HANDOUTS IN FRONT OFFICE ACCOMMMODATION MANAGEMENT

Unit 1

Overview of the Hotel Industry

The history of lodging can be traced back to the civilizations of Sumaria and ancient Egypt .

Indeed, the need for a place to stay away from home is as old as the first nomadic traveler. Trading

between cultures created the need for groups of people to travel often great distances. Along these

trade routes, certain stopping points became favored out of necessity. An oasis in the desert or a

mountain pass in winter became logical places for trading caravans to rest. Areas where different

trading routes intersected also became favored stopping points. Many of these junction points

eventually evolved into cities.

As the history of lodging unfolded, innovations began to emerge. At some point, innkeepers

began to incorporate food and beverage service in their operations. This led to a change in the way

people traveled. As the evolution of lodging continued, new facilities began to emerge as an option

for travelers. The wealthy and landed aristocracy of the world began to view the many spare rooms

in their castles and estates as sources of revenue. The best examples of this can be traced back to

the English and colonial inns of the 1700s. Each fulfilled the need for housing of travelers by renting

spare rooms. The significant difference between the two was that colonial inns offered rooms to

anyone who could afford to pay, whereas English inns were most often reserved for the aristocracy.

The word hotel is the Anglicized version of the French hôtel garni, which translates into “large,

furnished mansion.”

Most full-service hotels have six main functional departments and these are: rooms division,

food and beverage, accounting, human resources, engineering, sales and marketing and catering.

Each of these departments will exist, in one form or another, regardless of location type or product

type. It is when the other organizational criteria are considered that the problem of defining the size

and scope of these departments arises. A variety of responsibilities and duties exist within each

department. All these departments rely on each other to provide the best product. Understanding

each department is vital to understanding the hotel as a whole.

Within a hotel, perhaps no area is as vital and in some cases visible as the rooms division.

The rooms division is the “nerve center” for most of a hotel’s operations. It is, after all, the area most

responsible for the main hotel product, the sleeping room. This is evident in the hotel maxim:

“Everything begins with the Rooms Division.” Within the rooms division, lies the front office.

The Front Office: Hub of Human Relations

In physical terms, the front office of a hotel is its focal point, its nerve center, its command post,

a crossroads, the conjunction where guests and hotel employees merge, interact, and move on. It is

also an information center, a place for recording transactions and for recordkeeping and control.

Psychologically, it is a human relations center where a guest meets and interacts with hotel

personnel, each interaction evoking feelings that in the final analysis determines whether the guest

enjoys the hotel experience. As a visible symbol of the hotel operation, at the nerve center, is the

clerk. He or she is the subject of praise and focus of hostility when almost anything pleasant or

unpleasant happens to a guest.

Upon arrival, guests look forward to respectful and accommodating hotel personnel. Using

courteous words, repeating the guest’s name, and treating the guest warmly makes guests feel

comfortable. Arrival goodies, such as warm cookies and milk, tea, or coffee are only but a few

examples of hotel complimentary an establishment could offer as a comforting gesture appreciated by

guests.

Guests appreciate having friendly, knowledgeable, and helpful staff members whom they feel

comfortable addressing. Guests feel comfortable knowing that they can trust the staff with their

safety, belongings, messages, and wake-up calls. Many guests find it satisfying when the staff

approached their stay with a responsive, attentive, and enthusiastic attitude. Personalizing hotel

service is one of the contributing factors to a guest’s satisfaction and comfort.

Organizational Chart of the Front Office Department

Exhibit 1. Sample Organizational Chart for a Large Hotel

Front Office Manager

Front Desk Supervisor Bell Captain

Chief Telephone Exchange

Chief Airport Assistance

Chief Concierge /

Guest Relations

Reservations Supervisor

Desk / Info Clerk

Reservations Clerk

DoormanBellman

Airport Rep.

