Room Reservation
Room Reservation
Room Sales
1. Market Tolerance Method – room rates are based on the prices quoted by
other hotels of same location, size, or classification. A hotel operator should
conduct a survey of the rack rates among his competitors for him to be able
to prescribe a competitive room rates.
2. Cost Rate Formula – this is based on the construction cost of the hotel. In
the US, The average room rate is estimated at $1 per $1,000 of total
construction cost. In pesos, it will be: P50 per P50, 000 total construction
cost. This amount can be increased to cope with the rising inflation.
The rate is simply calculated as:
Cost of Construction,(including land & building)
Number of Rooms
3. Hubbart Formula – This method is developed by Roy Hubbart. His
formula is based on the cost of operating a hotel plus a reasonable return of
investment.
Rate Designations
Room rate designation defines what position a rate will take within
the overall rate hierarchy. The common designations are:
1. Rack Rate – is the highest published rate a hotel can charge for a
specific room. This varies depending on the room type.
2. Corporate Rate – is a special rate given to corporate accounts as an
incentive for their patronage. The rate may reflect 10 – 20% discount
from the rack rate.
3. Volume Account Rates – is given when there is guaranteed number of
room nights within a specific time frame. Companies and associations
can negotiate for more discounts.
4. Government Rates – government officials who stay in a hotel for
official functions are usually given per diem. The hotel that is interested
to attract this type of market must be able to come out with rates that can
match the budget of this group.
5. Seasonal Rates – to attract more patronage during lean season, hotels
and resorts make it a practice to offer off-season rate, which is much
lower than the rack during “in season”.
6. Weekday-Weekend Rates – Some hotels experience high occupancy
during weekdays and lower occupancy during weekends. To encourage
patronage during weekends, an incentive is given by way of special week
and rates.
7. Advance Purchase Rate – like some airlines, hotels may give incentive
to early bookings by giving special rate for advance room payments.
8. Half Day Rates – some hotels may have provisions for rooms that are
used for half day like those designed for short time or for half day
conferences that need sleeping facility.
9. Group Rates – are given to group bookings. The rates are lower than
transient bookings if they are booked in advance.
The Front Office must be updated of the reservations status on each day.
After reviewing the number of reservations already received together with the
cancellations, the Reservation Manager will decide whether to declare an order of
“closed-out” or put the reservations under the status of “on-request”.
The availability status board will have green chip on the date concerned for
“on-request” periods and a red chip on the date concerned for “closed-out” dates.
Whatever stand the Front Office will take shall be disseminate to the Front
Desk and Sales.
Room Statistics
Forms of Statistics
Reference: