TIM 314 Midterm #1

What are the steps in the registration process?

1. Preregistration activities 2. Creating the registration record 3. Assigning the room and rate 4. Establishing the method of payment 5. Verifying the guest's identity 6. Issuing the room key 7. Filling special requests

What are the various distribution channels?

1. Property reservations department 2. Central reservations systems 3. Cluster reservations office 4. Global distribution systems 5. Intersell agencies 6. Internet distribution systems

What are the four types of PMS?

1. Reservation management 2. Rooms management 3. Guest account management 4. General management

What are the reservations agents functions?

* Reservations agents' functions: • Identifying what the guest requires and what the property has available for sale for the dates requested • Recording and acting on reservation details • Promoting hotel services • Ensuring accuracy • Quick, accurate, and pleasant * Processing reservations involves: • Matching room requests with room availability and rates • Recording, confirming, and maintain reservations • Producing management reports

Describe the various types of group reservations

• Involve a variety of contacts: guests, meeting planners, convention and visitors bureaus, tour operations, travel agents, intermediary agents • Representative deals with sales or reservations • Agreed-upon number of guestrooms, called a block, is set aside for group members • May give guests a special reservation identification code or reservation card to reserve rooms within block • Reservations received from group members are applied against rooms held in block, reducing number of rooms available within the block • Room status changed from blocked to booked (rooms reserved for specific guests) • Establish progress dates to evaluate progress of conversions • Cut-off date: Unreserved rooms may be released to hotel's available room inventory at predetermined date • Must be clearly stated in contract • May honor reservations after date if available * Group Reservation Issues ~ Creating a Group Block • Contract must specify: • Exact number of rooms required and quoted rates, • Main group arrival and departure dates • Special considerations • Method of reservation • Billing arrangements • Cut-off date • May specify early arrival and late departure dates • Reservations manager verify number of rooms required against what is available and be sure system inventory is accurate before confirming room block to the group • Non-group displacement: if group takes away rooms from transient business, notify sales or GM • Determining displacement is important because hotel may block rooms of group guests that it would sell to transient guests at a higher rate • Frequent guests may have to be turned away and disappointed • May feel uncomfortable in a hotel dominated by groups • May choose to go elsewhere if not able to reserve rooms • Reservations manager should check group's history • May wash down/wash rooms: reducing block based on group's history • Check with hotel that last accommodated the group • Control room inventories and ensure that as many rooms as possible are available • Wash-down must be handled carefully; contracts are legally binding and hotel must provide number of rooms in contract • Manager must monitor room availability in the block as reservations arrive • Notify sales when block does not look like it will fill or if more rooms are needed • Sales can contact group and adjust rom block • If more rooms are needed, choose between taking additional reservations or referring to other hotels • If fewer rooms are needed, may need to sell additional rooms • Definite group: group that has signed a sales contract • Should be entered in system ASAP to maintain accurate room inventory • Tentative group: had contract sent to them, but has not signed or returned contract • May enter tentative groups into system • Hotel can keep track of what they believe they have sold • Track tentative groups to update or remove from system • Holding for too long may prohibit booking of a definite group and cause confusion between sales and reservations • Method of sending group reservations to the hotel • Attendees may make direct reservations • Group sponsor may want to receive reservation requests before hotel • Corporate group reservations, tour groups, and travel agencies may provide rooming list • Group leaders often prefer to closely control rooming and billing arrangements • Agents must be careful not to accept reservations outside of agreed procedures 1. Conventions and Conferences • Close working relationship between sales and meeting planner • Know cancellation, no-show, and last-minute reservation history • Review all relevant hotel reservation policies with planner • Inform reservations agents that convention has been scheduled and go over registration process set up for convention • Produce regularly scheduled reports to update the status of the convention block • Generate an up-to-date list of registrants at regular intervals • Correct errors found by the convention planner immediately • Confirm reservations ASAP • Return rooms to group's block when cancellations received • Distribute final rooming list to convention planner and all hotel staff involved 2. Convention and Visitors Bureaus • Large conventions may require more than one hotel • City-wide conventions: take rooms at many hotels in a city • Room requirements coordinated by separate housing or convention bureau • Each hotel must determine number and type of available rooms to set aside • Objective of bureau is to accommodate all attendees by coordinating hotels • Notify participating hotels on daily basis of requests or cancellations 3. Tour Groups • Groups of people who have had their accommodations, transportation, and related activities arranged for them • Hotels should research reliability and past performance of tour operations and travel agents • Suggestions for dealing with tour group reservations • Specify number and types of rooms, including drivers and guides • Clearly state a cut-off date: on or before the cut-off date, tour operator should supply the hotel with a guarantee on number of rooms • Specify a date which the organizer will provide a final rooming list • Monitor amount of advance deposits required and their due date • Note any services and amenities property will provide • Include name and telephone number of group's representative or agent • Note any special arrangements (i.e. early arrival, baggage handling, registration, or check-out procedures) 4. Attendee Management and Housing Systems Software • Historically, group leaders would distribute mailers to potential attendees, who complete the mailer and return it to the hotel • Time-consuming and inaccurate • Today we use websites and call centers • Hotel staff must ensure that the site's group information is accurate • Group attendees must receive appropriate group rate • Automates processes • Relies on Internet to communicate with potential attendees • Attendee management focuses on meeting registration activities • Housing system: handles guestroom reservations and meeting registration activities • Creates a special website that provides information about group event, reservation availability, and a link to the group's main website • Send e=mail and printed messages (with website address) to log on and make reservations • Capture guest information (i.e. special needs, sign up for presentations, events, or activities) • Provide meeting planners with reports that are forwarded to hotel for processing • Passkey interfaces with hotel reservation systems • Eliminates manual processing • Keeps room inventories accurate between group and hotel • Some systems combine inventories of many hotels • Advantages • Simplifies meeting registration and reservation processes • Improves communication and reduces manual labor

How do you assign the room and rate?

• Room assignments involves identifying and allocating rooms in specific room categories • Pre-assigning a specific room depends on the room's forecasted availability status and how it meets the guest's needs. • Requires the reservations system to interact with the rooms management module • Room assignments are finalized during registration • Hotels offer a variety of room rates for similar types of room that vary based on: • Room size, quality of furnishings, location, amenities • Agent's knowledge of the hotel and ability to use the system to determine room staff and an appropriate rate Room Status • In the long term (beyond the present night), a room's readiness is described by its reservation status • In the short term (tonight), a room's readiness is described by its housekeeping status, which is its availability for immediate assignment • Housekeeping status descriptions include: • Occupied: the room has a registered guest or guests in it • Vacant: the room is currently unoccupied • On-change: the room is currently being cleaned for the next guest • Out-of-Order: the room has a condition that does not allow it to be rented • For guests that arrive early, it is important that housekeeping promptly relays information to the front desk • Guest will wait for a readied room as a better option than a room that is not ready • Room status discrepancies occur for several reasons • Actual variance • Sleeper: Guest settles his account, but request to stay for another night; front desk checks guest out, but housekeeping indicates someone is in the room • Skipper: Guest leaves hotel without settling his account; front office shows room as occupied but housekeeping lists it as vacant • Delays in communication between housekeeping and front desk • PMS produces a daily front office report called the occupancy report, which lists rooms occupied for the current night and indicates those guests expected to check out the following day • Executive housekeeper uses this to schedule and assign staff • Rooms occupied by guests expected to check out are cleaned last • Rooms of departed guests require more cleaning than do rooms of guests who are staying over • If guest checks out before departure ate, front desk must notify housekeeping • At the end of a work shift, the housekeeping department prepares a housekeeping status report based on a physical check of all guestrooms • Compared with front desk occupancy report and any discrepancies noted • Front office typical room status designations: • V/O - vacant and on-change • V/C - vacant and cleaned, but not yet inspected • V/I - vacant and inspected • O/C - occupied and cleaned Room Rates • Room rate: the price a hotel charges for overnight accommodations • Cost structure of the hotel dictates the minimum rate for a room; competition establishes its maximum rate • Room rate range is the values in between • Usually designate a standard rate for each room • Rack rate: retail rate • Room rate discounts are discounts to the rack rate • Assigning rates for walk-in guests is front desk agent's responsibility • Sometimes offer lower price than rack rate with managerial approval • Establish seasonal rate schedules • Objective: provide greater value during low-demand periods and maximize room revenue during high-demand periods • American Plan (AP) (full pension): cost of the guestroom and three meals per day • Modified American Plan (MAP) (semi-pension): charges for guest room and two meals per day (breakfast & dinner) • All-Inclusive: All meals, beverages, and activities; some resorts • European Plan (EP): meals are priced separately from guest rooms • Most non-resort hotels in the U.S. use this • Most American resorts frequently use either the AP or MAP • Special room rates • Commercial or corporate rates for frequent guests • Complimentary rates (no charge) for business promotion • Group rates for a pre-determined number of affiliated guests • Family rates for parents and children sharing the same room • Day rates for less than an overnight stay (check-in and out on same day) • Package-plan rates for guestrooms sold in a package that includes special events or activities • Frequent traveler rates for guests earning discounts through a frequent traveler program Room Locations • Agent must be aware of characteristics of each room type • In most hotels built within the last 50 years, guestrooms within each room category tend to be approximately the same size • Differences lie in their furnishings, amenities, and location • Front office system contains data about room type, rate, floor, view, bedding, special room features, amenities, etc. • Individual guests or groups may specify certain room locations Reservation Blocks • Primary concern is which rooms will be available in the near future based on reservation blocks • Reservations agent or front office supervisor blocks reserved rooms • If reserved rooms are incorrectly blocked or overlooked, room assignment conflicts may result • Be aware of all future guestroom commitments

How can one classify guests?

* Business Travelers • First and primary market • "Regular business travel": not related to meetings and conventions • Special segment stay at luxury hotels • Suite hotels are being directed toward business traveler • Business hotels have amenities and facilities directed at business travelers (i.e. meting space, offices in the building that can be rented, secretarial or computer services, in-room safes, 24-hour room service, Internet access) * Pleasure/Leisure Travelers • Typical market segments: specialized resort travel i.e. health spa, tennis/golf), family pleasure travelers, elderly, and travel by singles or couples) • Most difficult to understand • Price-sensitive • Activities and lodging compete for income and time • Business/pleasure hybrids • Business finances employee's pleasure travel as an incentive • Business traveler adds vacation travel to end/beginning of business trip Group Travelers • Business travel related to meetings and conventions classified in two markets • Institutional market: open to the public, include national conventions held by trade associations • Corporate/government: closed to the public; deal with private corporate or government business matters • Focuses its efforts on meeting planners • Persuade meeting planners to hold meetings off season * International Travelers • Bring different set of needs and expectations • Multicultural factors are important considerations in staffing, interior design, F&B services, and recreational facilities • Decide what market you want to service and establish a program to accommodate • Large portion of labor force is foreign born • Possess multilingual skills and an understanding of the customs and cultures of international guests • Training programs for foreign-born employees (English, customs) • Foreign-born employees may teach classes

What is the difference between a hotel, inn, and motel?

* Hotel or inn: establishment whose primary business is providing lodging facilities for the general public • Furnishes one or more of the following services: F&B, housekeeping, concierge, bell and door attendants, laundry or dry cleaning, and use of furniture and fixtures • Range from 50-2,000 rooms or more than 5,000, • Inns usually average between 5-50 rooms and provide higher level of personalized service * Motel is a contraction of motor hotel, caters primarily to guests arriving by automobile, parking near guest rooms • Usually found in suburban or roadside areas • Successful in 50's-60's with development of interstate highway system, two-story or low-rise buildings located near major highways • Pool areas with shrubbery, children's playgrounds

What are the various ways of ownership and affiliation?

