PowerPoint to accompany

Chapter 2
Receive and process reservations

Learning outcomes
Understand the roles of the reservations department. Receive reservation requests Update reservations. Advise other departments and colleagues about reservations.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Roles and responsibilities of the reservations department

Manage and maintain individual and group reservations. Manage room yield. Prepare sales forecasts. Sell rooms.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Roles and responsibilities of the reservations department

Control commissions. Plan promotional activities. Generate and distribute room related reports.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Managing reservations
Receive enquiries. Promote the venues services and facilities. Record reservation details. Maintain reservations.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Room yield management

A technique used in an attempt to sell the maximum number of rooms possible on a given day at the highest possible rate.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Sales forecasts
Estimates of the number of rooms the reservations department expects to sell on specific dates. Forecasts are based on: Past occupancy levels Seasonal influences Upcoming special events

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Sales forecasts
Number of bookings so far for that date No-show estimates Cancellation estimates Economic climate.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Sales targets
Targets represent the actual number of rooms the venue wants to sell (as opposed to what the venue expects to sell).

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Control commissions
A commission is an amount of money (often 10%) paid (or received) for selling a product. Commissions are most commonly paid to travel agents. Travel agents sell accommodation (the product) to their clients and therefore earn a commission on the sale.
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Control Commissions
The reservations department is responsible for managing the commissions earned by the travel agents. Guests who book accommodation through their travel agent do not pay extra for the room.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Control commissions
Travel agents and tour operators can negotiate better commission rates (or better room rates) for booking large numbers of rooms. Commissions are not paid when the booking is for an allotment room.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

What is an allotment?
An allotment is a predetermined number of booked rooms allocated on specified dates to an airline or tour operator. These rooms (allotment) are usually a component of a package holiday.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Allotments
The tour company that holds the allotment will have negotiated a good room rate with the venue (usually well below the rack rate), due to the quantity of rooms booked and because the venue is guaranteed to sell most (or all) of the rooms in the allotment. Travel agents that sell the package holiday (on behalf of the tour operator) will earn commission from the tour operator.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Processing commissions
When travel agent clients pay the travel agent for accommodation, the travel agent is responsible for forwarding payment to the venue, less their commission. When guests (who booked accommodation with their travel agent) pay for their accommodation directly to the venue, the venue is responsible for forwarding the commission earned to the travel agent.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

What are promotional activities?

Marketing events that promote products and services offered by the venue to targeted market segments. May include:
Packages Giveaways Reduced rates.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Promotional activities
Undertaken in conjunction with the sales and marketing department. Promotional activities are influenced by:
Budget Objectives Sales forecasts Resources required.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Selling rooms
This is the primary role of the reservations department to sell rooms. The sale of rooms is facilitated by the use of sales techniques and a knowledgeable reservationist!

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Selling rooms
Sales techniques commonly used:
Suggestive selling Upselling Downselling Extras and add-ons.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Selling rooms

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Prescription of Room Rates

Must be competitive with same classification Rate must be enough to generate revenue

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Methods of Rate Calculation

Market Tolerance Based on prices quoted by other hotel Cost Rate Cost of Construction No. of Rooms Hubbart Formula Based on cost of operating a hotel + ROI for owners
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

RATE DESIGNATION
Rack Rate Corporate Rate Volume Accounts >Package Rates Government Rate > Industry Rate Seasonal Rate > Weekday/end Rate Advance Purchase Half Day Rates Group / Per Person Rates
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Target markets
Selling is easier when we know and understand our target markets. Each target market (and segment) will respond to different sales techniques

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Target markets
Its important to find out what it is the guest expects (from the venue), during the sales process. What a guest expects is usually determined by their purpose of visit (e.g.. Romantic weekend, business trip, convenient location) Refer also to Table 2.3, Page 29.
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

TYPES OF HOTEL CLIENTS

> Walk in > Corporate Accounts >Associations >Travel Agencies >Government Institutions/ Offices >FITs >Educational Institution >Local; Domestic Traveler > Balikbayan > Other Accounts

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Types of Room Reservations

Regular Reservations

Confirmed Reservations

Guaranteed Reservations
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

The reservation process

Receiving a reservation request. Checking availability. Offering alternatives. Responding to enquiries about costs and product features.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

