Case Studies in the Hospitality Industry

Weissinger Knapp

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Chapter 4 FRONT OFFICE OPERATIONS:

RESERVATIONS

Presented by: Name Title Computer Systems Institute

Outline
I.

The Front Office

Personnel Organization

II.

Selling Rooms
Pricing Rooms Yield Management

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III.

Processing Reservations
Type of Reservation Source of Reservations Processing Reservations

Chapter 4 Front Office Operations: Reservations

Learning Objectives
o

Distinguish between the different types of rooms in a hotel/motel Describe the criteria for pricing rooms Understand yield management concepts Trace what happens to a hotel reservation from its receipt to the guests arrival Complete reservation and confirmation forms

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Chapter 4 Front Office Operations: Reservations

The Front Office

o

10 activities performed by the front office

1. 2. 3. 4.

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5. 6. 7. 8. 9. 10.

Processing advance reservations Registering guests Rooming guests Moving guests luggage Issuing room keys Providing information Handling guests mail Administering telephone service Accounting (making payments and billing) Checking out guests

Chapter 4 Front Office Operations: Reservations

Personnel
The Front Office
o

The front office is the nerve center of any hotel operation Service people involved in serving guests
1. 2.

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3. 4. 5.

Reservation clerks Front-desk clerks Room-clerks Key clerks Mail-clerks

Titles are interchangeable depending on the size and nature of the organization

An important aspect of quality service is making a good first impression

Chapter 4 Front Office Operations: Reservations

Organization
The Front Office
o

Small hotel
No difference between the front desk or rooms division and the front office

Larger establishments
Have a front office with a manager who supervises the front desk

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Front office organization in a large hotel

1. 2. 3. 4.

Front desk Uniformed services Switchboard reservations Housekeeping

Physical Appearance of a Front Office

1. 2. 3. 4. 5.

May be large or small, full-service or limited service Front desk is a counter located in the lobby Reservations office is not seen, but located near the front desk Concierge occupies a desk elsewhere in the lobby Bellhops usually stand near the door
Chapter 4 Front Office Operations: Reservations

Organization Chart
The Front Office
General Manager

Front-desk manager

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Switchboard Operator

Reservationists

Clerks

Night Auditor

Uniformed services

Mail

Key

Cashiers

Concierge

Doorman

Bell Staff

Figure 4-1 Organization Chart for a 500-room full service hotel

Valet

Chapter 4 Front Office Operations: Reservations

Selling Rooms
o

Responsibilities of the front office

1. 2.

Selling rooms Serving guests

Pricing rooms
Each room is given a rack rate and a room rate raters are determined by 1. Type of room 2. Location of room 3. Season and seasonal events 4. Kind of guest 5. Meal plan 6. Length of stay 7. Day of the week

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Chapter 4 Front Office Operations: Reservations

Type of Room
Pricing Rooms
o

Single room
A room for one person may have any combination of single, double, and queensize beds

A room that can accommodate four people in twin or double beds

o

Suite
A guest space that contains one or more bedrooms

Double room
A room that can accommodate two people in a double or queen-size bed o

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Connecting rooms
Two rooms located side by side with a door between the two

Twin double room (double-double or queen double)

A room with two twin, double, or queen beds o that accommodate two to four people

Adjacent or adjoining rooms

Rooms located side by side that do not have a connecting door Standard abbreviations include S-single, DD-double-double, SWB-single with bath, DWB- double with bath

Triple room
A room that can accommodate three people in one double bed and one twin bed, in three twin beds, or in two double beds

Quad
Chapter 4 Front Office Operations: Reservations

Location of Room
Pricing Rooms
o

Preferable room location within a hotel are those with picturesque, poolside, or seaside views Location dictates price

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Rooms on the lower floors and rooms in high-traffic areas (next to elevators, soft drink or ice machines) are usually less expensive
Tower concept
1. 2. 3.

Rooms on the top floors are designated for VIPs Elevator key must be used to reach these floors Guests receive concierge service that includes cocktails and breakfast

ROH run of the house

Members of a group may be roomed at any location of the hotel

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Season and Seasonal Events

Pricing Rooms
o

Hotel rates change according to the season or popular tourist time

Prices on a Caribbean island are higher in the winter

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Ski resorts are more expensive in times of good snow cover

Hotels charge premium prices for the duration of seasonal events such as the Kentucky Derby, Indianapolis 500, and spring break

Chapter 4 Front Office Operations: Reservations

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Kind of Guest
Pricing Rooms
o

The majority of guests receive the standard rate

Large companies and the government receive commercial or corporate rates for their employees (lower then the standard rate)

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A company may qualify for a discount because of the quantity of business it sends to a hotel/motel/chain

Other guests qualifying for reduced rates

1. 2. 3.

