Subject
Year
: V0206 – Administrasi &
Operasional Kantor Depan
: 2009
Reservation
Week 4
Subjects
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•
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•
•
Bina Nusantara
Importance of guest reservations to travelers and
accommodation establishments
Reservation system
Sources of reservations
Forecasting reservations
Overbooking (occupancy management)
Processing guest reservations
3
Objectives
On completion of this lesson, the students will be
able to:
•
demonstrate the process of guest room reservation, do
the reservation forecasting and handle overbooking
Bina Nusantara
4
Importance of a Reservation System
• Allows hotels to ensure a steady flow of business
• Ensure that travelers will have accommodations at
their destination
• Easy access to a hotel’s data bank of room, helps in
fulfilling the customers’ need, reaching a targeted daily
occupancy rate, ADR, yield % and RevPAR
• As a mean to produce positive cash flow and a
favourable income statement
Bina Nusantara
5
The Use of Reservation System in Hotels
Choice Hotels International
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Bina Nusantara
500 franchisees in 42 countries
Brands: Comfort, Quality, Clarion, Sleep, Econo
Lodge, Mainstay Suites & Rodeway Inn
Offering guest room services through handheld
computers (Palm VII or Palm XIIx)
Received 32,000 phone calls at one of its two
reservation call- centers per day
http://www.choicehotels.com/ires/enus/html/CorpBrandInformation?sid=rRPg.2c9UnKBu3.1
6
The Use of Reservation System in Hotels
•
Bina Nusantara
Brand names Choice Hotels International
http://www.choicehotels.com/ires/enus/html/CorpBrandInformation?sid=rRPg.2c9UnKBu3.1
• Comfort Inn
• Comfort Suites
• Quality
• Clarion
• Sleep Inn
• Econo Lodge
• Main Stay Suites
• Rodeway Inn
7
The Use of Reservation System in Hotels
Six Continents Hotels
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Bina Nusantara
3500 hotels and resorts in nearly 100 countries
535,000 guest rooms
Brands: Inter-Continental, Crowne Plaza, Holiday
Inn, Express by Holiday Inn, Staybridge Suites
Host more than 150 million guests each year and
process more than 100 millions reservation per year
Reservation system: Holidex
8
The Use of Reservation System in Hotels
•
Intercontinential Brands
http://www.sixcontinentshotels.com/h/d/6c/c/2/dec/6c/1/en/o
b.html
•
InterContinental Hotels & Resorts
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Crowne Plaza Hotels & Resorts
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Hotel Indigo
•
Holiday Inn Hotels and Resorts
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Holiday Inn Express
•
Staybridge Suites
•
Candlewood Suites
•
Park Inn Hotels
•
Park Plaza Hotels & Resorts
•
Regent International Hotels
•
Experiences over 7 million visits to its web site each
month.
Bina Nusantara
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The Use of Reservation System in Hotels
•
Carlson Hospitality Worldwide
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Bina Nusantara
Central reservation system: Curtis-C (“Courtesy”)
730 hotel and 6 cruise ships
8,900 reservations per day processed; over 3
million per year (2000)
Brand: Regent International, Radisson, Country
Inns and Suites, Park Plaza and Park Inn,
Radisson Seven Seas Countries
Curtis-C interfaces with the company’s hotel via
HARMONY (company’s PMS) and
CustomerKARE (Customers knowledge and
relationship enabling)
10
The Use of Reservation System in Hotels
• Carlson Brands
http://www.carlson.com
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Bina Nusantara
Regent International Hotels
Radisson Hotels & Resorts
Park Plaza Hotels & Resorts
Country Inns & Suites by Carlson
Park Inn Hotels
Radisson Seven Seas Cruises
11
The Use of Reservation System in Hotels
• Carlson - Connected to 455,000 travel agents
• Carlson - Data Interface
– HARMONY – the PMS of the hotels
– Customer KARE system (Customer Knowledge and
Relationship Enabling System)
– Harmony Database Manager – room inventory and
room reservations
– Guest Communication Manager – manages guest
satisfaction information
– KnowledgeNet – provides access to company
policies, forms, reports, hotel procedures and
newsletters
Bina Nusantara
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Global Distribution System
• Global Distribution Systems (GDS) are
distributors of hotel rooms to corporations
such as travel agents that buy rooms in large
volume.
