NCHMCT Syllabus (FO Theory), 2nd

Semester, Screenshot
 Weightage
Teaching
In
Hours
Exam
required
 What is the best outcome of the
reservation procedure?

• A room, perfectly suited to the guest needs, is

ready for check-in when guest arrives at the
hotel reception desk.
• Rest of this presentation will explain how to
achieve that outcome.
 Some typical employee activities
observed during reservation procedure;
1. Conducting the reservation inquiry
2. Finding the room and rate availability
3. Filling up the reservation record (pro-forma)
4. Confirming the booking details collected
5. Storing & preserving the booking record
securely
6. Creating reports based upon the collected
data of all the bookings
 Reservation Procedure
• Manual System • Automated/Computerized
system
 Differences
Manual Reservation
• No exact room availability
data. Only total vacant
rooms on that date is
known.
• Room features, like view,
rate, facilities etc. not well
known to the Reservationist
• Special requests are written
in reservation records but
no assurance of delivery by
Front Desk staff
Computerized Reservation
• Exact room (category-wise)
vacancies known to all
employees in real time
• Reservationist can describe
each room in detail, along
with exact rates
• Special needs are recorded
and stored in computer files
which can be seen by all
employees in real time
 Importance of Reservation: For Hotel
• Gives the first impression of hotel to the
guest.
• Sells the main product of the hotel.
• Generates customers for the hotel’s other
departments.
• Helps in planning for the expected workload
• Controlling expenses with reference to the
expected income from room sales.
• Helps in Revenue management decisions.
 What is Revenue Management?
• Hotel rooms and other service products, like
airline seats, restaurant seats, cab hire hours,
cruise holiday time etc are all perishable in
nature.
• If not sold now or today, the income can be
lost for ever.
• These industries also do not wish to do panic
sale of the entire inventory early, through
advance bookings, at reduced rates.
• Because that would result in low revenue and
profits. Not enough ROI…
 Revenue Management
• It is a long term strategy to achieve consistently
high levels of revenue and profits.
• It is ensured through a continuous observation of
the demand pattern for the hotel.
• The bookings are analysed to find out the type of
customer, booking trends, and price levels that
attract confirmed bookings.
• The hotel waits for the highest paying customer,
and in doing so, it refuses bookings to some
others. More in the final year classes…
 Simply put...
• Revenue Management is a set of activities,
decisions and mathematical calculations to
ensure that the right type of guest room is
provided to the right type of guest, at the right
time and right price.
• What is meant by “right type of guest” here?!
Importance of Reservation: For Guest
• Assurance for the accommodation to the
guest
• The guest can book his or her room as per his
or her choice (budget, date, preference, pay
method, room features, view etc.)
• Receive correspondence at the hotels address.
• Plan the best possible (convenient) itinerary
(travel plan)
 Reservation
• Here reservation refers to booking a particular
type of guest room, for a particular guest, for
a definite duration of time and also, at an
agreed price.
• Reservation is a bilateral contract between
the hotel and the guest , according to which
the hotel must provide the specified type of
room to the guest, and guest should pay all
the applicable charges.
 Contract Defined
• Contract, in the simplest definition, is a promise
(written or oral) enforceable by law. ... The making of
a contract requires the mutual assent of two or more
persons, one of them ordinarily making an offer and
another accepting. If one of the parties fails to keep
the promise, the other is entitled to legal redress
(compensation etc.)
•
contract | Definition, History, & Facts | Britannica
• https://www.britannica.com › topic › contract-law
•
Best Practices in Reservation
 A reservation agent must be able to respond
quickly, pleasantly and accurately to requests for
future accommodation.

The proper handling of reservation information

can be critical to the success of a lodging
property.

Efficient booking will also allow more time for

the reservation agent to attend to details and to
promote other hotel services, like spa and
restaurants.
 Based on information collected during the
reservations process, a hotel may also be able to
perform pre-registration.

