Front Office Operation

Receive and Process

Reservations
 PreTest
1. . The following are the advantages of manual system, EXCEPT?
a. Cost of system is cheaper
b. Less staff required
c. Works in smaller establishments
d. Complies with risk management should you experience a power or equipment
failure
2. When the reservation cannot be made by the establishment?
a. Desired features not available
b. Price is too high
c. Already overbooked for the requested date.
d. Special conditions are not suitable
3. The date on which the guest leaves is called?
a. rack rate
b. A rack
c. arrival date
d. departure date
4. The process of requesting for room accommodation in advance in a hotel or other commercial
establishment
a. Registration 
b. Reservation
c. Confirmation
d. Accommodation
5. Guest who arrives days before booking is called?
a. Fenced Rates
b. Early Arrivals
c. Walk-ins
d. Spread Rate
• Elements of the Reservation System
Introduction
A reservation is a booking or request for some time in the future. It involves obtaining
all the necessary information needed to satisfy this request. Once the request or booking is
agreed to and can be provided the customer is required to pay the establishment for the item.
All reservation systems require:
• Some way to check availability
• Ability to offer alternatives when the requested booking is not available
• Provide information on the costs and product features
• Record the details and requirements of the person making the reservation
• A way of recording the acceptable method of payment
• Provide a confirmation of the details.
• A manual reservation system
To determine availability manual systems will use manual charts,
calendars, booking sheets, diary, forecast boards or room rack. Processes
are needed to make sure availability is kept accurate and up to date.
Systems are designed to cross the days off when a product is booked out
or no longer available. Systems are also available to enable cancellations
to be put back into usage and to enable the customers to change the dates
of their reservations.
Forms will be used for recording reservation customer details.
Systems and processes have to work so the information collected can be
stored and made available on the dates it is required.
Product information such as room types, rate sheet prices, car types, live
entertainment, bus destinations, will all be in the form of brochures,
charts, and handouts for the staff
Accounting processes to collect the method of payment would be a cash
register, petty cash box, manual credit card machine or cashier to
process the money.
Invoices and receipt books must be completed to provide
confirmation details to the customer.
A suitable filing system is required to store all this manual
information and the physical space required in the office to be able to
access all this data.
• A Computerized System
A computer system may have a "history" of any guest who
has used the establishment previously. It can store information
such as preferred room type, record of request, date of last stay,
even the amount spent previously. It can match up the customer
request with what is available at the most effective price and can
store all the information needed about the products and facilities.
• Payment is automatically recorded. Printouts provide
confirmations and details to the customers and report
information to management.
Manual System Computerized System
Advantages: Advantages:

 Cost of system is cheaper 


More accurate and reliable information
Ability to store guest history data
 Works in smaller establishments  Less staff required
 Greater reporting ability
 Complies with risk management  Controls costs
should you experience a power or  Limited staff training

equipment failure.  Don’t have to manually check and recheck information.

