Lesson 5

Hotel Room Sales and Reservations

Fundamental of Lodging Operations

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 In many hotel, the task of selling and
promoting rooms as well as handling of
reservations is assigned to the Sales and
Reservations Section/Department.
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 Terminologies Used to Describe
Various Types of Hotel Guests

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 Very Important Person (VIP)

Refers to a well renowned guest like a high

ranking official or an executive who warrants
special treatment and handling.

Ex. Senator, Congressman, Mayor, Director,

Commissioner, Councilor, and the like.

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 Very, Very Important Person
(VVIP)
Is a highly renowned person who deserves
extra special treatment.

Ex. Dignitaries, Ambassadors, President.

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 Free Independent Traveler or
Foreign Individual Tourist (FIT)

Refers to a tourist or a traveler who is

traveling alone or is not with any tour group.

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 Joiner

Is a person (un registered guest) joining

another guest in the same room.

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 Types of Hotel Clients

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 For purposes of designating room rates, hotel
patrons maybe classified as follows:

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 Walk-in Guests

refers to those who come unannounced,

looking for rooms.

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 Corporate Accounts

apply to companies or institutions, usually

with special credit arrangements in the hotel.

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 Associations

are groupings of individuals or groups for a

common purpose or goal, sharing ideas, and the
likes.

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 Travel Agencies

these are agencies who have pre-arranged

bookings of their tour groups in a hotel of their
choice.

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 Government Institutions/Offices

with special bookings or credit arrangement.

Ex. TESDA, DTI, DOT, DepEd.

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 FIT

tourist or traveller traveling alone.

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 Educational Institution

Ex. Schools, Training Centers

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 Local/Domestic Traveller

some large hotel have ventured into a

promotion known as “Sariling Atin”. This
promotion provides for 30-50% discount for
local tourists or domestic guests.

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 Balikbayan

refer to returning or visiting Filipinos who are

residing or working abroad.

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 Hotel Rate Designation

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 Room rates designation defines what position
a rate will take within the overall rate hierarchy.
The common designations are:

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 Rack Rate

It is the highest published rate a hotel can

charge for a specific room. This varies
depending on the room type.

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 Corporate Rate

Is a special rate given to corporate accounts as

an incentive for their patronage. The rate may
reflect 10-20% discount from the rack rate.

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 Volume Account Rates

it is given where there is a guaranteed number

of room nights within a specific time frame (one
week or one month). Companies and
associations can negotiate for more discounts
under this account.

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 Government Rates

Government officials who stay in a hotel for

official functions are usually given per diem.
The hotel that is interested to attract this type of
market must be able to come out with rates that
can match the budget of this group.

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 Seasonal Rates

To attract more patronage during lean season,

hotel offers “off-season rate, which is much
lower than the rack rate during in-season or peak
season.

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 Weekday-Weekend Rates

some hotels experience high occupancy

during weekends, and low occupancy during
weekdays, hence, hotels give higher rates during
weekends, and special discounts during
weekdays.

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 Advance Purchase Rate

like some airlines, hotels may give incentive

to early bookings by giving special rate for
advance room payments.

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 Half Day Rates

Some hotels may have provision for rooms that

are used for half day-like those designated for
“short time or freshen up”, or half day
conferences that need sleeping facility. In such
case, half day rates are provided.

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 Industry Rates

apply to associations and group of

professionals or industry practitioners who are
offered discounted rates. As a show of
professional courtesy.

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 Package Rates

To encourage the patronage of rooms as well

as other hotel services, a hotel may come out
with a package rate whereby the cost of the
room, meals and other part of the package will
appear to be much lower than paying for them
separately.

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 some packages may come in the form of:
a. Vacation package-covering rooms, airline
tickets, shuttle service, tour to some tourist
attractions, tickets to cultural shows, etc.
b. Banquet and room package-covers room
accommodation, use of function rooms,
meals and snacks.
c. Meeting packages-room accommodation, use
of conference room, coffee breaks, snacks,
lunch and dinner, and audio visual facilities.

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 Group Rates

Are given to group bookings. The rates are

lower than transient bookings if they are booked
in advance.

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 Per Person Rate

charges are based on the number of people in

a room. Hotels charge a pre-set amount for
rooms with single occupancy, double occupancy
(for 2 persons) and triple occupancy (3 persons).
Every extra person who shares any of this room
will have extra charge. Many hotels charge
higher for extra person requiring extra bed,
compared with extra person without extra bed.

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 Hotel Room Reservation

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 Reservation of the hotel accommodation is
one of the important responsibilities of the front
office department. A potential guest contact a
hotel for availability of the desired type of
accommodation and any allied service that the
hotel offers. The front office department needs
to react to the enquiry to the of the guests.

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 Thus, the term “reservation” means the
booking or reserving of a room
(accommodation) by a guest. Reservation leads
to reserving of a particular type of room for a
particular guest for a given period of time.

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 Types of Reservations

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 Regular Reservation

refers to an agreement that a hotel makes to

hold a room until cut-off date and time (6
o’clock Policy). If the guest does not arrive by
that time, the room maybe sold to other guests.

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 Confirmed Reservation

apply when the terms of reservation have

been verified. Both the hotel and the reserving
party agree on the dates, rates and billing
arrangement, room type and other arrangements.
This type of reservation is confirmed to the guest
verbally or in writing through mail, e-mail or
fax.

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 Guaranteed Reservations

is an agreement that the hotel makes to hold a

room for a guest until the guest arrives. In return,
the guest or his sponsor assures payment for the
room using his credit card, or his company
account or by making a pre-payment. Unless the
reservation is properly cancelled, the guest is
billed for the room, including the applicable
taxes.

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 Sources or Avenues for Rooms
Reservations

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 1. Letters
2. Email or Internet Access
3. Fax
4. Telephone
5. In Person
6. Computer terminals
a. Call centers
b. Global Distribution System
7. Via central bookings

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 Six O’clock Policy
means that the guest with reservation is
required to arrive not later than 6 o’clock PM of
the arrival date. If he does not show up within
this cut-off time, the hotel has the right to give
way to other guests using the room reserved for
him. However, some hotels may consider late
arrivals if they are informed ahead of time.
When the room is pre-paid or guaranteed by a
sponsor, the six o’clock policy does not apply.
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 means that the guest with reservation is
required to arrive not later than 6 o’clock PM of
the arrival date. If he does not show up within
this cut-off time, the hotel has the right to give
way to other guests using the room reserved for
him. However, some hotels may consider late
arrivals if they are informed ahead of time.
When the room is pre-paid or guaranteed by a
sponsor, the six o’clock policy does not apply.

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 “Hospitality-Noun. The virtue that induces us to
feed and lodge certain persons who are not in
need of food and lodging.”
-Ambrose Bierce

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