CHAPTER
1
The guest’s
experience
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1.1 Selection and reservation
Hotel associates must look at a guest’s stay from the guest’s perspective. How does
the guest experience his stay at the hotel? What does the guest need and what are
his wishes? In order to fulfil these needs and wishes, hotels must gather as much
information about the guest as possible. Therefore it is essential that hotel associates
know about the different reservation possibilities the guest can choose from,
understand the importance of a full house, know what causes an overbooking and
how the Front Office deals with this problem.
A hotel without guests cannot survive and will soon go bankrupt. Therefore, it is
essential for hoteliers to make the whole process from reservation to checkout run
smoothly for their guests. Management is responsible for enabling these processes
to produce the desired results. They must manage the human resources, the
infrastructure, security, the building and equipment, the communication etc. In
order to add value a process must improve a product or service in order to satisfy
guests at a price they are willing to pay.
A typical hotel has the following core processes:
– guest’s selection of a hotel
– guest’s arrival at the hotel
– guest’s stay at the hotel
– guest’s departure.
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A selection process may differ from guest to guest. The
first introduction to a hotel can be:
On Internet through the hotel’s website
PhoCusWright Inc., an independent travel, tourism and
hospitality research firm, predicts that the Internet will
contribute over 27% of all hotel bookings by 2007. This
means that Internet has become one of the most important sources of reservations for hotels.
An advertisement in a newspaper or magazine
Special offers which include travel and hotel accommodation are popular during the holidays. Business hotels have
a low occupancy during the holidays, when businessmen
tend to return home. The hotels like to offer these vacant
rooms for reduced prices to tourists, who might like to
visit a certain town for a weekend or short holiday. These
special offers are very popular around Christmas and
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Easter, especially in cities like New York, Hong Kong, Brussels, London and
Amsterdam. Hotels also like to advertise in in-flight magazines and other magazines
read by tourists and representatives of the tourist industry.
Hotel guides
Countries and even towns have their own electronic guides. The advantages for the
guest are:
– 24-hour simple, fast and secure reservation with instant confirmation by email
– electronic hotel booking systems are connected directly to large hotel reservation systems, Global Distribution Systems (GDS)
– most guides inspect the quality of the hotels regularly
– some hotels add photos of their properties, a map of its surroundings and
driving directions
– the guest is charged no booking fee. The hotel pays a commission to the hotel
guide for every reservation made through the guide’s website. Some countries
have special government rates which are not commissionable, such as Australia
and Canada.
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In 1953 American Airlines CEO C.R. Smith happened to sit next to a senior sales
representative of IBM, R. Blair Smith, who was on the same flight. During their talk
they came up with the idea of an automated airline reservation system. This
resulted in a Semi-Automatic Business Research Environment or SABRE, which was
launched in 1960.
Soon other airlines were developing their own computerized reservation
systems or CRS. Originally these systems were operated by airlines only, but later
they were also used as a sales channel for travel agents. Since Global Distribution
System companies have taken over the management of these systems, the systems
are known as Global Distribution Systems or GDS. These systems linking buyers to
sellers have made the reservation process quick and efficient. Many of these
systems are now also accessible to consumers for airline tickets, hotel reservations,
rental cars, excursions and other services.
The four major GDSs are:
Amadeus serving many companies, which include airlines, hotel operators, travel
agents and car rental companies.
Galileo, which serves airlines, travel agencies, hotels, tour-operators, car rental
companies and cruise lines. Additionally, Galileo has sponsored membership to
the THOR Worldwide Negotiated Hotel Rates Program, providing agencies with
an easy-to-use hotel directory and booking capability in all four GDS systems. It
also has a development centre which supplies information and systems support
to travel agencies linked to the Galileo’s Data Centre.
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Sabre, which owns an online travel service (Travelocity.com), an electronic network
for travel buyers and sellers (Sabre Travel Network) and consulting services to
airlines to optimize their operations and reduce costs (Sabre Airline Solutions).
Sabre developed amongst others advanced airline yield management systems
and travel web sites. One of Sabre’s recent innovations is Sabre Virtually There, a
website that gives travellers up-to-date information about itineraries, as well as
detailed information about their destinations. It also owns the popular online
consumer travel website Travelocity.com. The corporate market can make use of
Get There, a website that enables corporations to book airline tickets, hotel
accommodation, a meeting and rent a car for their associates.
