Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
RESERVATION
Compiled BySUNIL KUMAR
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
RESERVATION MODES LETTERS FAX E-MIL PHONE TELEGRAM BY PERSONALLY
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Overview Intermediary: An entity authorized by
a guest to make a hotel reservation on the guest’s behalf.
Travel Agent: A hospitality professional that assists clients in planning travel.
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Overview Travel Wholesaler: An entity that
purchases blocks of hotel rooms and, in turn, sells them to travel agents.
Step 1: A hotel sells rooms to a travel wholesaler.
Step 2: The travel wholesaler sells rooms to a travel agent.
Step 3: The travel agent sells rooms to an individual guest (or group).
Step 4: The guest or group stays at the hotel.
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Overview Fiduciary: A relationship based upon
trust and the responsibility to act in the best interest of another when performing tasks.
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Walk-in Telephone Fax E-mail/traditional mail Hotel sales personnel GDS Chain or brand central reservation
system Internet
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Net ADR Yield: The rate (ADR) actually
received by a hotel after subtracting the cost of fees and assessments associated with a room sale.
Room Rate - Reservation - Generation Fees
Room Rate Paid
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Walk-in
Specific steps to help maximize walk-in rate acceptance:
An immediate welcome and friendly “acceptance”
Attractive and clean lobby area Special discounts for “last minute travelers” An upgraded room assignment from a standard
to a higher-level room type Use of a logical fade rate
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel ManagementTelephone
Important areas for potential improvement:
Telephone etiquette Qualifying the guest Describing the property Presenting the rate Overcoming price resistance Up-selling Closing the sale (making the reservation) Re-capping the sale
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Fax
To maximize effectiveness: Provide guests with a designated toll-free fax
number Train reservation staff to respond to a
reservation request immediately upon its receipt
Consider purchasing software that allows the use of the hotel’s e-mail system to reply to reservation requests
Keep adequate supplies on-hand Use professional cover and content sheets
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management E-mail/traditional mail
To maximize effectiveness: Reply to all mail inquires within 24 hours For e-mail – use the hotel’s name in the
“response” message title line For traditional mail – use professionally
printed stationary and prohibit use of photocopied “fill-in-the-blank” letter replies
Use automated spell-check software “Sign” all mail clearly
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Group sales department:
Attrition: The difference between the original room request and the actual purchase of a group.
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Global Distribution System (GDS)
To maximize effectiveness: Monitor the number of reservations
received from each GDS Establish a relationship with 1+ contacts
from each GDS Establish a relationship with 1+ travel
agents Consider travel agents as a unique and
important “market” Consider joining and becoming active in the
American Society of Travel Agents
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Central Reservation System (CRS)
typically consists of: Toll-free telephone call center Chain operated website E-mail/traditional mail reservations
division Group sales division
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Central Reservation System (CRS)
To maximize effectiveness: Ensure that all hotel-related information
supplied to the brand’s call center is accurate and current
Conduct periodic shopper calls to the CRS Consider an annual visit to the brand’s call
center Ensure that all information listed on the
website is accurate and up-to-date Supply attractive photos and creative site
copy Follow up promptly on any group business
leads provided by the CRS
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Internet
E-wholesaler: A room reseller that obtains reduced (wholesale) room prices and inventory commitments directly from a hotel or through an agreement with the hotel’s corporate brand managers. It then publishes “retail rates” on its websites, usually at a markup of 20% to 40%.
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Internet
Principles to consider: Ensure accuracy Update regularly Monitor placement Manage search engines Maintain rate integrity Monitor results
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Internet property websites:
Factors to consider: Written content Visual and audio content Reservations device Appropriate links
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Internet chain websites:
Lowest Rate Guarantee: A program that assures travelers the lowest available rate for a specific room type on a specific date will be found on the franchisor’s website.
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Internet third-party websites:
Merchant Model: An Internet sales method in which hotels sell or commit rooms to Internet site operators. These sites, in turn, allow consumers to enter requested location and arrival dates. The consumers are then presented with a choice of specific hotels and associated rates available for immediate purchase on the website.
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Internet
To maximize effectiveness:– Seek rate parity across all distribution channels– Show the hotel on as many sites as is
realistically profitable– Keep all information current– Promote the use of lower-cost (higher net ADR
yield) sites over higher-cost sites– Use the information found on competitors’
websites to compare and evaluate the hotel’s own rate-management decisions
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Woods et al., Professional Front Office Management
© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Distribution Channel Management Challenges Inventory ownership Website access control Guest- and sales-related issues:
Rate consciousness Group block management Occupancy tax liability
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