RESERVATION • The
main function of the reservation reservation process process is to match room requests with room availability . Below is the detailed process of reservation: a) b) c) d) e) f)
Conduct Conduct the reserv reservati ation on inqui inquiry ry Determine room and rate availability Create Create the reserv reservati ation on reco record rd Confirm Confirm the rese reserva rvati tion on recor record d Mainta Maintain in the the rese reserva rvatio tion n recor record d Produ Produce ce res reser erva vati tion on repor reports ts
! "eservation and #ales: • Prior to Computeri$ation era% the main function of the "eservation Process is only to determine Basic "oom &vailability. That is to say% the reservation cler' can only tell the potential (uest that a room is reserved for himher. himher. *owever% the reservation cler' can not tell you the type of the room% rate honored+ ,owadays% with the wide use of reservation software pac'a(e pro(rams% it is now possible to reserve a room by room type% rate% and to accommodate all the possible special requests of the (uest. Therefore% the sellin( function shifted from the front office to the reservation department. *ence% pro-ections of "oom "evenues and Profitability &nalysis became one of the basic functions of the "eservation Department. • n parallel% reservation department and reservation a(ents should have sales (oals to achieve which mi(ht focus on number of room ni(hts% avera(e room rate% andor boo'ed room revenue. ! Types of "eservations: . /uaranteed "eservation: nsures that the hotel will hold a room for the (uest until a specific time followin( the (uest0s scheduled arrival date 1i.e. Chec'!out time or start of the hotel0s day #hift or any time the lod(in( property chooses2. 3n return% the (uest shall (uarantee hisher reservation of room unless reservation is properly canceled. n order to (uarantee a reservation% (uests mi(ht opt for one of the followin( methods: a) Prepay Prepayment ment (uarant (uaranteed eed rese reserva rvatio tion n b) Credit card (uaranteed reservation c) &dvance &dvance deposit deposit or part partial ial paymen paymentt d) Travel Travel a(ent a(ent (uaran (uarantee teed d reservat reservation ion e) 4oucher her or or Miscellaneous Char(e Order 1MCO2 f) Corpor Corporate ate (uarant (uaranteed eed reserv reservati ation on 5. ,on!(uaranteed "eservation: nsures that the hotel a(rees to hold a room for the (uest until a stated reservation cancellation hour 67sually 8 p.m.) on the day of arrival. • "eserv "eservati ation on a(ents a(ents shall shall ma'e ma'e sure sure to encoura encoura(e (e their their (uests (uests to (uaran (uarantee tee their their reservations especially in the hi(h season ! "eservation nquiry: • /uests /uests can communicate communicate their reservation reservation inquiries inquiries in person% over the telephone% via mail% throu(h facsimile% tele9% e!mail+ Moreover% reservation inquiries can be made throu(h a Central Reservation System or System or an Intersell an Intersell Agency. Agency.
