Unit 2 - Room Reservation
Unit 2 - Room Reservation
Reservation is the activity of booking the room in advance for a prospective guest on his request for future,
which may be from a few days to month in advance.
Depending upon the availability of desired room type reservation request may be confirmed, waitlisted
or denied.
Updating the room availability status after each reservation transaction like confirmation, amendments
and cancellation.
Maintaining and updating the reservation records
Modes of reservations
The process of reservation begins with an enquiry. There are following two ways through which a guest may
contact hotel for reservation:
1. Written Mode
2. Verbal Mode
Modes of
Reservat
ion
Written
mode
Letter
Fax
Verbal
Mode
Telex
In
Person
Telephon
e
1. Written Mode
When a reservation request reaches to the hotel in writing it is classified as a written mode of reservation.
Following are the written mode of reservation request:
Letter
Fax
Telex
e-mail
Telegram
Letter: Letter is the best mode of making reservation request if guest send reservation request in several
months advance. The travel agent, tour operators, and corporate houses commonly use this. Nowadays, letter
writing has gone out of fashion, even though a considerable number of holiday bookings are still made in this
way. Letters are advantageous as are clear, unambiguous and permanent. Letter generates a written record for
the hotel, which helps to eliminate subsequent argument. Letters are also useful evidence that a contract was
agreed.
Fax (Facsimile Transmission): Fax uses electronic scanning technique to send copies of documents over
ordinary telephone line to a special machine which prints out an identical copy at another end. It can be used to
send memos, graphics, sketch, and letters. The machine can be run in auto mode; making is useful even if there
is no one to answer the call. The fax makes it possible to send the written request instantaneously to a hotel on
the other side of the world and receive back the return confirmation within short span of time.
Telex (Tele Printer Exchange):This method involves use of specialized telephone lines in which message is
received in written form. This is a written mode of reservation request hence information is clear and agreeable
to guest as well. Nowadays this method is not used rather less used because of fax & computerized messaging
or mailing system.
E-mail: E-mail is the electronic version of the regular mails. The guest may send the reservation request on the
hotels e-mail ID. The hotel will process the reservation request and send the confirmation through e-mail. This
mode of reservation request is in fashion now a day. It provides a written record and is fastest.
Telegram: Telegram was the fastest method of sending the information when the fax and e-mail were not in
invented. This is a written mode of reservation hence the information are clear and agreeable to both hotel and
the guest.
2. Verbal Mode
The reservation request may be made through words of mouth. The most popular ways of this mode of
reservation request is as under:
In person
Telephone
In Person: If a would-be guest or their representative reaches to hotel to book the rooms for their future stay in
that property is the in-person mode of reservation request. This is the best modes of reservation enquiry as the
person is available to consider the suggestion in case room is not available for the duration requested. The best
thing is that the decision maker for the reservation request is available to the hotel personnel.
Telephone
Reservation request are more likely to land in hotel through telephonic calls. The telephone is fast and
convenient, but it suffers from the major disadvantages that it does not provide a permanent record. This is
among most frequently used mode of reservation request.
No single means of communicating reservation request is ideal in terms of speed, convenience, and economy.
This means that we are likely to see a combination of above mentioned mode for reservation request/enquiry.
Sources of Reservation
Hotel receives reservation request from different sources. Some of them are as under:
1. Direct
2. Central reservation system
3.
4.
5.
6.
7.
8.
Inter-sell agencies
Global distribution System
Agencies
Corporate bodies
Government sector
Hotels Website
Sources of
Reservations
Direct
Intersell
Agency
Agency
Central
Reservation
System ( CRS
)
Global
Distribution
System ( GDS
)
Corporate
Bodies
Travel
Agency
Companies
Tour Operator
Nongovernment
organization
Airlines
Government
Sector
Hotel
Websites
Institutions
1. Direct
A reservation request to hotel from individual or group without mediator is known as direct reservation
source. The processing of direct reservation request is taken care by the reservation section of front
office department of a hotel. The staffing, equipment, location, and layout of the reservation section will
depend upon the volume of the reservation request received directly.
3. Intersell Agencies
An Intersell agency is an agency which deals with many products such as hotel reservation, car rental,
travel arrangements, tour operation, airline reservations, railway bookings etc. Such agencies are among
rich source of reservation.