Pre-Registration includes pre-printing the GRC,

assigning a specific room and rate for guests, who
have not yet arrived, and creating guest folio
(account). It saves time at Check-In.

A guest folio is a record of the debits/charges

(purchases) incurred and credits (payments)
accumulated by the guest, during stay.
If a reservation can be accepted as requested, the
reservation agent creates a reservation record.

The creation of a reservation record starts the

hotel guest cycle. Post-
Inquiry
departure

Departure Arrival

Stay

By confirming reservation, the hotel verifies a

guest’s room request and personal information,
and assures the guests that his or her needs will
be taken care of, if and when they arrive.
 Examples of special needs…
• Airport transfer
• Limousine service
• Facilities for the handicapped (ramp, wheel-chair)
• Baby cot
• Extra bed
• Special occasion decoration
• Desired floor, view of the room, amenities etc.
• Early/ late check-in
• Special cars/ chauffer driven luxury vehicles
• Special Food & Beverage requirements
• Smoking/non-smoking zone
Modes of Reservation Inquiry
Written
• Letter
• Fax
• Telex
• Email.

Verbal
•In person
•Telephone.
 Mode of Reservation
• How the booking request was made by the
prospective customer?
• This helps the hotel to decide, which mode is
preferred by guests and getting maximum
business for them.
• They may invest and concentrate more on that
mode.
 Types of Guests (FIT & GIT)
• Free Independent • Group Inclusive Tour
Traveller • A group of travellers,
• The guest who travels who travel, stay and eat
alone, makes his own together. Often, they
arrangements and pays buy more than 15
higher rates. rooms to avail the
• Preferred by hotel discounted price.
management during • Preferred during low
high demand period. demand period.
 Types of Guests
FIT GIT
 Handling group booking is a bit
complicated! More on this a little
later...
 Sources of Reservation
1. Direct by Guest- No intermediary (agent)
2. Central Reservation System- Call Centre
3. Global Distribution System- Online booking
4. Affiliated System – Chain Hotels
5. Non-Affiliated System- Referral Groups
6. Agencies on Commission (Travel Agents, Tour
Operators, Meeting & Wedding Planners,
OTA or Inter-sell Agencies)
7. Corporate Bodies- Companies
8. Government Sector
9. Hotel Website
 Sources of hotel reservation are
now commonly called as ‘channels
of distribution’.
More channels means more
convenience for the guest and
more business for the hotel
A hotel property receives reservation
inquiries in a variety of ways. The
reservation request may be made in person,
over a telephone, in a mail, via facsimile
or telex, though the internet or online,
social media page(Facebook, Twitter,
Instagram), mobile apps, instant messaging
systems (Whatsapp, Telegram,
Facebook Messenger) through a central
reservation system, global distribution
system or through an inter sell agency.
 Direct booking by Guest-
No intermediary (middleman or agent)
• When a future guest books a hotel room by
calling on hotel phone numbers, or FAX
number, it is referred to as the ‘direct’ mode
of booking.
• Using hotel website, Facebook/Instagram web
pages, also results in direct booking.
• Hotels do not have to pay any commission on
such booking and that helps the hotel to earn
more.
 Central Reservation System- Central
Reservation Office (Call Centre)
• It is a toll-free number where callers can call
for free and make hotel reservations.
• The Call Centre may be run directly by the
hotel or outsourced to a third party.
• Free calls encourage future guests to contact
the call centre employees for bookings.
• It involves more expenditure than direct
bookings.
Central Reservation Systems are of two
types
• Affiliate • Non-Affiliate (Referral)
 Affiliated System – Chain Hotels
• These are a group of non-competing hotels,
sharing a common brand and symbol.
• They are able to afford a complex and
expensive booking system for all
associated/affiliated hotels.
• MARSHA (Marriott's Automatic Reservation
System for Hotel Accommodations)
• Hilton Reservations Worldwide (HRW)
 Overflow Facilities
• Non-chain hotels are sometimes allowed to
join the affiliate CRS.
• They are called “overflow facility”.
• Reservations are allowed to flow to them only
after the available rooms in chain properties
(at a particular geographic location) are full.
Non-affiliate CRS
runs on a
subscription
basis.
At one
geographic
location, only
limited number
of hotels will be
permitted to
join.
Non-Affiliated System- Referral Groups
• Hotels, that are run independently by
individual owners, sometimes form a ‘referral’
chain to compete with the enormous
economic power of big chain hotels.
• They recommend each other to their visitors.
• They may also set up a common Central
Reservation System.
• They may also combine their resources for
marketing and promotion under a shared
brand or symbol.
 CRS
• A Central Reservation System may also serve
as an inter-property communications network,
an accounting transfer system, or a
destination information centre.
 What is TDD?
• A telecommunications device for the deaf
(TDD) is a teleprinter, an electronic device for
text communication over a telephone line,
that is designed for use by persons with
hearing or speech difficulties.
 Global Distribution System- Online
booking
• A Global Distribution System, or GDS, is a
computerized network that facilitates
transactions between travel service providers
and travel agents (both online travel agents
like Expedia and human travel agents).
• The major ones are Amadeus, Sabre (incl.
Abacus), and Travelport (incl. Apollo, Galileo
and Worldspan).
 Most GDS are owned by an airline
company or a consortium of airlines.
Most travel agents have their office
computer terminal connected to one
of the airlines reservation systems.
Hotel CRS, car rental booking systems
are also connected to this worldwide
reservation network

