1. Revenue Management and Reservation Systems

2. Burj al Arab

3. Objectives
Outline the different types of reservations and describe reservation inquiries and their distribution channels.
Gain an understanding revenue management and how forecasting is critical to the success of an operation.

4. What is a reservation?
Advance booking to reserve space for a designated time.
Restaurants
Hotels
Airline
Cruise Ships

5. Reservation Sales Planning Process
Committing rooms for the future
Months or Years in Advance
Foundation of Revenue Management
Guest Mix
Group Guest
Transient Guest
Group Allocation
Rooms allocated for group use

6. Group Reservations Group Block Booked Cut-Off Date
Rooms set aside for a group
Booked
Blocked rooms that are reserved
Cut-Off Date
Unreserved rooms released at predetermined date

7. Hotel Statistics
Occupancy %
Average Daily Rate

8. Forecasting What is Forecasting?
An approach to determine what the future holds. 8

9. Forecasting Room Availability
Why Forecast?
Foundation for making Pricing Decisions
Departmental Scheduling 9

10. Forecasting Data Forecasting relies on historical data
Takes the guesswork out of forecasting 10

11. Revenue Management
Techniques used to determine whether prices should be raised or lowered.
Determines whether a reservation should be accepted or rejected.
Supply and Demand
Raise rates when demand exceeds supply
Lower rates when supply exceeds demand

12. Elements of Revenue Management
Group Room Sales
Transient Room Sales
Food & Beverage Activity
Local and Area Wide conventions
Special Events

13. High Demand Tactics Close or restrict discounts
Apply minimum length of stay restrictions carefully
Reduce group room allocations
Raise rates to be consistent with competitors

14. Low Demand Tactics Sell value and benefits Offer packages
Keep discount categories open
Encourage upgrades
Offer stay-sensitive price incentives
Remove stay restrictions
Involve your staff
Lower rates

15. Types Of Reservation Systems
Property-Level Reservation Systems
Central Reservations Systems (CRS)
Global Distribution Systems (GDS)
Internet Distribution Systems (IDS)

16. Property Level Reservation Systems
Reservations module of the Property Management System (PMS).
Designed for individual properties

17. Central Reservations Systems (CRS)
A reservations system in which each participating property is represented in a computer system database.
Two types of CRS
Affiliate Reservation System
Chain Properties
Non-Affiliate Reservation System
Independent Properties

18. Sheraton Airport
Starwood CRS
Westin Providence
Westin Waltham
Sheraton Boston

19. CRS Functions
Services are provided by the Central Reservations Office (CRO).
Rates are provided by the participating properties.
Responsibility and control of the CRS lies with managers at the property level

20. Global Distribution Systems (GDS)
Developed by the Airlines
Links together:
Hotel CRS
Airline Reservation Systems
Car Rental Reservation Systems
Travel Agency Companies

21. GDS Systems
Sabre
Galileo
United
Amadeus
Air France
WorldSpan

22. Global Distribution System
Starwood CRS
Global Distribution System
GDS
Marriott
CRS
Choice Hotels
CRS

23. Internet Distribution Systems
Electronic Reservations
Consumer Orientated
Provides a greater distribution of inventory.
Examples:
Travelocity.com
Hotels.com
Priceline.com

24. Burj al Arab