– Amadeus
– Galileo
– SABRE
– Worldspan
Bina Nusantara
13
Role of the Internet in Securing Reservations
• Background on Room Rates offered via the Internet
– Dot.com mania hits consumers ->wholesalers decided to
advertise free offers to entice consumers to use the
Internet
– Leaves lasting impression on purchasing manner
– Wholesaler offers to take empty hotel rooms into inventory
and offer on Internet -> hoteliers grateful to sell rooms at
low sale prices
– Internet sales light; everything seems ok
– Other Internet sites offered similar models with their
discounts guaranteed lowest price -> transparency of
rates (guest can check room rates before check-in to see
if their rate has been offered lower on the Internet)
Bina Nusantara
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Role of the Internet in Securing Reservations
•
Bina Nusantara
Effect of Internet on Pricing Rooms – Muqbil 2003
– 35% of Americans used Internet to research travel
– Real-time rate information availability causes re-book
booking, if lower rates are posted
– Minus $1.27 billion to lower ADR because of increased
transparency and price competition and increased revenues
due to increased bookings stimulated by the lower rate
– Internet average rate is 17% less than non Internet rate
– 75 % were discount seekers and 25% were convenience
bookers.
– Price transparency during low periods is a negative for
hotels to increase rate; opposite during peak seasons.
15
Role of the Internet in Securing Reservations
Consumers Response to Use of the Internet –
Third-Party Websites (Expedia, Travelocity)
– GDS and Pegasus Hotel e-Commerce room night sales
= 57,131,438 (46,510,434 sold by travel agents and
10,621,004 by consumer off the Internet) second
quarter 2004
Bina Nusantara
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Types of reservation systems
• Franchisee – hotel owner who leases a brand name
and the benefits by:
– Management expertise
– Financial backing
– National advertising
– Group purchasing
– Reservation service
Bina Nusantara
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Types of Reservation Systems
•
Bina Nusantara
Referral Member of a Reservation Referral System - a worldwide
organization that processes requests for room reservations at a
particular member-hotel, is a hotel developer/owner who has
access to the national reservation system
– 15%-30% of daily room rentals vs. independent status
– Hilton franchise fees example (2005):
• Initial fee of $85,000 for first 275 guest rooms or suites
plus $300 for each additional room or suite (min. fee to
$75,000)
• 5% monthly gross rooms revenue for franchise fee
• 4% of monthly gross rooms revenue = monthly program fee
• Plus other fees for participation in Frequent Traveler/Guest
Reward program, training, and computer system
18
Sources of Reservations
• Purpose: to understand the need of each segment and
provide reservation systems to meet their needs
• Corporate clients
– A hotel guest who employed by a business
– Corporate guests will need reservations to ensure a
productive business visit
– Reservation may be initiated by a secretary/ administrative
assistant
– Methods to ensure reservation: toll-free phone number,
travel agent, web-site
Bina Nusantara
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Sources of Reservations
• Corporate Clients
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Bina Nusantara
Secretaries Club
Toll-free
Reservation Referral Chain
Travel Agent
Web sites (Expedia, Travelocity, Hotels.com)
20
Sources of Reservations
• Social/Military/Educational/Religious/Fraternal
(SMERF)
– Provides opportunity to fill vacancies in low times
– These markets are price sensitive and time-relaxed
and will travel accordingly.
Bina Nusantara
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Sources of Reservations
• Meetings/Incentive/Conference/Event (MICE)
– Need to locate large group of conference attendees
– Details: airfares, hotel rooms, room rates, food and
beverage, cultural activities, etc.
