MODULE 3
MODULE 3 OVERVIEW:
Welcome to Module 3 – Handling Room Reservation
In this module, we will discuss an overview of hotel reservation system in order to work
effectively as front office management personnel. At the end of this module, you are going to
practice filling the reservation forms by choosing a partner who acts as guest for booking a
room.
You are set for an incredible journey! Have fun in the world of hospitality industry!
MODULE 3 LEARNING OBJECTIVES:
By the end of this module, the students will be able to:
1. Know the procedures for handling reservations.
2. Understand room rate designation including standard rates and special discounted rates.
3. Identify the different modes of reservation.
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COURSE CONTENT FOR MODULE 3: Handling Room Reservation
LECTURE DISCUSSIONS
Reservation of the hotel accommodation is one of the important responsibilities of the front office
department. A potential guest contacts a hotel for availability of the desired type of
accommodation and any allied services that the hotel offers. The front office department needs
to react to the enquiry of the guests.
[Link]
For a guest, reservation increases the chances of a better deal for assured accommodation on
arrival. For a hotel, reservation can enable a better management of guest experience during usual
as well as peak seasons. Reservation procedure varies depending on the size and brand of the
hotel and the reservation system employed. Let us know the details how the front office handles
reservations.
3.1 TYPES OF HOTEL CLIENTS
For purposes of designating room rates, hotel patrons maybe classified follows;
[Link] in Guest-is a label given to a patron who comes unannounced looking for rooms. Walk in
guests with repeated patronage.
2. Corporate Accounts-Apply to companies or intuitions, usually, special credit arrangements in
the hotel. If accredit line is extended, companies are allowed to book their guests on charges
provided that send a letter of guarantee to the hotel prior to the guest’s arrival. The accounts are
usually treated with special rates and also given a priority of high occupancy especially when
frequently rates and also given priority of high occupancy
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3. Association- are groupings of individuals or companies for a common purpose or goal, sharing
ideas, hobbies, beliefs, other lots of things. Examples; Personal Manager’s Association, Hotel
and Restaurant Management Association, Lions Club, Jaycees, etc,
4. Travel agencies-most of these agencies have pre-arranged bookings of their tour groups in
hotel their choice. There are also many travel agencies that serve as intermediary in booking
clients (usually travelers, businessmen or tour groups) to the hotel, in exchange of a pre-
negotiated management fee or a commission.
5. Government institutions/offices-some have special booking or credit arrangements with the
hotel. Example: TESDA, Department of Tourism, DTI or etc,
6. Free independent travelers (fit)-refer to tourist or travelers travelling alone. It can
also refer to foreign individual tourist who are joining any tour group.
7. Educational institutional-i.e., schools, training centers
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[Link]/domestics travelers-some large hotels have ventured into a promotion known
as "sariling atin"- our very own). This promotion provides for 30 -50% discount for
local tourist domestic guests.
9. Balikbayan-refer to returning or visiting or visiting Filipinos who are residing
working abroad. Some hotels provide for special "balikbayan rate" .
10. Other accounts
[Link]
3.2 RATE DESIGNATIONS
1. Rack rate
2. Corporate rate
3. Volume account rates
a. A accounts
b. B accounts
c. C accounts
4. Government rates
5. Seasonal rates
6. Weekday- Weekend rates
7. Advance Purchase rate
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8. Half day rates
9. Industry rates
10. Package rates
a. Vacation package
b. Banquet and room package
c. Meeting packages
11. Group rates
12. Per person rate
Reservation terminologies:
Allowances- Daily cash paid-outs to airline crews as negotiated with the airlines and recovered
from them at later date.
Amendments- Changes made of records concerning his/her stay.
Cancellation- A confirmed booking that has been cancelled in writing by a guest.
Confirmation- A room reservation that has been confirmed in writing by a guest.
Double occupancy- Two guest staying in a room.
Group- Anybody of guest above 15 persons who travel together.
Guaranteed booking- A room booking that is confirmed in writing by a guest and with a pre-
payment.
Guest- A client of the hotel.
Forecast- A studied anticipation of room business.
Free sale- Rooms that is available for booking.
FIT- Stands for “Free Individual Traveler” who is an independent guest who does not use:
the services of middlemen for booking his/her room.
GIT- Group Inclusive Tour
Lay-over- Airline passengers checked in by airlines who are catching a connecting flight
sometime later.