* Independent Hotels • No identifiable ownership or management affiliation with other properties • Typical example is a family owned and operated hotel • Some organized as sole proprietorships or partnerships • Advantages • Autonomy, no "brand" or "image" to adhere to • Operators can offer a level of service geared toward specific target market, • Flexibility allows hotel to quickly adapt to changing market conditions • Disadvantages • May not enjoy broad advertising exposure • No management insight and consultancy of affiliate property • Unable to take advantage of volume purchasing power of a chain hotel * Chain Hotels • Imposes certain minimum standards, rules, policies and procedures to restrict affiliate activities • The more centralized the organization, the stronger the control over the individual property Management contracts • Organizations that operate properties owned by other entities • Range from individual businesspeople to partnerships to large insurance companies • Management contract signed by developers and management company • Owner or developer retains the financial and legal responsibility for property, • Management company operates hotel/hires employees/pays expenses and receives an agreed-upon fee • Remaining cash goes to owner • Proven successful for many major hotel chains, usually a means of rapidly expanding a hotel • Some do not have a brand name • Operate franchises or independents for property owners • Franchising company provides purchasing power, advertising, and CRS • Management contracting is a means of rapidly expanding hotel operations with less investment per property than direct ownership * Franchise and referral groups • Franchising: one entity that has developed a particular pattern or format for doing business • Franchisor grants to other entities • Franchisees have the right to do such a business and follow the pattern • Typically have established standards and operating procedures • Usually provides reasons for purchase other than strong brand name (i.e. national or international CRS, national advertising campaigns, management training programs, advanced technology, central purchasing, architectural/construction/interior design consulting) • Company may provide management contract as well as sell franchises • Referral groups (sometimes called membership groups): consist of independent hotels that have banded together for some common purpose • Sufficient consistency in quality of service • Refer guests to other affiliated properties • Independent hotel may gain more exposure • I.E. Best Western, Leading Hotels of the World, Preferred Hotels & Resorts • Benefits: • More extensive reservation system • Expanded advertising • Lending institutions may be reluctant to lend money unless investors have established affiliation with franchise group or referral organization • Central purchasing services, which reduce expenses

What are potential reservation problems?

1. Errors in the Reservation Record • Possible errors • Incorrect arrival or departure date • Misspelled guest name • First and last name mistakenly reversed • Name of person making reservation instead of guest's name • Verify info by displaying or reciting info • Display or quote cancellation policy to avoid problems over no-show billing or non-return of deposits • Important to hotels catering international travelers 2. Misunderstandings Due to Industry Jargon • Possible misunderstandings • Confirmed reservation vs. guaranteed reservation • Double rooms vs. double bed • Connecting room vs. adjacent room • Minimize industry jargon and explain what various terms mean • Provide terms and conditions of reserved accommodations and policies and procedures 3. Miscommunication with Central Reservations Systems • Possible errors • May book guest into the wrong hotel • May book guest in similarly named city • Provide full name & address of property and through description of the hotel's location • Zip code check 4. Online Reservation System Failures • Examples • Fail to update online reservations system with current room availabilities and rate changes • System may be delinquent in communicating reservations it has booked • Communications equipment may become inoperable • Hotel may close reservations too late • Hotel may fail to update system in time to gain last-minute reservations • Reservation systems without effective interfaces to GDSs and IDSs may update through a time-consuming and error-prone off-line process • Ensure accurate and timely communication between hotel and online reservation systems • Duty of the reservations manager • Check for reservations that may be confirmed, but not communicated • Seamless integration • Faulty equipment • Frequently double-check GDSs and IDSs display correct hotel availability and rates

Describe the reservations agent sales process

1. Greet the caller (warm greeting) 2. Identify the caller's needs (arrival/departure date, number of guests, bed preference, group/corporate affiliation, number of children & ages) 3. Provide an overview of the hotel's features and benefits, based on caller's needs 4. Make a room recommendation and adjust it according to the caller's response 5. Close the sale (ask for the reservation) 6. Gather the reservation information (repeat to confirm the information, secure the reservation guarantee and provide confirmation number) 7. Thank the caller (close call warmly to leave a sense of confidence that they selected the right hotel) • First and foremost, reservations is a sales process • Agents are trained to sell hotel instead of take orders • Create a positive image of the property and instill a desire to make a reservation • Enthusiasm • Registration can be made for individuals, groups, tours, or conventions • Free independent traveler (FIT): individual guest that is not part of a group • Groups are handled differently

What are the two types of reservations?

1. Guaranteed Reservations • Guaranteed reservation: will hold a room until specific time following arrival date • May be check-out time, start of the hotel day (when FO audit is completed), • Guest guarantees to pay, unless reservation is canceled according to procedures • Protects revenues in case of a no-show (guest does not register or cancel) * Prepayment • Requires payment in full to be received prior to arrival • Most desirable form of guaranteed reservation • Common in U.S. resorts and at hotels outside the U.S. * Payment Card • Major debit & credit card • Unless reservation is canceled before cancellation hour, property will charge guest for one night's room rate plus tax • Resorts may charge for more room nights, since length of stay is longer and more difficult to fill rooms at last minute • Most common form of guaranteed reservation * Advance Deposit • Requires a specified amount of money prior to arrival • Typically one night's room rate and tax • Resorts with longer stays may require several nights' room rate and tax • Amount may be larger if reservation is for longer • If guest fails to register or cancel, hotel may retain the deposit and cancel the reservation • Most common at destination resorts and convention center hotels • Variation: applies deposit to last night to ensure room revenue if guest departs early * Voucher or MCO • Travel agent guarantee • Miscellaneous charge order (MCO): voucher issued by Airline Reporting Corporation (ARC) and controlled by regulations that control airline tickets • Guarantees payment if the travel agency defaults on payment • Guest prepays deposit to travel agent • Agent forwards voucher/MCO as proof of payment and guarantee that amount will be sent to the hotel when the voucher is returned to the travel agency • Travel agency deducts commission before sending payment * Corporate • Involves corporation entering into an agreement with a hotel • Contractual agreement that corporation accepts financial responsibility for no-show business travelers • Popular in downtown or business center hotels catering to transient guests • Corporation receives one invoice for several stays 2. Non-Guaranteed Reservations • Hotel holds a room for guest until a stated reservation cancellation hour (4 PM-6 PM) • Does not guarantee property will receive payment for no-shows • If guest does not arrive by cancellation hour, hotel may release the room • If guest arrives after the cancellation hour, hotel will accommodate if available • Hotels planning on full occupancy will accept only guaranteed reservations • Maximize revenue by reducing no-shows • Efficiency and accuracy of reservations is critical in full occupancy

What are the various e-commerce site categories?

1. Merchant model • Also called the markup model • Strategy for online intermediary (such as IDS) to negotiate room pricing with a hotel • The participating hotel is asked by the online seller (merchant) to provide rooms at a discounted rate (20-30%) below the lowest published rate called the net rate • Online seller markets the inventory allocated to it • Merchant will multiply net rate by a similar percent to achieve the gross rate • Tend to rank hotels based on their discounts; the more a hotel discounts its rooms, the more prominently the hotel is listed • Managers feel pressured to provide significant discounts so their hotel will be promoted • Examples: • Hotels.com • Lowestfare.com • Orbitz • Lodging.com • Travelocity 2. Wholesaler model • Hotel maintains greater control over its room price, as a commission is paid to the wholesaler based on a percentage of the hotel's net rate • Hotel sets selling price and wholesaler receives an agreed-upon sales commission • May negotiate a minimum margin to be added to the net rate, instead of working on percent commission • Merchants using wholesaler model tend to earn less than merchant model • Hotels favor the wholesaler model because they maintain greater control over room's final price • Examples: Expedia, Hotwire, Priceline, Travelweb, Orbitz • *Orbitz offers both a merchant model and a wholesaler model platform 3. Opaque Sites • Hotel room is marketed by a price and/or rating category ("three star property"), not by brand or property specifics • Rooms treated as a commodity being sold to the highest bidder • Services, amenities, and ambience not considered in selection process • Brands and its features are hidden until transaction is completed • Only a quality rating and general location are known • Defining whether the guest is a customer of the e-commerce site or hotel can be challenging and confusing • Work on an auction basis • Guests specify a rate they are willing to pay • Site works with available inventory in that price range • May contact hotels to see if they will accept bid price • Rates may be significantly below hotel's published discounted rates, so profit margins are reduced • Many hotel companies do not offer loyalty club points or upgrades to opaque sites • Some offer transparency as a special feature • Examples: Priceline and Hotwire 4. Transparent sites • Rooms are classified or categorized based on room rate or star ranking • Several hotels are identified before buyers make a purchase • Examples: Expedia, Hotels.com, lastminute.com and Travelocity

What are the two types of system interfaces?

1. Non-Guest-Operated Interfaces • Not initiated by guest activity • Point-of-sale (POS) system allows guest account transactions to be transmitted from remote revenue centers to the PMS for automatic posting to electronic folios • Call accounting system (CAS) directs, prices, and tracks guestroom telephone use for pricing and automatic posting • Electronic locking system (ELS): interfaces with rooms management module to provide enhanced guest security and service • Energy management system (EMS) controls the temperature, humidity, and air movement in public spaces and guestrooms through rooms management interface • Manages operation of mechanical equipment for energy control • Minimizing energy consumption becomes a factor in determining which rooms to sell 2. Guest-Operated Interfaces • Hotels provide automated conveniences and services • In-house events and local activities through automated information kiosks, television, or portable communication device in guestroom • Connecting a printer • Guests can review folios and check-out from guestroom • In-room televisions or other devices • Access folio data and approve and settle their accounts • Guestroom telephones interfaced with PMS • In-room specialty devices linked to external information services allow guests to access e-mail, Internet websites, transportation schedules, local restaurant and entertainment guides, etc. • In-room entertainment system • Pay-per-view movie, video game, Internet • Charge automatically calculated and posted to folio • Television preset to a non-pay channel or preview channel • Reduce number of guest disputes about validity of pay TV or movie charges • Require guest to dial in-house department to request pay channel be activated • Preview channel provides hotel with advertising opportunities (hotel's facilities, sell advertising for local attractions) • In-room vending systems • Non-automated honor bars consist of beverage and snack items in both dry and cold storage areas • Bar's beginning inventory level is recorded and employees note changes in inventory on a daily basis and charges are later posted • Honor bars are available at all times, so results in high volume of late charge postings • Automated honor bars or in-room vending equipment • Contain fiber-optic sensors that record the removal of stored products • Transmit point-of-purchase information to POS and posted to folio • In-room fax machine and centralized printer/server • Faxes can be sent directly to and from the guestroom • Serves meeting, convention, and business travelers • Link with telephone system to calculate cost of the fax and posts charge • Centralized printer: guests upload documents through Internet and go to business center to download and print documents

What are the four stages in the guest cycle?

Pre-arrival, arrival, occupancy, and departure?

How can you classify hotels?

Size, target market, level of service, ownership and affiliation

What are the various levels of service?