– Cooperation of local tourism and travel association
necessary
Bina Nusantara
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Sources of Reservations
•
Bina Nusantara
Group travelers
– Refer to various travel directories used by hotels and
potential guests as listed in the text
• Group planner
• Bus association network
– Virginia Bus Association
– Pennsylvania Bus Association
– National Bus Association
• Travel directories i.e. Hotel and Travel Index
• Hotel Representative – member of hotel staff who
seeks group activity planners
• Hotel Broker – person who sells hotel room prize
packages to corporations, sweepstakes promoters,
game shows, and other sponsors (with a discount)
23
Sources of Reservations
– Leisure Traveler – people who travel alone
or with others to visit points of interest or
relatives, or for other personal reasons
• Travel agencies
• Toll-free numbers
• Reservation/referral systems
• Internet
– Current Guests - an overlooked marketing
opportunity
Bina Nusantara
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Forecasting Reservations
• Purpose: to preview the income statement
• It enables hotel managers to determine projected
income and related expenses for a certain time period
• FO Manager has estimated total room occupancy to
be 100 room with an ARR of $70 for 7 days period can
project revenue of $ 52,500 (100 x $75 x 7) for room
sales
• Room forecast assist in planning delivery of service
Bina Nusantara
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Forecasting Reservations
GRAND HOTEL
Weekly Room Sales Forecast
2/1
2/2
2/3
2/4
2/5
2/6
2/7
0
10
72
75
5
15
125
Arrivals: Confirmed
40
20
30
25
5
8
22
Arrivals: Guaranteed
30
18
17
90
4
2
10
Total
70
38
47
115
9
10
32
20
+20
20
+20
30
+30
10
+10
10
+10
5
+5
50
10
85
68
65
175
177
65
5
3
5
10
2
2
3
Departure
Walk-ins
Stayovers *
No-shows
TOTAL **
95
140
140
180
192
190
144
* Yesterday’s total – departures
** Yesterday’s total – departures + arrivals + walk-ins – no shows
Bina Nusantara
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Occupancy Management
• Overbooking
• Confirmed reservations
• Guaranteed reservations
• Stayovers
• Understay
• Walk-in guests
• Occupancy management formula
Bina Nusantara
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Occupancy Management
Overbooking
Accepting reservations for more rooms than are available
Confirmed
Prospective guests who have a reservation for
specified time
Guaranteed
Prospective guests who have made a contract with the
providing credit card number to hold a room reservation
Stayovers
Registered guests who wish to extend their stay beyond
reservations
Understay
Guests who arrive on time but decide to leave before their
Walk-in guests
Guests who arrive to a hotel without a reservation
Bina Nusantara
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Overbooking (Occupancy Management)
Overbooking – accepting reservations for more
rooms that are available by forecasting the
number of no-show reservations, stayovers,
understays, and walk-ins, with the goal of
attaining 100% occupancy
Bina Nusantara
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Overbooking (Occupancy Management)
• In many instances, overbooking to overcome the
problem of no-shows and late cancellations may
produce advantages by way of operating efficiencies
that far outweigh the occasional inconveniences to
guests and travelers.”
• Hoteliers and front office managers who practice
overbooking do so to meet an organization’s financial
objectives. They do not intentionally overbook to
cause problems for the traveler.”
Bina Nusantara
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Overbooking (Occupancy Management)
• Components of overbooking
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Bina Nusantara
Confirmed reservations – 4 pm or 6 pm check in
Guaranteed reservations – credit card required
Stayovers
Understays
Walk-in guests
31
Overbooking (Occupancy Management)
• Revenue Management
“A management technique of planning to achieve
maximum room rates and most profitable guests”
Bina Nusantara
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Occupancy Management Formula
Total number of rooms available
(-) confirmed reservations x no-show factor
(-) guaranteed reservations x no-show factor
(-) predicted stayovers
(+) predicted understays
(-) predicted walk-ins
________________________________________
= number of additional room reservations needed to achieve 100%
occupancy
Bina Nusantara
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Occupancy Management Formula
• 200-room lodging property has 75 confirmed
reservations with a 5% no-show factor
• There are 100 guaranteed reservations with a historical
no-show rate of 2%
• Predicted stayovers: 4 rooms
• Predicted understays: 5 rooms
• Predicted walk-ins: 8
Bina Nusantara
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Occupancy Management Formula
200 rooms available
(-) 71 confirmed reservations (75 – [75 x 0.05])
(-) 98 guaranteed reservations (100 – [100 x 0.02])
(-) 4 stayovers
(+) 5 understays
(-) 8 walk-ins
= 24 number of additional room reservations needed to achieve 100%
occupancy
• The formula indicated to FOM that 24 additional rooms must be rented to
achieve 100% occupancy  by predicting this number in advance, FOM has
reasonable flexibility in accepting 24 additional reservations for the day
Bina Nusantara
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Processing Guest Reservations
• Systemwide Reservation Systems
– Operational procedure:
• Greeted by an operator
• Guest places of request for dates and
accommodations
• Operator checks availability of request with room data
bank
• Operator suggests alternatives
Bina Nusantara
36
Processing Guest Reservations
•
Outsourcing reservations – providers of central reservation systems that are
not owned by the hotel operation
– Internet
– Global Distribution System (GDS) – Amadeus, Galileo, SARE, and
World Span
– Web-enabled application-service provider (ASP)
– Components of SynXis Agent (Allows hotel operators to consolidate and
control hotel inventory from all booking sources. )
• Central reservation system
• GDS connectivity
• Alternate-distribution system connectivity
• Book-A-Rez
– Pegasus Solutions
• Real-time availability and pricing for property and room types
• Interfaces with key industry PMS, revenue systems, and loyalty
program systems to approximately 7500 hotels
Bina Nusantara
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Processing Guest Reservation
• Confirmed reservation – a reservation that is held until
4pm or 6pm; discuss implications on profit and loss
statement
• Guaranteed reservation – a reservation that is held with
a credit card until the guest arrives; discuss
implications on profit and loss statement
Bina Nusantara
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Processing Guest Reservations
• Reservation codes for confirmed or guaranteed
reservations Components
• I.D. number of property
• Initials of reservationist
• Date of arrival
• Date of departure
• Type of credit card
• Room rate
• Type of room
• Sequential reservation number
Bina Nusantara
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Processing Guest Reservations
• Cancellation code
• Components
•
•
•
•
I.D. number of property
Initials of person who processed the reservation
Date of arrival date of departure
Sequential number of cancellation
– Blocking procedure – removing rooms from the
available room data bank for the dates involved
– blocking on the horizon – in the distant future
– daily blocking assigning guests to their
particular rooms on a specific day of arrival
Bina Nusantara
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Completing Reservations through a PMS
Guest data
Data about the guest who makes a reservation
(name, address, ph. number, date of arrival & departure, flight
Room
To indicate the availability of a guest room to be rented on a
OPEN (room is available for renting)
CONFIRMED (room has been reserved until 4 or 6 pm)
GUARANTEED (room has been reserved until guest arrives)
REPAIR (room is not available for guest rental)
Deposits
Would be assessed when the clerk needed to determine whether
Special
To determine if rooms are available to meet the specific needs of
Bina Nusantara
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Completing Reservations through a PMS
Blocking
Provides reports to the FO Manager on which rooms are to
guests on a particular day
Arrivals
Lists the guests that are expected to arrive on a specific
Departure
Lists the guests that are expected to check out on a
VIP
Provides information on guests with VIP status
Projected occupancy
Provides the various departments in the hotel with
number of guests who will be in the hotel on a certain day
Guest messages
Allows the front desk clerk to relay information to the
Bina Nusantara
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Processing Guest Reservations
• Database Interfaces
– Transferring of computer information (captured at
the time a reservation is made) between computers
• Examples
– Marketing and sales office
– Housekeeping staff
– Maintenance crews
– Food and beverage
– Controller’s office
Bina Nusantara
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Processing Guest Reservations
• Database interfaces
– True Integration
• Integration of central reservation system and
property management system sharing database.
• Benefits:
– Consumer can access real-time reservations
– Less investment for data storage
– Hotels can access data via Internet
Bina Nusantara
44
Group Discussion Week 4
1. Discuss how reservations are a necessity for travelers
2. Discuss how reservations are a necessary marketing
tool for hotels
3. Discuss Importance of a reservation system
4. Discuss the role of reservations in producing a profit in a
hotel
Bina Nusantara
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Case Study Week 4: Room Forecast
Use the following data to prepare a rooms
forecast for the first week of May for the
Grand Hotel
No. of rooms available = 600
No. of rooms occupied on April 31 = 300
Bina Nusantara
46
Case Study Week 4: Room Forecast
5/1
5/2
5/3
5/4
5/5
5/6
5/7
Departures
200
50
200
50
300
50
200
Arrivals
200
100
100
100
70
175
180
- Confirmed
70%
60%
50%
20%
30%
92%
10%
- Guaranteed
30%
40%
50%
80%
70%
8%
90%
40
10
20
10
25
10
25
0.02
0.02
0.02
0.01
0.0143
0.04
0.0223
Walk-ins
No-shows
(% of expected
Bina Nusantara
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THANK YOU AND
HAVE A GOOD DAY
Bina Nusantara
48