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What is a reservation?

It is a booking in advance for a space for a specified

period of time.

E.g. Hotel ballroom, restaurant booking, airline seat, a

theatre seat, a hotel guestroom, a doctors
From a guests point of view, the most important
outcome of the reservations process is having a
guestroom ready and waiting when the guest arrives.
To achieve these outcomes, the hotel must have efficient
reservation procedures in place.

Here are the reservation process activities:-

Reservation Activities

Conduct reservation inquiry.

Determine room and rate availability.

Create reservation record.

Confirm reservation record.

Maintain reservation record.

Produce reservation reports.

Research, plan, and monitor reservations.

Types of Reservations
Guaranteed Reservation: Insures that the hotel will hold
a room for the guest until a specific time of guests
scheduled arrival date .
The guest must provide us a method of payment.
If the guest does not show up or cancel properly,
the guest will be charged for one night
If the hotel then fails to provide the room for a
guaranteed reservation, legal penalties can be applied if
the guest files a complaint.
In order to guarantee a reservation, guests can choose
one of the following methods:
Guaranteed Reservations
The reservation can be guaranteed by


Credit card

Advance deposit

Travel agent voucher/miscellaneous charge

order (MCO)

Corporate (direct billing account)

Non-guaranteed Reservation

Non-guaranteed Reservation: Insures that the hotel

agrees to hold a room for the guest until a stated
reservation cancellation hour (Usually 6 p.m.) on the
day of arrival.
It is common for hotels planning on full occupancy or
nearing full occupancy to accept only guaranteed
reservation once a specified number of expected
arrivals is achieved.
Reservation Inquiry

Guests can communicate their reservation inquiries in

person, over the telephone, via mail, through facsimile, telex,

While getting a reservation inquiry, the reservation staff

shall obtain the following guest-related information:

Guests name, address and telephone number

Company or travel agency name
Date of arrival and departure
Type and number of rooms requested

Desired room rate

Number of people in the group, if applicable
Method of payment and/or guarantee
Any other special requests
Most of the above mentioned information is used to create
a reservation record.
The seven steps reservation sales process
1. Greet the caller. ( thank you for calling Holiday
inn. This is Mary speaking How can I help you
2. Identify callers need ( arrival date, departure
date, preference ....)
3. Provide an overview of the hotels feature (
number of restaurant, swimming pool )
4. Make a room recommendation and room rate.
5. Ask for the sales ( Would you like me to book the
reservation for you?
6. Create a reservation record according to the hotel
7. Thank the caller. Closing a call as warmly as opening a
call leaves the caller with a sense of confidence that they
have made the correct decision.
The reservation function is a sales process, if the
reservation staff is unenthusiastic, the caller will not a
have a positive impression of the hotel and may decide
to go elsewhere.
Reservations can be made for individuals, group, tours
or conventions.
An individual, not part of the a group is referred as a FIT.
( free independent traveller)

The customers make reservation by using different

Sources of Reservations

Central Reservation System

Global Distribution System

Intersell Agencies (for example flight


Property Direct

Central Reservation System (CRS)
A central (or computerised) reservation system that
controls and maintains the reservations for several
hotels in one location, and automatically redirects the
reservation to the required hotel.
Central reservation systems

The majority of hotel groups belong to one or more Central

Reservation Systems
A central reservation system is composed of a central
reservation office, member hotels connected together via
communication devices, and potential guests.
It exchanges room availability information with members
Central Reservation Office [CRO] offers its services via a
24-hours toll free telephone number(s) [Green Numbers].
On return, central reservation offices charges a fee for the
utilization of its services which might take the form of a flat
fee and a variable fee, or a flat percentage of potential room
revenue, actual room revenue, and/or Rooms Division gross
Global Distribution Systems
Computerized system by which reservation-related
information is stored and retrieved for multiple

Global Distribution Systems [GDS] System including

several Central Reservation Offices connected to each
Selling hotel rooms is accomplished by connecting the
hotel reservation system with the GDS system.
GDSs have become a powerful force in hotel reservation.
Inter sell Agencies
Inters ell Agencies are special types of central
reservation offices contracting to handle
reservation for more than one Product Line [ex:
Handle at the same time Airline Tickets, Car
Rental, Hotel Reservation] One Call Does it
All Approach !
Property Direct Reservation System:
Even though many of the five-star hotels rely heavily on
central reservation offices and intersell agencies, some
potential guests still find it convenient, and personal to call
directly the hotel to communicate a reservation inquiry.
Property Direct Reservations
Property direct reservations are made in a several ways