World Class Service • Luxury service • Target top business executives, entertainment celebrities, high-ranking political figures, wealthy clientele, • Provide upscale restaurants and lounges, exquisite décor, concierge, meeting/private dining facilities, turndown, newspapers • Relatively high ratio of staff members to guests • Executive floors: designated to provide some hotel guests with world-class attention, sometimes known as tower, concierge, or club floors, provide non-standard guestroom furnishings and additional guest services, concierge or personal butler Upscale Service • Travelers seeking exceptional service and accommodations, but at the level of world-class hotels • Clients: business executives, high-level industry meeting attendees, and leisure travelers interested in extra comforts and amenities • Provides multiple food service & dining experiences and often several F&B outlets, each offering a different cuisine • Modern amenities (i.e. flat-panel TVs, luxurious bedding, choice of pillows, in-room coffee stations, ergonomic work environments) • Housekeeping are scheduled twice daily (including turndown) • Providing excellent service: executive floors, valet parking, door & bell service, concierge services, business centers, shopping outlets, etc. • Can range from 100 to 2,000 guestrooms • Some offer large meeting facilities • Four-star or four-diamond hotels Mid-Range Service • Appeal to largest segment of traveling public, • Modest, but sufficient • Staffing level is adequate • May offer uniformed guest services • Medium size: 150-300 rooms • Guests include businesspeople, individual travelers, and families • May offer specialty restaurant or all-day dining room and lounge • Offer meeting rooms, people plan small conferences/meetings/conventions Economy/Limited Service • Growing segment • Basic needs • Clean/comfortable/inexpensive • Meets basic needs; rooms with minimal amenities • May include families with children, bus tour groups, traveling businesspeople, vacationers, retirees, conventioneers • Offer pools/playgrounds/meeting rooms • NO room service/uniformed guest services/large group meeting rooms/laundry/health clubs/full food & beverage service • Many offer free continental breakfast in lobby

Describe the various back office software

• A comprehensive PMS integrates front and back office areas • Offers full range of control over variety of operational areas (i.e. room sales, telephone call accounting, payroll, and account analysis) • Cannot produce complete financial statements unless all the required data are stored in an accessible database • Back office reports depend on front office data 1. General ledger accounting software • Consists of accounts receivable and accounts payable packages • Accounts receivable monitors guest accounts and account billing and collection when integrated with front office guest accounting module • Accounts payable software tracks hotel purchases and helps hotel maintain sufficient cash flow to satisfy its debts 2. Human resources software • Includes payroll accounting, personnel recordkeeping, and labor scheduling • Payroll accounting includes time and attendance records, pay distribution, and tax withholdings • Personnel records include withholding and deductions, labor history, and job performance evaluations • Labor scheduling involves tracking employee skills and availability in relation to the hotel's staffing requirements 3. Financial reporting software enables the hotel to develop a chart of accounts to help in producing balance sheets, income statements, and transaction analysis reports • Inventory control software monitors stocking levels, purchase ordering, and stock rotations. Also computes inventory usage, variance, valuation, and extensions.

How do you issue the room key?

• Agent completes registration process by issuing a room key • In some hotels, they are simply handed a key and directed to the guestroom • In large hotels, the guest may be given a map showing guestroom and facilities location • For security, keys must be carefully controlled • Should have written procedures of who is authorized to issue key, receives keys, and where and how keys are created and stored • Agent should never announce the room number when handing a key • Write it down or point to the room on the hotel map • If they use a special code on guestroom keys instead of room number, they should write the room number or discreetly explain how to interpret the code • Provide key in envelopes and write the room number • If the hotel provides bell service, agent should introduce bell attended to the guest, hand bell attendant the key and ask him to show the guest to the room • Bell attendant should familiarize guest with hotel information by explaining special features and locations of emergency exits, emergency procedures, restaurant locations, retail outlets' hours of operation, location of ice and vending machines • Explain features of the room (thermostat and television) • Hand the room key to the guest • If guest is displeased with the room or if the room is not prepared as expected, the bell attendant should listen attentively and inform the agent

What are possible payment issues for groups?

• Agents must be careful when registering group guests • Group guests often have billing arrangements pre-established • Room and tax charges may be direct-billed to a group master account • Incidental charges (i.e. telephone, F&B, laundry) may be guest's responsibility • Credit for incidental charges must be established for each member • If group pays for all charges, it may not be necessary • Groups often pay all charges for VIPs or speakers, so they just need to sign and verify departure dates before key

What are the buying influences on travelers?

• Buying influences include: • Satisfactory experiences with a hotel • Advertisements by a hotel or a chain organization • Recommendations by family members or friends • Location of a hotel • Preconceptions of a hotel based on its name or affiliation • Recently, Internet • Website's navigational tools • Reservationist's tone of voice, helpfulness, efficiency, and knowledge • Electronic distribution channels have reduced the role of travel agents • Travel management companies: large travel agencies with significant room rate negotiating power • May receive commission • Provide cost savings for clients by consolidating travel of all clients and using bundled buying power to negotiate discounted pricing • Most important factors: quality of service and overall cleanliness and appearance • Business travelers offer an opportunity for repeat business, as well as bring others • Chain or brand loyalty can be a matter of habit, maximization of value to price, or satisfaction with hotel • Difficult for consumers to obtain reliable pre-purchase information about services • Perceive greater risks in purchasing services • Frequent traveler and electronic marketing programs directed toward creating and sustaining brand loyalty • Many programs are affiliated with airline and car rental programs and offer rewards • Frequent travelers come to expect frequent guest programs, thereby devaluing programs • Frequent guest programs are expensive to operate, but most perceive them as worthwhile in retaining repeat guests • Repeat patronage leads to greater satisfaction of needs • One factor affecting brand loyalty is the unavailability of some brands in certain locations • Internet search engines are becoming influential Blogging and Social Networking • Can influence purchasing decisions, affect marketing strategies, and affect corporate image • B-blog: blog dedicated to a specific business or business segment • Social networking services are designed to build upon interaction within an online or virtual community

What is the reservation sales process?

• Can book business many months or years in advance • Sales initiates the reservation and revenue management processes by focusing on committing rooms into the future • Reservations manager is involved in decisions affecting occupancy and revenue opportunities • Monitors group and non-group business • Informs sales of room availability • Responsible for revenue objectives • Proposed group or corporate rate is evaluated and management is notified if discounted rates jeopardizes revenue goals, so they can plan and control future business • Mix of group and transient reservations a hotel accepts • Sales is generally focused on group sales, it is usually allocated a specific number of group rooms to sell (group allocation) • Can sell these rooms without additional approval • If they wanted to sell more, must have approval of sales director or general manager • Reservations manager evaluates requests and reports impact

Describe general management software

• Cannot operate independently of other front office software packages • Report-generating that depend on data collected through reservations management, rooms management, and guest account management programs • Natural link between front and back office system interfaces

Describe CRO

• Chains that have several properties in a geographic area establish this • Satellite office operates similarly to a CRS, but serves one specific destination area instead of the entire company • All reservations are channeled through the cluster reservation office • When guest calls hotel directly, the hotel transfers the call to the cluster office • Central reservations network is connected to the cluster office as well as the property itself • Advantages • Reduction in labor • Able to cross-sell other properties: Convenience for guests and improves occupancy • Efficiency: Room rates and availability coordinated among properties, the brand's central reservations network, and global distribution systems • May operate in one centrally located hotel or office building away from hotels • Makes good communication important • Coordinating with remote office has challenges • Most important is training: less opportunity to become familiar with hotel's rooms, facilities, and amenities • Hotel managers must visit office frequently and keep agents informed

What departure activities take place in front office?

• Computer system may automatically post transactions to back office accounts • Producing a bill to be sent to guest or credit-granting agency • Once account is settled, creates a guest history file • Outsourcing or application service providers (ASPs) enable hotels to enjoy automation without in-house technology • Hotel provides bureau with data • I.E. payroll accounting • Service bureaus are not feasible for front office activities • ASPs use Internet to support front office processing and recordkeeping

What is upselling?

• Create consumer acceptance of the hotels products • Describe the hotel's facilities and services in an attractive and positive manner • Opportunity to make individual sales presentations • Must know how and when to ask for a sale in a non-pressuring way and how to direct the sales effort • Upselling: offer guests the opportunity to rent rooms in categories above standard rate accommodations • Rate categories based on factors like room décor, size, location, view, & furnishings • Offering guestroom options requires thoughtful planning and practice • Majority of upselling is during the reservations process, but agents will have opportunities with walk-in guests • Hotels offer incentives for staff who upsell rooms • A guest will probably provide clues about what is acceptable • Mention physical features as well as benefits and conveniences • Guest normally completes a registration form after selecting a room • Agent may reinforce the guest's choice by recapping the room's location and special features • Inform guest about hotel's revenue outlets, services, and facilities • Thank guest for choosing the hotel and express a personal interest in making the guest pleasant • Some agents place a phone call to the guest's room shortly after registration to ensure accommodations are satisfactory.

How do you establish credit/debit cards as a method of payment?

• Credit cards are plastic cards with magnetic stripe that are assigned a line of credit • When a charge is made, it is applied to the cardholder's credit line • Statements are sent every month • May be rejected if account is over preapproved limit • Travel-and-entertainment (T&E) cards are expected to be paid in full each month (American Express and Diners Club) • Bank cards (Visa, MasterCard) are provided an installment payment plan that applies a rate of interest on balances carried forward to the next payment cycle • Debit card is attached to a savings or checking account • Immediately reduces the balance in the account • No credit extended • Rejected if there is insufficient funds • Careful authorization and verification of card payment is important • Have an attorney review card payment procedures • Local banks provide procedural guidelines • Expiration date and location validation • If card is expired, agent should request an alternative method • Card payment companies not required to honor transactions with an expired card • Some banks issue cards that are good only in a specific country • Online authorization • Ensure card isn't listed as stolen or invalid • Validate through an online clearinghouse service • Magnetic stripe is swiped and an electronic-data-capture (EDC) is initiated • Consults and account database and generates either an authorization code or a denial code for the transaction • Advantage: agent can perform other tasks while the service verifies the transaction • Agent checks terminal to obtain and record authorization/denial code number • Online authorization services charge a transaction processing fee • Invalid card • Follow procedures when card is invalid or signature does not match • Politely request an alternate form of payment without attracting attention or embarrassing the guest • If the guest has no other acceptable means of payment, refer to the front office credit manager or GM • May contact hotel security; exercise care in detaining guests because if unjustified or improperly instituted, may be accused of false imprisonment and slander • Imprinting the voucher • If no online access, imprint approved, valid cards onto approved card vouchers • Circle expiration date and initial validation number as proof of procedures • Attach voucher to guest's folio or placed in voucher file • Guest signs voucher at check-out • Card-payment company requiring EDC swipes should reduce fees to encourage use of system • Floor limits • Floor limit: Maximum amount in charges the hotel can accept without requesting special authorization on behalf of a card holder • Assigned by credit card company • If exceeds this limit, must contact card company to request approval • Penalty for not obtaining authorization is forfeiture of entire amount charged • Automated system that monitors guest account balances can identify accounts approaching the limit • Some lodging properties ask companies to assign unusually high floor limits, given room rates • With a higher floor limit they will not have to inconvenience guests by frequently authorizing transactions or having to secure alternative methods of payment • Reserving credit • Front office may reserve preauthorized credit in credit card account to ensure payment • Reserve a credit line of at least an amount equal to the anticipated charges • Laws that pertain to reserving credit • Guest that leaves early might have credit tied up • Laws vary by state • In some states, hotels obligated to notify credit card company to release unused credit when guest checks out • Can only reserve credit if it informs guest beforehand and obtains consent • Should consult legal counsel before establishing policy • When guest checks in, agent asks for a method of payment before retrieving registration info • Swipes credit/debit card and displays registration record • System automatically calculates the amount of credit to be reserved and contacts the card company • By the time registration is completed, the hotel should have an approval or denial code • Debit cards do not establish credit and some hotels may not accept debit cards if guests are planning to use them for settlement • If guest uses a debit card, hotel sill treat them as a PIA guest • Denying a credit request • Exercise extreme care • Often involves self-esteem • Be as diplomatic as possible • Tone of voice should remain friendly and subdued • Guest has a right o know why you will not accept • Suggestions for Resolving Credit Problems • When a credit card issuer refuses to authorize a transaction: • Discuss the matter with the guest in private • Use care when describing the guest's unauthorized transaction (for example, do not call the guest's credit card "bad" or "worthless" • Offer telephone to resolve the matter with a credit card representative • Allow the guest a chance to provide alternate, acceptable means of payment • When a guest's personal check cannot be accepted: • Explain the hotel's check cashing policy • Remain friendly and cooperative • Discuss alternative methods of payment • If local banks are open, direct guest to nearby branch or offer use of a telephone

Describe the property reservations department

• Depending on volume of direct customer contact, may have a reservations department • 200 rooms+ • Reservations handles direct request for accommodations, monitors any communication links with CRS and intersell agencies, and maintain updated room availability status • Property-direct reservation requests can reach a hotel in several ways • Telephone: most common • Mail: common for group, tour, and convention • Property website • Property-to-property: Encourage guests to plan their next hotel stay while in an affiliated property by offering direct communication between properties • Faxes and other sources: small proportion of transactions. I.E. TDD equipment (teletype machine for deaf people to communicate by phone)

Why/how can you deny accommodations?