On-request- a status when guest are kept waiting for a room booking confirmation.
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Overbooking- Booking rooms that are beyond the hotel room capacity.
Pax- Person
Revision- Change in booking instructions.
Room availability- The room position when rooms are available for sale.
Room blocking- Blocking a room in the reservation chart.
Room night- a charge for a one-night occupation, spanning two days from noon to noon.
Sale- a room space sold.
Sold out- a status in which all rooms in the hotel are sold.
Single occupancy- one guest staying in a room.
Waitlist- a guest awaiting a confirmation of the room booking.
Charge- is a financial obligation for a product or service during a guest stay.
Fences- rate rules that may include restrictions such as advance booking cutoffs or
nonrefundable payments.
Litigious society- an environment in which consumers sue providers and services for not
delivering them according to expected operating standards.
Late charges- guest charges that might not be included on the guest folio because of a delay in
posting by other department.
3.3 TYPES OF RESERVATIONS
An efficient and effective reservation system is what adds to the hotel’s profitability. Following are
the most popular reservation systems −
[Link]
modes-and-source-of-reservation
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Whitney System of Reservation
It was developed in 1940 by Whitney Paper Corporation from New York, hence the name. This
is a conventional manual reservation system the hotels used to follow during pre-computer days
in the hotels. It contains the following setup for reservation −
Slip for request of accommodation reservation
Whitney slip that records guest name, accommodation type, number, and duration of stay
Temporary/Permanent arrival slip
Guest bill
Guest registration card
Correspondence file
Bedroom journal that records daily occupancy of the guest with date, guest name, room
type, and room number
Let us see how a Whitney slip and the bedroom journal looks like.
Whitney Slip
Guest Name Date of Arrival Room Type Room Rate Date of Departure
Mode of Reservation Reserved By Date Received
Reservation Agency if Any:
Billing Instructions Date of Confirmation
Bedroom Journal
Date: ___________
Guest Name Room Number Room Particulars
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Though this system proved efficient, it generated a lot of paperwork with occasional scope for
errors. The drawbacks were overcome by the central reservation system.
Central Reservation System (CRS)
It is a computerized reservation system that reduces paperwork and can handle large amount of
reservation data effortlessly. In this system, since the guest data and reservation data are stored
on the storage disks of the computers, it can be accessed at wish. It is stored in the form of a
database of collection of records which can enable searching, adding, removing, or updating any
guest related data.
The computerized reservation system not only helps to make guest reservations but also helps
to forecast how many accommodations can be reserved in an upcoming time period.
This is how a CRS typically works −
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[Link]
The guests of hotel sales agents call for checking room availability. It is forwarded to the front
office reservation staff. The staff finds out details about the requirement and checks the availability
of desired accommodation in the database. According to the reservation policies and procedures,
the reservation staff member then notifies or suggests the reception about the accommodation
availability and takes further appropriate action.
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THE ROLE OF INTERNET IN RESERVATION
The Internet has brought a momentum in the hospitality
business as well. It facilitates seamless management
of a hotel’s offices located at various places and their
various departments.
The hotel businesses are actively working on the
Internet 24 hours a day, seven days a week. The
Internet has simplified complex system of reservations.
It enables Online Hotel Management Systems (OHMS)
such as Hotelogix to help guests reserve
accommodation of their choice fast and conveniently.
[Link] The guests of the hotel can access rate charts, accommodation
availability, check-in and check-out timings, details about the restaurants, and so on, at their own
convenience.
3.4 SOURCES OF RESERVATIONS IN HOTEL
People travel for various reasons such as personal as well as for MICE. There are various
sources from whom the requests of reservation pour in −
Direct Request from Guests − The prospective guests can approach individually to the
hotel for reservation of accommodation mostly when they are single travelers or family
travelers.
Request from Travel Agent − They can approach the hotel for booking accommodations
for group travelers.
Request from Corporate Agent − An organization can request a hotel to reserve
accommodations for their employees, clients, or visitors.
Request from Airlines − The airlines can reserve accommodations for their working staff
for routine stay as well as in case of flight cancellations.
Request from Institutions − Various SMERF (social, Military, Educational, Religious and
Fraternal groups) or NGO institutions request to reserve hotels for sports people, delegations
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of embassies, or performing-art program groups, workshop groups, and alike who travel
to different location.