Telephone Operator

Concierge Clerk

Business Ctr. Clerk

Exhibit 2. Sample Organization for a Small Hotel

Basic Functions of Front Office Personnel

Front Office Manager / Supervisor Enhance guest services by constantly developing services to meet guest needs. Responsible for a large portion of the most visible aspects of a hotel’s day-to-day operations. Directs day-to-day activities of the front desk, the bellstand, and the concierge staff

Front Desk Supervisor or Senior Desk Clerk Oversees front desk operations particularly the handling of registration of guests.

Sales / Reservations Supervisor Directs and supervises operations pertaining to room sales and reservations.

Reservations Clerk Attends to room sales and reservations

Desk Clerk Checking guests in and out of the hotel. Attends to the registration of guests. Manages the in / out flow of guests on a daily basis.

Doorperson / Doorman Greet arriving guests and help them from their vehicles to the lobby.

Bell Captain Supervises the bellstaff.

Bellstaff / Bellman Basic responsibility is to help guests into and out of their rooms Runs errand for the front desk.

Front Desk Cashiers Attends to the settlement of guest’s bills.

Airport / Transport Representative Transports guest to and from the airport and other transportation terminals Sells hotel services to prospective patrons at the airport / terminal.

Chief Concierge / Concierge Manager

Front Office Supervisor

Senior Desk Clerk

Sales & Guest Rel.

Officer

F.O. Cashier Telephone Operator

Driver / Airport Rep.

Desk / Info Clerk Sales &

Rsvtns. Clerk

Business Ctr. Attendant

Basic responsibility is to manage concierge staff in assisting guests with any / all requests.

Concierge / Guest Relations Clerk Attends to any request for guest assistance especially for VIPs.

Chief Telephone Exchange / PBX Supervisor Manage the operation of the hotel switchboard and the staff.

Telephone Operator / PBX Operators Manages all incoming and outgoing calls in the telephone exchange section.

Business Center Clerk Attends to all service requests and other transactions at the business center.

Exhibit 3. The Guest Cycle

The guest cycle shows a simplified sequence of events that takes place from the moment a

guest calls to make a reservation until he or she checks out.

(More Guest Charges)Check-out

Confirmation

Verification Night Audit

Rooming the Guest / Post

Guest Charges

Guest incurs charges

Arrival Registration

(room assignment /

payment)

Reservation

Reservations Clerk

Doorman / Bellman

Desk Clerk

Front Office Cashier

Bellman

Desk Clerk

Desk Clerk

Cashier

Bellman

Front Office Cashier

All staff

Exhibit 4. Sequence of Front Office Service

Receiving / processing and documenting guest’s reservation

Welcoming / greeting the guest, opening the door of his vehicle, unloading the

luggage

Attending to guest registration

Settlement of guest’s bill

Escorting guest to his room, carrying his luggage, explaining room facilities

Updating room status, preparing guest folio

Attending to all service request of guests, extending various forms of assistance

(wakeup calls, delivery of messages, etc.)

Updating guest account, preparing billing statement, settlement of balance

Assisting guest for check out

Bill settlement, giving clearance for check out

Bidding goodbye, thanking guest for patronage

Unit 2

Handling Reservations

The area of reservations section is the most well-known hotel department to the general public.

Most people understand its purpose. If someone wants a room in the hotel, they know they need to

contact reservations. Most people do not know how the reservation section really works. From a

guest’s point of view, the most important outcome of the reservations process is having a guestroom

ready and waiting when the guest arrives. This guestroom should not be just any room, but the room

that best meets the needs the guest expressed during the reservations process. At the same time,

the hotel manager and owner have different objectives for the reservation process. They would like

the reservation process to provide the highest occupancy and room revenue possible.

Although selling rooms is a very important role for the reservations section, deciding what

rooms should be sold and the price to sell them is just as important. Without proper planning and

control, rooms may be vacant that could be otherwise sold.