• Discrimination is prohibited in places of public accommodations • Legitimate reasons include: • Lack of available rooms • Disorderly conduct • Inability or willingness to pay • Management will determine whether someone will be roomed or not, not agent • Also responsible for informing the person that they are turned away • Management should instruct front office staff on policies and procedures • Advice of legal counsel • Hotels will make other arrangements for the guest • Most full-service hotels will arrange for & pay for guest's room at another property • Without guaranteed reservations, hotel may have no obligation to guests • Generally speaking, guest with reservations who arrive before the cancellation hour should be accommodated 1. Walk-In Guests • Hotels have no obligation to accommodate guests who arrive without a reservation when no rooms are available • Agent can provide directions to nearby hotels or offer to contact another hotel • Hotels should keep a list with phone numbers of comparable properties in the area • Hotel can benefit through mutual guest referrals • Compare how well hotel is doing on a given night with other area hotels • Competing properties may reciprocate • Walk-in guest incorrectly believes they have a reservation • Verify the date and name of the hotel on letter of confirmation • Ask whether another person might have made the reservation for the guest; may be at another property or may be misfiled under the caller's name • Double-check reservation for another spelling of the guest's last name or perhaps first and last names were reversed • If made through travel agency/representative, allow guest to call originating source • Verify no-show registration information from the previous day • If there is no alternative to walking (turning away) the guest, a manager should explain the matter in a private area 2. Guests with Non-Guaranteed Reservations • Frequently do not have the chance to change a non-guaranteed reservation to a guaranteed reservation in time for the cancellation hour • Management must be tactful when informing the guest. Blame should not be placed on either party, since the lack of accommodations may not be the fault of the guest or the hotel 3. Guests with Guaranteed Reservations • If reservations are carefully handled and sound forecasting procedures are followed, the property should not have to deny any guest with a guaranteed reservation • It is serious to turn away guests with a guaranteed reservation: some states have laws prohibiting hotels or penalties may be imposed • Front office manager should take charge and make the necessary decisions. • Manager may do the following: • Review all front desk transactions to ensure full occupancy • Re-take an accurate count of rooms occupied • Compare information in the rooms availability file, the housekeeper's report, and guest folios for discrepancies in occupancy status • Contact in-house due-outs (guests expected to check out) who have not yet checked out to confirm their departure time. If they do not answer the telephone, the rooms department should visit the guestroom to verify continued occupancy. An early discovery of a skipper will reveal a room that can be made available. • Verify guestrooms with an "out-of-order" status to ensure accuracy. Perhaps it might be readied for sale if the room problems are minor. • If a guest is willing to occupy an out-of-order room, its rate could be adjusted • Out-of-order room should never be offered if the room has serious deficiencies • Out-of-order room must be inspected first and the department placing the room on out-of-order should be notified • FOM should check out-of-order report daily to ensure rooms are available ASAP • Identify rooms pre-blocked for one or two days in the future. The guest can be given one of these rooms, if he or she will depart in time to honor the blocks • Suggestions in dealing with walking guests • Guests should be encouraged to return at the earliest date of availability. Place them on a VIP list, provide with a complimentary room upgrade or present with a small gift as compensation • Management should prepare a follow-up letter apologizing and encouraging the guest to return (with incentives) • If a member of a convention block cannot be accommodated, the group's meeting planner should be notified. The planner may be able to alter the current rooming status. Enable the planner to properly deal with problem & subsequent complaints. • Hotel may pay the transportation expenses associated with having the guest travel to an alternative property • Notify its telephone department so incoming calls and faxes can be redirected without confusion or concern

What are the various reservation reports?

• Effective reservation system maximizes room sales by accurately monitoring room availabilities and forecasting rooms revenues • Management reports • Reservation transactions report: summarizes daily reservations activity in terms of creation, modification, and cancellation. Include specialized summaries such as cancellation reports, blocked room reports, and no-show reports • Commission agent report: agents with contractual agreements may be owed commission • Regrets and denials reports • Regrets: when guests choose not to make a resrevation; reasons include room rate, room type, availability, location, etc. • Denials: when hotel is unable to accept a reservation request (due to room availability or restrictions put on new reservations). Helps mgmt. decide on group allocations or if more rooms of a certain type must be added. Also called the "turnaway report" or "lost business report"; • Revenue forecast report: projects future revenue by multiplying predicted occupancies by applicable room rates. Important for long-range planning and cash management 1. Expected Arrival and Departure Lists • Generated according to a pre-determined schedule or on demand to indicate the number and names of guests expected to arrive, depart, or stay over • Displayed in reservations or at front desk • Expected arrival facilitates guest registration • Expected departure can anticipate and expedite guest account settlement and check-out • Identify guests who stay beyond expected departure date but have not told hotel (overstays) - important in high occupancies • Preregistration functions and provide services for VIPs • Guest may need only to sign a pre-arrival form or submit credit card • By securing comprehensive information during reservations, more efficient guest registration process 2. Processing Deposits • Advance deposits for reservations should be processed by employees who do not have direct access to reservation records • Reservations personnel should not directly handle checks or cash • Separation of duties provides better security • GM's secretary or general cashier • Endorse deposit checks immediately and record them in log • Log sent to reservations, where the reservations record should be updated • Transaction report should verify deposits • Discourage guests from sending cash through the mail • Checks are better, credit cards are preferred 3. Reservations Histories • Identify trends, review products and services, and assess the impact of its marketing • Reservations histories included statistics on: • Number of guests • Occupied rooms • Reservations by distribution channel • No-shows • Walk-ins • Overstays • Understays • Stayover: guest who continues to occupy a room between his day of arrival and expected departure date • Knowing overstay and understay percentages help mgmt. plan for accommodating walk-ins • Group booking patterns is also important

Describe reservations management software

• Enable hotel to rapidly process room requests and generate timely and accurate rooms, revenue, and forecasting reports • Most lodging chains participate in remote reservation networks known as global distribution systems (GDSs), Internet distribution systems (IDSs) and central reservation systems (CRSs). • GDSs capture, process, and forward reservation information generated mostly by travel agents and airlines (i.e. Sabre, Galileo International, Amadeus, and Worldspan) • IDSs are intermediary websites that represent hotel companies and sell overnight accommodations on a commission or mark up fee basis • Capture guest reservation data and may be automatically connected to the hotel's reservation management system through a GDS or CRS • Examples: Travelocity, TravelWeb, Priceline, Orbitz • CRSs are often operated by the hotel company • Communicate reservations data, track rooms reserved, control reservations buy room type and room rate, and monitor the number of reservations received • Most mirror the property management system's reservation information • Property using an in-house reservation module may be able to receive data sent directly from any or all remote reservations networks • Automated in-house reservations records, files, and revenue forecasts are immediately updated as reservation data are received • System remains current and in control • Many systems allow two-way communication between remote reservations networks and property-level applications, enabling instant updates of inventory and guest information • Seamless integration: Accurate guestroom inventories and pricing are shared between systems • Previously received reservation data can be reformatted into pre-registration applications • Reservation management reports can be generated • E-mails of reservation confirmation • Rate control features, guest history modules, and more detailed property information (i.e. bed types, views, amenities, space, public areas, recreation) • Can track deposits due, request deposits, and record deposit payments made

Describe IDS

• Examples: Expedia, Hotwire, Priceline, and Travelocity • Enable travelers from different market segments to use computers to book flights, hotel rooms, and cars • Chains have a website focusing first on brand and its features, then on individual properties • Allow visitors to book reservations • Independent hotels may not have sophisticated websites, but provide similar information and allow visitors to book reservations • Some guests are concerned about privacy and security of financial transactions over Internet • Security procedures based on reliable encryption methods protect against fraud • Provides: • User-friendly reservations process • Securing transactions • Marketing • Special events and rate promotions • Multimedia presentations of features and benefits of hotel chain (and hotels) • Walk-through, virtual tours • Reserve golf, spa, tours, etc.

What is e-commerce?

• Extends reach of hotels far beyond traditional distribution channels • Hotels have a presence in multiple distribution channels and direct access to consumer through the Internet • Difficult: knowing which sites provide best distribution opportunities, which hotel features to present, and which room rates to display • In mid-1990s, hotel companies sought a web presence • First-generation: placed property brochures online and hotel guests contacted hotel by phoning number displayed to make reservations • Second generation: ability to book reservations online; offering fully interactive reservation capabilities with multiple room types and rates and real-time confirmation • Lookers became bookers as consumer confidence in online hotel reservation processing increased • Hotel companies added search engine capabilities, group sales, and advanced navigational features • 360-degree panoramic picture, peruse dining room menus, and receive web-cam streaming video • Search city, size and brand, rom type, function room type, convention settings, nearby business/points of interest • Revenue manager manages electronic business transactions • Corporate managers implement elaborate technology to oversee revenue management and e-commerce requirement • Websites now combine air and car with hotels into one booing engine for ease of bundled purchasing and price discounts • Many specialized travel-related sites • Brand-loyal travelers (Hilton, Marriott, choicehotels.com) • Meeting professionals (mpoint.com, starcite.com) • Bargain shoppers (priceline.com, site59.com) • Cruise travelers (celebrity.com, cruise.com, cruisesonly.com) • All-inclusive hotels resortvacationstogo.com) • Interval-ownership vacations (rci.com, interval.com) • E-commerce must be effectively managed on a daily basis to ensure hotel's information and pricing are properly presented

What does the revenue manager do?

• Forecasts demand for each market segment • Determines the room rates that provide sufficient room revenues and occupancies • Coordinate with reservations, front office, and sales

What are the reservations activities?

• Formulating the reservation inquiry • Determining room and rate availability • Creating the reservation record • Confirming the reservation record • Maintaining the reservation record • Producing reservation reports • Researching, planning, and monitoring reservations

What are some suggestions for upselling rooms?

• Greet each guest with a smile in your voice and face. Be pleasant and businesslike • Establish and maintain eye contact • Use guest's name at least three times. Use courteous titles, such as "Mr." or "Ms." • Identify needs of the guest. Match the guest's needs to the furnishings and/or amenities from among the available rooms • Upsell rooms when possible. Point out features and benefits first, then mention its rate. Describe the differences between the reserved and the upgraded room. Walk-in guests provide the best opportunity for upselling. If two types of room are available, mention the features, benefits, and rates of both. Do not risk losing the sale by only mentioning the higher-priced room. • Complete the registration process • Thank the guest and wish him a pleasant stay

What occurs in the pre-arrival stage?

• Guest chooses a hotel during the pre-arrival stage • Type of travel is often important factor • Business: concerned about convenience over price • Vacation or personal reasons: cost-conscious • More flexible about where they travel/which hotel • Popularity of Internet sites with discounted hotel rooms • Guest considers factors: previous experiences with hotel, ads and promotions, company travel policy, recommendations, location and reputation, frequent traveler rewards programs, and preconceptions based upon name or chain affiliation • Influenced by ease of making reservations and how hotel's reservations agent or website describe hotel ant its facilities, rates, and amenities • Reservations department is sales office for non-groups • Front office staff's attitude, efficiency, and knowledge may influence decision • Reservations agent must respond quickly and accurately to requests • Efficient procedures • If reservation request matches room availability, request can be accepted and agent creates an electronic reservation record • Initiates hotel guest cycle • Enables hotel to personalize guest service and schedule necessary staff and facilities • Assures guest that his/her needs will be addressed • Using information collected during reservations, a property management system (PMS) (hotel's main computer system), may initiate pre-registration • Assigning room and rate • Creating electronic guest folio: record of charges incurred and credits acquired • Automated reservation system maximizes room sales by accurately monitoring room availabilities and forecasting room revenues • Most important outcome of effective reservations is having a room available when guest arrives

What departure documents are generated?

• Guest folios are kept current throughout occupancy • Credit card voucher, cash voucher, transfer voucher (direct-bill guests) • Documents may be generated to prove transactions and for audits • Guest history file helps marketing and sales efforts and in registering and serving guest during a return visit • Systems automatically create an electronic guest history file as part of the check-out process

What arrival activities take place in front office?

