Introduction Front Office Operations

HOTEL FRONT OFFICE
Chapter 1
INTRODUCTION TO
Learning Objectives
understand the following:
• Travel and tourism—their evolution,
importance, and related industries.

THE HOSPITALITY INDUSTRY
beverages to people who are away from
home.
It is an umbrella term for a broad variety of
service industries, including, but not limited
to, hotels, restaurants, casinos, catering
enterprises, resorts, and clubs.
The industry is very diverse and global, and
is greatly impacted by fluctuations within
the economy as also by various
happenings across the world.
who are away from home whether for long
or short period.
organiation offering those services. Thus
need for staff to understand specific
customer needs
!rigin and growth
• The origin and development of the hospitality industry is a direct outcome of travel and tourism.
• Thus a part of a wider group of economic activities called tourism.

Copyright © 2009 OXFORD Higher Education
• The primitive lodging houses or inns originated essentially to cater to these needs of the travelers.
• The rapid growth of the industry can be attributed to • Increasing internationaliation of
business which has led to more travel • Increasing economic prosperity which
means people now earn more money and are thus able to spend more on travel
• Improvements in transportation
TOURISM INDUSTRY
• Tourism may be defined as the movement of people from their normal place of residence to another place %with the intention to return& for a minimum period of twenty'four hours to a ma(imum of si( months for the sole purpose of leisure and pleasure.

I*T+*ATI!*A- T!I/0
• 1hen people visit a foreign country, it is
referred to as international tourism
• International tourist may be of following
type: ) Inbound%1hen tourist from other country come to destination&
) !utbound% tourist originated from country of residence and move
to other country&

H!T+- A*2 IT/ 3!+ A+A
A hotel or an inn is defined by the $ritish -aw as a 5place where a bonafide traveler can receive food and shelter, provided he is in a position to pay for it and is in a fit condition to be received6.
The core areas of hote
)oom 2ivision
• "ront office
• House 4eeping
) Human esource 2epartment
) /ecurity 2epartment

Ca!!i"ication o" Hote!
Learning Objectives • After reading this chapter, you will be able to
understand the following:
hotels
rating, sie, location, type of clientele, duration of
stay, level of service, and ownership—and
alternative accommodation.
) Types of guest rooms in hotels.
) Types of hotel guests
*eed for classification
general standards of a hotel.
• 8rovides an idea regarding the range and
type of hotels available within a
geographical location.
with respect to the uality of services
offered in each category.
!assification of Hote an" Other t#$es of o"ging
$ro$erties
3riteria for 3ategoriation of Hotel
) /tandard 3lassification %/tar ating /ystem&
) /ie
) !wnership
/tandard /ystem %/tar rating /ystem&
• /tar ating of hotels in most cases is given by an central government committee
• The rating committee categories hotels into: ) /tar ated Hotels % !ne /tar to "ive /tar
2elu(e&
!ne /tar Hotel • These properties are generally small and
independently owned, with a family
atmosphere.
the meals may be fairly simple. "or e(ample,
lunch may not be served in room
• /ome bedrooms may not have an en suite
bath or shower.

Two /tar Hotels • Hotels will typically be small to medium'
sied, and offer more e(tensive facilities than one'star hotels.
• ;uests can e(pect comfortable, well' euipped overnight accommodation, usually with an en suite bath or shower.
• eception and other staff will aim for a more professional presentation than at the one'star hotel

Three /tar Hotel • Hotels are usually of fairly large sie to
support higher staffing levels as well as a significantly higher uality and range of facilities than at the lower star classifications.
• eception and other public areas will be more spacious, and the restaurant will normally also cater to non'residents.
• All bedrooms will have an en suite bath and shower, and will offer a good standard of comfort and euipment, such as a direct'dial telephone and toiletries in the bathroom.

"our /tar hotel • 2egree of lu(ury as well as uality in the
furnishings, d<cor, and euipment in every area of the hotel is out standing
• $edrooms will also usually offer more space than at the lower star levels.
• They will be well'designed with coordinated furnishings and d<cor.
• The en suite bathrooms will have both a bath and shower.
• There will be a high staff to guest ratio, • There will be provisions of porter service, twenty'
four'hour room service, and laundry and dry' cleaning services.