3.5 PROCEDURES FOR HANDLING RESERVATIONS
Https://setupm [Link]/train -m y-hotel-staff/front -office-training/766-stages -[Link]
6 STAGES OF RESERVATION PROCESS IN HOTEL INDUSTRY
1. Identification of the sources of business:
The hotel normally identifies two major sources of business: Free Independent Travellers (FIT)
and associated Travellers (Groups). The FIT component is simply a non-group affiliate seeking
overnight accommodations. Regardless of whether a request is made by an individual, a family
or a collection of friends, a request may still be termed as FIT reservation if it meets certain
qualifications.
When meeting groups, convention groups, and the like are seeking guest room space in the
hotel, these types of requests are referred to as group reservations. The groups are
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differentiated from the FIT reservations based on 1.) Whether a group coordinator is involved 2.)
Whether the group will pick up some or all of its member’s charges 3.) Whether special room
rates, services and/or room types apply.
Group reservations typically require that a block of rooms (allocation) be initially reserved for the
group with a specific rooming list following at a later date. It should be noted that if a group does
not have all of its blocked rooms booked by a reasonable date, most hotels will release the
uncommitted rooms from the group’s block. FIT reservations, however usually allow for both
blocking and booking to take place simultaneously. Regardless of its source of business, a
reservation request begins the hotel’s reservation process read more about different source of
reservation.
2. Communication with the Hotel:
There are numerous ways a hotel can learn about the guest’s request for available space. The
potential guest can connect with the hotel via a telephone, email, online, Social Media, other
devices or referral systems may all become important, communication links between the sources
of business and the hotel property.
[Link]
It is important that the potential customer be aware of how to contact the hotel in order for
lodging management to maximize guest room sales. A property receives reservation inquiries in
a variety of ways. The reservation request may be made in person, over a telephone, in a mail,
via facsimile or telex, though the internet or online, social media, mobile apps, instant messaging
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systems (Whatsapp, Telegram, Facebook Messenger) through a central reservation system,
global distribution system or through an inter sell agency.
3. Formulation of the reservation request:
Once a hotel is contacted by a guest about reserving space its staff must intelligently formulate
the reservation request and complete a reservation record. The reservation record is the
permanent file form used to store all the information pertinent to a specific reservation or in
current era creating a computerized reservation record in the hotel management software or
PMS.
In formulating the reservation request, the three
most important factors are a) the expected date of
arrival and departure b) the desired room type c) the
number of rooms needed. Using this information,
the hotel staff can search the room availability file
via the designated arrival date. If the date is not
closed the reservation agent proceeds by checking
room type and the number of rooms available.
[Link]
Along with this preliminary data, a reservation record will usually be judged complete when it
includes the following information:
• Guest’s Profile Data.
• Guest’s group/company affiliation.
• Arrival date and time and departure date.
• The number of nights.
• Number of Pax.
• Room type requested.
• The number of rooms required.
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• Type of bed.
• Rate quoted / Rate Code.
• Date reservation received
• Reservation Status.
• Billing Instruction
• Pickup Details.
• Any other Details or special remarks.
• Source Code
• Market Code
4. Reservation Acceptance:
A reservation can either be accepted or denied or turned away based on the availability of rooms
in the day(s) in question. An acceptance would lead the receptionist into the confirmation phase,
while a denial or turn away could cause a series of other options to be exercised like for example
recording the turn away reason etc.
5. Confirmation notification:
The acceptance of the reservation is followed by a
notification confirming the blocking of a room or group
of rooms. The reservation confirmation is sent to the
booker or guest by email, fax, SMS, social media or
online chat (Instant messenger).
[Link]
The confirmation establishes:
A check on the entered reservation request data and satisfaction of the reservation
request.
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An agreement of room rates.
An agreement of method of payment.
A statement of the hotel’s cancellation procedure.
6. Modification and pre-arrival activity:
Once the reservation has been accepted and confirmed many changes to reservation record can
occur prior to the guest’s arrival. Changes in the arrival or departure dates, number of rooms
required, adding pickup details, reconfirmation, updating deposit status, number of pax and
outright cancellations are examples of common pre-arrival activities. Any time a change in a
reservation record is required, the reservation record must be pulled and updated according to
the guest request to keep the reservation-related data up to date.