Worldspan provides travel information for travel agencies, tour-operators, car rental
companies and corporations. Worldspan has introduced a wealth of technical
innovations. In 2002 the company launched Worldspan ePricingSM, which
offered a unique selection of pricing options to its customers.
(OTELCHAINS
Hotels belonging to a hotel chain have a standard procedure of asking departing
businessmen if they need a reservation for their next visit. The reason for this
standard procedure is to make sure that the guest will come back to their hotel and
not go to the competition. The advantage for the guest is that he is sure to have a
room for his next visit and will not have to arrange a reservation at a later date.
Should a businessman indicate that he is travelling to another location where
the hotel chain also has an affiliated property, the receptionist should offer to take
care of that reservation. By taking care of this reservation the receptionist makes
sure that the hotel chain will not lose business to the competition and of course it
will save the businessman the trouble of making his own reservation.
People can also contact a hotel belonging to a chain in their own home town by
phone, fax or internet to make a reservation in another hotel within the same chain
in another town or even in another country. A reservation which is made by a hotel
for another hotel within the same chain is called a ‘referral’. Referrals are an
important source of reservations for a chain. The referral procedure turns every
hotel into a reservation centre which takes care of publicity and accepts reservations
for all affiliated hotels.
On Internet hotel chains give online room availability and take reservations
directly from individual travellers as well as travel agencies, travel departments of
big companies and tour operators. Travel agencies, travel departments and tour
operators need a special code to access the special rates and to entitle them to a
commission.
4RAVELAGENCY
A travel agency is a company that arranges transportation, itinerary, and accommodations for travellers. Since booking a holiday on Internet has become so popu
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lar travel agencies have lost a lot of business.
People requiring information and guidance
still prefer to make use of the expertise of
these specialists. Hotels provide a commission
to travel agencies who have made a reservation
for their hotel.
4OUROPERATOR
A tour operator is a company whose main
business is the planning, packaging, selling,
marketing and promotion of multiple vacation
components for a tour. A tour operator buys seats on flights, trains and touring
cars, reserves a number of hotel rooms for a certain period, hires guides and
chauffeurs and buys entrance tickets to shows and places of interest. He then
combines all these elements into holiday packages and sells these packages to travel
agencies or directly to big companies. Travel agencies publish these holiday
packages in their guides and brochures and on their website and sell them to the
public. Tour operators who book a large number of rooms in a hotel are entitled to
a reduced room rate which may lower the rack rate* by 60%. International tour
operators often work together with local tour operators who arrange transportation
to and from the airport, as well as local entertainment and excursions for the
groups. These local tour operators are also very useful in solving unexpected
problems like overbookings.
4RAVELAGENCY
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(OTELREPRESENTATIVES
A hotel representative helps customers worldwide to find and book hotel accommodation. Some of the main hotel representatives are:
1. Utell which provides instant global connectivity by Pegasus’ voice reservation
network, GDS and the Internet. It handles reservations for more than 4,000
member hotels through Pegasus’ reservation offices. These hotels are displayed
on more than 450,000 reservation terminals providing travel agents immediate
access to information about the member hotels, availability of accommodation
and room rates.
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2. The following is an announcement of a new contract between a hotel chain,
Forte Hotels, and the hotel representative, Utell International.
Forte Signs New Contract with REZsolutions Inc.’s
Utell International 25 Additional Hotels to be Represented Worldwide
PHOENIX, AZ - July 2 1998 - Forte Hotels has signed a new contract with
Utell International, the world’s leading hotel reservations and marketing
company, a division of REZsolutions Inc., for the representation of
91 properties worldwide on Utell’s voice reservations system. This includes
25 additional properties which were not previously bookable through Utell.
Forte, (which includes international brand, Le Meridien), has rationalized
and expanded the portfolio previously represented by Utell, concentrating
on those properties which give the hotel chain the best yield. This includes
18 hotels in London, as well as properties across Europe, the Middle East,
the Americas and the Far East.
The arrangement also means that Forte is taking advantage of the combined
product offering of REZsolutions Inc., the company formed last December as a
result of the merger between Utell International and Anasazi Inc., the leading
supplier of information technology-based solutions to the hospitality industry.
Voice reservations can be made for the international Forte portfolio through
over 50 Utell International Voice Reservations Offices worldwide. In the U.S.
call 800/44-UTELL. Forte manages its own representation through the
Global Distribution System (GDS) using a central reservations system
outsourced from Anasazi Inc.