• Guest information is transferred from reservation record to PMS • Agent enters guest information for walk-in guests • Present guest with registration card for verification and signature • Electronic guest folios are maintained and accessed through software • Self check-in/check-out terminals recently available with the cost of technology decreasing • Insert credit card • Verify name, departure date, rate, and room type • Dispense rooming slip and guestroom key • World-class-service hotels may not use this • Self check-in accepted in large convention hotels, economy-priced, and some mid-range hotels • Eliminates need for a night shift • Allows guests to register via the Internet • Confirm arrival information • Arrive at hotel, show ID, and pick up keys

What occurs during the departure stage?

• Guest services and guest accounting are completed during departure • Processing guest out of hotel and creating a guest history file • Settlement of guest's account • At check-out, guest vacates room, receives statement of settled account, returns keys, and leaves • Once guest has checked out, FO updates room's availability and closes account • FO staff should determine if guest was satisfied with stay and encourage them to return or to another property in the chain • The more info a hotel has about its guests, the better it can anticipate and serve their needs and develop marketing strategies to increase business • Important for guests to leave with a positive impression • PMS automatically construct guest history file when guest checks out • Collection of guest history records • Includes spending details • Purpose of account settlement is to collect money • Account balances should be verified and errors corrected • Late charges: when charges are posted to account after guest checks out • Irritate guests who have to submit incomplete expense accounts to company • Settling accounts with department guests is transferred to back office, but FO provides complete and accurate billing information • FO analyzes data after guest checks out • System-generated reports review operations, isolate problem areas, indicate corrective action, and highlight business trends • Daily system reports present information about cash and charge transactions and front office operating statistics

What are the hotel size categories?

• Hotels grouped into four size categories • Under 150 • 150-299 • 300-600 • 600+

What is included on a reservation record?

• Identify guests and their needs before arrival • Enables hotel to personalize and/or customize service and schedule staff • Create reservation records after determining that request can be met • These records initiate the guest cycle • Captures such guest data as: • Name (and group name, if applicable) • Home or billing address • Telephone number • Name, address, and number of guest's company (if applicable) • Name of and pertinent information about person making reservation (if not guest) • Number of people in party and ages of children • Arrival date and time • Number of nights required or expected departure date, depending on how system is designed • Reservation type (guaranteed or non-guaranteed) • Special requirements (infant, disabled, no-smoking) • Additional information (transportation, late arrival, flight number, room preference, e-mail, etc.). • If a guest plans to arrive after cancellation hour, should be informed of policy • Once information has been captured, system may assign a confirmation number • Provides guest and reservations with unique reference • Depending on guest's method of guarantee, the following may be required: • Credit card information: consists of card type, number, expiration date, and cardholder's name • May be connected to a transaction processing service that allows for automatic verification • Prepayment or deposit information: agreement to submit deposit before specified date • Closely monitored to ensure correct amount is paid by date, if not reservation may need to be canceled or reclassified as non-guaranteed • If policy is to collect deposit at time of reservation, notify guest • If credit card is provided, transaction processing services will post deposit immediately • Corporate or travel agency account information • Includes name and address of booking company, name of person making the reservation, and client's corporate or travel agency direct billing number • Hotel may preload approved list of account numbers • Tracking account is set up to monitor business the corp/agency provides, so sales has info to negotiate or renegotiate contracts • Disclose important aspects of guaranteeing a reservation • Guests must be informed that their accommodations will be held until a specific time past their scheduled arrival • If they fail to cancel reservation, may forfeit the deposit or hotel may levy a charge • Individual properties and chains differ in quoting and confirming room rates during creation of a reservation record • A rate quoted and confirmed during reservations must be honored • Reservations may modify rates based on: • Extra services or amenities • Arrival or minimum stay requirements in effect for dates requested • Special promotions • Currency exchange rates • Room tax percentages • Service charge or gratuities

How do you fill special requests?

• May involve guestroom: • Location (close to elevator) • View (overlooking ocean, pool, or city) • Bed type • Furnishings (crib, XB) • Smoking/no-smoking status • Amenities (bedboards or ironing boards) • Special furnishings for disabled guests • ADA requires lodging establishments to have special accommodations for disabled guests • High-speed Internet access • Entertainment systems, such as on-demand video systems and video game systems • Sometimes special requests are made by another person on behalf of the guest (i.e. GM, travel agents, relatives) • It is important for the front office to follow up on requests detailed during preregistration • Guests are quickly disappointed if they find the hotel did not honor their requests • Agents should mention special requests at check-in to ensure it's provided

What occurs during the arrival stage?

• Includes registration and rooming functions • FO staff's responsibility to clarify nature of guest-hotel relationship and monitor financial transactions • Entrance is the first place guests interact with hotel staffs • World-class, upscale, convention, casino, and resorts station attentive uniformed staff at door • Door attendants: direct traffic in entrance, help guests unload luggage, open doors, provide directions and information • Valet provides parking assistance • Bell attendants escort guests with luggage to front desk • Most midscale, economy, or limited-service hotels do not employ these • Walk-ins allow agents to sell guestrooms • Agent must be familiar with room types, rates, and services to convince walk-in of the value of renting a hotel room • Once a person is registered, they legally become a guest • Registration record includes: • Information about guest's intended method of payment, planned length of stay, and any special needs (XB or crib) • It should include guest's billing address, e-mail address and telephone number • When guest presents form of identification, serves as proof of intent to establish inn-keeper-guest relationship • Presenting valid credit card • Hotel obtains legal assurance of payment, guest obtains legal assurance of personal safety • Gathering all information at time of reservation and registration enhances FO's ability to satisfy guest needs, forecast room occupancies, and settle accounts properly • At check-out, create a guest history record • Personal and financial information • Helps hotel in marketing and sales efforts • Provides basis for return stay • Room and rate assignment depend on reservation information (long-run availability) and room status (short-run availability) • Housekeeping status must be communicated to front desk ASAP so PMS can maximize room assignments • Agents must be sensitive to accessibility issues for guests with physical impairments • Barrier-free: facilities and accommodations designed with disabled guest and visitors in mind • Features: extra-wide doorways, extra-large bathrooms, grab bars beside toilet and in bathtub, roll-in showers, lowered vanity countertops, extra height under sink, handles on doors instead of knobs, strobe lights and pillow shakers • Once registration record is created, agent identifies method of payment • Proper credit check ensures eventual payment • Registration is complete once guest establishes his method of payment and departure date • Guest is issued a room key and allowed to proceed to the room • When the guest arrives at the room, the occupancy stage begins

Describe guest account management software

• Increases control over guest accounts and significantly modifies front office audit • Guest accounts are maintained electronically, eliminated need for folio cards, folio trays, and account posting machines • Monitors predetermined guest credit limits and provides flexibility through multiple folio formats • At check-out, outstanding account balances are transferred to back office accounts receivable • Account management capabilities represent major benefits of a PMS • When revenue outlets are connected to FO, remote POS terminals can communicate guest charges to the PMS • Automatically posted to folios • Improve efficiency, while reducing late charges (charges after guest checks out)

Describe rooms management software

• Maintains information on status of rooms, provides room rates, assists in room assignment during registration, and helps FO coordinate guest services • Provide rapid access to room availability data during certain aspects of the reservation process • Especially useful in short-term reservation confirmation and rooms revenue forecasting • Enter a guest's specific requests; feature maintenance and special-request dispatch • Assists reservations function • Rooms taken out of inventory, number of available rooms is automatically reduced • Controls future room inventory and ensure that all guests have rooms ready when they arrive

Describe CRS

• Majority of lodging properties belong to one or more central reservations systems • Responsible for maintain a room availability inventory • Two types: affiliate networks and non-affiliate networks • Affiliate reservation network • Hotel chain reservation system in which properties are contractually related • Every chain operates its own reservation network or outsources • Advantages • Streamline processing of reservations and reduce overall system costs • One chain property attracts business for another property • If one property is full, may provide online referral to hotel in same area • Refer to properties whose locations are more convenient or suitable • For groups, information may be shared • Overflow facilities: Non-chain properties in an affiliate reservation network • Represent themselves in a broader market • Reservations routed to overflow facilities when all chain hotels booked • Pay fee for referrals • Non-affiliate reservation network • Subscription system to connect independent or non-chain properties • Enjoy benefits of chain-affiliate operators • Advertising of service • I.E. Leading Hotels of the World, Preferred Hotels & Resorts Worldwide, and Distinguished Hotels • Accept only hotels of a certain quality or a limited number in an area to keep value of their service high to members • Central reservations office (CRO) deals directly with the public by toll-free number or online • Large lodging chains support two or more centers • Reservation centers/websites operate 24 hours a day, most days of the year • Peak times increase agents on duty • Exchange room availability information with member properties and communicate reservation transactions as they occur • Reservations immediately transmitted between central reservations office and hotel • Rapid-access systems ensure accurate and up-to-date info • Hotel companies maintain information at CRO • Master system can be the CRS • Each hotel's PMS can hold master information and CRO can access it when processing reservations • When reservation is handled at CRO, property-specific rate and availability data must be uploaded to CRS and completed reservation transactions are downloaded to PMS • CRS provides communication equipment (computer, website, network, fax, PDA, TDD) and charges a fee for services and support equipment • May play flat fee for equipment and additional for reservations processed • May pay a flat percentage of room revenue to cover all CRO expenses • Each property provides accurate and current room availability data to the CRO • CRS may also function as an: • Inter-property communications network • Accounting transfer system • Destination information center

What occurs during the occupancy stage?

• Manner in which front office represents the hotel is important particularly during occupancy stage • Center of hotel; coordinates guest services • Provides guest with information and supplies • Should respond in a timely and accurate way • Concierge provides special services • Objective: encourage repeat visits • Guest relations depend on clear, constructive communications between the front office, other departments, and guests • Hotel must be aware of a guest complain to resolve it • Agents should attend to guest concerns and try to seek satisfactory resolutions as quickly as possible • Security is a primary concern: verifying guest identity and protecting guest funds and valuables • Most financial transactions automatically processed through PMS • Additional expenses can be charged if guest establishes acceptable credit during registration • House limit: maximum limit established by hotel • Accounting records must be periodically reviewed for accuracy and completeness • Perform audit at night since transaction volumes are lower • Room charges are automatically posted to guest accounts as part of audit routine • Audit tasks include online verification of account postings, monitoring of accounts and credit limits, identification of discrepancies in room status, and production of operating reports

How do you verify the guest's identity?

• Many hotels require positive identification for registration • Common in Europe, especially for international guest • Agents ask for a passport to ensure name, address, signature, and photograph • Since terrorist attacks, common at U.S. hotels • For domestic guests, driver's license or other form of photo identification is ok • International guests should be asked for their passports • Record identification type and number • If the guest does not speak the local language, this should be noted in record in case of emergency and noting translation requirements

Describe GDS

• Most CRSs connected with one of the GDSs • Mostly Business to Business • Most airlines are connected to one of four GDSs • SABRE • Galileo International • Amadeus • WorldSpan • Historically, GDSs have been owned by an airline or consortium of airlines, but that has changed • Provide worldwide distribution of hotel reservation info and allow selling of hotels all over the world • Support distribution of airline, car rentals, etc. • Linking reservations systems to travel agencies provides access to travel & tourism inventories around the world • Selling hotels room is accomplished by connecting hotel company reservation system with the GDSs • Travel agents have terminals connected to airline reservation systems • By having hotel and cars available in system at same time, GDSs provide single-source access to most of a travel agent's selling requirements in one transaction. • Travel agents may be reluctant to book through GDSs, fearing room availability and rates are inaccurate and confirmation process may be frustrating • Seamless integration or seamless connectivity: Hotels have improved service by linking their CRS to GDSs, which allows travel agents to book reservations directly into hotel systems and verify availability and rates

How are hotels becoming more eco-friendly?