"ive /tar and "ive /tar 2elu(e Hotels
• "ive star hotels offer spacious and lu(urious accommodations throughout the hotel, matching the best international standards.
• The interior design should impress with its uality and attention to detail, comfort, and elegance. The furnishings should be immaculate.

• The restaurant will demonstrate a high level of technical s4ill.

3lassification on the basis of sie
• The number of guest rooms in a hotel is a criterion to classify hotels.
• Hotels can be grouped into the following categories on the basis of the number of rooms
• /mall hotels are those with less than =>> rooms
• 0edium sied usually with between =>>'?>> rooms
• -arge with more than ?>> rooms

3lassification on the basis -ocation
• The location of the hotel is one of the ma@or criteria for a traveler to select and patronie a hotel. Hotels may be located in the city centre, sub'urban areas, natural locations such as hill stations and sea beaches, near the port of entry into a country, etc. They may be classified into the following categories on the basis of their location : ) Do%n To%n Hote : -ocated in the heart of
the city ) S&b'&rban Hote : -ocated away from the
hustle and bustle of city ) Air$ort Hote : -ocated in the close vicinity
of air port ) Resort : -ocated at e(otic location li4e sea
beaches, hills etc. ) Mote : -ocated along the highways

3lassification on the basis of 3lientele
• +very individual or a group of people who patronie a hotel has a different set of reuirements. !n the basis of clientele the hotels may be categoried as: ) !o((ercia ) *&siness Hote: caters the
needs of a business traveler ) Transient Hote: 3aters the needs of
transient travelers ) S&ite Hote: They are the lu(urious hotel
having all suit rooms ) Resi"entia Hote: residential hotels provide
accommodation for a longer duration

) !asino: 3asino hotels provide gambling facilities
) *e" + *rea,fast Hote: A +uropean concept, bed and brea4fast %$#$& hotels are lodging establishments, generally operated in large family residences.
) !onvention Hote : a Hotel that caters to the needs of a convention delegation

!assification on the basis of D&ration of -&est
Sta#
Hotels can be grouped into following categories on the basis of duration of guest stay:
)3ommercial Hotel: The duration of guest stay in these hotels is short, ranging from a few days to a wee4
)Transient Hotel :The duration of stay at transient hotels is very short, a day or even less generally patronied by transient travelers.

!assification on the basis Leve of
Services
Hotels may be classified into following group on the basis of level of services provided by them:
p'mar4et -u(ury 1orld 3lass /ervices Hotels: These are the hotels that caters the needs of the affluent people demanding lu(ury and are not price sensitive. These hotels have following features:


0id'mar4et 0id'range /ervices Hotels: These hotels offer modest services without the frills and personalied attention of lu(ury hotels, and appeal to the largest segment of travelers. $udget +conomy Hotels: $udget hotels

3lassification on the basis of !wnership
!n the basis of the ownership hotels are classified as under:
)Pro$rietar# O%nershi$: 8roprietary ownership is the direct ownership of one or more properties by a person or company.




Types of Hotel oom
hotels usually provide a variety of
accommodation products. The guest rooms
may differ according to sies, d<cor, view,
facilities and services.
• *umber and sie of beds in the room: single rooms, twin,
double and suite rooms
• 2<cor, room sie and view: standard single, superior
single, delu(e single etc
Types of hotel guests • Hotel guests can be classified according
to: their purpose of visit, numbers and
their origin.
They are not seasonal and mostly boo4 on
short notice.
• *umbers or ;roup sie: include "ITs and
;ITs

3hapter ?
"unction Areas The front office is the contact point between the
guest, management, and other departments. It handles guests6 complaints, dispatches house4eeping and engineering reuests, prints and files reports, receives and answers phone calls, and sends and receives fa(es. Thus, the front office personnel perform the following functions: ) /ell hotel rooms to guests ) Accept advance boo4ing of hotel rooms )eceive and register guests when they

) 0aintain guest accounts and monitor credit
) Handle guests6 demands and complaints.
) 8repare account statements of guests. ) /ettle bills at the time of chec4'out. ) 3oordinate guest services li4e mails
and messages, safety deposit loc4ers, handling of room 4eys, ma4ing sundry payments on behalf of guests
) 8rovide information about the hotel6s facilities and services

• eception
• ;uest relations
• *ight audit
eservation • The reservation section of the front office
department of a hotel is responsible for
receiving and processing reservation
reservation cler4s.
organies the staff duty rotas, establish
standards of wor4 and ma4e decision on
whether to overboo4 or not.

