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Reservations. Week (5). Objectives for Reservations. At the completion of this unit, the students will able to: Describe the different types of reservations and identify the information sought during a reservation inquiry and contained in a reservation record.

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Week (5)

Objectives for Reservations

  • At the completion of this unit, the students will able to:

  • Describe the different types of reservations and identify the information sought during a reservation inquiry and contained in a reservation record.

  • 2. Identify major sources of reservations.

Competencies for Reservations


  • 3. Identify the tools managers use to track and control reservations availability.

  • Describe policies and procedures surrounding the confirmation, change, and cancellation of different types of reservations.

  • Explain the function of typical management reports and reservations records that can be generated from reservations data.

What is a reservation
What is a reservation?

  • It is a booking in advance for a space for a specified period of time.

  • E.g. Hotel ballroom, restaurant booking, airline seat, a theatre seat, a hotel guestroom, a doctor’s appointment.


  • From a guest’s point of view, the most important outcome of the reservations process is having a guestroom ready and waiting when the guest arrives.

  • To achieve these outcomes, the hotel must have efficient reservation procedures in place.

  • Here are the reservation process activities:-

Reservation Activities

· Conduct reservation inquiry.

· Determine room and rate availability.

· Create reservation record.

· Confirm reservation record.

· Maintain reservation record.

· Produce reservation reports.

· Research, plan, and monitor reservations.

Types of reservations
Types of Reservations

  • Guaranteed Reservation: Insures that the hotel will hold a room for the guest until a specific time of guest’s scheduled arrival date .

  • The guest must provide us a method of payment.

  • If the guest does not show up or cancel properly,

  • the guest will be charged for one night accommodation.

  • If the hotel then fails to provide the room for a guaranteed reservation, legal penalties can be applied if the guest files a complaint.

  • In order to guarantee a reservation, guests can choose one of the following methods:

Guaranteed Reservations

  • The reservation can be guaranteed by  

  • Prepayment

  • · Credit card

  • · Advance deposit

  • Travel agent voucher/miscellaneous charge

    order (MCO)

  • · Corporate (direct billing account)

Non guaranteed reservation
Non-guaranteed Reservation

  • Non-guaranteed Reservation: Insures that the hotel agrees to hold a room for the guest until a stated reservation cancellation hour (Usually 6 p.m.) on the day of arrival.

  • It is common for hotels planning on full occupancy or nearing full occupancy to accept only guaranteed reservation once a specified number of expected arrivals is achieved.

Reservation inquiry
Reservation Inquiry

  • Guests can communicate their reservation inquiries in person, over the telephone, via mail, through facsimile, telex, e-mail…

  • While getting a reservation inquiry, the reservation staff shall obtain the following guest-related information:

  • Guest’s name, address and telephone number

  • Company or travel agency name

  • Date of arrival and departure

  • Type and number of rooms requested


  • Desired room rate

  • Number of people in the group, if applicable

  • Method of payment and/or guarantee

  • Any other special requests

  •  Most of the above mentioned information is used to create a reservation record.

The seven steps reservation sales process
The seven steps reservation sales process

  • 1. Greet the caller. ( thank you for calling Holiday inn. This is Mary speaking How can I help you today?)

  • 2. Identify caller’s need ( arrival date, departure date, preference ....)

  • 3. Provide an overview of the hotel’s feature ( number of restaurant, swimming pool )

  • 4. Make a room recommendation and room rate.

  • 5. Ask for the sales ( Would you like me to book the reservation for you?


  • 6. Create a reservation record according to the hotel procedures.

  • 7. Thank the caller. Closing a call as warmly as opening a call leaves the caller with a sense of confidence that they have made the correct decision.

  • The reservation function is a sales process, if the reservation staff is unenthusiastic, the caller will not a have a positive impression of the hotel and may decide to go elsewhere.


  • Reservations can be made for individuals, group, tours or conventions.

  • An individual, not part of the a group is referred as a FIT. ( free independent traveller)

  • The customers make reservation by using different sources.