4. Global distribution System
A Global Distribution System (GDS) provides the bundle of products and services to the prospective
user across the geographical boundaries. The GDS provides a link between the producers of the
products and services; and its end users. The hotel gets reservation from the GDS. SABRE, Amadeus,
Galileo, Worldspan, SMART etc. are the examples of Global distribution system.
5. Agencies
There are several other agencies like Tour operators, Travel agents and Air Lines from whe re hotel
receives the bulk booking.
1) Travel Agents Many guests make reservations through travel agents or tour operators. The
agent will normally take a pre-payment from the guest, send a confirmation to the hotel, and
issue an accommodation voucher on its behalf. Travel agents receive ( or deduct ) a commission
for their services from the guest, or the hotel, or both.
2) Airlines - Many airlines also offer booking services to their passengers.
3) Tour Operator - As hotels receive bulk bookings and huge volume of business throughout the
year from agencies like tour operators, travel agencies, and airlines, they offer very low rates to
these agencies for various room categories.
6. Corporate Bodies
The hotel also receives bookings from companies (Pharmaceutical, FMCGs), NGOs such as Care,
Oxfam, Red cross, WHO etc), and institutions (Educational, Financial, Banking). They are the source of
bulk reservation.
7. Government Sector
Hotel receives booking from government segment such as Public Sector Undertaking, Embassies and
Consulate. The officials of these departments are moving from place to place on official work; hence
they need accommodation at the place of visit constituting a major source of reservation.
8. Hotels Website
Hotels web site is potential source of receiving reservation. The website contains the link for
reservation request by clicking the same a techno-savvy guest can make reservation while enjoying the
comforts of their own house.
Types of reservation
Hotels accept reservation for the rooms. Many a times we come across the words like confirmed reservation,
guaranteed reservation, waitlisted reservation, tentative reservation etc. Each terminology has its own meaning.
One might get confused with these terms. The reservation can be classified on the following two grounds:
1. On the basis of guarantee
2. On the basis of confirmation
Reservations
Confirmation
Tentative
Confirmed
Guarantee
Waitlist
Guaranteed
Non
Guaranteed
a. Guaranteed Reservation: A guaranteed reservation is that for which hotel has received the payment
in full irrespective whether the guest will turn up or not and at the same time the hotel does not release
the room to any other guest. The guaranteed reservation helps the guest to be sure of getting a room in
the hotel in spite of their late arrival without any prior information to hotel.
Obtaining Guaranteed Reservation
The guaranteed reservation requires the payment to be made in advance. The guaranteed reservation can be
obtained by one of the following ways:
Pre- payment
Credit card
Contractual agreement
Pre-Payment: A guaranteed reservation requires payment of the room rent in advance as an assurance to
protect the hotel from the loss of the revenue in case of no show because hotel will hold the room for the guest
even after the cancellation hours. The payment in advance is known as pre-payment. The pre- payment can be
made by sending demand draft, or depositing cash at the hotel.
The cash deposit is the most preferred mode of accepting guaranteed reservation by most of the hotels.
Credit Card: The guest can alternatively choose to pay the full amount in advance through their credit/charge
cards. The guest should send a letter authorizing the hotel to charge payment to their credit card account for
obtaining guaranteed reservation. This is the most preferred method of getting guaranteed reservation these
days.
Contractual Agreement: The hotel may enter into contract of providing guaranteed reservation with any
person or company. In such case hotel accepts the guaranteed reservation for that person or the person referred
from the company and the person or company agrees to pay for the same even in case of no show. The hotel
may have contractual agreement with following:
Travel agencies / Tour operator
Corporate houses
Travel Agencies / Tour Operator: Travel agencies or tour operator makes a bulk purchase of rooms at
relatively very low price. They guarantee the hotel a minimum number of room nights and agrees to pay even if
they are unable to occupy.
Corporate Houses: In this case a company/corporate body may enter in to a contract with the hotel, whereby
the company guarantees payment for its sponsored guest and accepts the financial responsibilities for no show
guest and hotel agrees to provide the mutually agreed number of room night to the clients of the corporate
house.
