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Chapter 2. Receive and process reservations. Learning outcomes. Understand the roles of the reservations department. Receive reservation requests Update reservations. Advise other departments and colleagues about reservations. Roles and responsibilities of the reservations department.
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Chapter 2 Receive and process reservations
Learning outcomes • Understand the roles of the reservations department. • Receive reservation requests • Update reservations. • Advise other departments and colleagues about reservations.
Roles and responsibilities of the reservations department • Manage and maintain individual and group reservations. • Manage room yield. • Prepare sales forecasts. • Sell rooms.
Roles and responsibilities of the reservations department • Control commissions. • Plan promotional activities. • Generate and distribute room related reports.
Managing reservations • Receive enquiries. • Promote the venues services and facilities. • Record reservation details. • Maintain reservations.
Room yield management • A technique used in an attempt to sell the maximum number of rooms possible on a given day at the highest possible rate.
Sales forecasts • Estimates of the number of rooms the reservations department expects to sell on specific dates. Forecasts are based on: • Past occupancy levels • Seasonal influences • Upcoming special events
Sales forecasts • Number of bookings so far for that date • No-show estimates • Cancellation estimates • Economic climate.
Sales targets • Targets represent the actual number of rooms the venue wants to sell (as opposed to what the venue expects to sell).
Control commissions • A commission is an amount of money (often 10%) paid (or received) for selling a product. • Commissions are most commonly paid to travel agents. • Travel agents sell accommodation (theproduct) to their clients and therefore earn a commission on the sale.
Control Commissions • The reservations department is responsible for managing the commissions earned by the travel agents. • Guests who book accommodation through their travel agent do not pay extra for the room.
Control commissions • Travel agents and tour operators can negotiate better commission rates (or better room rates) for booking large numbers of rooms. • Commissions are not paid when the booking is for an allotment room.
What is an allotment? • An allotment is a predetermined number of booked rooms allocated on specified dates to an airline or tour operator. • These rooms (allotment) are usually a component of a package holiday.
Allotments • The tour company that holds the allotment will have negotiated a good room rate with the venue (usually well below the rack rate), due to the quantity of rooms booked and because the venue is guaranteed to sell most (or all) of the rooms in the allotment. • Travel agents that sell the package holiday (on behalf of the tour operator) will earn commission from the tour operator.
Processing commissions • When travel agent clients pay the travel agent for accommodation, the travel agent is responsible for forwarding payment to the venue, less their commission. • When guests (who booked accommodation with their travel agent) pay for their accommodation directly to the venue, the venue is responsible for forwarding the commission earned to the travel agent.
What are promotional activities? • Marketing events that promote products and services offered by the venue to targeted market segments. • May include: • Packages • Giveaways • Reduced rates.
Promotional activities • Undertaken in conjunction with the sales and marketing department. Promotional activities are influenced by: • Budget • Objectives • Sales forecasts • Resources required.
Selling rooms • This is the primary role of the reservations department – to sell rooms. • The sale of rooms is facilitated by the use of sales techniques and a knowledgeable reservationist!
Selling rooms • Sales techniques commonly used: • Suggestive selling • Upselling • Downselling • Extras and add-ons.
Target markets • Selling is easier when we know and understand our target markets. • Each target market (and segment) will respond to different sales techniques
Target markets • It’s important to find out what it is the guest expects (from the venue), during the sales process. • What a guest expects is usually determined by their purpose of visit (e.g.. Romantic weekend, business trip, convenient location) • Refer also to Table 2.3, Page 29.
The reservation process • Receiving a reservation request. • Checking availability. • Offering alternatives. • Responding to enquiries about costs and product features.
The reservation process • Recording the reservation details. • Confirming the reservation details. • Preparing and issuing documents.
How reservations are received • Telephone. • In person at the front desk. • Mail, Email, Fax. • Same chain referrals. • CRS.
How reservations are received • Other venue referrals. • Personal referrals. • Repeat business. • Travel agents/airlines/tour operators.
Checking availability We need to find out: • Required dates/length of stay. • Number of guests. • Room type(s) required. • Number of rooms.
Checking availability • Automated system • Access the reservations section in the computer. • Availability may be displayed in a room rack. • Manual/semi automated system • Check the room rack or bookings diary, or conventional chart.
What is a room rack? • A list of (or physical rack displaying) all rooms, their status (occupied, clean), category, and quantity.
Offering alternatives • If a requested room type or date is not available, then it is standard procedure to offer an alternative. • Depending on circumstances, alternatives may include: • Different date • Different room type • Waitlist • Different venue.
What is a waitlist? • A list of bookings that cannot be accommodated unless a confirmed booking subsequently cancels. • Waitlists are typically offered during peak season. • They are offered to help maximise occupancy (in the event of late cancellation or no-show).
What is a no show? • A confirmed reservation that does not arrive or cancel.
Offering alternatives • Even after alternatives have been offered, a booking still may not be accommodated or accepted.
Customer Price too high. Desired features not available. Minimum stay requirements not suitable. Doesn’t want to be added to waitlist. Venue No rooms at all available. No waitlist or waitlist full. Allotment is full. Already overbooked for requested date. Why a booking may not be made
Why venues overbook • A standard industry practice of accepting more reservations than there are rooms available. • Overbooking compensates for: • No shows • Cancellations • Under-stays (person who departs earlier than booked dates).
Responding to enquiries • Because many people who make reservations enquiries aren’t familiar with the venue, they often want information that helps them with their buying decision.
Responding to enquiries • It’s important to be able to pass on accurate information about: • Venue products and services • Room rates • Package deals • Room amenities • Local area information.
Room rates • Room rate refers to the rate charged by a venue for nights accommodation. A rooms rate may be influenced by: • Star rating and location • Room types, room availability, number of rooms booked and length of stay
Room rates • Market segment • Packages offered • Meal plans • Agreements with airlines and tour operators.
Why rates for the same room type may vary • Attract different market segments. • Reward loyal customers. • Maximise room yield. • Competition differentiation. • Seasonal influences.
What is the rack rate? • The rack rate is the standard rate (without any discounts) charged for a particular room type. • Also referred to as the published rate. • Used for determining sales forecasts and budgets.
How rack rates are determined • Based on the cost structure of the venue: • Cost to build and maintain venue • Operating costs • Staffing requirements • Services and products offered • Star rating.
Recording the details • Can be recorded manually, using a reservation slip, on directly into the computer.
Recording the details • Need to record: • Personal details • Accommodation details (date of arrival/departure, room type, number of rooms, rate quoted, etc) • Company/travel agent details • Payment method • Special requests.
Using industry jargon • Accuracy is important when recording reservation details. • One way to ensure accuracy is by using standard industry jargon • Jargon is not used when communicating with people outside the industry • Jargon can be used when recording information.
The phonetic alphabet • The phonetic alphabet is an internationally recognised and extensively used tool that helps avoid misunderstandings about names, destinations, codes etc. • Each letter of the (English) alphabet is assigned a word that aids understanding which letter (or sound) is to be used.
The 24-hour clock • An important skill! • The 24 hour clock helps avoid confusion with times by distinguishing between morning and evening by assigning each hour of the day its number (within the 24 hours of the day/night) according to when it occurs after midnight.