Sources of Reservations

  • Central Reservation System

  • · Global Distribution System

  • · Intersell Agencies (for example flight centre)

  • · Property Direct

  • · Internet

Central reservation system crs
Central Reservation System (CRS)

  • A central (or computerised) reservation system that controls and maintains the reservations for several hotels in one location, and automatically redirects the reservation to the required hotel.

Central reservation systems
Central reservation systems

  • The majority of hotel groups belong to one or more Central Reservation Systems

  •  A central reservation system is composed of a central reservation office, member hotels connected together via communication devices, and potential guests.

  • It exchanges room availability information with members hotel.

  • Central Reservation Office [CRO] offers its services via a 24-hours toll free telephone number(s) [Green Numbers].


  • On return, central reservation offices charges a fee for the utilization of its services which might take the form of a flat fee and a variable fee, or a flat percentage of potential room revenue, actual room revenue, and/or Rooms Division gross profit…

Global Distribution Systems

  • Computerized system by which reservation-related information is stored and retrieved for multiple organizations.

  • Global Distribution Systems [GDS] System including several Central Reservation Offices connected to each other.

  • Selling hotel rooms is accomplished by connecting the hotel reservation system with the GDS system.

  • GDSs have become a powerful force in hotel reservation.

Inter sell agencies
Inter sell Agencies

  • Inters ell Agencies are special types of central reservation offices contracting to handle reservation for more than one Product Line [ex: Handle at the same time Airline Tickets, Car Rental, Hotel Reservation…]  “ OneCall Does it All Approach “!

Property direct reservation system
PropertyDirect Reservation System:

  • Even though many of the five-star hotels rely heavily on central reservation offices and intersell agencies, some potential guests still find it convenient, and personal to call directly the hotel to communicate a reservation inquiry.

Property Direct Reservations

Property direct reservations are made in a several ways

· Telephone

· Mail

· Property-to-property


· E-mail

Group bookings
Group Bookings

  • Types of groups

  • Tour groups

  • Conference/convention

  • Charity groups (fund raising)

  • Flight crews

  • School groups

  • Sporting groups

Reservation availability
Reservation Availability

  • After receiving a reservation request, the hotel might accept it, as it is, if there is room availability.

  • If not, the reservation department should suggest alternativeroom types, dates, and/or rates, to the potential guest.

  • If, however, the potential guest insists on his/her previous request, the hotel should suggest an alternative hotel.

  • That's one of the main reasons why we need to maintain good relation-ships with nearby competing Hotels


  • The reservation department should always compare historical reservation volumesagainst actual arrivals.

  • The main reason is to cope with overbooking, which a situation occurring when the total number of rooms reserved for a certain period of time exceeds the total number of rooms available for sale, for the same period of time.


  • In order to cope with the overbooking problem, some statistical and historical data should be stored and processed by the hotel and should be continuously updated. Such data should include:

  • Number of rooms reserved for a specific date

  • Number of rooms occupied by stayovers (for a certain specific date)

  • Forecasted no-shows percentage

  • Forecasted understays percentage

  • Forecasted overstays percentage

  • Forecasted cancellation percentage

  • Number of out of order rooms for a specific date

Reasons for travel
Reasons for Travel

  • Business

  • Pleasure

  • Education

  • Family

  • Religious

  • Special events (e.g.Olympic Games)

Types of market sources
Types of Market Sources

  • F.I.T. – free/fully independent traveller

  • Group

  • Corporate

  • Government

  • Package

Room rate factors
Room Rate Factors

  • Location (CBD, Country)

  • Hotel Rating (Star/Flag/Crown)

  • Room attributes/aspects

  • Hotel facilities

  • Competition

  • Time of year

  • Intended client

Room rate types
Room Rate Types

  • Rack

  • Corporate

  • Government

  • Airline (delayed flights, crew, package)

  • Travel Agents (package, familiarisation, group, F.I.T.)