Cut-off Date: - Date by which if payment is not made in full the guaranteed reservation will turn into a nonguaranteed reservation.
a. Confirmed reservation: A confirmed reservation is an acknowledgement from the hotel that the
person will be assigned a room in the hotel if they will reach on the date of arrival before cancellation
hours. Confirmation of reservation is sent through letter or e-mail containing the following information:
Name of the guest
Date and time of arrival
Room rate and type
Duration of stay
Number of persons in the party
Reservation classification (guaranteed or non-guaranteed)
Reservation confirmation number
Special request made by the guest like airport pick-up, wheel chair, baby sitter etc.
b. Wait listed reservation: A wait-listed reservation is the hotels attempt to sell the rooms, which may
remain vacant in case of cancellation. A wait-listed reservation is not confirmed. The guest will be
assigned the room in case of cancellation or no show. The hotel informs the guest that the reservation
request of the guest is put on wait list and may be confirmed if some a room is vacant due to
cancellation.
c. Tentative: It is a reservation request that a prospective guest makes on a provisional basis for particular
stay dates. The hotel fixes a cut of date by which hotel should confirm the reservation otherwise it get
cancel.
Systems of reservations
Depending upon the needs and volume of business a hotel may adopt one of the following systems of
reservation:
1) Manual system
2) Automatic system
Systems
of
Reservati
ons
Manual
System
Diary
System
Automatic
System
Whitney
System
Room
No.
Name
Pax
Arrival
Time
Advance
Mode
Date of
Departure
Booking
Date
Booked By
Signature of
Remarks
Reservation
Name
Con. No.
Assistant
Tools Used in Diary System of Reservation: The tools used in diary system of
reservation are as under:
o Booking diary
o Room status board/ reservation journal
o Expected arrival list/ Movement list
o Cancellation Register ( if required, for taking cancellation)
o Black list (if required to refuse the reservation to undesirable guest)
2. Whitney System of Reservation:
This system can be used in small and medium property having up to 150 rooms. This system for room
reservation of hotel was developed by the American Whitney Duplicating and Check Company.
This system is based on use of standard size slips, known as Whitney slips or Shannon slips, which can
be held on metallic carrier on Whitney racks.
A sample of Whitney slip is shown in the figure below.
The Shannon slips may be colour coded to identify the status of guest like FIT, group, crew, VIPs,
Commercially Important Person etc. the top line of the slip contains the essential information, as this
part remains visible after placing slip in the metallic carrier.
The Whitney system uses the racks vertically mounted over the walls.
Thirty-one racks are kept for the current month (one for each day) and eleven for the next months and
last one for the next year.
The thirty-one racks are arranged as per the date of the months.
As soon as reservation request is received the reservation request is processed and Whitney slips are
made in duplicate and original is placed in the Whitney rack.
The Whitney slips can be arranged in alphabetical order on Whitney rack.
The advantages of using Whitney system is as under:
o Booking can be kept in order of date of arrival
o Booking records may be arranged in alphabetical order
o The racks and carriers can be used over and over again. The running expense
is of the slips.
o The Whitney racks are placed vertically saving the storage space.
Date
arrival
of
Name
guest
Mode of reservation
of Room type
Reserved by
Rate
Date of Departure
Date received
Agency if any
Billing instruction
Confirmation date
--------------------------------DATE:
DATE :--------------------------------
Name
of
Guest
Room
No
Particular
Name of
Guest
Room No
Particular
Conventional chart: Conventional chart is a development of the bedroom journal. It is also known as Advance
letting chart. It is simple to understand. The format of conventional chart is shown in figure 10.4. The chart is
prepared for each month.Thus only 12 such charts are required for the one year. The room number and type of
room is mentioned in one columns and it consists of another 28 to 31 column depending upon the number of
days in the month. The name of guest is written between the days of their stay. The name is written between the
< and > sign. Sign < represent the date of arrival and sign >represent the date of departure. The major
disadvantages associated in use of conventional charts are:
Long name short stay problem
Chart becomes untidy with cancellation and amendments
Limited to use with medium size hotel
Counting of available room is difficult
No over booking can be taken
Room is pre assigned to guest (Creates problem in case of overstay)
Standard density chart: In an attempt to overcome the problems and drawback of conventional chart
development of standard density chart came into existence. The density chart is prepared for each category of
rooms for the duration of one month. The vertical column indicates the date and horizontal column represent
individual rooms. An indicative mark (/) is put in the appropriate boxes for indicating the reservation. The
minus sign indicates that one can take overbooking using the density chart. The format of standard density chart
is shown in figure 10.5. The following advantages associated with the density chart:
Long name short stay problem is solved as one does not have to enter name.
