1. Reservations
Week (3)

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
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.
Reserves or books accommodation for a specific date and period of time in an accommodation establishment.

5. Cont. The reservation will also establish:
The Needs of the customer in relation to the type of room required,
The Room Charge also known as the Room Rate or Tariff and
any Special Requirements the customer may have.

6. 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:-

7. Reservation Activities/functions
· 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.

8. Checking availability
Check availability of a requested reservation
As the person responding to an enquiry for a reservation you must be able to check whether the accommodation the customer is requesting is available or not.
When you are speaking with customers at the front desk of your establishment, on the telephone, responding to a fax or letter or replying to , it is important that you are able to check the availability correctly.

9. A sample Manual Booking System from a small guest house.
(Shading indicates checkout)  

10. The guest must provide us a method of payment.
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:
[i.e. Check-out time or start of the hotel’s day Shift or any time the lodging property chooses

11. The reservation can be guaranteed by
Guaranteed Reservations
The reservation can be guaranteed by  
Prepayment ( paid full amount prior to arrival)
· Credit card (provide credit card number)
· Advance deposit ( Paid part of the room rate)
Travel agent voucher/miscellaneous charge
order (MCO)
· Corporate (direct billing account)

12. 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.

13. Date of arrival and departure
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:
Date of arrival and departure
Guest’s name, address and telephone number
Company or travel agency name
Type and number of rooms requested

14. Number of people in the group, if applicable
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.

15. Details Provided to Guest
As you create the reservation, these following information must be explained to your customers.
Room release time (6pm is standard)
Guaranteed reservation
Check-in time
Acceptable MOP
Parking facilities
Hotel facilities and services

16. 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?

17. 6. Create a reservation record according to the hotel procedures.
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.

18. 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.

19. Sources of Reservations
Central Reservation System
· Global Distribution System
· Travel Agents (for example flight centre)
· Property Direct
· Internet

20. 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.

21. 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].

22. 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…

23. 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.

24. Travel Agencies
Travel 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 “!

25. Property Direct Reservation System:
Even though many of the five-star hotels rely heavily on central reservation offices and travel agencies, some potential guests still find it convenient, and personal to call directly the hotel to communicate a reservation inquiry.

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

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

28. 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

29. continued
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 time.

30. Number of rooms reserved for a specific date
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

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

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

33. Room Rate Factors
The room rates are set by considering the following factors:
Location (CBD, Country)
Hotel Rating (Star)
Room attributes/aspects
Hotel facilities
Competition
Time of year
Intended client

34. 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)

35. Five steps to selling Know your products Know your guests
Match the guests to the best alternative
Be aware you are part of the sales team
Always sell the product before the price

36. 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

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

38. Loyalty programs
Loyalty programs which recognise and reward guests who frequently stay at the hotel.
The rewards are linked to the number of nights a guest stays in a one-year period.
The rewards may include free accommodation, free meals or gifts.

39. 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

40. 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

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

42. 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

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

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

45. 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

46. 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

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

48. 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
Inaccurate transfer of reservation information from a manual record to the computer.

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

50. 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]

51. 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