Reservation

RESERVATION
• The main function of the reservation process is to match room requests with room
availability. Below is the detailed process of reservation:
a) Conduct the reservation inquiry
b) Determine room and rate availability
c) Create the reservation record
d) Confirm the reservation record
e) Maintain the reservation record
f) Produce reservation reports
! "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 him)her. *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% and)or 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 his)her 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) Prepayment (uaranteed reservation
b) Credit card (uaranteed reservation
c) &dvance deposit or partial payment
d) Travel a(ent (uaranteed reservation
e) 4oucher or Miscellaneous Char(e Order 1MCO2
f) Corporate (uaranteed reservation
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.
• "eservation a(ents shall ma'e sure to encoura(e their (uests to (uarantee their
reservations especially in the hi(h season
! "eservation nquiry:
• /uests can communicate their reservation 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 an Intersell 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 and)or (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 <od(in( Properties belon(s to one or more Central "eservation
#ystems
• & central reservation system is composed of a central reservation office% member hotels
connected to(ether via communication devices% and potential (uests.
• Central Reservation Office 1CRO2 offers its services via a 5=!hours toll free telephone
number6s) 1Green Numbers2.
• *otel members of the central reservation system shall provide and e9chan(e accurate
room availability data to central reservation offices. To illustrate% central reservation
offices and member hotels shall communicate 6on real time) any reservation transaction.
This is possible% nowadays% with the sophisticated communication equipment available.
This very equipment shall be provided by central reservation offices to its member hotels.
#uch equipment may ran(e from Teletype% tele9% facsimile machines% to personal
computers% nternet connections+
• 3n return% central reservation offices char(es a fee for the utili$ation of its services
which mi(ht ta'e the form of a flat fee and a variable fee% or a flat percenta(e of potential
room revenue% actual room revenue% and)or "ooms Division (ross profit+
• Central "eservation 3ffices are divided into two:
&) &ffiliate reservation networ':
• This very networ' is referred to as the hotel chain0s reservation system. n fact% it is
composed of a C"3% and hotels% which are members of the same chain. The main
advanta(es of affiliate reservation networ' are:
a) #treamline the process of reservation
b) "educe overall system costs
c) &ttract business for or refer business to another chain property
d) &ffiliate reservation networ's mi(ht serve% in addition to its main function% other
duties li'e:
♣#erve as an inter property communication networ'
♣#erve as an accountin( transfer tool
♣ #erve as a destination information center
♣ #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 <ine 1e9: *andle at the same time &irline Tic'ets%
Car "ental% *otel "eservation+2  > 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 B Mar'etin( division% and
finali$ed throu(h a careful coordination of the reservation from one hand and the
mar'etin( from the other. *ere are some other differences between handlin( individual
and (roup reservations:
Individual Reservation Group Reservation
!"eservation Department ! #ales Department
! 7sually one person calls to reserve for himself )
herself
! 7sually one person reserves for the whole
members of the (roup 6/roup representative%
/roup leader% Member of the travel a(ency )
Tour operator+)
! 3ne "eservation record for each potential (uest ! 3ne "eservation rerecord for the whole (roup
! 3ne /uest Aolio for each potential (uest opened
as part of the pre!re(istration process
! 3ne Master Aolio for the whole (roup opened
as part of the pre!re(istration process
! *i(her price assi(ned for room ! <ow price assi(ned for room
! 7pon matchin( room inquiry with room
availability% reservation a(ent reserves a room
! 7pon si(nature of allotment contract% first
bloc' rooms needed. <ater% upon receipt of Ainal
<ist by Cut!off date% debloc' the bloc'% reserve
for those rooms conveyed in the <ist and release
the remainin( for sale.
! "eservations can be either /uaranteed or ,on!
(uaranteed.
! "eservations are usually on a /uaranteed
basis.
• Below is a detailed procedure of how (roup reservation% in a typical hotel% is conducted:
.. & (roup representative% a member of the travel a(ency or the tour operator% not
individuals% shall communicate (roup reservationsC request to the hotelCs mar'etin(
department
5. 7pon availability% the hotelCs reservation department shall bloc' the requested number
of rooms for this very (roup
;. The *otel shall (ive a deadline for the (roup% in order to receive their final list. That
deadline is called Cuto!! "ate
=. &fter receivin( the final list% the reservation department shall chan(e the desired
number of roomsC status from blo#$ed to boo$ed 6or reserved) rooms% and release the
remainin( rooms 6if any left) as va#ant
D. 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 operatin(.
Illustration % Allotment Contract signed between Karaartal !otel and "#K $ravel
Clause .:
• *otel Eara'artal a(rees to allot BFE Travel:
.G #in(le% 5D Double B D Triple rooms
Aor the period runnin( from G.).G)GH 6Monday) till 5G).5)GH 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 <ist for each e9pected (roup shall be sent by fa9 to Eara'artal *otel latest
one wee' before the e9pected arrival of that very (roup. Aailin( to do so or sendin(
the Ainal <ist later would (ive the ri(ht to the hotel to cancel all the (roup without
previous notice.