Chart will remain tidy even in case of cancellation and amendments
The large hotels may also use this system
Counting of available room is easy
Over booking can be taken
2) Automatic System
Once reservation assistant has ascertained the availability of the room for the guest he will either accept or deny
the reservation request and conclude the processing of reservation request. Generally if rooms are available the
reservation request is accepted. When the request for reservation is accepted then following details are gathered
from the guest:
1. Name of the guest
2. Designation and company
3. Address of the guest
4. Time of arrival
5. Reservation classification (advance, confirmed, guaranteed)
6. Confirmation number
7. Caller data (in case of third party reservation)
8. Special requirements (baby sitter, no smoking zone, garden facing, sea facing, barrier free rooms etc.)
After gathering this information the booking is confirmed and a note for the same is send to the guests mailing
address. The reservation department uses a form, specially designed to record reservation transaction to prevent
any ambiguity in information generated during reservation process. The reservation form contains information
like personal data of guest, stay dates, expected mode and time of arrival and departure, number and type of
rooms, mode of bill settlement etc. The format of reservation form is shown in the figure below.
Cancellation of reservations
Cancellation is obliterating a reservation that had been done by a guest with a hotel, while amendment is a
change in the reservation. The change can be regarding any one or all of the following:
Date of arrival
Date of Departure
Duration of stay
Type of room
Number of rooms
Number of person
Food Plan, etc.
For any cancellation of reservation, a minimum of three days notice is required for FIT guests. This is known as
Cut-off Dateor Cut out Date. If this condition is not fulfilled, then a retention charge is taken from the
guest. The Cut off date for a group reservation is normally thirty days.
1.
Cancellation Code
When a cancellation is accepted, a cancellation code is developed and given to the guest, which can be used as
a reference in future. A Cancellation code is as under
0981010AS154
The first three digits 098 represent the day of a particular year. Here, 098 stand for the 98th day of the
year, i.e.8th of April.
The following two digits 10 stand for the year, i.e. 2010.
The sixth and the seventh digits 10 together stand for the property code, which is applicable for the
chain hotels only. The reason being, in chain hotels booking and cancellation of rooms of one hotel can
be done from another hotel of the same chain.
Next two characters AS are the initials of the reservation assistant who takes the cancellation.
The last three digits 154 is the serial number of the cancellation which is maintained in the cancellation
register, kept in the reservation section.
1) As soon as a cancellation request is received, a cancellation code is developed and informed to the guest.
2) The Cancellation form is then filled in and the cancellation code is mentioned on it.
3) The original Whitney Slip is taken out and marked as cancelled.
4) Cancellation form, room reservation form and the original copy of the Whitney slip along with the duplicate
copy are stapled together, and kept in the cancellation file.
5) Cancellation register is then filled in.
6) Density control chart is updated and subsequently room status Board if required.
Amendments of reservations
The hotel on receiving an amendment request shall first cancel the previous booking and then make a new
booking as per guest request and the process will involve updating records in Diary/ Whitney slips and
racks/Computers/ density Charts/Conventional booking charts or any other records whichever is being used by
the hotel for showing reservations. The complete sets of documents are also updated.
1. Amendment Procedure in Diary System
1) As soon as the amendment request is received, the room availability position is checked by referring Room
status board and subsequently Advance letting chart.
2) If the amendment request can be accepted, then an amendment form is filled in, if in use, and then kept in the
room reservation file after being stapled with RR form, generated at the time of reservation. ALC is updated
followed by RSB, if required.
3) The previous entry in the diary is cancelled by drawing a line across and marked as AMENDED. The
reservation assistant signs on it.
4) A fresh entry is made in the diary as per the date of arrival.
3. Incentive Group: This category consists of groups sent to the hotel by various multinational companies
and national corporations, etc. the staff are given incentives and are paid by the company or
organization to which they belong. They are sent by their companies, etc. as incentives
for meeting the production or sales target, etc. These are very lucrative groups for the hotel. Hotel gives special
rates to them.
4. Fam groups: they are also called familiarization groups. This type of group is composed of travel agents,
tour operators and travel writers, etc., who come to familiarize them with the destination and its tourism
product. They are important because they are people who would be sending groups in future. They are generally
provided complimentary rooms.
Usually sales manager or reservation manager is contacted by the travel agent and is requested to set aside an
agreed number of rooms called BLOCK for group members, and as request from individual members come,
they are reserved from the Block and the process is called BLOCK BOOKING.