• No standard definition to eco-friendly • New property can more easily establish environmentally friendly systems • Traveling public are becoming interested in hotels that are environmentally friendly • U.S. government agencies have a policy that requires hotels and convention centers to file data with the U.S. Environmental Protection Agency if they wish to earn the agencies' business • Goals of a green property: reducing greenhouse gas emissions, carbon neutrality, recycling, and organic gardening • Capturing waste heat, using renewable energy sources, educating guests about environmental issues • Green operations generate both economic and environmental advantages * LEED Certification and the Energy Star Program • Hotel industry plays a major role in the successful implementation of ecotourism ~ LEED Certifications • U.S. Green Building Council (USGBC) certify that buildings meet standards of energy efficiency, conservation, and community sensitivity • Developed to encourage and accelerate global adoption of sustainable green building and development practices • Five important areas of environmental health • Sustainable site development • Water savings • Energy efficiency • Materials selection • Indoor environmental air quality • Advantage: decreased operating expenses and increased occupancy value over life of the building • Platinum, Gold, Silver, and Certified ~ Energy Star Program • EPA's program • Energy Star Award for increased energy efficiency • Reduced costs and increased satisfaction ~ Hotel Compliance • Hotels engaged in a variety of architectural, electrical, mechanical, and natural-process improvements • Objective is to minimize waste and maximize efficiency • Energy management • Improved technology • Renewable energy program (wind power, run-of-river, solar, window tinting) • Interconnecting energy management systems with PMS to ensure reduction when room is unoccupied • Replace light bulbs, efficient laundry, digital thermostats, smoke-free policy, replacing air filters, drying laundered items in the sun • Water management • Biodiversity management • Waste management • Recycling • Compost food waste or donate • Purchase items not packaged individually • Purchase supplies from green vendors • Pitchers and glasses instead of bottled water • Recyclable cutlery and napkins * Green Meetings • Certain companies require hotels meet certain green requirements before they have a meeting there • Resources becoming rare and expensive • Greening of a meeting: not pre-filling water glasses, collecting name tags and badge-holders for reuse, providing recycling areas, using compostable cups instead of water bottles, use biodegradable and recyclable materials • More than 60% of meeting planners avoid a destination with a poor environmental record • Minimize negative impact on environment • Save money while improving the environment

Define the various room status terminologies

• Occupied: a guest is currently registered to the room • Complimentary: the room is occupied, but the guest is assessed no charge for its use • Stayover: guest is not expected to check out today and will remain at least one more night • On-change: Guest has departed, but room has not yet been cleaned & readied for resale • Do not disturb: the guest has requested not to be disturbed • Sleep-out: a guest is registered to the room, but the bed has not been used • Skipper: guest has left the hotel without making arrangements to settle his account • Sleeper: the guest has settled his or her account and left the hotel, but the front office staff has failed to properly update the room's status • Vacant and ready: the room has been cleaned and inspected and is ready for an arriving guest • Out-of-order: The room cannot be assigned to a guest. A room may be out-of-order for a variety of reasons, including the need for maintenance, refurbishing, and extensive cleaning • Lock-out: the room has been locked so that the guest cannot re-enter until he or she is cleared by a hotel official • DNCO (did not check out): the guest made arrangements to settle his or her account (and thus is not a skipper), but has left without informing the front office. • Due out: room is expected to become vacant after the following day's check-out time • Check-out: the guest has settled his or her account, returned the keys, and left the hotel • Late check-out: the guest has requested and is being allowed to check out later than the hotel's standard check-out time

What occupancy documents are generated?

• Once guest is registered, FO creates an electronic guest folio to capture guest charges and credits • Folio formats vary • Information from guest record is used to create the folio • Minimum of two copies is generated (one as a record of guest's stay, the second the guest during check-out); additional copies may be needed for direct billing after departure and to reconcile sales reports • System assigns an account number or reservation number • Voucher: a support document detailing a transaction • Does not replace source document • Common vouchers include: charge vouchers, allowance vouchers, transfer vouchers, and paid-out vouchers • Ensure all transactions have been processed correctly • Automated properties require few vouchers (or none) • Remote revenue centers are electronically connected interfaced • Terminals quickly access guest records and display comprehensive information • Interfacing technology connects other electronic equipment (POS terminals, electronic locks, call accounting devices, energy management systems) to FO

Describe sales automation systems

• PMS and sales automation systems are implemented in tandem • Manage group reservation blocks and meeting-room space availability sales • Strategic tool that maximizes revenues while tracking the monetary value of group business relationships • Salesperson can evaluate number of available rooms on a continuous basis • Group allocations expected to decrease with each group reservation commitment • Group allocation will increase when groups give room reservations back to hotel or management allocates more rooms to a group • Maintaining accurate and consistent information about the status of group room reservations (whether the rooms are available or blocked) is critical • Hotel may be unaware of rooms available to sell • Group salesperson may oversell group allocations • One salesperson should be responsible for ensuring information is properly balanced in each system • Interfacing gives group sales managers a clear view of rooms inventory • When group room reservations are returned to the hotel, the rooms will be made immediately available for sale • SAS collect data to identify booking trends and have memory to track group histories • Most store actual group guestroom usage (called group pickup), room rates, and nonroom (F&B, facilities, amenities, etc.) rates. • Next time, management will be better able to allocate a group block • Some chains provide affiliate properties access to a centralized group history files • Group history files store: • Information on group sales and revenues and the number of rooms blocked (allocated) and booked (reserved) • Banquet menus, meeting space usage, VIPs, billing history, may also be available • Check-in and check-out pattern • Number of no-shows, early departures, suites reserved, and rooms with two beds reserved

What occupancy activities take place in front office?

• PMS locates automated devices throughout hotel • POS terminals, data workstations, smart ID tags, handheld units • Guest charges at revenue outlets, charges transferred to PMS and account is updated • Supports two-way (duplex) interfaces, so status of each guest is verified before system accepts the charge for posting • Technology frees the front office auditor to spend more time auditing than balancing

Define the various room types

• Single: assigned to one person (1+ beds) • Double: assigned to two people (1+ beds) • Triple: assigned to three people (2+ beds) • Quad: assigned to four people (2+ beds) • Queen: room with a queen-sized bed (1+ people) • King: room with a king-size bed (1+ people) • Twin: room with two twin beds (1+ people) • Double-double: room with two double (or queen) beds (1+ people) • Studio: room with a studio bed (couch that can be converted into a bed); may also have an additional bed • Mini-suite or junior suite: A single room with a bed and a sitting area. Sometimes the sleeping area is in a bedroom separate from the parlor or living room • Suite: Parlor or living room connected to one or more bedrooms • Connecting rooms: Rooms with individual entrance doors from the outside and a connecting door between. Guests can move between rooms without going through the hallway. • Adjoining rooms: Rooms with a common wall but no connecting door • Adjacent rooms: Rooms close to each other, perhaps across the hall

Describe pre-registration activities

• Preregistration activities: registration activities that occur before the guest arrives • Accelerates the registration process • Uses the information collected during reservations • Preregistered guests need only verify information and provide signature • Preregistration involves: • Room and rate assignment • Creation of guest folio • Some reluctant to assign specific rooms in case reservations are canceled or modified • Specific room assignments become jumbled wit last-minute changes • Assigning a large percentage of vacant rooms may limit the number of rooms available to non-preregistered guests • Imbalance can slow down the registration process • Preregistration may be limited to specially designated or VIPs • Managers prefer to preregister guests • Shortens the check-in process • Helps identify what rooms are available • May have to void pre-arrival room assignments but registration time saved compensate • In order to fill the house properly, may apply reservations management software • Innovative registration options • Courtesy van can register guest • Services at the airport • Registering VIPs at concierge desk and taken directly to their room • Preregistration ensures loyalty/affiliated guests receive a quality allotment of rooms • Some hotels sell run of the house (whatever room is available) rooms through e-commerce websites • Centralized guest history systems • Guest preferences used in preregistration • Adds value to guest loyalty program

How do you create the registration record?

• Registration record: a collection of important guest information • Registration records facilitate the registration process • Requires a guest to write down or verify his or her name, address, telephone number, company affiliation, and other personal data • Statement about guest valuables • Historically, guest's signature establishes innkeeper/guest relationship. In many states, it is actually the intentional establishment of credit • Electronic record establishes basis for registration processing • Walk-ins experience a different routine • Registration records require intended method of settlement, departure date, and pre-assigned room rate • Clarifying the room rate at registration minimizes confusion and adjustments at check-out • Guest paying cash at registration is likely to have a no-post status (will not be able to charge purchases to a room account) • At check-out, registration record may be used in creating a guest history file • Sales and marketing staff • Contact strategies, marketing lists, and detailed reports

What are the legal implications of a reservation?

• Reservation agreement begins at time of guest contact • May be oral or written • If confirmation is in response to reservation request, it may bind hotel and guest to fulfill the reservation

Describe the reservation confirmation/cancellation process

• Reservation confirmation means hotel acknowledged and verified a guest's room request and personal information • Written confirmation states the intent of both parties and confirms important points of agreement • Confirmed reservations may be either guaranteed or non-guaranteed • Systems generate a confirmation notice on the day the reservation request is received • Information can be automatically reformatted into a special letter or e-mail • Generally include • Name and address of guest • Date and time of arrival • Room type and rate • Length of stay • Number of persons in party • Reservation classification (guaranteed/non-guaranteed) • Reservation confirmation number • Special requests, if any • May also include a request for a deposit or prepayment or an update of original reservation detailing reconfirmation, modification or cancellation • Guests requesting ADA accommodations/services must have services confirmed to let them know their special needs are understood and accommodations will be ready • Hotels will often hold ADA guestrooms in a separate inventory category for improved control Confirmation/Cancellation Numbers • Assures a guest that a reservation record exists • Especially useful when reservation requires modification or cancellation • Cancellation number to guests pro • Protects both guests and hotel • Prove that hotel received cancellation • With canceled guaranteed reservations, relieves the guest of an obligation to pay any charges • Without number, guest may have trouble disputing a no-show billing • Cancellation number not assigned to guests who cancel after cancellation hour • Part of an established agreement between the hotel and a credit card company relative to no-show billing. • Confirmation/cancellation numbers: include portions of guest's arrival date, agent's initials, property code, etc. • Julian dates: calendar dates numbered consecutively from 001 to 365 • Confirmation and cancellation numbers should be stored in separate files for quick referencing • Cross-referencing cancellation numbers by scheduled date of arrival • No way to avoid an occasional reservation change or cancellation Modifying Non-Guaranteed Reservations • When delays are apparent, travelers may contact hotel and notify staff of the delay or change their reservations from non-guaranteed to guaranteed • System would: 1. Access non-guaranteed reservation record 2. Capture guest's credit card type, number, and expiration date 3. Assign new reservation confirmation number (if policy requires0 4. Compete change from non-guaranteed to guaranteed Canceling a Reservation • Helps FO more effectively manage its room inventory • Hotels should make processing cancellations easy and efficient • Require staff to be polite, courteous, and effective Non-Guaranteed Reservations • Requires name and address, number of reserved rooms, scheduled arrival and departure dates, and reservation confirmation number • After recording cancellation, assign a cancellation number Credit Card Guaranteed Reservations • Most credit card companies will support no-show billings only if the reservation system issues cancellation numbers for properly canceled reservations • Procedures involves: 1. Access correct reservation record 2. Assign a reservation cancellation number 3. Add cancellation number to reservation cancellation file 4. Verify updated room availability information (return room to inventory) Advance Deposit Reservations • Policies vary • Follow procedures similar to those it uses for processing reservation cancellations • Deposits returned when properly cancelled • Be especially precise when advance deposit is involved

What pre-arrival documents are generated?

• Reservations are formulated into an electronic reservation file • Guest sent a confirmation • Permits errors to be corrected before arrival and verifies address for future correspondence • E-mail confirmation: lower costs and quicker response

What pre-arrival activities take place in front office?