One call, does it all!

 Agencies on Commission
• All third party agencies that bring in booking
volumes for the hotel get average to
handsome commission rates.
• A small travel agent could receive 10% of the
actual tariff paid, whereas Expedia, giving
huge booking volumes could earn as much as
20-30% of room rate.
• A cab driver gets a flat 10% commission on the
published rate for “walk-in” guests.
 Corporate Bodies- Companies
• Companies that are registered with the Govt.
are said to have a transparent style of
functioning.
• If it is also listed on the stock exchange, it
attracts investment form public in large
amounts.
• The world’s biggest companies are
incorporated. (Inc./Ltd.)
 Government Sector
• Government Officers, administrators,
ministers and legislators may travel for official
meetings, seminars, exhibitions, conferences,
conventions and training workshops.
• The unique thing about them is their fixed
travel and accommodation
entitlements/allowances.
• Hotels are sensitive to the needs of this
special market segment. Rates are planned
according to the going Govt. rates.
 Hotel Website
6 reasons you should book your stay directly with
the hotel instead of a third-party booking site;
• No third party complications or mess-up
• Matching prices (Expedia, Booking.com etc)
• Choice of best hotel rooms
• Flexibility in amending booking dates
• Better perks and services
• No “walking” to another hotel due to
overbooking
• https://www.usatoday.com/story/travel/roadwarriorvoices/2015/06/03/why-you-
should-book-your-stay-directly-with-the-hotel/83307734/
Website accessed on
April 9, 2021
 Inter-sell Agency
• A CRS that enters into a contract to process
reservations for more than one product line.
• It could be thought of as an outsourced CRS.
Types of Reservation
 Non-
Tentative Guaranteed
guaranteed
• Guest not • Guest is sure • Guest has
sure of their to arrive asked to
plan. • Room is block his\her
• Room is available and room.
available. confirmed by • Has made a
• No payment hotel; but payment to
made by guest has not guarantee to
guest. paid any the hotel
advance that they will
money. not lose
money.
 Guaranteed booking explained
• Booking, backed by pre-payment or credible
promise of payment, becomes guaranteed.
• Hotel is liable to hold the room even beyond the
6 pm release time on the expected date of arrival.
• In case of “No Show” by the guest, hotel can
deduct retention charges from the advance
deposit, or send a bill for payment to the
guaranteeing entity, like credit card company,
corporate, travel agent, airline, event planner etc.
 No Show