The reservation process

Recording the reservation details. Name, No. of Pax, Arrival Date & Time Info./ Time of Arrival, Departure Date, No. of Nights, No. of Room/Bed, Room Rate, Billing Arrangements, Remarks, Booked by/Accepted by, Date of Resn Confirming the reservation details. Preparing and issuing documents.
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

How reservations are received

Telephone. In person at the front desk. Mail, Email, Fax. Same chain referrals. CRS/ GDS.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

How reservations are received

Other venue referrals. Personal referrals. Repeat business. Travel agents/airlines/tour operators.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Required Documents & Records

Reservation Forms Card Reservation Chart Reservation Rack/ Slips Hanging Folder Confirmation Notice Form Reservations Diary

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Checking availability
We need to find out: Required dates/length of stay. Number of guests. Room type(s) required. Number of rooms.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Checking availability
Automated system
Access the reservations section in the computer. Availability may be displayed in a room rack.

Manual/semi automated system

Check the room rack or bookings diary, or conventional chart.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

What is a room rack?

A list of (or physical rack displaying) all rooms, their status (occupied, clean), category, and quantity.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Offering alternatives
If a requested room type or date is not available, then it is standard procedure to offer an alternative. Depending on circumstances, alternatives may include:
Different date Different room type Waitlist Different venue.
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

What is a waitlist?
A list of bookings that cannot be accommodated unless a confirmed booking subsequently cancels. Waitlists are typically offered during peak season. They are offered to help maximise occupancy (in the event of late cancellation or no-show).
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

What is a no show?
A confirmed reservation that does not arrive or cancel.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Offering alternatives
Even after alternatives have been offered, a booking still may not be accommodated or accepted.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Why a booking may not be made

Customer
Price too high. Desired features not available. Minimum stay requirements not suitable. Doesnt want to be added to waitlist.

Venue
No rooms at all available. No waitlist or waitlist full. Allotment is full. Already overbooked for requested date.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Why venues overbook

A standard industry practice of accepting more reservations than there are rooms available. Overbooking compensates for:
No shows Cancellations Under-stays (person who departs earlier than booked dates).

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Responding to enquiries
Because many people who make reservations enquiries arent familiar with the venue, they often want information that helps them with their buying decision.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Responding to enquiries
Its important to be able to pass on accurate information about:
Venue products and services Room rates Package deals Room amenities Local area information.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Recording the details

Can be recorded manually, using a reservation slip, on directly into the computer.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Recording the details

Need to record:
Personal details Accommodation details (date of arrival/departure, room type, number of rooms, rate quoted, etc) Company/travel agent details Payment method Special requests.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Using industry jargon

Accuracy is important when recording reservation details. One way to ensure accuracy is by using standard industry jargon Jargon is not used when communicating with people outside the industry Jargon can be used when recording information.
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

The phonetic alphabet

The phonetic alphabet is an internationally recognised and extensively used tool that helps avoid misunderstandings about names, destinations, codes etc. Each letter of the (English) alphabet is assigned a word that aids understanding which letter (or sound) is to be used.
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

The phonetic alphabet

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

The phonetic alphabet

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

The 24-hour clock

An important skill! The 24 hour clock helps avoid confusion with times by distinguishing between morning and evening by assigning each hour of the day its number (within the 24 hours of the day/night) according to when it occurs after midnight.
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

The 24-hour clock

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Guest history profile

This is a detailed record of each guest who has stayed at the venue, including information about:
Guests personal details Company/travel agent details Stay details Special requests.

The guest history profile can be used (if one already exists) to create a new reservation.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Recording reservations
Either directly into the computerised PMS or first manually. Accuracy is crucial avoids problems later on. Refer to page 48 of your text, Front Office Skills for the full procedure.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Confirming reservations
Once all details of the reservation are recorded, confirm all details, specifically as they relate to:
Personal details Reservation dates Room types requested Payment method Special requests Rates quoted.
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Managing group reservations

More complex and time consuming that individual reservations. Usually made well in advance of reservation dates. Groups usually receive discounted rates because of the quantity of rooms booked.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Managing group reservations

Considerations:
Quantity and quality of rooms (rooming list). Meal plans (implications for F&B dept). Travel arrangements (implications for porters). Business services (if part of a conference). Luggage (collection, storage).
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

What is a rooming list?