Disadvantage: Disadvantage:
 Requires staff to have a detailed knowledge of the product they are  Difficulty finding a computer system that suits the establishments’ needs
selling
 Cost of equipment – cost of upgrading, support cost and hardware
 More staff are required
 Needs uninterrupted power supply
 Less accurate in larger establishments
 Need to keep up with advances in technology
 Need to manually check accuracy of information
 Certain materials used in buildings could affect the computers efficiency.
 Low in security
 Takes more time to get things done
 Difficult to amend and retrieve information
 Takes longer to communicate with other departments.
• Types of Booking
People make reservations for convenience and security. Many people like to plan out their
holiday or business trip to feel secure in the knowledge that they have a room waiting for them,
they have a flight booked to take them back to their home or next destination, and know they have
seen all the attractions of the city during their stay. The role of reservations staff is to ensure that
they process all reservations in an efficient and professional manner.
Bookings may include:
• Accommodation suppliers– Guests will need to have room bookings processed in order
to stay at particular establishments that provide accommodation such as hotels,
apartments, resorts, guest houses, caravan parks.
• Aircraft– Passengers need to have "Seats" booked for all types of air travel they
undertake. These bookings will vary according to the airline chosen, class of travel such
as first class or economy, date of flying e.g. high season or low season or facilities that
are included such as food or movies.
• Cruise ships– Passengers on cruise ships need to make bookings for the dates of their
cruise. This sort of reservation may include meals while on board.
• Coaches or buses–To travel from one place to another or to visit a particular tourist
destination.
• Limousines (rental cars/vans)– Customers can book transport to either drive
themselves around or have a chauffeur included with the vehicle.
• Day/extended tours – includes meals and maybe accommodation and entrance fees to
tourist parks.
• Dining and meal reservations– for restaurants or eating houses.
• Entertainment such as the theatre or music concerts.
• Ways in Which Reservations may Received
Reservations can be received by an establishment in many ways depending on
where they are, what they are offering and what technologies they have available.
This may includes:
• Over the telephone – customers dial the establishment directly
• In person – the customer comes into the establishment and communicates directly with the
staff
• Mail–in some countries today this is almost an extinct form for making a reservation
• Email– through an email address
• Facsimile (fax)– this is another form of communication that is being replaced by technology
• Internet – on-line bookings via a website
• Third party reservations – using a reservation company to make a booking for you e.g. Wotif,
AsiaRooms, Statravel, Showbizasia
• Central reservation service– a central reservation service that controls reservations for several
venues
• Same chain referral–a reservation that has been referred from another establishment belonging
to the same group, for example: Asian Car Rental, Hyatt Hotels, Hilton Spas
• Other venues – some Airlines will book accommodation for guests. If one hotel is fully booked
they might make a reservation at another hotel. Travel agents book theatre or concert tickets.
• Customers who may Require Reservations
When customers make reservations they have different needs and requirements. For this
reason we need to understand our customers and differentiate between the types of
customers that we have.
• Two types of Customers
• The business customer is a person who travels for the sole purpose of conducting
business and the leisure customer is someone who travels for pleasure.
Business customers require accommodation and car bookings at short notice. They may
use the establishment on a regular basis, or may be here for the sole purpose of attending a
conference or convention in your city. Business travellers are the largest source of business
for hotels and usually travel all year round except for holiday times.
 