• Reservations software directly interface with a CRS or global distribution network and automatically quote rates and reserve rooms • May also generate letters of confirmation, produce requests for guest deposits, handle pre-registration activities, and establish credit status of the traveler if a credit card, debit card, or smart card number is provided • Generate an expected arrivals list, occupancy and revenue forecasts, etc.

Describe intersell agencies

• Reservations system contracts to handle reservations for more than one product line • Handle airlines, cars, and lodging: "one call does it all" • Typically channel reservations to CRS, but may also communicate directly with hotel • If a hotel participates in an intersell arrangement, doesn't prohibit it from using its CRS

Describe reservation systems

• Responses to reservation requests: • Accept as requested • Suggest alternative room types, dates and/or rates • Suggest alternative hotel • In any reservation system, must monitor the number of reservations to control overbooking • Overbooking: a strategy aimed at helping hotel to achieve 100% occupancy by hedging against no-shows, cancellations, and unexpected early departures • Comparing historical reservation volumes against actual arrivals can produce an overbooking factor • Depending on no-show reservation history, may allow overbooking • Forecast cancellations and no-shows with accuracy; share forecast with sales and GM, who may have additional information • By booking slightly beyond room capacity, ensure that as many rooms as possible are occupied • Approach cautiously: creates poor guest relations and discourages repeat business • To control overbooking, control booking, blocking, and cancellation information Reservation Systems • In-house automated reservation system can keep close track of reservations • Tightly control room availability data • Automatically generated reports • Advantage: improved accuracy of room availability and rate information • Inventory is immediately updated (by res and front desk) • Provides sales with occupancy and room-rate info to achieve revenue objectives • Room sales are coordinated in real time • Once all rooms in a specific category are sold, system can refuse further reservations • Automatically suggest alternatives • Programmed to itemize room availability for future periods • Open dates: available room days; closed dates: full-house forecasts; • Special event dates: convention or large group expected before, during, or immediately following • Creation of waiting lists for high-demand periods • Contributes to processing of group reservations and revenue management strategies • Reservation horizon: future time frame for tracking reservations; 2-5 years

What is the role of sales in reservations?

• Sales department has taken amore important role in reservations • Sales is a primary source of reservations • Create group reservations: most commonly from corporations or trade associations holding meetings • Compare rooms in contract to actual number reserved to verify the group was researched before accepting the contract • SMERF market: social, military, educational, religious, and fraternal groups • Book directly through reservations office, but sales originates the sale • Corporations (business traveler market) and travel agencies (travel agent market) • Familiarize local businesses and travel agencies with features and benefits • If local company agrees, given discounted rates • Senior management ensures companies meet their commitments • Work with Internet websites and other distribution channels • Familiarize distribution channels with the hotel's characteristics and its surrounding areas • Create a positive impression of property and destination • May also offer special room rates or packages to promote property • Sales managers given (financial) incentives for meeting or exceeding sales goals • Sales objectives and incentives should be related to revenue, not rooms

How do you establish personal checks as the method of payment?

• Some allow personal check, while others have a policy against it • Cannot refuse checks on the basis of sex, race, or other forms of illegal discrimination • Individual properties must establish policies for accepting personal checks • Some allow guests to cash personal checks as long as they have a credit card that provides a check-cashing guarantee, and it is within the credit card's credit limit • Imprint credit card onto back side of personal check or registration card • Accept only during standard banking hours • Only allow checks for the amount of room rate and taxes • Require proper identification • Record driver's license/passport number, address, & telephone number on the back • Bank stamps and clearinghouse imprints will also be recorded • Record amounts and dates of cashed personal checks on registration card • Ensures guests do not exceed check-cashing limits • Protect themselves against potential losses by: • Do not refund cash if original transaction was settled by personal check. Return the original check and require an alternate form of payment. Do not write a refund check, until the guest's bank verifies the personal check has cleared • Accept checks written only on the current day. Do not accepted undated or post-dated (future date) checks. • Require checks made payable to the hotel, not to "Cash." If guests want to write a check to "Cash," the guest should be given money in exchange for the check and not be allowed to use this check to pay their hotel bills • Do not accept checks written on foreign banks unless the credit department has pre-approved them Second- and third-party checks: • Hotels should not accept second- or third-party checks • Second-party check: made out to the guest presenting the check • Third-party check: made out to someone who has in turn signed the check over to the guest presenting it • May experience collection problems, if maker of the check registered a "stop payment" • If the hotel accepts a second-party check, require guest to endorse the check even if it has been previously endorsed to compare the guest's two signatures Check guarantee service • Use service to ensure validity of checks • Determines check writer's credit history and either guarantees or denies payment • If supported check is found to be invalid, the guarantee service is liable for the amount • Check reader • Valid checks have encoded bank identification & account numbers on bottom front • Uses data transfer technology to contact bank & verify account has sufficient funds • If valid, the funds are set aside and paid to the hotel • If check is not valid or balance is insufficient, hotel is notified • Check services charge a transaction fee, so hotels use the services only to settle guest accounts • Neither service guarantees provide checks from foreign banks

How do you establish cash as the method of payment?

• Some guests prefer to pay charges in advance • Guests who pay cash, are not extended in-house credit • PIA (paid-in-advance) guests are given a no-post status • Guests without charging privileges must settle their purchases at the point of sale • Agents may require a credit card before extending charge privileges • Cashier's checks, traveler's checks, and money orders are equivalent to cash • Require proper guest identification • Compare picture and signature

How do you establish direct billing as a method of payment?

• Some hotels extend credit by agreeing to bill the guest or the guest's company • Arrangements established in advance of guest's arrival • May have to complete application for credit • Front office manager reviews and approves a guest's credit application • List of approved direct billing accounts maintained at the front desk for reference • At check-out, guest with approved credit simply signs his or her folio after approving its contents and a statement is direct-billed • Hotel assumes full responsibility for account collection

What are some creative registration options?

• Some hotels have experimented with different techniques to make registration more efficient and effective • Eliminating the front desk • Host/concierge waits with a list of expected guests and their rooms • Host identifies the guest, completes an abbreviated registration, and sometime escorts guests to their rooms • Credit is established when the reservation is made • Hotel just preregisters the guest, verifies information, and assigns the room key • Sometimes tied to frequent traveler program • Registering group guests at a special location • Regular front desk is screened off and used only for managing guest services and/or providing check-in or check-out services at peak times • Creating a unique, separate registration area for VIP guests • Combining the hotel registration with the meeting registration in a separate area • Enables hotels to offer specialized services to the group • Registering guests off-site (i.e. airports, convention centers, and shuttle vans) • Challenge: to be innovative, while treating guests with expediency and care • Registration services • Temporary luggage storage • Complimentary F&B to inconvenienced guests • Hotel lounge or restaurant to leisurely wait for guestrooms * Self-Registration • Self-registration terminals may be located on or off hotel grounds • Available through a mobile handheld terminal, ATM-esque kiosk, or PDA • Limited-service and full-service brands are providing terminals for guests who are comfortable with self-service technologies • Reduces guest registration time • Guest may enter a confirmation number or swipe a card • Terminal passes the name and card number to PMS to link with reservation record • Guest enters additional registration data • Terminals connected to an automated rooms management system, enabling automatic room and rate assignment • Terminals print registration materials (identifying room number) and a map • Customized greetings/messages about events or promotions can be printed/displayed • Dispenses guestroom key

What are the hotel target markets?

• Target markets: distinctly defined groups of people that the hotel hopes to retain or attract as guests • Trend in industry is to define or identify smaller, distinct groups or "segments" within larger target markets to develop products and services aimed specifically at satisfying these segments • Process of market segmentation has contributed to substantial growth especially to hotel chains, EX: Marriott with Courtyard/Fairfield etc. • Advantage to market segmentation: variety of properties can be located in a particular geographical market, attracting variety of guests • Disadvantage to market segmentation: guests may become confused when differentiating between facilities and services of each brand • Commercial hotels: located in downtown or business districts, areas convenient to target markets • Largest group of hotels • Used to be referred to as transient hotels due to short length of time guests stayed • Amenities include newspapers, coffee makers, telephones, tv, videos games, etc., conference rooms • Airport hotels: popular due to proximity to major travel centers • Increased air travel increased demand for lodging ear airports • Vary widely in size and level or services • Target markets include business clientele, airline passengers with overnight layovers or canceled flights, and airline personnel • Airports feature direct telephones to nearby hotels • Hotel-owned limousines or courtesy vans often transport guests between airport and hotel • Feature conference rooms • Suite hotels: guestrooms with living room or parlor area and a separate bedroom • Fastest growing segment • Some include compact kitchenette with refrigerator and in-room beverage service • Fewer and more limited public areas and guest services • Appeal to people who are relocating (living quarters), frequent travelers who enjoy comforts of home, vacationing families, professionals • Extended-stay hotels: similar to suite hotels but offer more complete kitchen amenities • Designed for travelers who intend to stay five nights or longer and require reduced hotel services • Do not provide F&B, uniformed services, or valet services • Housekeeping may not be daily • Establish homelike feeling • Room rates often determined by length of a stay • Examples: Extended StayAmerica, Homewood Suites, and Staybridge Suites • Residential hotels: provide long-term or permanent accommodations for people in urban or suburban areas • Located primarily in US • House residents who want and can afford daily limited hotel services • Not as popular as they once were but are now being replaced by suite and condominium hotels • Resembles suite hotel, include sitting room, bedroom, and small kitchenette • Residents considered tenants by law • May provide housekeeping/telephone/front desk/uniformed services, restaurant/lounge may be on premises • May offer short-term or transient guest accommodations • Resort hotels: planned destination or vacation sport • Located in mountains or an island • Recreational facilities and breathtaking scenery are typical • Provide extensive F&B/valet/room services • Recreational activities • "Destination without a destination" • Leisure and relaxed atmosphere • Encourage repeat business and word-of-mouth recommendations • Communities may be developed from existing hotel facilities sold as timeshare units or condos • Lifestyle hotels: intended to appeal to specific travelers who enjoy certain architecture, art, culture, special interests, and amenities • Guest appreciate these aspects of a lifestyle property and consider them important to their overall experience. (I.E. healthful living or social interactivity) • 100-250 guestrooms • Limited or no meeting space • Bed-and-breakfast hotels: range from houses with a few rooms converted to overnight facilities to small commercial buildings with 20-30 rooms • Owner usually lives on premises and is typically property manager • Breakfast service may range from a simple continental breakfast to full-course meal • Some provide such fine accommodations that they have earned some of the highest ratings from respected hotel rating services • Limited food service • Price of room generally lower • Vacation ownership and condominium hotels • Vacation ownership hotel • Referred to as timeshare or vacation-interval hotels • Involve individuals who purchase ownership of accommodations for a specific period of time, usually 1-2 weeks a year • May have unit rented out by the management company that operates hotel • Popular in resort areas but also found in commercial areas and may be owned by local companies that house visiting executives • Fractional ownership • Ability to trade ownership time with another owner in another location is popular • Condominium • Units have only one owner • Owner informs management company when they want to occupy unit and the company is free to rent unit for remainder of year • Vacation ownership and condominium owners receive revenue from rental and pay management company a fee for advertising/rental/housekeeping/maintenance • Owners also responsible for furnishing and paying for general maintenance • Units consist of a living room, dining area, kitchen, bathroom and 1+ bedrooms • Guests usually rent unit for at least one week • Guests often contract specific unit at a specific time each year • Casino hotels: hotels with gambling facilities • Guestrooms and F&B is secondary to and supportive of casino operations • Attract guests by promoting gaming and headliner entertainment • Also include golf courses, tennis courts, spas, and theme recreational activities • Gambling activities at some casinos operate 24/365, affect operations of rooms and F&B • Vary in size and may house as many as 5,000 guestrooms • Riverboat gambling becoming popular • Contribute to economy through jobs/revenue/taxes paid • Conference centers: specifically designed to handle group meetings • Offer overnight accommodations for meeting attendees • Typically place great emphasis on providing services and equipment necessary to ensure meeting's success • Located outside metropolitan areas and may provide extensive leisure facilities (golf/tennis/hiking) • Typically charge meeting planners a single price which includes guestroom/meals/meeting room/equipment • Guest amenities may not be as plentiful • Focus on meeting needs of conferences planners and organizers more than attendees • Also accept transient business, but is not a large portion of the business • Convention hotels: designed to accommodate large conventions • Grown significantly in recent years - nearly doubled • As many as 2,000 rooms or more • Often have 50,000 square feet of exhibit hall space, plus ballrooms and meeting rooms • Offer dining facilities ranging from self-serve restaurants or cafeterias to elaborate formal dining rooms • Primarily directed toward business travelers with similar tastes • Attract convention market for state, regional, national, and international meetings • Business services available • Book business up to 10 years in advance to ensure adequate facilities and housing for attendees • Some affiliated with a local convention center • Alternative lodging properties • Recreational vehicle parks, campgrounds, mobile home parks, • Many state and national parks offer campgrounds and lodges that compete directly with hotels, competitively priced and subsidized • Corporate lodging is designed for guests staying for very long periods of time (6 months or longer) • Apartment used - single provider in a community can provide corporate lodging in many community locations, allowing greater flexibility • Cost-competitive with hotels, since apartments can be rented and furnished by owner or service provider for lower daily cost • Often include business executives moving, trainers, athletes, movie shoots, business owner provides apartments and guest rents apartment and other services, usually cost-competitive with hotels • Cruise ship industry has become competition for resorts • Amenities similar to resorts • Advantage of moving from island to island • May be small or large • Some may offer small conference facilities