[Link]
Also searching and retrieving the correct reservation record for any modification and cancellation
request is crucial to an effective reservation process. Also. while processing the cancellation
below details need to be updated on the reservation record for any future reference.
• Caller Name.
• Caller contact details.
• Reason for Cancellation.
• Cancellation reference number.
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• Date of Cancellation (Recorded automatically by the hotel software or enter manually).
• User or Reservation Agent Name Who processed the cancellation (Recorded
automatically by the hotel software or enter manually).
Basic Procedures in Taking Reservations
1. Greet the client and offer assistance.
2. Once request for reservations is received, find out from the inquiring party the dates and the
type of room required. Then check if there is an available room corresponding to the room type
preferred. Refer to the Reservations chart or Room Status Rack where reservation slips are
clipped.
3. Inform the guest if a room is available. If the requested room type is not available, offer
alternative room that is available. Tell the booking party that the guest could be transferred to his
preferred room the moment it is vacated.
4. Once room availability is confirmed, get detailed information as outlined below. Then enter
these details on a reservations card.
5. All pertinent information regarding the reservations shall be indicated in the Room
Reservations Card to include:
a. Name/s of Incoming Guest
The last name (surname) must be written first followed by the first name and
middle name, then the title. JONHSON, ANDREW M. MR. If the party is man and
wife, the title should be written M/M which stands for Mr. and Mrs. JONHSON,
ANDREW M/M
b. Number of Persons Arriving
C. Arrival Date and Time
d. Information/Time of Arrival
The name of airline, numerical designation of the carrier and the place of origin
must be taken whenever available. The time of arrival in the hotel is taken in case
the guest is arriving via another mode of transportation.
e. Departure Date
f. The Number of Nights the Guest is Expected to Stay in the Hotel
Ex. Arrival -Dec. 10 Departure - Dec.15
Number of Nights - Dec. 10, 11,12, 13,14, - 5 nights
g. The number (quantity), type of room and type of bed required
h. Room Rate
The client must be informed of the rate of the room reserved. If he is a repeat guest,
the hotel may refer to the Guest History Card and apply the rate which the guest
enjoyed in his previous visit(s).
i. Billing Arrangement
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Specific arrangements as to the manner of the bill settlement
o PAX ACCOUNT, abbreviated as PA (personal account of guest) is written when
the guest will pay to the hotel directly.
o COMPANY ACCOUNT (abbreviated as CA) is indicated when bills will be
charged to the company. This payment arrangement is acceptable only if the
guarantee is in writing and the company has good credit status. The portion of
the bills to be shouldered should also be indicated; i.e., all bills or room/ meal
charges only.
į. Remarks
In this space, the clerk notes down special request or arrangements VIP,
commissionable, with extra bed, fruit basket, special amenities, etc. Status of
reservation must also be indicated here; e.g. confirmed, tentative, guaranteed, etc.
e.g.
k. Booked By
The name of the person making the reservation, his telephone number must be
recorded for reference purpose.
I. Accepted By
Reservations clerk who accepted the reservation must initial the form for record
purposes.
m. Date of Acceptance of Reservation
From the reservations form/card, the reservations data are transferred to a reservation
slip which is prepared in duplicate.
Print the reservation slip and make sure the information is complete. The original copy of
the slip goes to the reservation rack and the other one is filed. The reservation card is forwarded
to the supervisor for him to check and to block the reservations in the Reservations Chart. Then
the reservation card is filed according to date of arrival and in alphabetical order. The daily
arrival list is likewise prepared or updated making reference to the information written in the
reservation card.
Handling reservations by Email
1. Provide for reservations forms in the email/ webmail inbox.
2. Daily check emailed inquiries and reservations and give prompt response.
3. Before responding, check if all important information are indicated in the reservations forms.
4. Call/email reserving person for any missing information.
5. Before confirming, double check room availability in the reservations chart to avoid any
double booking.
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6. If the preferred room is available, inform the sender regarding the hotel policy on
prepayment and the need for guarantee letter if it is a guaranteed booking.
7. If preferred room type is not available, suggest other options until agreement is reached.
8. Once the guest confirms, and that all information are in order and pre-payment has been
made, email a confirmation letter.