• Leisure customers’ arrival is seasonal and they are attracted by special events and tourist
attractions. They are generally more price sensitive and book attractions well ahead of
their arrival dates.
• Business customers are here for:
• Conferences/seminars/conventions
• Passing through - flight stopovers
• Negotiating a business deal
• Meeting Clients
• Investigating new products.
• Business customers are:
• Government employees
• Corporate business clients
• Convention/Conference guests or delegates
• VIPs (very important persons)
• Why leisure customers visit:
• For tourism
• On weekend getaways
• Attending family occasions, for example, weddings, name days, christenings
• Attending arts or theatre shows
• For a special event such as a Formula 1 Grand Prix, festivals, or cultural events
• Leisure Customers are:
• Private individuals –(also known as fully independent travellers– FIT's)–who book their own requirements
• Groups and tour guests– customers who choose to travel for pleasure in a group by an organized company
or inbound tour group
• Backpackers - usually younger travellers on a budget holiday
• Package rate guests–guests who stay at a hotel and pay for a "package" of facilities such as room and
dinner booking, room and theatre booking, room and spa bookings, room and cooking school
• Travel agencies may also book individual leisure customers their holiday. These agencies usually have
"commission paid' agreements with the establishments and get a discounted rate. Often the guest pays the
travel agency and gets issued with a series of vouchers to pay the establishments.
• Respond to Reservation Request
Acknowledge Customer Who Wishes to Make a Reservation
The process of making a reservation is to be able to know whether
or not you are able to accommodate the guest with what they require.
Therefore we need to ask the right questions and respond to the
reservation request.
When greeting a customer over the phone your establishment will
have a specific greeting they will prefer you to use. This greeting must
sound friendly and approachable, be polite and let them know where they
have been put through to. It is also advisable to give your name to the
potential customer.
• An example of greetings are:
• Morning Greeting
• Sales Agent: "Good morning. Reservations department, this is Mei-
Ling, how can I help you?"
• Afternoon Greeting (after 12 noon)
• Sales Agent: "Good afternoon. Reservations department, this is Mei-
Ling how can I help you?"
• Evening Greeting (after 6pm)
• Sales Agent: "Reservations section. Good evening, this is Mei-Ling,
how can I help you?"
• Identify Required Reservation Details
• The information needed to process a reservation will vary depending on the type of booking being
made.
• For example, you will need to find out the following information from the potential customer if they are
making a booking for accommodation:
• Required dates/length of stay
• The number required
• Number of guests
• Name of guest/s
• Number of rooms
• Required type/s of room.
• Ask questions and match the guest needs to what you have available.
• All the time you will be checking these requests against what you have available.
• Obtain personal details, contact data and method of payment – if reservation/room is available.
Repeat back the reservation details for confirmation with the customer to check that
everything is correct.
• Advise Customer of Availability of Requested Booking
Your reservation system should allow you to instantly check availability and
know what you have to sell. You will need to know what is available right down to
the type or hotel rooms, type and model of cars you have, number of tours that are
have spaces to sell and even number of special dishes left. This is what enables you
to "sell" your goods and services to the customer. Without knowing your availability
you don’t know what you have to sell and can't meet the customer's needs.
• Special conditions
In some cases you may even need to know any special conditions that are
attached to making a reservation such as minimum length of stay or hire, payment
policies, minimum number of guests, license requirements, and so on. This
information needs to be passed onto the customer to help them with their decision to
make a reservation.
• Discounting and Premium rates:
In a business that operates seasonally you may have high season and low season
rates. During the busy times of the season there is no need to offer discounts as the
customers want to reserve your goods and services and are often willing to make
reservations in advance and pay premium rates to ensure they get their reservations
during the peak period. On the other hand in the low season you may have to offer
discounts and packages to encourage the customers to make reservations at your
establishment.
Sometimes the time of the day will influence the rates that are available to
customers. For example, some food and beverage outlets offer packaged lunch prices
with a main course and a glass of wine at a special lunch price compared to a dinner
price. Entry into a tour destination might be cheaper later in the afternoon compared
to the price in the morning.
 When a reservation cannot be made:

Customer Establishment

Price is too high Nothing available

Desired features not
No wait list or wait list is full
available
Allotment is full (such as a package rate
Special conditions are not
or groups and tour bookings, airline
suitable
packages)
Doesn’t want to be added to Already overbooked for the requested
a wait list date.
• Overbooking: Overbooking is common practice in hotels when they
accept more reservations for rooms than they have rooms available.
A hotel may overbook between 5– 20% (based on the organisation’s
historical figures)in order to allow for no-shows and under stays.
Although, this might seem strange practice, the hotel needs to do this to
maximize the number of rooms sold on any given day.
• Offer Advice and Information About Available Products, Services,
and Facilities
To be a good sales person you need to thoroughly know your
products. Training of your staff is essential, so they can professionally
provide information and advice about your products and services to your
potential customers.
• Up-selling is a selling process where you start at the lowest price then
sell up to the next level and continue selling up the price levels to meet
the customer needs:
• Suggestive selling involves selling your products by offering
alternatives. Describe how the product would meet the customer's
needs and highlight any special features
• Down-selling is basically the opposite to up-selling, whereby you start
the selling process at the most expensive item and work down to the
lowest price
• Extras and add-ons usually encourage customers to purchase
additional products to the main product.
• Know Your Market
If you understand and know the characteristics of your
various target markets you can use your selling techniques and
promotional techniques to ensure you make the sale with your
customer.
As mentioned previously you know what your business market
requires and you know the needs of your leisure market.
Knowing the products you have available will assist you to
professionally offer the customer what they need, generate a
sale and make a reservation.
 END…
THANK YOU!