• A situation in which the guest makes a

reservation, but does not check-in to the
hotel, or even forgets to cancel the booking
according to pre-agreed cancellation
procedure established by the hotel.
• It causes a loss of income to the hotel.
 Types of guarantee accepted
• Pre-payment in full (cash, cheque, credit card)
• Credit card company guarantee
• Partial pre-payment or advance deposit (1 day
room rate)
• Travel agent guarantee
• Voucher or MCO (miscellaneous charge order)
issued by “Airline Reporting Corporation” (ARC)
or IATA established “Billing & Settlement Plan”
(BSP)
• Corporate guaranteed bookings
 What are BSP and ARC?
• BSP or Billing and Settlement Plan is an IATA
electronic billing system to run and simplify
the interchange of data and funds between
travel agencies and airlines.
• ARC or Airline Reporting Corporation is an
organization that… does basically the same,
but in the US, and also Puerto Rico, Virgin
Islands, and American Samoa. In these
regions, ARC is an accounting entity that
belongs to airlines and covers all transactions
between agents and carriers.
The key difference between IATA and ARC is
that IATA’s responsibilities are way broader
as it’s the main standard-setter in the airline
industry. ARC mostly focuses on financial
relationships between airlines and travel
agents in the USA and North America. IATA
BSP covers the rest of the world.
IATA- International Association of Travel
Agents
 Non-guaranteed Reservations
• Hotel is liable to hold the room only up to the
cancellation hour, usually 4.00-6.00 pm, on the
date of arrival.
• No show means no money for the hotel.
• If guest arrives after cancellation time, hotel may
still accommodate her, if rooms are vacant.
• As occupancy level closes up to full house, hotel
may refuse to accept non-guaranteed bookings.
• However, not providing room to a guaranteed
booking guest could invite legal trouble for the
hotel. Remember that reservation is a contract?
 Wait-Listed Reservation
Sometimes, during peak demand season, all the
rooms are already reserved. But guest requests
the hotel to make a reservation in waiting list. If
any reservation gets cancelled, then the wait-
listed guest is allotted that place.
Something like “Reservation-against-
Cancellation (RAC)” of Indian railway booking
system.
 Group Reservation
• It involves interactions with multiples persons
and offices, such as guests, event planners,
convention & visitors bureau, tour operators &
travel agents.
• A fixed number of rooms, called a ‘block’ is
kept aside for group members.
• Individual members, with special identification
code assigned to the group, may book their
rooms within that ‘block’.
 Group Reservation
• The rooms selected (reserved) by group members
are marked as ‘booked’.
• Hotel monitors the speed at which room status
changes from ‘blocked’ to ‘booked’.
• Unreserved rooms are released to ‘open’
inventory after a ‘cut-off date’, normally 10-15
days before the group arrival date.
• A large ‘block’ for group may displace regular
FIT/transient business.
• If the group history is available, block size may be
reduced by a ‘wash factor’. (10%...)
 Group Reservation
• Groups that are large may put a lot of pressure on
the handlers and a clear communication system,
backed by a spirit of cooperation is needed.
• City-wide conventions (with delegates spread
over multiple hotels in the same city) may need
the services of ‘Conventions & Visitors Bureau’, to
coordinate between participating hotels,
convention organizers and other vendors.
 Group Rooming List
• This is an accurate list of all the rooms booked
by the group members, along with the names
of the individuals assigned to a specific room.
• Sharers are also clearly indicated.
• It is prepared once just after the group cut-off
date.
• Finally, one list is prepared just before the
date of arrival, which may include booking
after cut-off date.
 Systems of Reservation

Manual System

Semi-Automated System

Automated System
 Manual System of Reservation
• Booking Diary
• Bed Room Journal
• Reservation Form- loose leaf
• Convention Chart
• Advance Letting Chart
• Density Chart
• Whitney Rack (Whitney System) & Shannon Slips
• Telephone (Local, STD, ISD)
• Confirmation Letter
• Reservation Control Book
 Booking Diary
Room Name Pax Arrival Advance Date of Booking Booked By Sign
No Departure Date of
Book.
Agent

Time Mode Name No.