• eservation cler4s ta4e the boo4s which
maybe made by telephone, fa(, mail or e'
mail.
up with guests to confirm or guarantee
their boo4ings and on daily basis ma4e a
list of e(pected guests to the reception.

eception • This section of the front office receives and
welcomes guests on their arrival in the hotel.
The personnel of this section procure all the
necessary information about the guest to
complete the registration process.
supervisor and receptionists.

functions are performed by the reception
section of a hotel:
)eceiving and welcoming guests.
) 3ompleting the registration formalities.
concerned departments.
in the hotel.
0ail and Information 2es4
• As the name suggests, the and information des4 provides information to guests.
• In a small hotel, the same function may be performed by the receptionist.

• .&nctions of Infor(ation Des, / /ome of the functions of the information des4 are as under: ) 0aintaining resident guest rac4. ) Handling guest room 4eys. ) 3o'ordinating guest mails, telegrams,
fa(es, couriers, parcels, etc. ) 2ealing with guest visitors ) 8roviding information to guests
regarding hotel facilities and services, city information, etc.
) Handling guests messages.
3ash and $ills This is under the front office cashiering
supervisor who is in charge of all the cash and methods of payment by guests as welll as the supervision of the wor4 of the front office cashiers. In some hotels may report directly to accounts manager, rather than the front office manager.

• .&nctions of the !ash an" *is Section !pening and maintaining of guest folios.
) 8osting room charges and recording all credit charges in guest folios.
) 0aintaining a record of the cash received from guests.
) 8reparing bills at the time of chec4'out.
)eceiving cashT3demand draft for account settlement.

*ight auditor • The front des4 may have separate team of
staff at night performing night audit duties.
• In the night the front des4 is fairly uiet thus better time to verify guest folios.
• .&nctions of the night a&"it inc&"e/
) 3hec4ing and 3ompletion of guest and hotel accounts


Telephone /ection
day and night operation.
communication networ4 of the hotel, which is
generally uite comple(. The hotel may have
its own private branch e(change %8$B&,
along with post and telegraph lines.

) Answering incoming calls.
the switchboard+8A$B
) 8rocessing guest wa4e'up calls
and events
niformed /ervices
)8orters or $ell boys
uniformed staff in the front office, and
normally wor4s from a des4 in the main
lobby.
*e Des, • The bell des4 is located very close to the
main entrance of the hotel. This section is headed by a bell captain, who leads a team of bell boys and page boys.
• .&nctions of be "es, :The bell des4 is responsible for the following tas4s:
) Handling guest luggage at the time of arrival and departure
) +scorting guests to their rooms on arrival.
) "amiliariing guests about safety features and in'room facilities.

) 0a4ing sundry purchases for the guest.

!oncierge
• .&nctions of concierge / The concierge provides the following services to guests: ) 0a4ing reservations for dining in famous
restaurants. ) !btaining tic4ets for theatres, musicals,
sporting events ) Arranging for transportation by limousine,
car, coaches, buses, airplanes, or trains. ) 8roviding information on cultural and
social events li4e photo e(hibitions, art shows etc.

!rganiation of "ront !ffice /taff
• The organiation of front office staff is
designed to achieve the ob@ectives and
goals of the hotel. The organiation
structure, which clearly defines all positions
%each bearing a definite authority,
responsibility, and accountability&, is built
upon the following criteria:
.ront office organi0ation of a arge hote

Cualities of "ront !ffice 8ersonnel
• ;uests remain in direct contact with the front office staff throughout their stay at the hotel. As the front office personnel are the first and the last point of contact with the guests, they reflect the image of the hotel, and hence should carry themselves and behave in a way befitting the vision of the organiation.

