2. Reservation Week 4 Subject : V0206 – Administrasi &
Operasional Kantor Depan
Year : 2009
Reservation Week 4

3. Subjects
Importance of guest reservations to travelers and accommodation establishments
Reservation system
Sources of reservations
Forecasting reservations
Overbooking (occupancy management)
Processing guest reservations
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4. Objectives On completion of this lesson, the students will be able to:
demonstrate the process of guest room reservation, do the reservation forecasting and handle overbooking
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5. Importance of a Reservation System
Allows hotels to ensure a steady flow of business
Ensure that travelers will have accommodations at their destination
Easy access to a hotel’s data bank of room, helps in fulfilling the customers’ need, reaching a targeted daily occupancy rate, ADR, yield % and RevPAR
As a mean to produce positive cash flow and a favourable income statement
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6. The Use of Reservation System in Hotels
Choice Hotels International
500 franchisees in 42 countries
Brands: Comfort, Quality, Clarion, Sleep, Econo Lodge, Mainstay Suites & Rodeway Inn
Offering guest room services through handheld computers (Palm VII or Palm XIIx)
Received 32,000 phone calls at one of its two reservation call- centers per day
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7. The Use of Reservation System in Hotels
Brand names Choice Hotels International
Comfort Inn
Comfort Suites
Quality
Clarion
Sleep Inn
Econo Lodge
Main Stay Suites
Rodeway Inn
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8. The Use of Reservation System in Hotels
Six Continents Hotels
3500 hotels and resorts in nearly 100 countries
535,000 guest rooms
Brands: Inter-Continental, Crowne Plaza, Holiday Inn, Express by Holiday Inn, Staybridge Suites
Host more than 150 million guests each year and process more than 100 millions reservation per year
Reservation system: Holidex
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9. The Use of Reservation System in Hotels
Intercontinential Brands
InterContinental Hotels & Resorts
Crowne Plaza Hotels & Resorts
Hotel Indigo
Holiday Inn Hotels and Resorts
Holiday Inn Express
Staybridge Suites
Candlewood Suites
Park Inn Hotels
Park Plaza Hotels & Resorts
Regent International Hotels
Experiences over 7 million visits to its web site each month.
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10. The Use of Reservation System in Hotels
Carlson Hospitality Worldwide
Central reservation system: Curtis-C (“Courtesy”)
730 hotel and 6 cruise ships
8,900 reservations per day processed; over 3 million per year (2000)
Brand: Regent International, Radisson, Country Inns and Suites, Park Plaza and Park Inn, Radisson Seven Seas Countries
Curtis-C interfaces with the company’s hotel via HARMONY (company’s PMS) and CustomerKARE (Customers knowledge and relationship enabling)
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11. The Use of Reservation System in Hotels
Carlson Brands
Regent International Hotels
Radisson Hotels & Resorts
Park Plaza Hotels & Resorts
Country Inns & Suites by Carlson
Park Inn Hotels
Radisson Seven Seas Cruises
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12. The Use of Reservation System in Hotels
Carlson - Connected to 455,000 travel agents
Carlson - Data Interface
HARMONY – the PMS of the hotels
Customer KARE system (Customer Knowledge and Relationship Enabling System)
Harmony Database Manager – room inventory and room reservations
Guest Communication Manager – manages guest satisfaction information
KnowledgeNet – provides access to company policies, forms, reports, hotel procedures and newsletters
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13. Global Distribution System
Global Distribution Systems (GDS) are distributors of hotel rooms to corporations such as travel agents that buy rooms in large volume.
Amadeus
Galileo
SABRE
Worldspan
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14. Role of the Internet in Securing Reservations
Background on Room Rates offered via the Internet
Dot.com mania hits consumers ->wholesalers decided to advertise free offers to entice consumers to use the Internet
Leaves lasting impression on purchasing manner
Wholesaler offers to take empty hotel rooms into inventory and offer on Internet -> hoteliers grateful to sell rooms at low sale prices
Internet sales light; everything seems ok
Other Internet sites offered similar models with their discounts guaranteed lowest price -> transparency of rates (guest can check room rates before check-in to see if their rate has been offered lower on the Internet)
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15. Role of the Internet in Securing Reservations
Effect of Internet on Pricing Rooms – Muqbil 2003
35% of Americans used Internet to research travel
Real-time rate information availability causes re-book booking, if lower rates are posted
Minus $1.27 billion to lower ADR because of increased transparency and price competition and increased revenues due to increased bookings stimulated by the lower rate
Internet average rate is 17% less than non Internet rate
75 % were discount seekers and 25% were convenience bookers.
Price transparency during low periods is a negative for hotels to increase rate; opposite during peak seasons.