The reservations section is in charge of receiving and processing reservations for room

accommodation. It also serves as a center for communications, handling inquiries on hotel facilities

and services as well as room rates and other arrangements.

Types of Reservations

1. Regular / Non-guaranteed reservation – refers to an agreement that a hotel makes to hold a

room until cut-off date and time. If the guest does not arrive by that time, the room may be

sold to other guests.

2. Confirmed reservation – applies when the terms of reservations have been verified. Both

the hotel and the reserving party agree on the dates, rates and billing arrangement, room type

and other arrangements. This type of reservation is confirmed to the guest verbally or in

writing through email, e-mail, or fax.

3. Guaranteed reservation – an agreement that the hotel makes to hold a room for a guest until

the guest arrival and check-out time. In return, the guest or his sponsor (third party) assures

payment for the room by credit card, company account or pre-payment. Unless the

reservation is properly cancelled, the guest is billed for the room and taxed according to hotel

policies and procedures.

Processing Reservations

For an efficient operation, the reservations clerk shall maintain a complete and up-to-date

reservation filing system to include the following:

1. Individual Reservations Card – a preprinted form that guests would fill out to make

reservations. The guest would supply the name, arrival / departure dates, and any special

requests.

2. Confirmation Notice Form – this serves as written evidence of agreement or contract and

works to the advantage of both parties. The hotel has the option to send a notice of

confirmation to the guest or to the booking party either orally or in writing or through fax.

3. Reservation Chart – this chart indicates the actual number of rooms reserved for any future

date to as far as one or more months or a year in advance. This is done to avoid double and

overbooking.

4. Reservation Slip – this slip indicates the names of guests expected to arrive and the arrival

date. A duplicate copy of the reservation slip is filed alphabetically by last name of guests and

by month. This will serve as trace file for all reservations received.

5. Reservation rack – all reservation slips are placed in this rack.

6. Hanging Folder – this is where all the records of all corresponding letters pertaining to guest

reservations are kept. Such records are filed according to date of arrival.

Sources of Reservations

1. Letters

2. Email or internet access

3. Fax

4. Telephone

5. Direct / in person

6. Computer terminals

a. Call centers

b. Global Distribution System (GDS)

7. Central Booking Offices

Basic Procedures in Taking Reservations

1. Greet the client and offer assistance.

2. Once the request for reservations is received, find out from the inquiring party the dates and

the type of room required. Then check if there is 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 depending on what is vacant. Tell him that he could be transferred to his

preferred room when it is ready for occupancy.

4. Once room availability is confirmed, get details to include the information outlined below.

a. Name/s of incoming guests

b. Number of persons arriving

c. Arrival date and time

d. Transportation details ( i.e. flight number, name of airline, place of origin, etc.)

e. Departure date

f. Number of nights the guest is expected to stay

g. Room number, room type, and type of bed required

h. Room rate

i. Billing arrangement

j. Remarks

k. Name of the person making the reservation

l. Name of the clerk accepting the reservation

m. Date and time of acceptance of reservation

5. From the reservation form / card, the reservations data are transferred to a reservation slip

which is prepared in duplicate.

6. 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.

7. The reservation card is forwarded to the supervisor for him to chart and block the reservations

in the reservation 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 reservations card.

Settling Hotel Accounts

1. Pax account (personal account) – this refers to an account which the guest will pay his bills

directly to the hotel.

2. Company account (corporate account) – this 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 standing with the hotel. The portion of the bills to be shouldered

should also be indicated (i.e. all bills, room only, room and meals only, etc.)