"!*T !""I3+ 3!00*I3ATI!*
3ommunication
4nowledge between two or more individuals
or between.
process of e(pressing ideas and feelings or
of giving people information6.
person to another person. It is a way of
reaching others by transmitting ideas, facts,
thoughts, feelings, and values.6
The 3ommunication 8rocess
convey information through the transmission of
written, verbal, or symbolic messages.
• The entire communication process may be
bro4en into various stages of communication:
) /endersource
The various aspects of effective communication are given
below:
The Importance of 3ommunication
;ood communication is important for establishing a long'lasting relationship between a hotel and its guests. A guest6s opinion of a hotel is formed on the basis of her overall e(perience at the hotel, which includes satisfaction with the hotel facilities and services li4e accommodation, food and beverage, recreation, etc., as well as treatment e(tended by the hotel staff. The importance of communication is as under:

• .or Decision'(a,ing /!n many occasions, managers are reuired to ma4e important decisions on the basis of the information available to them.
• .or Effective !oor"ination +ffective inter' and intra'departmental coordination is important in providing flawless services to hotel guests.

• .or Deegation 0anagers are responsible for planning wor4 and delegating various tas4s and duties. It is important that they communicate the delegation of authority to all the concerned persons.
• .or E($o#ee Morae an" 1ob Satisfaction "eedbac4 and open communication between the "!0 and his team members raises the morale of the team and leads to greater @ob satisfaction.

Types of 3ommunication
under:
!ral 3ommunication
communication. !ral communication describes any
type of interaction that ma4es use of spo4en words.
It is a vital, integral part of the modern business
world. In oral communication, both the sender and
the receiver e(change their ideas through words
either in face'to'face communication or through
electronic devices li4e telephone, computers, etc.

1ritten 3ommunication • 1ritten communication is communication
by means of written symbols. It may be in the form of letters, e'mails, reservation confirmations, hotel circulars, memos, reports, notes, manuals, in'house hotel magaines, etc.

li4e authenticity, transparency, mass
defence, and permanent record.
*on'verbal 3ommunication
messages we give and receive through body
language and facial e(pressions. *on'verbal
messages often convey more meaning than
the spo4en word.
a large e(tent..
Therefore, it would be good if we could
learn to use our body language for a
purpose and also learn to understand
and interpret the body language of others

"low of 3ommunication

It can be of following types: 2ownward 3ommunication: 2ownward communication flows from a manager, down the chain of command pward 3ommunication: 3ommunication flows upward when subordinates send reports, or present their findings and recommendations to their superiors.

$arriers of 3ommunication
free flow of communication. These
obstacles, which may filter a part of a
message, or convey incorrect meaning, or
prevent a message from being
communicated entirely, are 4nown as
barriers of communication. The barriers of
communication may be classified as:
/emantic
8sychological
8ersonal.
/emantic $arriers
a particular word may have several meaningsD moreover,
a particular word may have contradictory meanings in
different parts of the world. There are several words
which have similar pronunciations but differ in meaning,
li4e 5assess6 and 5access6, which may create confusion.
These are 4nown as semantic barrier

8sychological $arriers
• In a communication process, the problems that arise due to cognitive reasons %related to thought, e(perience, or senses& are called psychological barriers. These may be:
• Difference of Perce$tion / 8erception is the way you see things, especially with the senses. It is difficult to see every situation e(actly as another person sees it. 8erception depends upon various factors li4e: ) education, +(perience, 3ulture ) environment in which a person is brought up.


8ersonal $arriers • 8ersonal factors that disrupt the flow of
communication, li4e the attitude of the communicator, fear, lac4 of confidence, lac4 of awareness, inattentiveness, and poor retention, are 4nown as personal barriers. /ome of the personal barriers of communication are:

) Lac, of Interest /The lac4 of interest in the @ob may be one of the barriers of communication. The employee may lose interest in her @ob due to monotonous and long wor4ing hours, personal problems, wor4 pressure, fatigue, physical illness, etc.

) Poor Listening /The front des4 employees should be good listeners and should pay attention to the spea4er. 1hile processing a guest6s reservation reuest, the reservation agent should listen carefully to the reuirements of the guest.