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16. Role of the Internet in Securing Reservations
Consumers Response to Use of the Internet –
Third-Party Websites (Expedia, Travelocity)
GDS and Pegasus Hotel e-Commerce room night sales = 57,131,438 (46,510,434 sold by travel agents and 10,621,004 by consumer off the Internet) second quarter 2004
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17. Types of reservation systems
Franchisee – hotel owner who leases a brand name and the benefits by:
Management expertise
Financial backing
National advertising
Group purchasing
Reservation service
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18. Types of Reservation Systems
Referral Member of a Reservation Referral System - a worldwide organization that processes requests for room reservations at a particular member-hotel, is a hotel developer/owner who has access to the national reservation system
15%-30% of daily room rentals vs. independent status
Hilton franchise fees example (2005):
Initial fee of $85,000 for first 275 guest rooms or suites
plus $300 for each additional room or suite (min. fee to $75,000)
5% monthly gross rooms revenue for franchise fee
4% of monthly gross rooms revenue = monthly program fee
Plus other fees for participation in Frequent Traveler/Guest Reward program, training, and computer system
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19. Sources of Reservations
Purpose: to understand the need of each segment and provide reservation systems to meet their needs
Corporate clients
A hotel guest who employed by a business
Corporate guests will need reservations to ensure a productive business visit
Reservation may be initiated by a secretary/ administrative assistant
Methods to ensure reservation: toll-free phone number, travel agent, web-site
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20. Sources of Reservations
Corporate Clients
Secretaries Club
Toll-free
Reservation Referral Chain
Travel Agent
Web sites (Expedia, Travelocity, Hotels.com)
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21. Sources of Reservations
Social/Military/Educational/Religious/Fraternal (SMERF)
Provides opportunity to fill vacancies in low times
These markets are price sensitive and time-relaxed and will travel accordingly.
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22. Sources of Reservations
Meetings/Incentive/Conference/Event (MICE)
Need to locate large group of conference attendees
Details: airfares, hotel rooms, room rates, food and beverage, cultural activities, etc.
Cooperation of local tourism and travel association necessary
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23. Sources of Reservations
Group travelers
Refer to various travel directories used by hotels and potential guests as listed in the text
Group planner
Bus association network
Virginia Bus Association
Pennsylvania Bus Association
National Bus Association
Travel directories i.e. Hotel and Travel Index
Hotel Representative – member of hotel staff who seeks group activity planners
Hotel Broker – person who sells hotel room prize packages to corporations, sweepstakes promoters, game shows, and other sponsors (with a discount)
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24. Sources of Reservations
Leisure Traveler – people who travel alone or with others to visit points of interest or relatives, or for other personal reasons
Travel agencies
Toll-free numbers
Reservation/referral systems
Internet
Current Guests - an overlooked marketing opportunity
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25. Forecasting Reservations
Purpose: to preview the income statement
It enables hotel managers to determine projected income and related expenses for a certain time period
FO Manager has estimated total room occupancy to be 100 room with an ARR of $70 for 7 days period can project revenue of $ 52,500 (100 x $75 x 7) for room sales
Room forecast assist in planning delivery of service
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26. Forecasting Reservations
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27. Confirmed reservations Guaranteed reservations Stayovers Understay
Occupancy Management
Overbooking
Confirmed reservations
Guaranteed reservations
Stayovers
Understay
Walk-in guests
Occupancy management formula
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28. Occupancy Management Overbooking
Accepting reservations for more rooms than are available
Confirmed reservations
Prospective guests who have a reservation for accommodations that is honored until specified time
Guaranteed reservations
Prospective guests who have made a contract with the hotel for a guest room by providing credit card number to hold a room reservation
Stayovers
Registered guests who wish to extend their stay beyond the time for which they made reservations
Understay
Guests who arrive on time but decide to leave before their predicted date of departure
Walk-in guests
Guests who arrive to a hotel without a reservation
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29. Overbooking (Occupancy Management)
Overbooking – accepting reservations for more rooms that are available by forecasting the number of no-show reservations, stayovers, understays, and walk-ins, with the goal of attaining 100% occupancy
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30. Overbooking (Occupancy Management)
In many instances, overbooking to overcome the problem of no-shows and late cancellations may produce advantages by way of operating efficiencies that far outweigh the occasional inconveniences to guests and travelers.”
Hoteliers and front office managers who practice overbooking do so to meet an organization’s financial objectives. They do not intentionally overbook to cause problems for the traveler.”