Group No..
Operator
Group Leader
No
Number in the Group
No
Arrival date
Time..
Departure Date..
Time.
Accommodation
Rooms
No.
Single
Double
Triple
Rate
Days
Tour
Telephone
Telex
Arrival
Departure
Meals Break Up
Breakfast
Lunch
Mon 3.4
Tue 4.4
Wed 5.4
Thurs 6.4
Dinner
Special Requirements
Date..
Signature
Figure - Bulk reservation form
The Group is given a Code Number. The Group coordinator should give special care to the following
documents:
1. Group File: A file that contains all details of group, with name of the group on top.
2. Register for confirmed groups
3. Group Materialization sheet: Also called Group Production report. It shows materialization of booked
groups from various travel agents and other sources. This report guides the management in deciding their future
policy for each travel agent in terms of commission percentage.
4. Group Information sheet: This sheet is circulated to all the coordinating departments at least a week in
advance of the arrival date to prepare themselves for group arrival.
The acceptance or refusal of request for booking for a group by the hotel will depend upon the managements
policy which should be formed on the basis of business pattern. For example, more groups can be booked
during off season and at a lower or discounted rate so as to achieve a higher percentage of occupancy during off
season, while during season a lower percentage of groups may be taken at discounted rate. A very clever
balancing is necessary while formulating the policy.
Once the booking is received from the travel agent or other source, the booking is shown on chart, diary, racks
or computer (whichever system is used). A Cutoff Date is given to the source of booking (generally 30 days
before the arrival of group).If certain number of rooms are not picked up by the agreed deadline, they are made
available to the other guests.
A Cancellation deadline is also fixed to safeguard against the cancellation of large number of room bookings at
the last minute. Before the deadline date, a reminder is sent to the source of booking of group about the number
of rooms, date of booking, date of departure, etc. and the source of booking is requested to reconfirm the
booking before the deadline. After the deadline date if the travel agent (or any other source of booking) wants to
reduce the number of rooms booked, the management may charge for the same. After the confirmation the
travel agent is required to send the following details:
1. Name of the Group, and names of all the group members.
2. Details about the number of rooms and sharing rooms.
3. Passport details/
4. Nationality of the members, etc.
5. Billing Instructions
6. Meal plan
7. Date and time of arrival/departure
8. Special Instructions
9. A rooming list is sent by the travel agent in advance
The Hotel sends a Group Meal information Format to the travel agent to be completed and sent back.
Along with the rooming list the travel agent will also send Travel Agent Voucher. These vouchers must be
handled by the reservation department to avoid any confusion. The voucher gives details about facilities and
services included in the package. This travel voucher will be kept ready on the day of arrival given by the travel
agent of the group. A duplicate copy of the same will be brought by the group leader on the day of arrival. The
two will be tallied by the front desk agent.
Management offers special discounted rates for group bookings. The discount depends upon size of the group
and number of room nights, and meal plans such as American or Modified American. Generally following
discounted rates are given:
1. Ten to fourteen full paying PAX--------------- 50% on one PAX
2. Fifteen to Thirty full Paying PAX-------------- Complimentary one PAX
3. Thirty One to Forty five full paying PAX------ Complimentary two PAX
The rates and discounts are always negotiable.
Amendments of groups
An amendment of groups is a continuous process till the group finally checks in. these amendments are made
through Local travel agents. After receiving the amendment request the group coordinator confirms whether the
request for amendment can be met with or not. In case it can be accepted, proper entries are made on
reservation charts or computer and the group folder and the same is intimated to all concerned including the
travel agent.
Cancellation of groups
Cancellation Policy for group depends from hotel to hotel and on the size of the group. Generally the
cancellation should be received 30 days in advance. The relationship between the hotel and the travel agent is
also important. Also the inconvenience caused to hotel and possible loss of revenue is also considered while
considering the cancellation policy. Depending upon the management policy retention charges may or may not
be charged.
Original Booking
Surname:
Company address:
Title:
Arrival:
Flt: Time:
Departure:
Flt: Time:
1
2 3 4 Rates
Single
Twin
Triple
Suites
Form of Payment
Contact
Remarks
Account No.
Date:
Amended Booking
Surname:
Company address:
Title:
Arrival:
Flt: Time:
Departure:
Flt: Time:
1
2 3 4 Rates
Single
Twin
Triple
Suites
Taken by: