Receive and process reservations

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Chapter 2

• Receive and process reservations

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Learning outcomes

• Understand the roles of the reservations
  department.
• Receive reservation requests
• Update reservations.
• Advise other departments and colleagues about
  reservations.

3
Roles and responsibilities of the reservations
department

• Manage and maintain individual and group
  reservations.
• Manage room yield.
• Prepare sales forecasts.
• Sell rooms.

4
Roles and responsibilities of the reservations
department

• Control commissions.
• Plan promotional activities.
• Generate and distribute room related reports.

5
Managing reservations

• Receive enquiries.
• Promote the venues services and facilities.
• Record reservation details.
• Maintain reservations.

6
Room yield management

• A technique used in an attempt to sell the
  maximum number of rooms possible on a given day
  at the highest possible rate.

7
Sales forecasts

• Estimates of the number of rooms the reservations
  department expects to sell on specific dates.
  Forecasts are based on
• Past occupancy levels
• Seasonal influences
• Upcoming special events

8
Sales forecasts

• Number of bookings so far for that date
• No-show estimates
• Cancellation estimates
• Economic climate.

9
Sales targets

• Targets represent the actual number of rooms the
  venue wants to sell (as opposed to what the venue
  expects to sell).

10
Control commissions

• A commission is an amount of money (often 10)
  paid (or received) for selling a product.
• Commissions are most commonly paid to travel
  agents.
• Travel agents sell accommodation (the product) to
  their clients and therefore earn a commission on
  the sale.

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Control Commissions

• The reservations department is responsible for
  managing the commissions earned by the travel
  agents.
• Guests who book accommodation through their
  travel agent do not pay extra for the room.

12
Control commissions

• Travel agents and tour operators can negotiate
  better commission rates (or better room rates)
  for booking large numbers of rooms.
• Commissions are not paid when the booking is for
  an allotment room.

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What is an allotment?

• An allotment is a predetermined number of booked
  rooms allocated on specified dates to an airline
  or tour operator.
• These rooms (allotment) are usually a component
  of a package holiday.

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Allotments

• The tour company that holds the allotment will
  have negotiated a good room rate with the venue
  (usually well below the rack rate), due to the
  quantity of rooms booked and because the venue is
  guaranteed to sell most (or all) of the rooms in
  the allotment.
• Travel agents that sell the package holiday (on
  behalf of the tour operator) will earn commission
  from the tour operator.

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Processing commissions

• When travel agent clients pay the travel agent
  for accommodation, the travel agent is
  responsible for forwarding payment to the venue,
  less their commission.
• When guests (who booked accommodation with their
  travel agent) pay for their accommodation
  directly to the venue, the venue is responsible
  for forwarding the commission earned to the
  travel agent.

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What are promotional activities?

• Marketing events that promote products and
  services offered by the venue to targeted market
  segments.
• May include
• Packages
• Giveaways
• Reduced rates.

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Promotional activities

• Undertaken in conjunction with the sales and
  marketing department. Promotional activities are
  influenced by
• Budget
• Objectives
• Sales forecasts
• Resources required.

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Selling rooms

• This is the primary role of the reservations
  department to sell rooms.
• The sale of rooms is facilitated by the use of
  sales techniques and a knowledgeable
  reservationist!

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Selling rooms

• Sales techniques commonly used
• Suggestive selling
• Upselling
• Downselling
• Extras and add-ons.

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Selling rooms
21
Target markets

• Selling is easier when we know and understand our
  target markets.
• Each target market (and segment) will respond to
  different sales techniques

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Target markets

• Its important to find out what it is the guest
  expects (from the venue), during the sales
  process.
• What a guest expects is usually determined by
  their purpose of visit (e.g.. Romantic weekend,
  business trip, convenient location)
• Refer also to Table 2.3, Page 29.

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The reservation process

• Receiving a reservation request.
• Checking availability.
• Offering alternatives.
• Responding to enquiries about costs and product
  features.

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The reservation process

• Recording the reservation details.
• Confirming the reservation details.
• Preparing and issuing documents.

25
How reservations are received

• Telephone.
• In person at the front desk.
• Mail, Email, Fax.
• Same chain referrals.
• CRS.

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How reservations are received

• Other venue referrals.
• Personal referrals.
• Repeat business.
• Travel agents/airlines/tour operators.

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Checking availability

• We need to find out
• Required dates/length of stay.
• Number of guests.
• Room type(s) required.
• Number of rooms.

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Checking availability

• Automated system
• Access the reservations section in the computer.
• Availability may be displayed in a room rack.
• Manual/semi automated system
• Check the room rack or bookings diary, or
  conventional chart.

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What is a room rack?

• A list of (or physical rack displaying) all
  rooms, their status (occupied, clean), category,
  and quantity.