Define single image inventory

• To be effective, accurate and timely rate and inventory data must be available to all electronic distribution channels simultaneously • Single image inventory: al reservation distribution channels draw from the same room availability, pricing, rate rules, services, and amenities information. • Failure to have all working from same data source can lead to overselling, shortages, and erratic levels of occupancy • All sellers base transactions against identical information

What are the various telecommunications equipment?

• To serve guests efficiently and price calls properly, hotels need the right mix of telephone equipment and lines • Each line is designed to carry certain types of calls • Incoming calls, outbound calls • Two-way lines • Based on its level of guest service, each hotel must determine the types and number of lines • Systems and equipment that hotels use include: • Telephone switches (PBX systems) • Call accounting systems • Guestroom phones • Pay phones • Pagers and cell phones • Other technology PBX Systems • Switchboard or private branch exchange (PBX) was the equipment used to control phone service • Takes inbound calls • Sends calls to particular extensions or station lines • Allowed hotel to have a large number of telephones share a limited number of lines • Outbound calls placed without operators help go through same equipment • PBX systems have advanced features enabling them to handle data (i.e. room attendants updating status of guestrooms) Call Accounting Systems • Call accounting system (CAS): programs placement, pricing and posting of calls • Interfaces with hotel's PMS to electronically post charges to guest folios or print charge slips • Some CASs have a least-cost-routing component Guestroom Phones • Guests can plug personal computers or portable fax machines • Many hotels provide two-line guestroom phones • Other features include: conference calling, caller ID, speed dialing, hold buttons, call-waiting, hands-free speakers, voice messaging, and message-waiting alert • Combine technologies so guests can retrieve messages, order room service, receive written documents, place wake-up call requests • Cordless phones: convenience, not as secure or reliable Pay Phones • Hotels rarely purchase their own pay phones due to high maintenance costs • Have their pay phones supplied and maintained by a company other than their local phone company • Hotel receives no direct revenue from pay phones, but are rather paid a commission on operator-assisted long-distance calls placed • Carrier sets the rates, bills the guest directly, and sends hotel a commission • Most hotels have reduced payphones, but left a few as a convenience Pagers and Cell Phones • Some hotels offer a pager or cell phone to guests at check-in • Bills guest for number of minutes used • May not go through the hotel's CAS and require manual posting • Some hotels experimented with internal cell phones, in lieu of in-room phones Other Technology • Automatic call dispensing • Wake-up services: reports time, temperature, and weather conditions • Call all rooms in case of emergency • Remind group of meeting, event, or function • Telephone/room status systems assist with rooms management and prohibit the unauthorized use of telephones in vacant rooms • Housekeeping or room service enter data concerning charges (i.e. in-room bar), maintenance information or room status • Improve communication • Lower payroll • More efficient in-room bar restocking system • Internet access • May charge guests • Some hotels expanded their hotel systems • Install alternate systems that do not rely on telephone, but rather high-speed Internet access (HSIA) via an Internet service provider (ISP) • Call detection software • Sense when a placed call is answered • Improve billing accuracy • Only answered calls appear on a guest's folio

What are some recent design alternatives to the front desk?

• Traditional mail, message, and key racks is unnecessary and unwise at the front desk • Can be stored in drawers or slots, making front desk appear streamlined • Have circular or semicircular front desk • Encloses front desk staff with its counter • Semicircular arrangement: straight wall at the back of the desk with a door leading to front office support • Allow greater service to more guests • Appear modern and innovative • Guests can approach desk from all angles • Desk-less environment • Registration handled at a small table or personal desk • Guest host performs same functions • More personal and informal • Casual, seated registration • Self check-in terminals, with a small reception desk for those who are uncomfortable with technology * Accessibility • Americans with Disabilities Act stipulates that companies must make public areas and services accessible to the disabled • Must be barrier-free, including front desk area • Must make changes that are readily achievable, given company's size and financial resources • Doorways, curbs, and steps • Agent may go to the guest side of the desk to accommodate * Point-of-Sale System • Front desk POS terminal used to record cash transactions and maintain cash balances for sales not associated with the guest cycle • Certain limited-service hotels offer a pantry of items • Items are rung up by cashier and posted via POS system • POS may be interfaced with a PMS to provide more complete control • Includes printers for producing records, receipts, vouchers, and reports • Typically record • Amount of transaction • Description of transaction • Affected departments • Type of transaction • Identity of the cashier • Amount tendered • Method of payment * Support Devices • Credit card reader captures card number, expiration date, and cardholder's name • May be manual, electric, or online and may be connected to authorization terminal or Internet • Clearinghouse or authorization service either approves or disapproves transaction • Guest loyalty programs have plastic membership cards with a magnetic stripe • Smartcard: contains integrated circuit on a silicon chip imbedded in them to store cardholder information (I.E. American Express Blue Card) • Security monitors, such as closed-circuit television monitors • Front desk equipped with time stamps staff uses to record when guest checks in/out • File boxes to store registration records

What does the travel and tourism industry consist of? The hospitality industry?

• Travel and tourism consists of lodging operations, transportation services, food and beverage operations, retail stores, and activities • Hospitality industry consists of lodging and F&B, as well as institution F&B, which does not cater to the traveling public • Lodging offers overnight accommodations

What are the various types of calls that can be made?

• Types of calls; calls may fit in more than one category • Local calls • Direct-dial long-distance calls • Calling card calls • Credit card calls • Collect calls • Third-party calls • Person-to-person calls • Billed-to-room calls • International calls • Toll-free calls • 900 or premium-price calls • Voice over Internet Protocol (VoIP) calls • Calls can be completed without operator assistance, but guests sometimes ask front office staff for assistance • Local call is billed on a per-call basis • Some hotels may offer unlimited local calling for a flat daily charge • Direct-dial long-distance calls are the most common calls • Also referred to as "1+" calls • Dial the area code and telephone number • Calling card calls typically billed to a code number on a calling card issue • Calling card code may be a combination of the area code, telephone number, and PIN • Whenever a calling card is used, the hotel does not bill the guest for telephone charges, but may attach a surcharge or usage fee • Telephone company bills call to the calling card account • Many telephone companies accept credit cards • Collect calls, a guest first dials "0" and then the full telephone number • Most telephone companies pay a commission to the hotel for collect calls placed by guests • Third-party calls are similar to collect calls, but the billed number is not the called number • Operator may require that the third-party number accepts the charge before putting the call through • Hotel may apply a surcharge or fee for this service • Person-to-person calls are not connected unless a specific party, named by the caller, verifies that he or she is on the lone • Charged to the number initiating the call • Hotel may apply a surcharge or other fee for this service • Most hotels have a "call accounting" system • Detects how the call is being placed • Calculates a guest charge and sent electronically to the PMS • Operator-assisted and person-to-person calls are charged to the hotel; the company notifies the hotel of the cost and the hotel operators has the front desk post the charge • International calls • Hotel bills the guest for direct-dialed international calls • Phone company bills the guest for calling card or credit card calls • Toll-free calls • Hotel may apply a surcharge or other fee • Calls made to businesses that charge callers (i.e. 900 numbers) • Guests may be shocked and mistakenly blame the hotel • Another problem is hotel may track only costs in placing the call and not the premium charged by the service company • Some hotels choose to block premium-price calls • VoIP calls tend to be less expensive • Telephone departments used to be significant revenue and profit producers • Government deregulated telephone charges in the mid-1980s • Seen as a benefit for the hotel industry, which raised prices • States and federal government required hotels to inform guests of the costs of placing a call; this had a dampening effect on telephone revenue • Biggest blow came with invention and widespread use of cell phones • Telephone departments now considered cost centers

What arrival documents are generated?

• Use a paper-based or system-generated registration to check-in guests • Registration records include guests' personal data (length of stay and method of settlement) • May also provide printed statements about safe storage for valuables and guest's responsibility for payment of charges • Indicate room rate, allowing guest to confirm it • Reduces questions about price at check-out • Credit must be established, verified, or authorized during check-in • Agent requests credit approval for a pre-established amount • Should the balance go over that amount, additional requests are made to the credit card company

How is the front desk organized?

• Where guests register, request information and services, relate complaints, settle accounts, and checkout • Located in hotel lobby • Three-and-a-half feet high and two-and-a-half feet deep • Length varies according to number of rooms in hotel, duties performed, and physical design of lobby • Signs may be placed • Screen front office forms and equipment from guests Functional Organization • Design and layout should provide easy access to equipment, forms, and supplies • Ideally, layout is planned according to functions performed at dedicated activity centers on desk • As lines of responsibility overlap, they are designed with position flexibility in mind • Efficiency is an important concern: employees should avoid turning their backs to guests, leaving guests unattended, or taking too long

What are some e-commerce trends?

• While most hotels rely on multiple e-commerce distribution channels simultaneously, hotels have developed distinct strategies for each online partner • Historically, hotels offered same rooms on different channels at different rates, often underselling their own brand websites by offering special pricing to these websites • Resulted in erosion of hotels' average room rates and therefore overall revenue • Majority of hotel branded sites offer a best rate guarantee, which assures traveler that the lowest online rate appear son the hotel website; should a traveler fin a lower rate for the same room on the same date, the hotel will compensate the traveler (refund plus premium) • Applies to all channels except opaque websites • Hotels that allow e-commerce sites to offer lower rates may be penalized or removed from chain • Most hotel websites have focused on individual guests. As e-commerce evolves, this focus will shift toward groups • Embracing issues such as large room blocks, F&B catering, tradeshow space allocation, meeting room reservations, and AV equipment scheduling • On some hotel websites, group leaders can sue an online request for proposal (RFP) to enter meeting dates, room and space requirements, and other needs • Catering considerations, the need to control meeting space, and desire to maximize group revenues make an automated response beyond the capabilities of most hotels • Automating the group RFP response process based upon formulas that involve guestroom-to-meeting-space ratios and projected revenue ratios • Examples: PlanSoft (mpoint.com) and StarCite • Online booking sites award affinity or loyalty club points for travel services • Booking site becomes featured product, not the destination hotel • Redeem rewards • Confusing & harmful to hotels that struggle to promote their unique identity online • Dynamic package pricing • Historically, online booking sites offered predetermined, rigidly defined (static) packages • As online booking engines evolve, websites are able to offer on-the fly (dynamic) pricing of custom packages selected and assembled by the guest • Generate unique package price and simultaneously make multiple reservations for requested services • Online booking sites create virtual hotel brands by grouping a proprietary set of preferred hotel properties (i.e. Expedia's Bargain Hotels) • New level of competition within the marketplace