“In signing the new contract, we took the opportunity to evaluate exactly
how best to maximize our relationship with Utell International. Utell
represents those of our properties which are frequented by the business
traveler sector, and consequently business hubs - cities such as London,
Manchester, and airport hotels - feature heavily in the portfolio,” said Tony
Cousens, senior vice president, international sales marketing, Forte Hotels.
“By concentrating on those properties which deliver us the highest yield,
we are able to maximize the potential of our property base by enabling Utell
to deliver a solid additional customer channel.”
“The defining exercise that Forte has undertaken with regard to the hotels
Utell represents for them makes enormous sense. About 70 percent of
Utell’s business is from the business travel sector, so the demand for city
and airport hotels in commercial centers is high,” said Heather Blaseby,
managing director - Europe, Utell International.
“The relationship between Utell International and Forte consequently
works extremely well for both parties. We are also delighted that through
their existing relationship with Anasazi, we are providing Forte with a
comprehensive representation service through REZsolutions.”
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REZsolutions Inc. is the leading provider of technology-based systems,
distribution networks, private label services and international marketing
programs for the hospitality industry worldwide. Offering a fully integrated
portfolio of products and services, along with global access, REZsolutions
Inc.’s vision is to become the only comprehensive one-stop-shop for the
hospitality industry. REZsolutions maintains a worldwide network of over
50 offices with more than 2,000 employees, and represents 7,700 properties
globally. The company offers full-service support for independent hotels,
management companies, hotel owners and developers in over 180 countries.
In addition to its corporate headquarters in Phoenix, REZsolutions operates
regional business centres in New York, London, and Singapore.
3OURCE5TELL7EBSITEON)NTERNET
3. Supranational
Supranational offers online availability, information about the member hotels
and room rates for the corporate and leisure travellers.
4RAVELDEPARTMENTOFBIGCOMPANIES
In major companies such as Shell, Renault and
Philips a special internal department is responsible
for making travel arrangements for its management
and employees. A Travel Manager is in charge of
making deals with tour operators, travel agencies
and hotel representatives. At present Travel
Managers have discovered that it is more
advantageous to draw up contracts with the
airlines and hotel chains worldwide directly,
without the intermediary of a tour operator,
travel agency or hotel representative.
In 2006 NH Hotels signed a procurement
contract with AKZO Nobel becoming one of AKZO
Nobel’s preferred hotel partners. It is an agreement
for hotel accommodation in approximately thirty
hotels in Europe and two hotels in Latin America.
Akzo Nobel has signed a similar agreement with Bilderberg.*
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This is an ideal and totally free source of hotel advertising. Most friends of tourists
returning home after a holiday will ask the question: “What was the hotel like?” A
positive answer is a totally free advertisement for the hotel. Likewise businessmen
will ask their colleagues’ opinion about hotels located in the towns they have to
visit. And when the Travel Manager of a company hears positive feedback about a
hotel, he will make more and more reservations at this particular hotel. On the
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other hand a Travel Manager who receives regular complaints about a certain hotel
will make sure that the travel department of their company will no longer make
reservations in that property. It all boils down to making sure that the guest is
happy with the features and services offered by the hotel. A satisfied guest will
return time after time.
#OMPAREQUALITYANDPRICE
With Internet it is very easy for customers to compare quality and prices and more
and more customers realise that they can save a lot of money by investigating the
special rates offered. Travel agents and travel managers may also advise future
guests about the special features and services of hotels and compare prices.
2ESERVATION
After the guest has made his choice of hotel, he will make a reservation by mail,
telephone, fax or internet. He may also decide to have a travel agency, hotel
representative or local reservation department of a hotel chain (only for properties
affiliated to that chain) make the reservation for him.
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This is a reservation form used by the Shenzhen Marco Polo Hotel:
Reservation
Amendment
Cfm. No.
Cancellation
Cancellation No.
Orig. Arr.
New Arr.
Flight No.
ETA
6PM Orig. Dep.
New Dep.
Flight No.
ETD
GTD Last Name
Room Type
First Name
King
SM or
NS
Twin
Title
VIP
Company
Room Rate
SM or
NS
Single
Twin
Amenities
Superior
Deluxe
Premium
Club Room
Deluxe Suite
Club Suite
MP Suite
President Suite
PAYMENT INTRODUCTION
Pax A/C
Room only to Company
Room + ABF to
Company
All charge to Company
Others
Credit Card Inf.
Remarks:
Contact:
Cfm Letter :
Yes
No
Company /
TA
Address:
Tel:
Email:
MPR No.
