Chapter 5 Global Reservation Technologies

Chapter 6 individual Reservations and Group Booking Learning Objectives Components of the Reservation (1 of 10) Automated Phone Systems Importance of Training Information contained in the Reservation Required Fields Arrival and Departure Dates, Number of Nights

Both are required to avoid confusion Guest may not be aware of Check-in/out cycle (Noon) Number of Nights Components of the Reservation (2 of 10) Number of persons and who they are Determines types of bed/cot/crib needed Number of rooms required Party size and type Groups may be referred directly to hotel/sales dept. Name Verification and record billing, info, lost property

Guest history, Frequent Guest Programs (FGP), personalized service Type of rooms required Linked to quality desired/price sensitivity Components of the Reservation (3 of 10) Price Quoted top-down or as suggested by yield system Up-sell by giving benefits of more expensive rooms Cross-sell by suggesting other properties in the chain Corporate Affiliations Pre-negotiated rates with some companies, corporate rates

Quality of the reservation Probability of no-show Components of the Reservation (4 of 10) Optional Reservation Data (Nice to know!) Estimated time of arrival Save room for late arrivals Schedule F.O. staff, van drivers, airport pick-up, etc. Special Requests Handicap access, ocean-view, desired floor, Noted, but rarely guaranteed try on arrival Smoking preferences

Options may range from choice of smoking/non-smoking rooms/floors to a complete smoking ban within any hotel across the chain Components of the Reservation (5 of 10) Discounts or Affiliations AAA, AARP, Convention Rate, etc. May be declined if not asked for at reservation time Address Needed for record and to mail confirmation Confirming the Reservation Unique Confirmation Number is generated by computer

Unique number serves as proof, enables tracking Printed confirmation mailed to guest on request Reservation Information Flow Guest History Database Components of the Reservation (6 of 10) Earlier guest history was on a property level Problem: Known preferences of guest in Four Seasons-Chicago was not recognized in Four Seasons New York Centralized guest history possible with computerization

Now chain-wide access to recognition and needs Creates a personal connection to the hotel/chain that builds brand loyalty Important tool for cross-selling and promotions Enables company to measure Customer Value for chain History and preferences pop up on screen at time of reservation and arrival Components of the Reservation (7 of 10) Guarantees and Cancellations Advance Deposits to reduce no-shows Done by cash or check earlier

Checks normally held, but not cashed Problem of bounced checks Less popular now as too many costs and hassles with handling Credit Card Guarantees Guest guaranteed that hotel will hold room indefinitely; in return, guest promises to pay with credit card, even if no-show Credit Card not charged unless no-show Components of the Reservation (8 of 10) Guests try to fool hotel by giving wrong number, so verify Credit Card companies favor card-holder to hotel Balance between securing revenues and retaining guests

Amendments/Alterations to the reservation Fairly common Changes in dates, names, numbers, room types etc Need to identify and retrieve original booking to avoid confusion and duplication May need to mail out confirmation of changes made Cancellations Important to encourage guests to cancel well in advance Components of the Reservation (9 of 10) Computer generated cancellation number given to avoid disputes

Cancellation number not needed for non-guaranteed reservations Important to note special requests no longer needed due to cancellation, so they can be sold to others Computerized systems do this automatically Reservation Coding Needed for various reasons Advance Deposits Note on guest folio to give credit to guest Cancel reservation if deposit not received Components of the Reservation (10 of 10)

Late Arrivals Ensure that room is held, particularly if guaranteed Corporate Guarantee - Indefinite hold, bill corporation if no-show Travel Agents - Ensure commission is noted, if eligible VIPs (Very Important Persons), CIPs (Commercially IPs) Place fruit basket, met by manager, etc. Riding Reservation Allowed to ride till arrival (Rare) Convention/Group Delegate Note specials for them Separate codes for different groups Convention and Tour Group Business (1 of 10)

The Group Room Contribution The Perception Problem Benefits of Group Business Casino Hotels Balance room revenues against gambling revenues Propensity to gamble varies with the group Why some hotels refuse groups Groups may alienate non-group guests Reduces image of exclusivity in luxury properties Group rate is substantially lower than individual rates

Convention and Tour Group Business (2 of 10) Segments of Group Business Tour Groups Convenient for hotel, but low revenue per room Dealt with by Sales Office, rather than reservations Need to control room allocations tightly Convention and Tour Group Business (3 of 10) Convention Groups The Threat from Discount Travel Sites

Booked by Association Executive, who bargains hard Members deal directly with hotel for room reservations Hotel is responsible for billing and collecting from individuals Association makes money by charging for extras Exposition and Trade Shows Similar to conventions, but stay may be longer Convention and Tour Group Business (4 of 10) Booking the Convention Adjusting the Room Block

Blanket reservation is made initially Reservation block is adjusted as dates come closer Convention hotels cooperate to determine show rate of a particular group from past records Still, each meeting has unique factors Convention and Visitor Bureaus (CVBs) Publicly funded, quasi-governmental organizations to represent a citys hospitality industry CVB representatives bid for large and small conferences Convention and Tour Group Business

(5 of 10) Expanded Service offered by CVBs CVBs want to be one stop shop for all meeting needs One bid for all services, with freebies thrown in! Simplifies job of meeting planner, but cuts into independents turf Role of the Housing Bureau Needed for large conventions where delegates may stay in many hotels Coordinates guests room requests, by priority, with availability Relays needs to hotels hotel then sends confirmations Each hotel may have its own rate structure

Convention and Tour Group Business (6 of 10) Overflow Hotels Hotel other than the main convention hotel May require advance deposit for full stay May ask for 48 or 72 hour cancellation notice Guests may move to main hotel after a day! Negotiating Convention Rates Attrition Hotels Get Serious about Attrition

Force majeure Convention and Tour Group Business (7 of 10) Comp Rooms Complimentary or free rooms given to groups 1 comp per 50 sold is normal Supposed to be for business purposes during convention and not a bribe to the meeting planner! Rate Quotes Flat Rate/Run of the house Some get suites, some get singles, all pay same rate

Organizers may give list of who gets better rooms Spread Rate A negotiated discount below the rack rate. Members pick what they want Convention and Tour Group Business (8 of 10) Managing the Room Block Competitive Clauses Unidentified Delegates Convention guests who try to get a better rate by using other deals Insist on convention rate later, if it suits them!

IT Packages Hotels sets up and sells own package to individuals This package may be better than the group rate! Convention and Tour Group Business (9 of 10) Handling Tour Group Reservations Handled by Sales/Tour department rather than reservations Yield management a big factor in negotiations Premium is charged for single occupancy Hotels ask for rooming list in advance

Convention and Tour Group Business (10 of 10) Room blocks are pre-assigned for easy scheduling of arrivals/departures/HK Hotel may have separate group desk, lobby, entry/exit for groups Gratuities are included in the price

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