Amendments in Reservations
1. Extension of stay
2. Early departure
3. Room change
4. Early arrivals
5. Walk- in
Reservations during full house
1. The reservations clerk must make sure that the availability board reflects the day’s date
under either “on request’ or “ close out”.
2. All reservations for the day are not confirmed except for top accounts, for which permission
to confirm will be asked from the reservations manager. Unconfirmed reservations are
waitlisted and placed in the WAITLIST folder according to date.
3. The duty manager must counter check all reservations with no flight information and call
up the concerned companies.
Booking out during full house
Priority is given to VIP’s, regular patrons and valued corporate account.
Booked out- referred to other hotels or properties.
The six o'clock policy
Means that, the guest with reservations is required to arrived not later than 6 o’clock PM of
the arrival date.
If he does not show up within this cut-off time, the hotel has a right to give way to other
guests using the room reserved for him.
However, some hotels may consider late arrivals if they informed ahead of time.
When the room is pre-paid or GTD by a sponsor, the 6 o’clock policy does not apply.
MODULE 3, ACTIVITY 1:10 points
Practice filling the reservation forms by choosing a partner who acts as guest for booking a
room.
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MODULE 3, ACTIVITY 2: 10 points
Hotel Reservation System Activity Diagram
This hotel computer reservation system cycle process chart example was users to book hotel
rooms, rental cars, airline tickets as well as activities and tours.
Read more details on [Link]
diagram
1. How to manage hotels effectively?
GRADING RUBRIC FOR WRITTEN ASSIGNMENTS
LEVELS OF ASSESSMENT
BELOW MEETS EXCEEDS EXEMPLARY – SCORE
STANDARD – 2 STANDARD – 3 STANDARD – 4 5 PTS.
PTS. PTS. PTS.
ORGANIZATION Writing lacks Writing is Writing is coherent Writing shows
logical coherent and and logically high degree of
organization. It logically organized with attention to logic
shows some organized. Some transitions used and reasoning
coherence but points remain between ideas and of points. Unity
ideas lack unity. misplaced and paragraphs to clearly leads the
Serious errors. stray from the create coherence. reader to the
topic. Transitions Overall unity of conclusion and
evident but not ideas is present. stirs thought
used throughout regarding the
essay. topic.
LEVEL OF Shows some Content indicates Content indicates Content
CONTENT thinking and thinking and original thinking indicates
reasoning but reasoning and develops synthesis of
most ideas are applied with ideas with ideas, in-depth
analysis and
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underdeveloped original thought sufficient and firm evidences
and unoriginal. on a few ideas. evidence. original thought
and support for
the topic.
DEVELOPMENT Main points lack Main points are Main points well Main points well
detailed present with developed with developed with
development. limited detail and quality supporting high quality and
Ideas are vague development. details and quantity support.
with little evidence Some critical quantity. Critical Reveals high
of critical thinking. thinking is thinking is weaved degree of critical
present. into points thinking.
GRAMMAR Spelling, Most spelling, Essay has few Essay is free of
AND punctuation, and punctuation, and spelling, distracting
MECHANICS grammatical grammar correct punctuation, and spelling,
errors create allowing reader grammatical errors punctuation, and
distraction, to progress allowing reader to grammatical
making reading though essay. follow ideas errors; absent of
difficult; Some errors clearly. Very few fragments,
fragments, remain. fragments or run- comma splices,
comma splices, ons. and run-ons.
run-ons evident.
Errors are
frequent.
STYLE Mostly in Approaches Attains college Shows
elementary form college level level style; tone is outstanding
with little or no usage of some appropriate and style going
variety in variety in rhetorical devices beyond usual
sentence sentence used to enhance college level;
structure, diction, patterns, diction, content; sentence rhetorical
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rhetorical devices and rhetorical variety used devices and
or emphasis devices. effectively. tone used
effectively;
creative use of
sentence
structure and
coordination
FORMAT Fails to follow Meets format and Meets format and Meets all formal
format and assignment assignment and assignment
assignment requirements; requirements; requirements
requirements; generally correct margins, spacing, and evidences TOTAL:
incorrect margins, margins, spacing, and indentations attention to
spacing and and indentations; are correct; essay detail; all
indentation; essay is neat but is neat and margins,
neatness of essay may have some correctly spacing and
needs attention. assembly errors. assembled. indentations are
correct; essay is
neat and
correctly
assembled with
professional
look.
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