Exhibit 5. Sample room reservation form

Special Billing

Hotel XYZ Control No. ______

Room Reservation Form

Guest Name: ____________________________________ No. of Pax: _____Tel. No.:__________ (Last) (First) (M.I.)Address: _______________________________________ Name of Company: __________________________________________________________ Address: _____________________________Arrival: ___________ Time: ______ Departure: ___________Time:______ No. of Nights: _______Flight Details: _________________________________ Car P/up: ________ Car D/off: _________Room Type: __________ No. of Rms: ____ Bed Type: ______ Room Rate: _____ Rm. No.: _____ Billing arrangement: PA / CA Remarks: ___________________________________________Booked by: ________________________ Tel. No.: _______________ Accepted by: _________________________ Date / Time: ____________

Regular ( )Confirmed ( )Guaranteed ( ) Remarks: ___________________________________________________

Special billing means that all or a portion of guest charges are to be billed or charged to a

particular person or firm. The amount to be billed may be all his charges or just room charges. When

a reservation is being made and the charges are to be billed to a person or firm with an existing credit

account in the hotel, the caller must be told to send a letter of authorization before the arrival of the

guest. This authorization letter simply states that the guest has been authorized to book under the

said account (company or individual). It must also specify what charges are covered by guarantee—

whether all charges (i.e. laundry, telephone, restaurant, etc.) or only a segment like rooms only with

the rest of the charges billed personally to the guest.

If a reservation is a guaranteed reservation from an individual, group or company without an

existing credit line, the reserving party shall be asked to pay a pre-payment or deposit, usually one

day (if the booking is for two nights) or full amount if one day use. Some allow a 50% deposit of all

estimated room charges. Likewise, the company, individual or group that makes the guarantee shall

put in writing in the form of a letter to the hotel that they will answer for all charges or some charges

(the letter must mention what is guaranteed and what is not covered).

Reservations during Full HouseThe reservations clerk must make sure that the availability board reflects the day’s date under

either “on request” (all reservation inquiries shall be channeled through the supervisor. He will

decide which reservations to confirm and which to put on the waitlist. Normally, regular accounts are

given priority during this period) or “close out” (no more room for reservations). 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. The Duty Manager counterchecks all reservations with no flight information and

calls up the concerned companies. He reminds them of the 6 o’clock policy.

The 6 o’clock policy means that the guest with reservation is expected to arrive not later than

6pm of the arrival date. If he does not show up within this cut-off time, the hotel has the right to give

way to other guests using the room reserved for him. However, some hotels consider late arrivals if

they are informed ahead of time. When the room is prepaid as in the case of guaranteed bookings,

the 6 o’clock policy does not apply.

Room StatisticsOne of the functions of the Reservations Office is to prepare room statistics of the hotel and

other competitive hotels for purposes of gauging the soundness of operations and to serve as a basis

for future management decisions relating to marketing thrust. An assigned reservations clerk or a

guest relations officer maybe assigned to keep track of information available in Front Office reports

and forms and translates this information into statistics, also know as productivity figures.

Forms of Statistics1. Total room nights + average room nights = Room nights

2. Room rates Revenue

3. Total rooms sold__ x 100 = Occupancy Percentage Total rooms available

4. Total rooms – (out-of-order rooms + house use) = Total rooms available

5. Total Revenue_ = Average room rate (P/$)Total Rooms sold

6. Total No. of guests = Double Occupancy Percentage Total rooms sold

Training in the Reservations SectionThe reservations department is often viewed as an extension of the sales department. Each

call is a sales opportunity. Not long ago, reservation agents were viewed as nothing more than

operators or order takers. Those days are long gone. The amount of transient revenue that is

produced in reservations is unquestionable. When hiring for reservations, a sales or customer

service background is preferred. People can be taught software systems, bit it is much harder to

teach someone to be enthusiastic, friendly, and eager to please. A good phone voice is also

important for a reservations agent. Proper grammar usage is vital. In some markets, bilingual agents

can be very valuable.

In any sales capacity, knowledge of the product is essential. Because reservations agents sell

the hotel, knowledge of the facility is paramount. The ability to describe all aspects of the guest

experience is needed. The agent is often the first hotel employee a guest comes in contact with.

This first contact must begin the process of satisfying the guest. This time honored adage applies:

“You can only make one first impression.”