• hile
(ettin( a reservation inquiry% the reservation a(ent shall obtain the followin( (uest!related information: a) /uest0s name% address and telephone number b) Company or travel a(ency name c) Date of arrival and departure d) Type and number of rooms requested e) Desired room rate f) ,umber of people in the (roup% if applicable () Method of payment andor (uarantee h) &ny other special requests • Most of the above mentioned information is used to create a reservation record . 4! #ources of "eservations: . Central "eservation #ystems 5. ntersell &(encies ;. Property Direct "eservation #ystem . Central reservation systems: • The ma-ority of
#erve as a connection with Global Distribution #ystems 1/D#2⇒ #ystem includin( several Central "eservation 3ffices connected to each other ♣
B) ,on!affiliate reservation networ': • & non!affiliate reservation networ' is composed of a central reservation office% potential (uests% and member independent hotels. 5. ntersell &(encies: • ntersell &(encies are special types of central reservation offices contractin( to handle reservation for more than one Product
One Call Does it All Approach >? ;. Property Direct "eservation #ystem: • @ven thou(h many of the five!star hotels rely heavily on central reservation offices and intersell a(encies% some potential (uests mi(ht still find it convenient% and personal to call directly the hotel to communicate a reservation inquiry. 4! /roup "eservations: • Conductin( a reservation request for a (roup shall be treated differently than accommodatin( a reservation of individual (uests 6i.e. Arequent ndependent Traveler). The main reason is that individual reservation requests are treated by the reservation department% while (roup reservations are initiated by the #ales Mar'etin( division% and finali$ed throu(h a careful coordination of the reservation from one hand and the mar'etin( from the other. *ere are some other differences between handlin( individual and (roup reservations: Individual Reservation
Group Reservation
!"eservation Department
! #ales Department
! 7sually one person calls to reserve for himself ! 7sually one person reserves for the whole herself members of the (roup 6/roup representative% /roup leader% Member of the travel a(ency Tour operator+) ! 3ne "eservation record for each potential (uest ! 3ne "eservation rerecord for the whole (roup ! 3ne /uest Aolio for each potential (uest opened! 3ne Master Aolio for the whole (roup opened as part of the pre!re(istration process as part of the pre!re(istration process ! *i(her price assi(ned for room
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! 7pon matchin( room inquiry with room! 7pon si(nature of allotment contract% first availability% reservation a(ent reserves a room bloc' rooms needed.
• Below
is a detailed procedure of how (roup reservation% in a typical hotel% is conducted: . & (roup representative% a member of the travel a(ency or the tour operator% not individuals% shall communicate (roup reservations request to the hotels mar'etin( department 5. 7pon availability% the hotels reservation department shall bloc' the requested number of rooms for this very (roup ;. The *otel shall (ive a deadline for the (roup% in order to receive their final list. That deadline is called Cuto!! "ate =. &fter receivin( the final list% the reservation department shall chan(e the desired number of rooms status from blo#$ed to boo$ed 6or reserved) rooms% and release the remainin( rooms 6if any left) as va#ant . f the hotel did not receive the final list by the cut!off date% then the reservation department has all the ri(ht to cancel the (roup reservation and release all the initially boo'ed rooms into vacant rooms. *owever% mana(ement shall use this ri(ht with precautions especially when it comes to (roups reservin( from travel a(encies and tour operators of which the hotel is frequently o peratin(. Illustration % Allotment Contract signed between Karaartal !otel and "#K $ravel Clause : • *otel Eara'artal a(rees to allot BFE Travel: G #in(le% 5 Double Triple rooms Aor the period runnin( from GGGH 6Monday) till 5G5GH for arrivals on each: Thursday 6for ; ni(hts) Ariday 6for ; ni(hts) I Different rates by room type% view% location% supplements... 3ther clauses: • The Ainal
Cut!off date I &ccordin( to allotment contract shall be one wee' before e9pected arrival of (roup I n this case: Ariday 5GGH 6until be((inin( of chec'!in time). • #uppose on Ariday 5GGH% BFE travel sent Eara'artal *otel a final list encompassin( the need for #in(le% 55 Double 5 Triple rooms. This means: ! ash 3ut "ooms 6