Interdepartmental 3ommunication
• The front office department plays a pivotal role in delivering uality services to guests. The front office communicates guests6 reuirements to other departments, which wor4 in close coordination and cooperation to deliver reuired products and services. In order to maintain the desired level of service, the front office department communicates with the following departments of the hotel: ) House4eeping, "ood and $everage
2epartment, /ales and 0ar4eting 2epartment, +ngineering and 0aintenance, /ecurity, finance 3ontroller, Human esource and $anuets

!!0 TAI""
oom Tariff • oom rate is the daily rate charged for the
usage of a hotel room and services, is among a travelerEs basic criteria for choosing a particular hotel for stay. The basis for charging room rate differs from hotel to hotel. The rate of a hotel room is decided by several factors, which are:
) 3ost
oom ate 2esignation • A hotel generally designates a standard rate for each category of

• Rac, Rate: The standard rate of a particular type of room before any discount is called rac4 rate.
• !or$orate Rate: This is a promotional rate to attract the corporate mar4et segment.

• A"vance P&rchase Rate: Though popular
in the airlines industry, the advance
purchase rate is a relatively new concept in
the hospitality industry. It entails heavy
discounts on room rates when room
boo4ings are done in advance.
• 4ee, "a#)4ee,'en" Rate: Hotels analye
their demand levels over a period of time
and fi( a higher rate during high demand
periods and a lower room rate during low
demand periods.
• Da#)Haf "a# Rate: The day rate, charged from guests not staying overnight at a hotel, is lower than the rac4 rate.
• -ro&$ Rate: As a large group %more than =F persons& provides bul4 business to a hotel, hotels offer discounted rates to groups. The group rate depends upon the number of persons in the group and the freuency of their visits.

• Trave Agent Rate: Travel agents sell travel products li4e hotel rooms, airlines boo4ings, etc. on a commission basis to the end users %guests&. They provide a substantial volume of business to hotels, hence hotels offer them special discounts and commissions.

• 5o&(e -&arantee Rate: Hotels may offer a special rate %lower than the rac4 rate& in order to attract high volume of business from special mar4et segments.
• Airine ) !re% Rate: It is a special discounted rate for the crew of one or more airlines that offer certain volume of business throughout the year on a consistent and continuous basis.


• !o($i(entar# Rate: 1hen a hotel does not charge the room rent from a guest, it is 4nown as complimentary rate.
• !rib Rate: This is the rate charged for children above five years and below of age =? years who are accompanying their parents.

0eal 8lans
The room tariff of a hotel may be based on the choice meal plans offered to guests. 2epending on the needs of their target audience, hotels offer a variety of meal plans ,they are:
• E&ro$ean Pan E&ro$ean $an 6EP7/ consists of room rate only and the meals are charged separately as per actual.
• !ontinenta Pan !ontinenta $an 6!P7/ consists of room rate and continental brea4fast.

• Mo"ifie" A(erican Pan 6MAP7/ This is also 4nown demipension %half board&. The tariff consists of room rent, brea4fast, and one ma@or meal %either lunch or dinner&.

oom Tariff "i(ation • "i(ing of room tariff is a difficult tas4 for the
management. If the management fi(es a low
room rent, the hotel operations might not be
economical. However, if the rate is too high,
guests may not patronie the property.
Hence, an accurate and competitive room
rent is one of the prereuisites for running a
successful hospitality business. A hotel fi(es
the room tariff on the following two bases :
) 3ost'based pricing
) 0ar4et'based pricing
3ost'based 8ricing • 3ost'based pricing is a room rent
determination techniue that covers the basic
cost of operations at a given level of service,
plus the predetermined percentage of return
on investment. It involves the determination of
all fi(ed and variable costs associated with a
hotel. The following are the two widely used
cost'based pricing techniues:
)ule of Thumb Approach
ule of Thumb Approach• ule of thumb is the oldest method of
determining the room rent of any hotel.
According to this approach, the room rent
should be fi(ed at the rate of e = for each
s =,>>> spent on the construction and
furnishing of the room, assuming that the
average occupancy is G> for the year. If
the hotel incurs a total e(penditure of s
=F,>>,>>> on a room, the room rent will be
s =F,>>> according to the rule of thumb
approach.
H&bbart .or(&a The rule of thumb approach is an old traditional
way of determining the room rent of a hotel.
As seen, it is unscientific and suffers from
many drawbac4s. The following steps are
involved in calculating the room rent according
to the Hubbart formula:
3alculate the total investment including the
owner6s capital and loans. !nce the total
investment has been calculated, calculate
the fair rate of return on investment %!I&.
!I is the amount that would have been
generated if the money invested in the hotel
business had been invested in the open
mar4et.
operating e(penses, overheads,
heating and lighting, etc.—that will be
incurred during hotel operations.
3ombine steps = and ? to find out the gross operating income that is necessary to cover the operating cost, investment, and return on investment.