Group Bookings
Types of groups
Tour groups
Charity groups (fund raising)
Flight crews
School groups
Sporting groups
Reservation Availability
After receiving a reservation request, the hotel might accept it,
as it is, if there is room availability.
If not, the reservation department should suggest alternative
room types, dates, and/or rates, to the potential guest.
If, however, the potential guest insists on his/her previous
request, the hotel should suggest an alternative hotel.
That's one of the main reasons why we need to maintain
good relation-ships with nearby competing Hotels
The reservation department should always compare
historical reservation volumes against actual arrivals.
The main reason is to cope with overbooking, which a
situation occurring when the total number of rooms
reserved for a certain period of time exceeds the total
number of rooms available for sale, for the same period of

In order to cope with the overbooking problem, some

statistical and historical data should be stored and processed
by the hotel and should be continuously updated. Such data
should include:
Number of rooms reserved for a specific date
Number of rooms occupied by stayovers (for a certain
specific date)
Forecasted no-shows percentage
Forecasted understays percentage
Forecasted overstays percentage
Forecasted cancellation percentage
Number of out of order rooms for a specific date
Reasons for Travel
Special events (e.g.Olympic Games)
Types of Market Sources
F.I.T. free/fully independent traveller
Room Rate Factors
$ Location (CBD, Country)
$ Hotel Rating (Star/Flag/Crown)
Room attributes/aspects
Hotel facilities
$ Competition
$ Time of year
$ Intended client
Room Rate Types

Airline (delayed flights, crew, package)
Travel Agents (package, familiarisation, group, F.I.T.)
Packages (honeymoon, weekend, midweek)
Five steps to selling

Know your product

Know your guest
Match the guest to the best alternative
Be aware you are part of the sales team
Always sell the product before the price
Guest History
Assist with marketing strategies
Ensure future reservations are more efficient
Ensure a quicker check-in
Ensure guests needs are met
Assist with check-out
History data

Reservation forms
Registration cards
Guest folios on check-out

History can be stored and maintained:

Details Provided to Guest
Room release time (6pm is standard)
Guaranteed reservation
Check-in time
Acceptable MOP
Parking facilities
Hotel facilities and services
Retrieve original reservation
Note date and time cancellation received
Record contact name of person cancelling
Update manual and computer records
File cancelled reservation
Apply cancellation fee as per hotel policy
Thank caller
Retrieve original reservation
Note date and time amendment received
Record contact name of person amending
Update manual and computer records
File amended reservation
Thank caller
Departments concerned with reservations

To enable accurate staff rostering
Budgeting, planning for refurbishment, ordering of
Food and Beverage
As above
Departments concerned with reservations

To enable accurate staff rostering
Budgeting, planning for refurbishment, ordering of
Concierge/Porters/Front Desk
As above
Types of Reports
Special requests
Black lists
Market Segments
Guest history
Occupancy Reports
Prepared on a regular basis for:
maximising occupancy
planning refurbishment
Special Requests Report
Cots/rollaways/special linen/vases/flowers/baby
sitters/early and late arrivals and departures
Room Service
Champagne/fruit baskets/flowers/VIP mini bars
Porter/ Concierge
Theatre bookings/restaurant bookings/hire cars/early
arrivals/late departures/wheelchair access/luggage
storage/red carpet
Special Requests Report
Food and Beverage
Dietary, Group meals, Children, Cultural Requirements,
Seating, Groups departing early
Dietary, AV Equipment, Meal break times, Business
Group and Conference
Rooming list ready
Rooms Assigned
Staffing requirements
Porter/Concierge (Luggage collection times)
Food and Beverage
Functions department
Hospitality room/area
Black List

Bad debts (previous accounts remain unsettled)

Malicious damage to hotel property
Theft of hotel property
Verbal/physical assault of staff members
Reservation Reports:

In the reservation department, the widely used management

reservation reports include:
Reservation transaction report
Commission agent report
Turnaway report (sometimes called the refusal report)
revenue forecast report
Potential Reservation Problems

4 main common problems that might be encountered:

1) Errors in a reservation record:
a. Record a wrong arrival or departure date
b. Misspell the guests name or reverse it
c. Reserve for the caller instead of the guest
Potential Reservation Problems

2) Misunderstandings due to industry jargon:

Confirmed versus guaranteed reservation
Double room versus 2 beds
Connecting rooms versus adjacent rooms
Potential Reservation Problems
3. Miscommunications with external reservation systems:
Book a guest in the wrong hotel
Book a guest in the wrong city [ex: Novotel, Melbourne versus
Novotel, Sydney]
Potential Reservation Problems (continued)