4! "eservation &vailability: • &fter receivin( a reservation request% the hotel mi(ht accept it% as it is% if there is room availability. f not% the reservation department should su((est alternative room types% dates% andor rates% to the potential (uest. f% however% the potential (uest insists on hisher previous request% the hotel should su((est an alternative hotel. Thats one of the main reasons why we need to maintain (ood relation!ships with nearby competin( *otels • The reservation department should always compare historical reservation volumes a(ainst actual arrivals. The main reason is to cope with overbooking % which a situation occurrin( when the total number of rooms reserved for a certain period of time e9ceeds the total number of rooms available for sale% for the same period of time. • n order to cope with the overboo'in( problem% some statistical and historical data should be stored and processed by the hotel and should be continuously updated. #uch data should include: a) ,umber of rooms reserved for a specific date b) ,umber of rooms occupied by stayovers 6for a certain specific date) c) Aorecasted no!shows percenta(e d) Aorecasted understays percenta(e e) Aorecasted overstays percenta(e f) Aorecasted cancellation percenta(e () ,umber of out of order rooms for a specific date
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&d-ustment due to understays Q N !Q= N ')', Rooms &d-ustment due to overstays Q N GQ= N -.), Rooms &d-ustment due to cancellation Q N !HQG N /), Rooms Total ad-ustment N !!5.5O=.!;. N 0)', Rooms Total number of rooms e9pected to be occupied for the ni(ht of 3ctober 5Kth% 5GG5 6i.e. after ad-ustment) N K ! 8.5 N &&)1, Rooms Total number of rooms available for sale for the ni(ht of 3ctober 5Kth%5GG5 N GG!5 N +& Rooms &dditional number of rooms to be reserved for the ni(ht of 3ctober% 5Kth% 5GG5 N K! .H N +)', Rooms Total number of rooms e9pected to be reserved and occupied for the ni(ht of 3ctober 5Kth% 5GG5 N KOK.5 N 2(.)', Rooms @9pected occupancy rate with ad-ustments N G=.5K GG N 2(0)/&* 3verboo'in( factor N G8.;Q ! GGQ N 0)/&*
5. Drawbac's of this problem: ♠ @ven thou(h *istorical Aorecasts are vital to solve this overboo'in( problem% they are only R %orecastsR and cannot Re&actlyR reflect the current situation. ♠ >,umber of out of order roomsS data is obtained from the house'eepin( department. *owever% no body can be GG Q sure whether eventually on the actual day of arrival e9actly 5 "ooms 6i.e. no more no less) will be out of order. ♠ This very method is a simple method for solvin( the overboo'in( problem. n fact% this method only (ets use of certain forecasts 6i.e. no all of them)% and i(nores the possible interaction these forecasts mi(ht have on each other. 4! @quipment Trac'in( "oom &vailability: • n order to function properly% the reservation department shall maintain control boo's% wall charts% andor a computeri$ed system. hatsoever system chosen% the reservation department shall maintain and update that system to include any reservation transaction 6i.e. whether a reservation% cancellation% modification+). Below is a description of the three commonly used sets of equipment to trac' room availability under the manual% semi!automated and fully!automated systems: . Control boo's: • Control boo's are standard three!rin(% loose!leaf binders with a tally Pa(e assi(ned to each day of the year. 7nder this very system% when a potential (uest calls to have a reservation% the reservation cler' shall chec' the cells correspondin( to rooms. f there is an empty cell for all the len(th of stay of the (uest then the reservation cler' mar' it as U 6i.e. reserved). f the (uest is e9pected to continue stayin( the ne9t day% then the reservation cler' shall mar' the ne9t days respective room cell as 3 6i.e. #tayover).
reservation transactions% types of (uest reservin(+
the reservation process% reservation a(ents shall 'eep in mind that a rate quoted and confirmed must be honored. Moreover% reservation cler's should be aware of the followin(: a) #upplementary char(es for e9tra services or amenities b) Minimum stay requirements in effect for dates requested c) #pecial promotions in effect for dates requested d) &pplicable currency e9chan(e rates% if quotin( rates to an international tourist e) &pplicable room ta9 percenta(es f) &pplicable service char(es or (ratuities U! "eservation Confirmation: • The hotel should communicate (uests by telephone% tele9% mail% or e!mail a 'etter o( Con(irmation% which confirms the important points of the reservation a(reement. This very letter mi(ht be shown at the re(istration process in order to accelerate the pace of re(istration and prove that the (uest has the ri(ht to have a room at the hotel.
• The
*otel shall send a confirmation letter to all reserved potential (uests% whether their reservations are (uaranteed or non!(uaranteed. Below are the main points that should be communicated in a confirmation letter: a) ,ame and address of the (uest b) Date and time of arrival c) "oom type and rate d)