3alculate the total number of the guest rooms available for sale by multiplying the total number of rooms with the number of days in the year. 0a4e the provision for e(pected average vacancy that is e(pected during the year. This step will provide the total number of rooms available for sale.

0ar4et'based 8ricing

• 3ommon methods of mar4et'based pricing:
) As per competition: Arriving at a pricing based on competing hotels’ rates. Checking competing hotels’ best available rates for a room. These rates can be found out by hotels by calling up the competing hotels without disclosing their identity.


3hapter
+/+9ATI!*/
The ;uest 3ycle
• "or a typical hotel stay the guests of a hotel
have four main stages of interaction with the
hotel—at pre'arrival, arrival, stay, and
departure. All guests go through the same
procedure as they proceed from reservation
to arrival and allotment of rooms, to their stay
in the hotel, to the settlement of their bills and
departure from the hotel. These various
stages of activities constitute the guest cycle.

• The guest cycle constitutes of following four
distinct stages:
8re'arrival • The interaction between a guest and a
hotel before the guest arrives at the hotel
forms the pre'arrival phase of the guest
cycle. eservation is the most important
pre'arrival activity.
• The functions of the front office in the pre'
arrival phase include:
the guest.
has received any advance payment&.
) $loc4ing the room for the guest.
) 0a4ing special arrangements for the
guest %if reuired&.
Arrival • ;uests have their first face'to'face

•The functions of the front office on the arrival of a guest include: )eception and welcome of the guest. )egistration of the guest. )oom rate and room assignment to the
guest. )Handing over the room 4ey to the guest. )-uggage handling of the guest by bell
des4. )2elivering the mails and messages that the
hotel has received on behalf of the guest.

/tay
• 2uring this stage the guest gets a first'hand e(perience of the facilities and services offered by the hotel. These services and facilities are the most important part of a guest6s overall e(perience at a hotel.

2eparture and 8ost 2eparture
well6. The front office should try to cover up
any unpleasant episodes during a guest6s
stay by ensuring a smooth and hassle free
departure of the guest. The functions of the
front office at the departure stage are as
follows:
bills
• Left luggage handling
reservation
• $arewell
eservations
2efining eservations
5bloc4ing a particular type of guest room %e.g., single
room, double room, delu(e room, e(ecutive room,
suite, etc.&, for a definite duration of time %i.e., number
of days of stay&, for a particular guest6.

• The reservation process is important to a
hotel in that:
guests
accommodation
) 8rovides important management information
schedules, purchase reuirements and
information needed for long'term planning&.

• "or a reservation system to function
effectively, set procedures should be
established for the handling of reuests,
updating and amending information and
generation of confirmations.
trained on reservation procedures, social
s4ills%personal ualities # interpersonal
s4ills& and salesmanship %product
4nowledge # ability to sell&.
Tentative reservations • It is a reservation reuest that a prospective
guest ma4es on a tentative basis for
particular stay dates. The hotel holds the
room for the guest till a cut off date, by
which the guest should confirm the
reservation. pon confirmation from the
guest the hotel changes the tentative
reservation to a confirmed reservation,
otherwise it cancels the tentative
reservation, and updates its records
accordingly.
3onfirmed reservation
reuest, the hotel bloc4s a room for
specified stay dates and sends a written
confirmation of the same to the guest. A
confirmed reservation can be of the
following two types:
-&arantee" reservation
will holding the reserved room for the guest
and not release it to any other guest even if
the guest doesn6t arrive on time.
• This reuires the guest to ma4e an advance
payment %part or full&, irrespective of whether
the guest avails the reservation or not,
unless the reservation is cancelled according
to the hotel6s cancellation procedures.

obtained through one of the following ways:
) 8re'payment
8re'8ayment • A guaranteed reservation reuires the
payment of the room rent or a specified
amount in advance, 4nown as pre'payment.
This protects the hotel from any loss of
revenue in case of a last moment
cancellation or a no'show.
demand draft or depositing cash at the hotel.
• The guest card also provide their credit card
numbers which the hotels can use to claim
payments.
3ontractual agreement
• A hotel may have a contract particularly with corporates for providing guaranteed reservations.