Conference attendees Groups on tours Members of organizations with negotiated discounts (AAA, AARP)

Chapter 4 Front Office Operations: Reservations

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Meal Plan
Pricing Rooms

AP MAP CP

American Plan Modified American Plan Continental Plan

All meals included Breakfast and lunch or dinner included Breakfast included (usually not a full breakfast) Full Breakfast included No meals included

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BP EP

Bermuda Plan European Plan

All-inclusive resorts and vacations

one price for a room, meals, recreation fees and transportation coasts
Chapter 4 Front Office Operations: Reservations

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Length of Stay
Pricing Rooms
o

Properties that offer reduced rates for guests who stay for an extended period of time
1. 2. 3.

Extended-stay hotels Residence hotels All suite properties

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Companies may rent rooms annually to get a reduced rate

Some properties will rent a room for a lower rate if it is vacated by 5 or 6 oclock

Chapter 4 Front Office Operations: Reservations

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Day of the Week

Pricing Rooms
o

Hotels in the city cater primarily to business travelers who stay during the week

Occupancy rates on weekends are lower, so hotels are willing to lower room rates

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It is best to call and request a price quote for a room before walking in

The day of the week can make a difference in room price

Chapter 4 Front Office Operations: Reservations

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Yield Management
o

Hotel rates must be high enough to cover

operating expenses 2. debt 3. profits expected by owners and low enough to attract guests
1.

Occupancy rates are used to create # of rooms available forecasts

# of rooms occupied

Other considerations for yield management

1. 2.

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Yield management
Calculations that lead to maximizing the amount of income or revenue from room sales
3.

Double vs. single room sales Commissions paid to travel agent bookings Nonrevenue rooms (Complimentary rooms must be included in formulas)

Factors that determine room prices

1. 2. 3.

Property status Determined break-even point Location

Short term forecasts allow front desk mangers to 1. adjust prices 2. notify other departments for staffing and purchasing

Room rate changes may be made on an annual basis

Chapter 4 Front Office Operations: Reservations

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Processing Reservations
o

Types of Reservations
Regular Reservations 1. Not paid in advance 2. Room is held for a specified time (usually 6pm) on the date of arrival 3. If the guest does not arrive on time, the room is sold to a walk-in

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Guaranteed Reservations 1. Client pays for the first night prior to arrival 2. Essential for late arrivals 3. Room is held until checkout time the following day
o

Sources of Reservations
1. 2. 3. 4.

Reservation centers (central location for property chains) Property-to-property (chain affiliated properties may contact one another) Third parties (reservations for individuals or groups) Direct (individuals book rooms personally)

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Processing Reservations
o

Upon receiving a reservation request

The reservation clerk checks the availability of the rooms on the date requested

Primary information that is taken for a reservation

1. 2. 3. 4. 5. 6. 7.

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8.
9.

Name Address Phone number Type of room Date and time of arrival Number of nights Number in party Rate established Method of payment

Advance payments are included with the reservation

A reservation card is filled out in duplicate by the reservation clerk and filed by date of arrival in alphabetical order by name of guest
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Processing Reservations
o

Each month, reservations for the month are placed in the current section of the chart and typed into a computer database

Special requests are noted

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Rooms that satisfy guests needs are blocked

Group reservations may

1. 2.

come in months or years in advance have no names, but reflect the number of rooms (often on the same floor) needed

Rooms for groups may be sold at a discounted room rate by the hotels sales department
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Cancelling Reservations
Processing Reservations
o

Cancelling a reservations frees the room to be re-rented Reservation clerks should express extreme courtesy when taking the cancellation Cancellation numbers should be given to each transaction
Information must include 1. date 2. property ID 3. consecutive number of cancellations in the year 4. initials of person taking the cancellation

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Nonguaranteed/Guaranteed reservation cancellation procedure

1. 2. 3.

Guests name is retrieved from computer reservation data bank Room is place back into available room pool Deposit must be returned or credited (guaranteed reservation only)

The cancellation policy should be stated on the confirmation card

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Confirming Reservations
Processing Reservations
o

Hotels should confirm reservations

(if time allows, in any of the following ways) 1. writing 2. phone 3. fax 4. letter

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A confirmation must be printed and sent to the guest immediately

Clerks may use a 1. standard confirmation form 2. form letter (more personal confirmation)

If payment for the room is not received in advance

1. 2. 3.

room rate amount due time limit for which the reservation will be held should be listed on the reservation card

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Checking Daily Reservations

Processing Reservations
o

Each morning, the room clerk obtains the days reservations from the computer reservations box, or chart The clerk should note
1. 2. 3. 4.

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type rate special requests nonguaranteed/ nonguaranteed reservations

Room Board (Room Rack)

May be used to post a registration hold sheet to allow front-desk clerks to assign rooms to guest when they arrive

Computers have revolutionized reservations and check in

All necessary information can be entered into and accessed from the database

Chapter 4 Front Office Operations: Reservations

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Trends
o

E-mail is becoming a popular reservation method

Technology allows travelers to fill out reservation cards from their home or office

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Faxing reservations and confirmations has also become popular

Sophisticated computer programs will more accurately analyze reservation demands

Telephone clerks will increase language capabilities (speak multiple languages

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