Reservations

1. Reservations Week (5)

2. Objectives for Reservations • At the completion of this unit, the students will able to: • Describe the different types of reservations and identify the information sought during a reservation inquiry and contained in a reservation record. • 2. Identify major sources of reservations.

3. Competencies for Reservations (continued) • 3. Identify the tools managers use to track and control reservations availability. • Describe policies and procedures surrounding the confirmation, change, and cancellation of different types of reservations. • Explain the function of typical management reports and reservations records that can be generated from reservations data.

4. 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 doctor’s appointment.

5. Introduction • From a guest’s 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:-

6. 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.

7. Types of Reservations • Guaranteed Reservation: Insures that the hotel will hold a room for the guest until a specific time of guest’s 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 accommodation. • 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:

8. Guaranteed Reservations • The reservation can be guaranteed by   • Prepayment • · Credit card • · Advance deposit • Travel agent voucher/miscellaneous charge order (MCO) • · Corporate (direct billing account)

9. 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.

10. Reservation Inquiry • Guests can communicate their reservation inquiries in person, over the telephone, via mail, through facsimile, telex, e-mail… • While getting a reservation inquiry, the reservation staff shall obtain the following guest-related information: • Guest’s name, address and telephone number • Company or travel agency name • Date of arrival and departure • Type and number of rooms requested

11. cont. • 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.

12. 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 today?) • 2. Identify caller’s need ( arrival date, departure date, preference ....) • 3. Provide an overview of the hotel’s 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?

13. cont. • 6. Create a reservation record according to the hotel procedures. • 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.

14. cont. • 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.

15. Sources of Reservations • Central Reservation System • · Global Distribution System • · Intersell Agencies (for example flight centre) • · Property Direct • · Internet

16. 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.

17. 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 hotel. • Central Reservation Office [CRO] offers its services via a 24-hours toll free telephone number(s) [Green Numbers].

18. continued • 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 profit…

19. Global Distribution Systems • Computerized system by which reservation-related information is stored and retrieved for multiple organizations. • Global Distribution Systems [GDS] System including several Central Reservation Offices connected to each other. • Selling hotel rooms is accomplished by connecting the hotel reservation system with the GDS system. • GDSs have become a powerful force in hotel reservation.

20. 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…]  “ OneCall Does it All Approach “!

21. PropertyDirect 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.

22. Property Direct Reservations Property direct reservations are made in a several ways · Telephone · Mail · Property-to-property · FAX · E-mail

23. Group Bookings • Types of groups • Tour groups • Conference/convention • Charity groups (fund raising) • Flight crews • School groups • Sporting groups

24. 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 alternativeroom 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

25. continued • The reservation department should always compare historical reservation volumesagainst 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 time.

26. continued • 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

27. Reasons for Travel • Business • Pleasure • Education • Family • Religious • Special events (e.g.Olympic Games)

28. Types of Market Sources • F.I.T. – free/fully independent traveller • Group • Corporate • Government • Package

29. Room Rate Factors • Location (CBD, Country) • Hotel Rating (Star/Flag/Crown) • Room attributes/aspects • Hotel facilities • Competition • Time of year • Intended client

30. Room Rate Types • Rack • Corporate • Government • Airline (delayed flights, crew, package) • Travel Agents (package, familiarisation, group, F.I.T.) • Groups/conference • Packages (honeymoon, weekend, midweek)

31. 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

32. Guest History • Assist with marketing strategies • Ensure future reservations are more efficient • Ensure a quicker check-in • Ensure guest’s needs are met • Assist with check-out

33. History data • Reservation forms • Registration cards • Guest folios on check-out History can be stored and maintained: • Manually • Computerised

34. Details Provided to Guest • Room release time (6pm is standard) • Guaranteed reservation • Check-in time • Acceptable MOP • Parking facilities • Hotel facilities and services

35. Cancellation • 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

36. Amendments • 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

37. Departments concerned with reservations report • Housekeeping To enable accurate staff rostering Budgeting, planning for refurbishment, ordering of supplies • Food and Beverage As above

38. Departments concerned with reservations report • Maintenance To enable accurate staff rostering Budgeting, planning for refurbishment, ordering of supplies • Concierge/Porters/Front Desk As above

39. Types of Reports • Occupancy • Arrivals • Cancellations • Special requests • V.I.P.S • Black lists • Market Segments • Guest history

40. Occupancy Reports • Prepared on a regular basis for: • rostering • budgets • maximising occupancy • planning refurbishment • ordering

41. Special Requests Report • Housekeeping 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

42. Special Requests Report • Food and Beverage Dietary, Group meals, Children, Cultural Requirements, Seating, Groups departing early • Functions Dietary, AV Equipment, Meal break times, Business Services

43. Group and Conference Details • ETA/ETD • Rooming list ready • Rooms Assigned • Staffing requirements • Porter/Concierge (Luggage collection times) • Food and Beverage • Functions department • Hospitality room/area

44. Black List • “Bad” debts (previous accounts remain unsettled) • Malicious damage to hotel property • Theft of hotel property • Verbal/physical assault of staff members

45. 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

46. Potential Reservation Problems • 4 main common problems that might be encountered: • 1) Errors in a reservation record: • Record a wrong arrival or departure date • Misspell the guest’s name or reverse it • Reserve for the caller instead of the guest

47. Potential Reservation Problems • 2) Misunderstandings due to industry jargon: • Confirmed versus guaranteed reservation • Double room versus 2 beds • Connecting rooms versus adjacent rooms

48. 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]

49. 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