  • Groups/conference

  • Packages (honeymoon, weekend, midweek)

Five steps to selling
Five steps to selling

  • Know your product

  • Know your guest

  • Match the guest to the best alternative

  • Be aware you are part of the sales team

  • Always sell the product before the price

Guest history
Guest History

  • Assist with marketing strategies

  • Ensure future reservations are more efficient

  • Ensure a quicker check-in

  • Ensure guest’s needs are met

  • Assist with check-out

History data
History data

  • Reservation forms

  • Registration cards

  • Guest folios on check-out

    History can be stored and maintained:

  • Manually

  • Computerised

Details provided to guest
Details Provided to Guest

  • Room release time (6pm is standard)

  • Guaranteed reservation

  • Check-in time

  • Acceptable MOP

  • Parking facilities

  • Hotel facilities and services


  • Retrieve original reservation

  • Note date and time cancellation received

  • Record contact name of person cancelling

  • Update manual and computer records

  • File cancelled reservation

  • Apply cancellation fee as per hotel policy

  • Thank caller


  • Retrieve original reservation

  • Note date and time amendment received

  • Record contact name of person amending

  • Update manual and computer records

  • File amended reservation

  • Thank caller

Departments concerned with reservations report
Departments concerned with reservations report

  • Housekeeping

    To enable accurate staff rostering

    Budgeting, planning for refurbishment, ordering of supplies

  • Food and Beverage

    As above

Departments concerned with reservations report1
Departments concerned with reservations report

  • Maintenance

    To enable accurate staff rostering

    Budgeting, planning for refurbishment, ordering of supplies

  • Concierge/Porters/Front Desk

    As above

Types of reports
Types of Reports

  • Occupancy

  • Arrivals

  • Cancellations

  • Special requests

  • V.I.P.S

  • Black lists

  • Market Segments

  • Guest history

Occupancy reports
Occupancy Reports

  • Prepared on a regular basis for:

  • rostering

  • budgets

  • maximising occupancy

  • planning refurbishment

  • ordering

Special requests report
Special Requests Report

  • Housekeeping

    Cots/rollaways/special linen/vases/flowers/baby sitters/early and late arrivals and departures

  • Room Service

    Champagne/fruit baskets/flowers/VIP mini bars

  • Porter/ Concierge

    Theatre bookings/restaurant bookings/hire cars/early arrivals/late departures/wheelchair access/luggage storage/red carpet

Special requests report1
Special Requests Report

  • Food and Beverage

    Dietary, Group meals, Children, Cultural Requirements, Seating, Groups departing early

  • Functions

    Dietary, AV Equipment, Meal break times, Business Services

Group and conference details
Group and Conference Details


  • Rooming list ready

  • Rooms Assigned

  • Staffing requirements

  • Porter/Concierge (Luggage collection times)

  • Food and Beverage

  • Functions department

  • Hospitality room/area

Black list
Black List

  • “Bad” debts (previous accounts remain unsettled)

  • Malicious damage to hotel property

  • Theft of hotel property

  • Verbal/physical assault of staff members

Reservation reports
Reservation Reports:

  • In the reservation department, the widely used management reservation reports include:

  • Reservation transaction report

  • Commission agent report

  • Turnaway report (sometimes called the refusal report)

  • revenue forecast report

Potential reservation problems
Potential Reservation Problems

  • 4 main common problems that might be encountered:

  • 1) Errors in a reservation record:

  • Record a wrong arrival or departure date

  • Misspell the guest’s name or reverse it

  • Reserve for the caller instead of the guest

Potential reservation problems1
Potential Reservation Problems

  • 2) Misunderstandings due to industry jargon:

  • Confirmed versus guaranteed reservation

  • Double room versus 2 beds

  • Connecting rooms versus adjacent rooms

Potential reservation problems2
Potential Reservation Problems

  • 3. Miscommunications with external reservation systems:

  • Book a guest in the wrong hotel

  • Book a guest in the wrong city [ex: Novotel, Melbourne versus Novotel, Sydney]

Potential reservation problems continued
Potential Reservation Problems (continued)

  • 4. Online reservation system failures:

  • Fail to update central reservation system concerning room availability or to communicate rate changes in real time

  • Delays in communicating reservation requests

  • Communication Equipment used may become technologically obsolete or inoperatable