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31. Overbooking (Occupancy Management)
Components of overbooking
Confirmed reservations – 4 pm or 6 pm check in
Guaranteed reservations – credit card required
Stayovers
Understays
Walk-in guests
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32. Overbooking (Occupancy Management)
Revenue Management
“A management technique of planning to achieve maximum room rates and most profitable guests”
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33. Occupancy Management Formula
Total number of rooms available
(-) confirmed reservations x no-show factor
(-) guaranteed reservations x no-show factor
(-) predicted stayovers
(+) predicted understays
(-) predicted walk-ins
________________________________________
= number of additional room reservations needed to achieve 100% occupancy
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34. Occupancy Management Formula
200-room lodging property has 75 confirmed reservations with a 5% no-show factor
There are 100 guaranteed reservations with a historical no-show rate of 2%
Predicted stayovers: 4 rooms
Predicted understays: 5 rooms
Predicted walk-ins: 8
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35. Occupancy Management Formula
200 rooms available
(-) 71 confirmed reservations (75 – [75 x 0.05])
(-) 98 guaranteed reservations (100 – [100 x 0.02])
(-) 4 stayovers
(+) 5 understays
(-) 8 walk-ins
= 24 number of additional room reservations needed to achieve 100% occupancy
The formula indicated to FOM that 24 additional rooms must be rented to achieve 100% occupancy  by predicting this number in advance, FOM has reasonable flexibility in accepting 24 additional reservations for the day
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36. Processing Guest Reservations
Systemwide Reservation Systems
Operational procedure:
Greeted by an operator
Guest places of request for dates and accommodations
Operator checks availability of request with room data bank
Operator suggests alternatives
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37. Processing Guest Reservations
Outsourcing reservations – providers of central reservation systems that are not owned by the hotel operation
Internet
Global Distribution System (GDS) – Amadeus, Galileo, SARE, and World Span
Web-enabled application-service provider (ASP)
Components of SynXis Agent (Allows hotel operators to consolidate and control hotel inventory from all booking sources. )
Central reservation system
GDS connectivity
Alternate-distribution system connectivity
Book-A-Rez
Pegasus Solutions
Real-time availability and pricing for property and room types
Interfaces with key industry PMS, revenue systems, and loyalty program systems to approximately 7500 hotels
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38. Processing Guest Reservation
Confirmed reservation – a reservation that is held until 4pm or 6pm; discuss implications on profit and loss statement
Guaranteed reservation – a reservation that is held with a credit card until the guest arrives; discuss implications on profit and loss statement
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39. Processing Guest Reservations
Reservation codes for confirmed or guaranteed reservations Components
I.D. number of property
Initials of reservationist
Date of arrival
Date of departure
Type of credit card
Room rate
Type of room
Sequential reservation number
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40. Processing Guest Reservations
Cancellation code
Components
I.D. number of property
Initials of person who processed the reservation
Date of arrival date of departure
Sequential number of cancellation
Blocking procedure – removing rooms from the available room data bank for the dates involved
blocking on the horizon – in the distant future
daily blocking assigning guests to their particular rooms on a specific day of arrival
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41. Completing Reservations through a PMS
Guest data
Data about the guest who makes a reservation
(name, address, ph. number, date of arrival & departure, flight no., #guests, rate, etc)
Room inventory
To indicate the availability of a guest room to be rented on a particular night, that is:
OPEN (room is available for renting)
CONFIRMED (room has been reserved until 4 or 6 pm)
GUARANTEED (room has been reserved until guest arrives)
REPAIR (room is not available for guest rental)
Deposits
Would be assessed when the clerk needed to determine whether the guest has a deposit on file
Special requests
To determine if rooms are available to meet the specific needs of a guest
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42. Completing Reservations through a PMS
Blocking
Provides reports to the FO Manager on which rooms are to be reserved for incoming guests on a particular day
Arrivals
Lists the guests that are expected to arrive on a specific date
Departure
Lists the guests that are expected to check out on a particular date
VIP
Provides information on guests with VIP status
Projected occupancy
Provides the various departments in the hotel with information concerning the number of guests who will be in the hotel on a certain day
Guest messages
Allows the front desk clerk to relay information to the guests on registration
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43. Processing Guest Reservations
Database Interfaces
Transferring of computer information (captured at the time a reservation is made) between computers
Examples
Marketing and sales office
Housekeeping staff
Maintenance crews
Food and beverage
Controller’s office
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44. Processing Guest Reservations
Database interfaces
True Integration
Integration of central reservation system and property management system sharing database.
Benefits:
Consumer can access real-time reservations
Less investment for data storage
Hotels can access data via Internet
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45. Group Discussion Week 4
Discuss how reservations are a necessity for travelers
Discuss how reservations are a necessary marketing tool for hotels
Discuss Importance of a reservation system
Discuss the role of reservations in producing a profit in a hotel
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46. Case Study Week 4: Room Forecast
Use the following data to prepare a rooms
forecast for the first week of May for the
Grand Hotel
No. of rooms available = 600
No. of rooms occupied on April 31 = 300
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47. Case Study Week 4: Room Forecast
5/1
5/2
5/3
5/4
5/5
5/6
5/7
Departures
200 50
300
Arrivals
100 70
175
180
- Confirmed
70%
60%
50%
20%
30%
92%
10%
- Guaranteed
40%
80% 8%
90%
Walk-ins 40 10 20 25
No-shows
(% of expected arrival)
0.02
0.01
0.0143
0.04
0.0223
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48. THANK YOU AND
HAVE A GOOD DAY
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