30
Offering alternatives

• If a requested room type or date is not
  available, then it is standard procedure to offer
  an alternative.
• Depending on circumstances, alternatives may
  include
• Different date
• Different room type
• Waitlist
• Different venue.

31
What is a waitlist?

• A list of bookings that cannot be accommodated
  unless a confirmed booking subsequently cancels.
• Waitlists are typically offered during peak
  season.
• They are offered to help maximise occupancy (in
  the event of late cancellation or no-show).

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What is a no show?

• A confirmed reservation that does not arrive or
  cancel.

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Offering alternatives

• Even after alternatives have been offered, a
  booking still may not be accommodated or accepted.

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Why a booking may not be made

• Customer
• Price too high.
• Desired features not available.
• Minimum stay requirements not suitable.
• Doesnt want to be added to waitlist.

• Venue
• No rooms at all available.
• No waitlist or waitlist full.
• Allotment is full.
• Already overbooked for requested date.

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Why venues overbook

• A standard industry practice of accepting more
  reservations than there are rooms available.
• Overbooking compensates for
• No shows
• Cancellations
• Under-stays (person who departs earlier than
  booked dates).

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Responding to enquiries

• Because many people who make reservations
  enquiries arent familiar with the venue, they
  often want information that helps them with their
  buying decision.

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Responding to enquiries

• Its important to be able to pass on accurate
  information about
• Venue products and services
• Room rates
• Package deals
• Room amenities
• Local area information.

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Room rates

• Room rate refers to the rate charged by a venue
  for nights accommodation. A rooms rate may be
  influenced by
• Star rating and location
• Room types, room availability, number of rooms
  booked and length of stay

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Room rates

• Market segment
• Packages offered
• Meal plans
• Agreements with airlines and tour operators.

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Why rates for the same room type may vary

• Attract different market segments.
• Reward loyal customers.
• Maximise room yield.
• Competition differentiation.
• Seasonal influences.

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What is the rack rate?

• The rack rate is the standard rate (without any
  discounts) charged for a particular room type.
• Also referred to as the published rate.
• Used for determining sales forecasts and budgets.

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How rack rates are determined

• Based on the cost structure of the venue
• Cost to build and maintain venue
• Operating costs
• Staffing requirements
• Services and products offered
• Star rating.

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Recording the details

• Can be recorded manually, using a reservation
  slip, on directly into the computer.

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Recording the details

• Need to record
• Personal details
• Accommodation details (date of arrival/departure,
  room type, number of rooms, rate quoted, etc)
• Company/travel agent details
• Payment method
• Special requests.

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Using industry jargon

• Accuracy is important when recording reservation
  details.
• One way to ensure accuracy is by using standard
  industry jargon
• Jargon is not used when communicating with people
  outside the industry
• Jargon can be used when recording information.

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The phonetic alphabet

• The phonetic alphabet is an internationally
  recognised and extensively used tool that helps
  avoid misunderstandings about names,
  destinations, codes etc.
• Each letter of the (English) alphabet is assigned
  a word that aids understanding which letter (or
  sound) is to be used.

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The phonetic alphabet
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The phonetic alphabet
49
The 24-hour clock

• An important skill!
• The 24 hour clock helps avoid confusion with
  times by distinguishing between morning and
  evening by assigning each hour of the day its
  number (within the 24 hours of the day/night)
  according to when it occurs after midnight.

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The 24-hour clock
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Guest history profile

• This is a detailed record of each guest who has
  stayed at the venue, including information about
• Guests personal details
• Company/travel agent details
• Stay details
• Special requests.
• The guest history profile can be used (if one
  already exists) to create a new reservation.

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Recording reservations

• Either directly into the computerised PMS or
  first manually.
• Accuracy is crucial avoids problems later on.
• Refer to page 48 of your text, Front Office
  Skills for the full procedure.

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54
Confirming reservations

• Once all details of the reservation are recorded,
  confirm all details, specifically as they relate
  to
• Personal details
• Reservation dates
• Room types requested
• Payment method
• Special requests
• Rates quoted.

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Managing group reservations

• More complex and time consuming that individual
  reservations.
• Usually made well in advance of reservation
  dates.
• Groups usually receive discounted rates because
  of the quantity of rooms booked.

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Managing group reservations

• Considerations
• Quantity and quality of rooms (rooming list).
• Meal plans (implications for FB dept).
• Travel arrangements (implications for porters).
• Business services (if part of a conference).
• Luggage (collection, storage).

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What is a rooming list?

• A list of reserved rooms for a group (tour group
  or conference).
• Details
• Guest names and corresponding room number.
• Who is sharing with whom.
• Special needs or requests.
• Payment methods.

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Managing allotments

• Negotiated well in advance of required date(s).
• Room rates substantially lower than rack rate.
• Must ensure an allotment room is blocked when
  allotment rooms are booked.