Bed Room Journal

Date-___________________________
Name of Room No. Particular
Guest
 Convention Chart
Month: January, 2019

Room Type & 1 2 3 4 ……………… 28 29 31

No. …

Single < J S Verma >

101

Single < >

102

Double
103

…
 Density Chart
Month: February, 2019

Type of Room- Double

No. of
Rooms Dates Of The Month
1 2 3 4 … 23 24 25 26 27 28
10 / / / /
9 / / / / / /

87 / / / /

-5
 Whitney or Shannon Slip
Date of Arrival Name of Room Type Rate Date of
Guest Departure
Mode of Reserved by Date
Reservation Received
Agency (if any)

Billing Instruction Confirmation Date

Suitable for hotels up to 150 rooms.

31+11+1= 43 no. the total racks that are needed.
Whitney Slips are placed in metallic case,
mounted on vertical racks.
Confirmation Letter generally includes;
• Name & address of guest
• Date & time of arrival
• Room type & rate
• Length of stay
• Number of persons in the party
• Reservation classification: guaranteed or non-
guaranteed
• Reservation confirmation number
• Special requests, if any
 Reservation Control Book
• A standard 3 ringed, loose-leaf binder, with a
‘tally’ page assigned to each day of the year.
• Each page displays the number of rooms of
each category in numbers.
• For example, if there are 10 suite rooms, then
it will begin with 1 and end at 10.
• For the first booking, the highest number (10)
is crossed out and for the next booking,
second highest number (9) will be crossed out.
 Reservation Control Book
• If the booking is for more than one day, the
same number will be ‘circled’ on the next
date.
• A ‘circled’ room is a ‘stay-over’ room. This
guest arrived at least one day before and will
continue to stay tonight.
 Date- ___________
Reservation Tally
Suite Rooms
Total Rooms Available= 30
10 9 8 7 6
5 4 3 2 1
Double Room

20 19 18 17 16

15 14 13 12 11

10 9 8 7 6

5 4 3 2 1

X-Rooms Reserved,
O- Stay-over Rooms,
Block Line- Room Saved for Group Block
 Semi-Automated Reservation System
• All the above, plus
• Date & Time Stamp Machine
• Central Reservation System
• Telex, Fax for Confirmation
• Account Posting Machine

Semi-automated system is about using machines

for improving efficiency and accuracy. A single
(not networked) computer is also possible in
semi-automated system.
Account Posting
Machine and a
Newspaper Ad for
the same,
Telex Machine with Dial for Telephone
Telex Machine
ate & Time
amp
achine
FAX (Facsimile)
Machine
Calculator
 Automated System of Reservation
• Computer
• Network (LAN, WAN, MAN)
• PMS (property management system)
• GDS (global distribution system)
• OTA (online travel agencies)
• CRS (central reservation system)
• Auto-confirmation through e-mail or SMS
• Credit Card & Digital Modes of Payment
Self Check-In Machine
 Online Travel Agencies & Global
Distribution System Companies
OTA GDS
• Makemytrip
• Yatra Amadeus
• Cleartrip Galileo
• Thomas Cook SABRE
• Cox and Kings Worldspan
• Travelguru
• Ezeego1
• Goibibo
 Cancellation of Reservation
• Cancellation is to stop some event, decision or
activity.

• Sometimes, the guest may change their travel

plans. There are two possible results.

