essential forecasting techniques:

1. Moving Average Method

The moving average method involves calculating the average of a specific number of
previous time periods. For example, a three-month moving average considers the average
occupancy rate for the past three months. This technique is straightforward and helps identify
trends.

2. Time Series Analysis

Time series analysis involves examining historical data over a continuous time sequence. By
analyzing patterns and trends in past room bookings, front office managers can make more
accurate predictions for the future. Seasonal variations and long-term trends are considered in
this method.

3. Regression Analysis
Regression analysis uses statistical models to establish relationships between various factors
affecting room occupancy. By identifying variables like marketing efforts, economic
conditions, and local events, front office managers can make predictions based on these
influencing factors.

4. Market Research
Market research involves collecting data from competitors and industry reports. By
understanding the market conditions, such as upcoming events or competitor promotions,
front office managers can adjust their forecasts accordingly.

5. Historical Booking Patterns

Examining historical booking patterns within your own hotel is crucial. This involves
analyzing past occupancy rates during specific seasons, weekdays, or events. This method
helps in forecasting demand during similar future periods.
Selecting the Right Forecasting Technique
Choosing the appropriate forecasting technique depends on the complexity of your hotel’s
operations, the availability of data, and the accuracy required. It’s often beneficial to combine
multiple techniques to improve forecast accuracy.

Conclusion
Forecasting techniques are invaluable tools in front office management. They allow hotels to
anticipate demand, allocate resources efficiently, and maximize revenue. By mastering these
techniques, you can make well-informed decisions that contribute to the success of your
hotel.
FORECASTING ROOM AVAILABILITY

Forecasting room availability is forecasting the number of rooms available for sale on any
future date. This type of forecasting helps manage the reservation process, guides the front
office staff for an effective rooms management, and can be used as an occupancy forecast,
which is, further, useful in attempting to schedule the necessary number of employees for an
expected volume of business.

In order to forecast room availability, the following data are needed

Number of expected room arrivals

Number of expected room walk-ins
Number of expected room stayovers
Number of expected room no-shows
Number of expected room understays
Number of expected room check-outs
Number of expected room overstays

These above-mentioned data help the front office in conduct various daily operational ratios
such as:
No-shows percentage = (number of no-show rooms) / (number of rooms reserved)
Walk-ins percentage = (number of walk-in rooms) / (total number of rooms arrivals)
Overstays percentage = (number of overstay rooms) / (number of expected check-outs)
Understays percentage = (number of understay rooms) / (number of expected check-outs)

The forecasted number of rooms available for sale for any future date can be tracked using
the following formula

Forecasted number of rooms available for sale = total number of guest rooms – number of out
of order rooms – number of stayovers rooms – number of reserved rooms + number of no-
show rooms + number of understay rooms – number of overstay rooms

Under non-automated and semi-automated systems, number of rooms available for sale
forecasts are calculated upon demand and need and vary from three-day to ten-day forecasts.
However, under fully automated systems, forecasts can be done at any moment for any future
period of time. For, computers run forecasts on a room count considerations, hence
eliminating tedious labor work and human error m What happens if you overstay at a hotel?
In some cases, hotels may impose penalties for overstaying beyond a certain timeframe.
These penalties can be more severe than just a late checkout fee and can vary depending on
the hotel's policy. Some hotels may charge a percentage of the room rate for each day of
overstay, while others may impose a flat fee.
Takedown request
View complete answer on hotelchantelle.com
What is the difference between understay and overstay in hotel?
4) Over stay = this is the % of scheduled departures who remain in the hotel even after their
scheduled day of departure. 5) Under stay = This is the % of those guests who have before
their expected day of departure. i.e. they don't stay till the announced date of their departure.
argins.

6.4 Budgeting for operations

The front office budget is a crucial aspect of hotel management. It is a long-term planning
tool used by the front office management team. The budget addresses all revenue sources and
expense items, and it is typically divided into annual, monthly, weekly, and daily plans.

Importance of Front Office Budget

The front office budget is particularly significant because the room division profits are
usually higher than any other department. This makes it essential to create an accurate room
budget, which is equivalent to creating a budget for the entire hotel.

Role of Revenue Management and Accounting Division

The revenue management team and the accounting division play a pivotal role in forecasting
the budget for the department. Their expertise and insights are vital in ensuring the budget is
accurate and effective.

Key Components of a Front Office Budget

Annual Operation Budget: This is a profit plan that addresses all revenue sources and expense
items for the year.
Monthly Plans: The annual budget is divided into monthly plans to manage and track
finances more effectively.
Weekly and Daily Plans: These are further divisions of the monthly plan, allowing for even
more detailed financial management.
Conclusion
Making a front office budget is a critical task that requires careful planning and execution. It
is an integral part of hotel management, contributing significantly to the overall profitability
of the establishment. By understanding the importance of the front office budget and its key
components, you can better navigate the financial landscape of hotel management.

6.5 Evaluating front office operations

Chapter 7: Revenue Management
7.1. The concepts of revenue management
7.2. Measuring Revenue
7.3. Elements of revenue management
7.4. Using Revenue management

Teaching and learning methods

A combination of lecture course, group discussions, presentations, field trips, reading
assignments.
Assessment and evaluation methods
Quiz 5 % Tests 20 %
Assignment (Individual and Final exam 50 %
group) 25 % Total 100 %
Attendance and participation policy
In this course, students are expected to attend at least 85 % of the lecture, fulfil all the
assessments,abide to the instructions of the course instructor, attentively comply with the
class room rules and norms (reach on time, bring the necessary learning materials,
appropriate dressing, discipline, etc.) and active participation in the class room discussion and
group work. Failure to take any assessment and examination will not be reconsidered unless
the student supplements the application together with written evidence from any legal body.
References
 Rutherford, D.G. and O’Fallon, M.J. (2007). Hotel Management and Operation (4th
ed.). JOHN WILEY & SONS, INC. Hoboken, New Jersey
 Bardi, A.J. (2007). Hotel Front Office Management (4th ed.). John Wiley & Sons, Inc.
Hoboken, New Jersey.
 Barrows, W.C., Powers, T. Reynolds, D. (2012).Introduction to Management in the
Hospitality Industry (10th Ed.). John Wiley & Sons, Inc. Hoboken, New Jersey
 Michael L. Kasavana, (2009), Managing front Office operation, American Hotel &
Lodging Association, Lansing Michigan,Pp92-97
 Managing front office operations, Pp10-15
 Principle of front office management, Pp15-20
 Sue Barker etal,principle of hotel front office, study guide, Pp17-21