A list of reserved rooms for a group (tour group or conference). Details:
Guest names and corresponding room number. Who is sharing with whom. Special needs or requests. Payment methods.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Potential reservation problems

Problems originating with reservations can lead to problems at other stages of the cycle of service, such as during registration.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Potential reservation problems

Reservation problems arise from:
Inaccurate recording of reservation information (or changes to a reservation) Poor communication within the venue Inaccurate transfer of reservation information to the computer Use of industry jargon.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Filing reservations
If manual records of reservations are kept, then these are filed in the pending reservations file in date order. Groups/conference may have their own file.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Filing reservations
In the PMS, once all the data is entered at the screen appropriately existed, the computer will automatically save the reservation.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Prepare and issue documents

What documents need to be prepared and issued will depend on the venues procedures. Some venues do not send any written confirmation or other documentation at all.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Prepare and issue documents

Invoices
Issued when a payment (in full or part) is required.

Receipt
Issued when a payment (in full or part) is required. May be sent with a confirmation letter or presented to guest at check in.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Prepare and issue documents

Accommodation voucher
Generally issued for prepaid accommodation (usually travel agent clients/tour operators and/or conference organisers/group members) May be a gift voucher.

Confirmation letter
May be venue or travel agent issued. May be by traditional mail or email.
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Prepare and issue documents

Information Packs
Usually sent on request (with a covering letter). May be sent with a confirmation letter, receipt or invoice. Contains information specific to the venue.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Prepare and issue documents

Service vouchers
Common to many venues, particularly those that package their products and services Usually issued on arrival (so the guest doesnt lose or forget to bring it!) Not transferable

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Update the reservation

Reservations need updating/maintaining for any number of reasons:
Record payments received Change of details Cancellations.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Process payments
At the time of reservation creation, while we usually record payment details, we dont actually process a payment while a caller is still on line.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Process payments
An important part of the reservation process is, however, advising callers about the venues policy relating to their preferred method of payment. Most venues accept all or some of the following:
Credit cards (Visa, MasterCard) Debit cards

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Process payments
Charge cards (American Express, Diners) Cash/cheques (advance deposits) Company charge backs Vouchers (venue or travel agent issued, gift voucher).

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Company charge back

This payment method is extended to guests whose company has an account with the venue. The charge back authority will detail specifically what the guest can charge to the company, while in-house All other expenses incurred while in house are the guests responsibility.
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Guaranteed booking
Means the guest has agreed to pay for the room whether or not they arrive and the venue agrees to keep available the room until the check-out time the day following the day of arrival. Bookings can be guaranteed:
With a credit/charge card With a company charge back By sending a deposit
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Non-guaranteed booking
Means that the guest decides to pay by cash or cheque but does not send a deposit or leave credit card details. A non-guaranteed reservation is held until 6.00pm or an otherwise agreed time, on the day of arrival. After this time, the room can be sold to another guest.
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Maintaining other reservation details

A reservation needs to be updated (maintained) if the guest requests a change to any detail relating to the reservation. The change (if it can be accommodated) is noted in the PMS and in the manual file if one is maintained.
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Maintaining other reservation details

Changes may relate to:
Dates Rooms (quantity, quality) Payment details Number of guests Names of guests Special requests.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Cancellations
Occur when the guest advises the venue they no longer require the reservation. This may be straight forward or may involve a fee (especially for resorts, peak periods, same day cancellations) Ask guests reason for cancellation.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Communicating reservation information

Reservation information needs to be communicated to other departments in a timely manner. We can communicate reservation details:
Computer generated reports Traces (computer generated links/flags) Verbally (meetings).
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Reservation reports
Rooms sold as a percentage of rooms available (same formula as for determining Occupancy): Rooms Sold Rooms Available

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Reservations reports
Average daily rate:

Room revenue Number of rooms sold

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Who needs to know about reservations?

Front office (responsible for checking guests in, implications for staffing). Concierge (implications for staffing, traffic particularly with group arrivals and luggage). Housekeeping (implications for staffing. Need to ensure sufficient rooms prepared for reservations expected).
Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia

Who needs to know about reservations?

Maintenance (may need to address maintenance issues particularly in rooms). Food & Beverage outlets (implications for staffing, purchasing and preparation of special requests.

Vivienne OShannessy: Front Office Skills 2009 Pearson Education Australia