*on'guaranteed reservation
with an advance deposit, it is treated as a
non'guaranteed reservation. In this type of
reservation, the hotel agrees to hold the room
for the guest till the cancellation hour, unless
the guest informs the hotel about her late
arrival.
hotel after which a non'guaranteed
reservation stands cancelled and the room is
released to wal4'in guests—generally L p.m.

1aitlisted reservation • This is when the reuested category of room
is not available for the reuested dates.
• The reservation only confirmed when the
hotel receives a cancellation reuest for a
room of the same category. Helps the hotel
ensure that its rooms will not remain vacant
in case of cancellations.
waitlisted reservationsD but the guest will be
assigned a room only in case of a
cancellation or a no show.

• The process of reservation begins with an
inuiry. A guest may contact a hotel for
reservation either through:
1ritten 0ode
• 1hen a reservation reuest reaches the hotel in writing, the mode is classified as a written mode of reservation3

9erbal 0ode
• eservation reuests may also be made through oral communication 4nown as verbal mode of reservation reuest
• The advantage of oral communication is that it is fast, convenient, and generates immediate response or feedbac4D and one can get the complete information and clear any doubts through oral communication.

/ources of eservation
different sources li4e:
2irect eservation • A reservation reuest that a hotel receives
directly from an individual or a group
without a mediator.
his team of reservation assistant in large
hotel. In case of a small hotel the same
may be processed even by receptionist

3entral eservation /ystem
computer'based reservation system, which
the participating lodging properties at any
destination in a single call.
• The central reservation office typically deals
with direct guests, travel agents, corporate
boo4ers, etc. by means of toll'free telephone
numbers.
• Interse agencies: An intersell agency is an agency that deals with many products such as hotel reservations, car rentals, travel arrangements, tour operations, airline reservations, railway boo4ings, etc.

/ystems of eservation
2epending on the needs of the hotel and the volume of business, a hotel may adopt either:
• Man&a S#ste( : In a manual system, all the reservation records are maintained manually. This old system of reservation is suitable for a small property, where the number of rooms is less and the volume of reservation reuests is also low.

Man&a S#ste( of Reservation •0ainly manual reservation follows a 2iary /ystem of eservation
• As the name suggests, in this system a daily diary is 4ept, in which the reservation agent lists all arrivals due on a particular day. ) It is usually 4ept on a loose'leaf basis. ) The top page represents arrivals on the current dateD

8rocessing eservation +very hotel has its own standard operating
procedure %/!8& to deal with a reservation reuest from a guest. The standard procedure of responding to a guest6s reservation reuest is first receiving the reservation inuiries, then determining room availability, and then accepting or denying the reuest for reservation.
• eceiving eservation: The reuest for a room reservation may reach a hotel from any one of the various modes discussed earlier.

• Accepting or 2enying eservation: !nce the reservation agent has established the availability of the room for the guest, she will either accept or deny the reservation reuest and conclude the processing of reservation reuest.
• 2ocumenting reservation details: if reservation accepted the cler4 will complete a reservation form with all relevant details concerning guest and their stay. The cler4 should also immediately update the room availability chat. "inally enter the boo4ing details in the hotel diary.
• 1ith computeried reservations the updates are automatically done.

• !onfir(ing Reservation: confirming involves
written ac4nowledgement on reservation.
• Maintaining reservation recor"s: this involves filing the original boo4ings and modifications of boo4ings based on changes to reservation details. -etters, memos and reservation forms relating to a boo4ing must be filed appropriately.

eservation eports
The reservation department compiles many reports for the use of all departments. /ome of the most commonly used reservation reports include:
• Reservation transaction re$ort: The reservation transaction report is the summary of the daily activities of the reservation department.