• 3nce the Ainal <ist is recieived% Eara'artal *otel will reserve for the number of rooms
needed on a (uaranteed basis. f any room turns out to be on a no!show basis% on the
actual day of arrival% BFE Travel is responsible for the eventual payment for the whole
rooms sent in the Ainal <ist I /uarantee.
:hat to do J
• 3nce allotment contract is si(ned% Eara'artal #ales ) Mar'etin( Department 6Division)
should:
.. Dispach allotment periods into as many Thursdays B Aridays as the period contains
5. Aor each Thursday or Ariday e9pected arrivals% bloc' the initial allotment for BFE
Travel 6for ; ni(hts)
;. 7pon reciept of Ainal <ist 6by the cut!off date)% de!bloc' the bloc'. "eserve the
number of rooms displayed in the Ainal <ist on a (uaranteed basis 6for ; ni(hts). &ll
left over rooms 6from the debloc'in( process) shall be released for sale 6i.e. #tatus
become &vailable for #ale rooms)
@9ample 6Ariday .K).G)5GGH L @9pected &rrival):
• Cut!off date I &ccordin( to allotment contract shall be one wee' before e9pected
arrival of (roup I n this case: Ariday .5).G)GH 6until be((inin( of chec'!in time).
• #uppose on Ariday .5).G)GH% BFE travel sent Eara'artal *otel a final list
encompassin( the need for M #in(le% 55 Double B 5 Triple rooms. This means:
! :ash 3ut "ooms 6<eft!over rooms) N nitial &llotment L ,umber of rooms needed
6accordin( to final list) N 6.G O 5D O D) L 6M O 55 O 5) N =G L ;5 N & rooms.
! :ash 3ut Aactor N 6:ash 3ut "ooms ) nitial &llotment) P .GG N 6M ) =G) P .GG N
'()(( *)
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% and)or rates% to the potential (uest. f% however% the potential (uest insists on his)her
previous request% the hotel should su((est an alternative hotel. ThatCs 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
<etCs consider the Aollowin( Problem:
Aatma *otel consists of .GG "ooms. Mr. Fohn /reen has been newly hired for the
position of a "eservation &ssistant mana(er. 3ne of the responsibilities of Fohn is to
calculate how many rooms above KM 6i.e. the Ma9imum ,umber of "ooms in the *otel)
does mana(ement need to overboo' for the ni(ht of 3ctober 5K
th
% 5GG5. Mr. /reen was
(iven the followin( data% at hand% both updated and concernin( the ni(ht of 3ctober 5K
th
%
5GG5:
♠ ,umber of rooms reserved: DG "ooms
♠ ,umber of rooms occupied by stayovers: =D "ooms
♠ Aorecasted no!shows percenta(e: .GQ
♠ Aorecasted understays percenta(e: GDQ
♠ Aorecasted overstays percenta(e: .GQ
♠ Aorecasted cancellation percenta(e: GHQ
♠ ,umber of out of order rooms: G5 "ooms
.. Potential #olution:
♠ Total number of rooms e9pected to be occupied for the ni(ht of 3ctober 5K
th
% 5GG5 N
DG reserved rooms O =D stayover rooms N +, Rooms
♠ &d-ustment due to no!shows Q N !.GQPDG N , Rooms
♠ &d-ustment due to understays Q N !DQP=D N ')', Rooms
♠ &d-ustment due to overstays Q N .GQP=D N -.), Rooms
♠ &d-ustment due to cancellation Q N !HQPDG N /), Rooms
♠ Total ad-ustment N !D!5.5DO=.D!;.D N 0)', Rooms
♠ Total number of rooms e9pected to be occupied for the ni(ht of 3ctober 5K
th
% 5GG5
6i.e. after ad-ustment) N KD ! 8.5D N &&)1, Rooms
♠ Total number of rooms available for sale for the ni(ht of 3ctober 5K
th
%5GG5 N .GG!5 N
+& Rooms
♠ &dditional number of rooms to be reserved for the ni(ht of 3ctober% 5K
th
% 5GG5 N KM!