4. Online reservation system failures:

Fail to update central reservation system concerning room
availability or to communicate rate changes in real time
Delays in communicating reservation requests
Communication Equipment used may become
technologically obsolete or inoperatable
Learning Objective:
After reading this information sheet, you should be
able to know the standard procedure in reservation.
Understand the roles of the Reservations Department.
Receive reservation requests.
Update reservations.
Advise other departments and colleagues about
Seven sources of reservations:
Email or internet access
In person
Computer terminals
Central booking offices
A Alpha J Jimmy S Sugar
B Brother K King T Tokyo
C Charlie L Love U Uncle
D Daddy M Mike V Victor
E Easy N Nancy W William
F Father O Oskar X X-ray
G George P Peter Y Yellow
H Henry Q Queen Z Zebra
I Item R Roger
The phonetic alphabet
The phonetic alphabet
Pick up the phone within 3 rings.
Use the dialogue Reservation, Good
Morning........May i help you?
Listen to the request and note down.
Obtain following information:
*Arrival and departure dates
*Type of rooms (try to sell the highest room category)
Check the space availability.
Check the space availability.
Obtain full reservation details if the request can be
*Name of guest
*Arrival and Departure dates
*Number of rooms and type
*Total number of pax
*Method of payment
*Source of booking
*Name of caller, contact person, company name address
and phone number
Repeat the reservation back to the caller and before
finishing the conversation you thank the caller saying:
Thank you for Choosing Our Hotel Mr. / Ms. ........,
Good bye.
Record all details on reservation from with your initial,
date and time.
Key all information in the computer before filing.
After receiving the fax or letter stamp it with date and
Check availability
Obtain full reservation details.
Record all information in the reservation form (2
Key all information in the computer
Print out the confirmation and fax to the guest after
the confirmation has been reviewed and initialled by
your supervisor.
When you receive a call requesting to amend or cancel a
reservation, check subject reservation on the computer.
When you find the reservation:

Note down on paper all details received, name of the caller,
date and time.
Write down all details in reservation form, stamp
amendment on the form and put in the remark details of
Then key in the computer.
Filing following the new information in amendment.
Note down the details and ask for the reason of
cancellation and the name of the caller.
Take the requested reservation form and stamp
Cancelled with clerk initial, date, time and reason of
cancellation and key in the computer.
Filing in the cancellation file of that month.
When confirming a reservation, inform the person
making the booking that the reservation will be held
until 18:00 hours on the day of arrival to cancel the
booking. If the reservation is not cancelled by this
time, one nights room rate will be charged.
A reservation may be guaranteed as follows:
Advance Deposit one nights deposit received by
check, or cash, prior to the day of arrival.
Credit Card the credit card name, number and expiry
must be obtained.
Company Letter A company may guarantee a
reservation in writing. This written guarantee must be
on company letterhead and signed by an authorized
Travel Agent A Travel Agent may guarantee a
reservation using the same method as a company, or
by quoting their number as a guarantee.
All staff will be informed by the Reservations Manager
when occupancy dictates that all bookings are to be
guaranteed. In such a case no 18:00 hrs bookings can
be accepted.
Important Notes When Taking
Room Reservations
Arrival time and flight details (arrival/departure).
Telephone contact number and name of the contact
Billing instructions.
Is the guest a Return Guest?
Any special request (king bed, twin bed, smoking or
non smoking rooms)?
Any hotel pick up / transfer out to / from the airport.
Which Company is the caller from?
Important Notes When Taking
Room Reservations
Arrival guests name.
How many and type of rooms needed.
Confirm room rate.
Always remember to inform guests about our cut-off
Reservation will be on hold till 18:00 hours if theres a
high occupancy.
Let the gust know that check in time 12:00 noon.
Ask if guest wish to have has booking / reservation
GTD (Guaranteed).
Basic Phraseologies of Reservation
Are you attending a group or convention
How many people are in the group sir?
Are you member of the hotel club sir?
Have you stayed with us before sir?
Do you prefer non-smoking or smoking?
What is your estimated time of arrival?
How would you like to settle the bill?
Let me verify this information for you.
Basic Phraseologies of Reservation
We are oversold. We are sold to capacity.
I can`t confirm a king bed I would be happy to request
room. a king bed for you
This computer system is My computer is down right
new, and I dont know it now, please bear with me
well. We are filling up, but I am
We still have many rooms confident we have a room
available. for you.
Reservation Form
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Thank you!!!