– Guest cancels the booking

– The booking is postponed (after) or preponed
(before).
 Cancellation Policy
• Cancellation policy is generally guided by
three factors
– How close (near) to the arrival date the booking
was cancelled.
– What is the level of demand for hotel rooms.
– Is the guest regular or frequent traveller.
The cancellation fee may begin from 1 day tariff to
tariff for the whole stay. There is a free period
during which the guest may cancel without penalty.
 Reservation Cancellation Number
• Hotel is obliged to provide a cancellation code
for all requests made properly and before the
cut-off time/date.
• Guest can use this code to cancel any billing
by credit card company, if the guest had
guaranteed that booking by her credit card.
• Hotels also may request for a code from the
guest in case of disputes.
 Deciphering reservation cancellation
codes...
A code may include the following;
• 3 digit Arrival Date (in Julian date format)
• Initials of the clerk processing the cancellation
• Serial number of the cancellation for that
financial year
For example;
275 PJ 346
Julian dates assign a 3 digit number for all dates in
one calendar year, 365 (366 in leap years)
January 1 would be 001 and likewise.
 Cancellation Code Log Book
• All cancellations must be recorded sequentially in
a hard-cover register, cross-referenced with the
reservation confirmation number, that has been
cancelled.
• In computerized systems, this is stored
electronically.
• As a precaution, cancelled booking records are
maintained until the date of arrival, considering
that a booking may have been wrongly cancelled.
 Amendment of Reservation
• It may be called as the maintenance of
reservation records
• Any changes in the booking (postponing,
preponing dates, increasing number of
rooms\guests etc.) are known as amendment.
• Amendments are allowed if rooms are available
and rates are not affected due to season.
• Rate differences, if any, are to be paid by the
guest.
 Overbooking
• During season of high demand, hotels may
adopt the policy of accepting reservations in
excess of the available rooms in the hotel.
• This helps the hotel to compensate for any
losses, due to last minute cancellations,
amendments or early departures.
• In case overbooked guests actually arrive, they
are adjusted in nearby hotels of comparable
standard.
• Known as ‘Overflow’. (Bounced guests)
 Reservation Records Data
• Name (Guest/Group)
• Home or billing address
• Telephone number with area code
• Contact details of the guest’s company
• Contact details of the booker (if not guest)
• Number of persons in the party, age of children
• Arrival date & time
• Expected date & time of departure
• Reservation type (guaranteed or non-guaranteed)
• Special requirements
• Additional information
• Billing details
 When quoting room rate to the guest
The reservationist needs to have the following
information
• Supplementary charges for extra services and
amenities
• Minimum stay requirements (days) for the period
• Special promotions going on for the booking
dates
• Applicable currency exchange rates
• Applicable tax percentage
• Applicable service charges
Reservation Commission Turn-Away
Transaction Agent Or
Report Report Refusal
Report
• Reservation transactions report (book, cancel,
amend)
• Commission agent report
• Turn away (or Refusal) report
• Revenue forecast report
Some common performance indicators
in hotel bookings…
• Cost-of-Sales Percentage.
• Cost Per Acquisition.
• Return on Adverting Spend.
• Conversion Rate.
• Average Sale Value.
• Abandonment rate.
• Customer Lifetime Value.
Revenue Forecast Report (expected
income from room sale.

After 6
After 30 months
days
Today
 ‘Reservation List’ and how it gets used at various stages of the
‘Guest Cycle’. Reservation list for tomorrow becomes the
expected arrivals list the next day.

3. Departure
1. Arrival

2. Stay
• Expected • Stay over • Expected
Arrivals List Departure
List • Guests List
• The staying in • The
check-ins hotel check-
expected today outs today
today
Notice the
alphabetical
listing of the
expected
arrivals for
ease of
searching.
 Potential Reservation Problems
• Errors (human) in the reservation record
• Misunderstandings due to the use of industry
jargon with guest (double-twin, interconnecting-
adjacent, confirmed-guaranteed)
• Miscommunication with external reservation
systems like CRS (booking wrong property in the
same city)
• Central reservation Systems failure
• Faulty equipment
 The solution to all potential
reservation problems is accurate and
timely communication of the data
between participating individuals,
departments and organizations.
Re-confirming (reciting) data is a good
precaution to guard against most
human errors
 ZIP/PIN Code Check
• Ask the guest for the correct ZIP/PIN code of
their address so that it can be checked
whether the booking location is ideal or not.
Compilation & Presentation

Praveen Jha
Senior Faculty
IHM Hajipur
Vaishali, Bihar