MM.HD N +)', Rooms
♠ Total number of rooms e9pected to be reserved and occupied for the ni(ht of 3ctober
5K
th
% 5GG5 N KDOK.5D N 2(.)', Rooms
♠ @9pected occupancy rate with ad-ustments N .G=.5D)KM P .GG N 2(0)/&*
♠ 3verboo'in( factor N .G8.;MQ ! .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 arrivalT
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% and)or 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 dayCs respective room cell as 3 6i.e. #tayover).
<astly% the reservation cler' is encoura(ed to use colors while updatin( information or the
cells on the control boo'.
5. :all charts:
• These are charts stapled on the wall depictin( days of the month versus hotel rooms.
Moreover% upon need and convenience% these charts mi(ht be customi$ed to trac'
appropriate room ,umbers% rates% and codes% hence% is advanta(eous to control boo's.
Moreover% in this very system% different colors are used to differentiate between different
reservation transactions% types of (uest reservin(+<astly% wall charts eliminates the
erasures and rewritin( associated with control boo'% hence lees errors mi(ht occur.
;. Computeri$ed systems:
• Computeri$ed systems are by far the best systems that trac' room availability. n fact%
these very systems control room availability data and automatically (enerate many
reservation!related reports in an accurate manner. Moreover% computeri$ed systems can
itemi$e room availability for future periods by open dates% closed dates% versus special
event dates. <astly% this very system can forecast room availability for any reservation
hori$on needed in the future.
• n the case of non!availability of room type% the system can further su((est alternative
room types% rates% or even other nearby hotels.
4! "eservation "ecord:
• @ach reservation department shall prepare a reservation record% which depicts the
various personal and financial data of (uests% for each reservation transaction. The aim is
to identify (uests and their occupancy needs before (uest0s arrival. Moreover% the hotel
can personali$e or customi$e (uest services and better schedule staff accordin(ly
• n order to create a reservation record% the followin( items are needed:
a) /uest name 6and (roup name% if applicable)
b) /uest0s home or billin( address
c) /uest0s telephone number% includin( area code
d) ,ame% address% and telephone number of (uest0s company% if appropriate
e) ,ame of and pertinent information about the person ma'in( the reservation% if not
the (uest
f) ,umber of people in the (roup% and perhaps a(es of any children
() &rrival date and time
h) ,umber of ni(hts required or e9pected departure date% dependin( on how the system
is pro(rammed
i) "eservation type 1/uaranteed versus ,on!(uaranteed2
-) #pecial requirements 1i.e. infant% disabled (uest% or no!smo'in( accommodation2
') &dditional information% if needed 1i.e. late arrival% method of transportation% fli(ht
number% room preferences+2
• &t 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) <en(th of stay
e) ,umber of persons in a (roup% if any
f) "eservation type 1(uaranteed or not2
() "eservation confirmation number
h) #pecial requests% if any
.. Confirmation numbers:
• *otels shall communicate meanin(ful confirmation numbers to their potential (uests.
These numbers shall have statistical meanin(s% which mi(ht help the hotel in maintainin(
an efficient historical database. *ere is an e9ample:
;5 G5 / FC 8;
a) ;5: /uest0s scheduled arrival date on Fulian dates calendar.
b) G5: /roup reservation. n this very system% G. mi(ht mean Arequent ndependent
Traveler.
c) /: means that the reservation is (uaranteed. f , is written% it means non!(uaranteed.
d) FC: are the initials of the reservation a(ent who processed the reservation 6e9: Famel
Chafra)
e) 8;: Consecutive numberin( of all reservation confirmation numbers issued in the
current year.
U. "eservation "eports:
•n the reservation department% the widely used mana(ement reservation reports include:
a) "eservation transaction report
b) Commission a(ent report
c) Turnaway report 6sometimes called the refusal report)
d) "evenue forecast report
U. @9pected &rrival% #tayover% and Departure <ists:
• 3n a daily basis% the reservation department shall prepare the e9pected arrival%
stayover% and departures lists and communicate them to the front office department.
.. &rrival list: <ist of the names% and surnames alon( with respective room number of
the (uests who are e9pected to arrive the ne9t day.
5. #tayover list: <ist of the names% and surnames alon( with respective room number of
the (uests who are e9pected to continue occupy their rooms the ne9t day.
Departure list: <ist of the names% and surnames alon( with respective room number of the
(uests who are e9pected to depart the ne9t day.