Taken by:
Entered by:
Fax:
Tai Pan Club No.
Date/ Time:
Approved by:
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.OSHOWS
Overbooking
Unfortunately on average 10% of the guests with a reservation do not show up and
do not inform the hotel of their cancellation. These ‘no-shows’ are a real headache
for the hotel industry.
It is imperative for a hotel to maximize the occupancy and revenue. So a hotel is
faced with two problems. On the one hand the hotel wants to be accommodating
to the guest and keep his interest in mind. On the other hand the hotel owners and
management have to produce a profit in order to satisfy the investors, shareholders
and management company. Every room that is not sold, means a loss of revenue,
which can never be recuperated. If you haven’t sold the room on Monday, unfortunately it does not mean that you can recuperate this loss by making a reservation
for that same room twice for Tuesday at the same time.
Many guests don’t bother to inform the hotel in case of a delay or cancellation
of their trip. This makes it very difficult for the reception staff to ensure that every
room in the hotel is sold and that no room remains empty for any night. The right
solution to this problem is to keep a delicate balance between the two sides. The
hotels solve it by overbooking 10% during the high season, which means that they
accept 10% more reservations than the number of rooms available. As soon as
hotels accepted this procedure they were faced with some very disappointed and
sometimes angry guests who did make a reservation, but on arrival were told that
their room had been given away to another guest who arrived earlier. In order to
avoid this unfriendly behaviour towards hotel guests, hotels have adopted some
new procedures, which are:
For a reservation a future guest has:
1. to give his full name, private address and business address, telephone
number, fax number and email address
With this information in case of a ‘no-show’, the hotel staff can contact the guest
to find out if he is delayed. In case the guest decided not to honour his reservation
the hotel can send an invoice for one night for the accommodation, which was
held for the guest.
2. to indicate date and estimated time of arrival and departure and,
if applicable, flight number
Hotels will hold the room for the guest until 6 p.m.. If the guest has not arrived
by that time the receptionist is entitled to give the room to another guest who
has arrived at the hotel without a reservation. In the hotel industry a guest
arriving without a reservation is called ‘a walk-in’. These guests must always
prepay their stay or guarantee their payment by credit card.
Should the guest indicate that he might be arriving after 6 p.m., the hotel will
require some guarantee in the form of:
– pre-payment
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An advance deposit or pre-payment is only possible when the reservation is
made some time before the guest’s arrival.
– a credit card
The guest has to supply:
– the name of the credit card company
– his credit card number and
– period of validity.
Should the guest not arrive at the hotel on the arranged date, the hotel may
send a bill for the first night to the credit card company.
– company guarantee
Some companies guarantee payment of the costs incurred by the guest in case
he leaves the hotel without paying his bill. This guarantee must always be in
writing and signed.
– city ledger
The hotel has agreed with some credit-worthy companies who send their
associates or guests to the hotel on a regular basis, that the bill for their stay
will be sent to the company. This means that these associates or guests from
this particular company only have to sign their bill at checkout time. In the
written agreement between the hotel and the company it will be laid down:
When payment will take place, which persons may make use of this service
and which costs are included.
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3. to indicate if he is a member of a group booking or an individual
If the booking is made by a travel agency the hotel must pay a commission to
the travel agency.
4. to indicate the accommodation required
If the hotel does not have the required accommodation on the date of the
guest’s arrival, the reception may give the guest an ‘upgrading’, which means
that the guest will get a bigger or more luxurious room for the same price as the
type of room he has reserved. So if there are not enough standard single rooms
the guest will be given a double or twin-bedded room or if he is lucky, even a suite.
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5. to indicate the room rate
In many countries the law requires a hotel to make sure that a guest knows the
price of his accommodation before his stay. The hotel will communicate the
rates at the time of reservation, at check-in and the price is also published in the
room itself.
6. to indicate any special requests
A guest may be allergic and require special pillows or he may require a special
brand of whiskey in his minibar. A company may want a bouquet of flowers
placed in the room as a sign of welcome for the guest.
Every reservation has a number followed by the initials of the reservation clerk.
This reference number is given to a guest so that he can prove that he is entitled to
that particular accommodation for a given date.
Should a guest want to change his reservation or cancel it, the reservation clerk
will ask him for that reference number so that he can find the reservation quickly
in the computer reservation system. In order to avoid any possible confusion, the
guest is also given an individual reference number if he cancels his reservation.
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