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Managing allotments

• Unreserved allotment rooms are released back 7
  1 days prior to allotment date.
• Tour operator only pays for booked/consumed
  allotment rooms.
• Additional rooms can be requested/booked
  subject to availability.

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Potential reservation problems

• Problems originating with reservations can lead
  to problems at other stages of the cycle of
  service, such as during registration.

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Potential reservation problems

• Reservation problems arise from
• Inaccurate recording of reservation information
  (or changes to a reservation)
• Poor communication within the venue
• Inaccurate transfer of reservation information to
  the computer
• Use of industry jargon.

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Filing reservations

• If manual records of reservations are kept, then
  these are filed in the pending reservations file
  in date order.
• Groups/conference may have their own file.

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Filing reservations

• In the PMS, once all the data is entered at the
  screen appropriately existed, the computer will
  automatically save the reservation.

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Prepare and issue documents

• What documents need to be prepared and issued
  will depend on the venues procedures.
• Some venues do not send any written confirmation
  or other documentation at all.

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Prepare and issue documents

• Invoices
• Issued when a payment (in full or part) is
  required.
• Receipt
• Issued when a payment (in full or part) is
  required. May be sent with a confirmation letter
  or presented to guest at check in.

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Prepare and issue documents

• Accommodation voucher
• Generally issued for prepaid accommodation
  (usually travel agent clients/tour operators
  and/or conference organisers/group members)
• May be a gift voucher.
• Confirmation letter
• May be venue or travel agent issued. May be by
  traditional mail or email.

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Prepare and issue documents

• Information Packs
• Usually sent on request (with a covering letter).
• May be sent with a confirmation letter, receipt
  or invoice.
• Contains information specific to the venue.

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Prepare and issue documents

• Service vouchers
• Common to many venues, particularly those that
  package their products and services
• Usually issued on arrival (so the guest doesnt
  lose or forget to bring it!)
• Not transferable

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Update the reservation

• Reservations need updating/maintaining for any
  number of reasons
• Record payments received
• Change of details
• Cancellations.

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Process payments

• At the time of reservation creation, while we
  usually record payment details, we dont actually
  process a payment while a caller is still on
  line.

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Process payments

• An important part of the reservation process is,
  however, advising callers about the venues policy
  relating to their preferred method of payment.
  Most venues accept all or some of the following
• Credit cards (Visa, MasterCard)
• Debit cards

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Process payments

• Charge cards (American Express, Diners)
• Cash/cheques (advance deposits)
• Company charge backs
• Vouchers (venue or travel agent issued, gift
  voucher).

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Company charge back

• This payment method is extended to guests whose
  company has an account with the venue.
• The charge back authority will detail
  specifically what the guest can charge to the
  company, while in-house
• All other expenses incurred while in house are
  the guests responsibility.

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Guaranteed booking

• Means the guest has agreed to pay for the room
  whether or not they arrive and the venue agrees
  to keep available the room until the check-out
  time the day following the day of arrival.
• Bookings can be guaranteed
• With a credit/charge card
• With a company charge back
• By sending a deposit

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Non-guaranteed booking

• Means that the guest decides to pay by cash or
  cheque but does not send a deposit or leave
  credit card details.
• A non-guaranteed reservation is held until 6.00pm
  or an otherwise agreed time, on the day of
  arrival.
• After this time, the room can be sold to another
  guest.

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Maintaining other reservation details

• A reservation needs to be updated (maintained) if
  the guest requests a change to any detail
  relating to the reservation.
• The change (if it can be accommodated) is noted
  in the PMS and in the manual file if one is
  maintained.

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Maintaining other reservation details

• Changes may relate to
• Dates
• Rooms (quantity, quality)
• Payment details
• Number of guests
• Names of guests
• Special requests.

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Cancellations

• Occur when the guest advises the venue they no
  longer require the reservation.
• This may be straight forward or may involve a fee
  (especially for resorts, peak periods, same day
  cancellations)
• Ask guests reason for cancellation.

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Communicating reservation information

• Reservation information needs to be communicated
  to other departments in a timely manner.
• We can communicate reservation details
• Computer generated reports
• Traces (computer generated links/flags)
• Verbally (meetings).

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Reservation reports

• Rooms sold as a percentage of rooms available
  (same formula as for determining Occupancy)
• Rooms Sold
• Rooms Available

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Reservations reports

• Average daily rate
• Room revenue
• Number of rooms sold

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Who needs to know about reservations?

• Front office (responsible for checking guests in,
  implications for staffing).
• Concierge (implications for staffing, traffic
  particularly with group arrivals and luggage).
• Housekeeping (implications for staffing. Need to
  ensure sufficient rooms prepared for reservations
  expected).

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Who needs to know about reservations?

• Maintenance (may need to address maintenance
  issues particularly in rooms).
• Food Beverage outlets (implications for
  staffing, purchasing and preparation of special
  requests.