Chapter 4
!HE!2'IN
egistration • egistration is the process of gathering and
recording information from the guest that is
mandatory as per the laws prevailing in the
country.
hotel offers safe and secure boarding and lodging
facilities to the guest and the guest accepts to
pay for the services and facilities received

$asic 3hec4'in Activities
room rate
• Issuing the room 4ey and escorting the
guest
registration • The activities that are carried out by the front
des4 agents before the arrival of guests,
which help accelerate the process of guest
registration, are termed as preregistration
activities. 8re'registration activities includes:
on the information gathered from
reservation form and guest history card

) /taffing at front des4 to cater the need of
rush at pea4 arrival and departure time
) Arrangement for welcome drin4 for the
group and 9I8
the guest
)oom and rate assignment and the
creation of guest folios in case advance
payment has been received by the hotel.

egistration
record a guests arrival and confirm their
personal details, as well as satisfy the legal
reuirements.
of registration is stored as the registration
records.
a written record of certain guest information.

• The following details must be recorded for guests over =L:
) "ull name
) 2ate of arrival

-&est Registration !ar"
• The guest details are captured in a guest registration cards. They are given to the guest at the time of arrival to complete the registration formality. Advantages associated with the use of individual ;3s:

• The ma@or disadvantages of using individual ;3s for registration activity are as follows.

egistration 8rocess
• The registration process involves many stages. The different stages of the registration process are:
) I"entification of -&est/ Identifying the status of a guest—guest with confirmed reservation or wal4'in guest—and to process registration accordingly.

) Roo( an" Rate Assign(ent/ A room is assigned to the guest and the rate is fi(ed after deducting any discount.
) Estabish(ent of Mo"e of Sette(ent of *is/ 3ash 3redit TA9 T3 22
) !o($etion of !hec,'in Proce"&re/ All the necessary formalities are completed.
) Roo, 2e#s are Iss&e"

3hec4'in 8rocedures
from the arrival of a guest to the issuance of
the room 4ey to the guest.
• +very hotel has their own /!8 for chec4'in
of :
-&ests %ith !onfir(e" Reservation
4a,'in -&ests
5IP -&ests
!ther 3onsiderations in 3hec4'
guest
!HE!2'OUT AND SETTLEMENT
2eparture 8rocedure • The last interaction of the guest with the hotel
staff ta4es place during the final phase of the guest cycle chec4'out. The departure procedure may vary slightly from hotel to hotel according to the degree of automation of the organiation. The following steps are involved in the departure procedure in manual or semi' automated systems: ) The chec4'out reuest is received at the front
des4 or bell des4. ) /end bell boy to transfer the guest6s luggage ) Alert all points of sale to rush last'minute
credit transactions ) .
)pdate the guest folio ) ;uest arrives at the front des4 and hands
over the room 4eys. ) 3ashier prepares the master bill and
presents for review. ) 8ayment is received from the guest ) "ront des4 ma4es the 5luggage out6 pass ) 3ommunicate the chec4'out information to
other concerned departments. ) "ront office assistant updates the

0ode of /ettlement of $ills
• ;enerally hotels determine the mode of settling the guest accounts at the time of registration or sometimes even at the time of receiving the reservation reuest. There are several acceptable modes of payment:

8otential 3hec4'out 8roblems and
the departure of a guest:
• -ate chec4 out
guest folio
-ate chec4 out
•If a guest vacates his room after the chec4'out time, it is considered late chec4'out. This may create a problem, especially during high occupancy periods, as the guests with confirmed reservations will be reuired to wait for the room to be vacated and cleaned. A hotel may ta4e the following preventive measures to minimie late chec4'outs:

•Have the information regarding the chec4'out timings printed on the 4ey card and displayed at the bac4 of the room doors.
• Add the late chec4'out charges in the guest bill.

Long 9&e&es at the cashier
co&nter • The standard chec4'out procedure, involving
number of steps dealing with the presentation
and settlement of bills, ta4es some time. As
more and more guests now want a speedy
and ueue'free chec4'out, hotels are coming
up with alternatives to the standard chec4'
out. These alternative methods are :
• +(press chec4'out
+(press chec4'out %+3!& • The +!3 procedure reuires the guest to
fill the +!3 form and a pre'departure folio. • This is an authoriation by the guest to the
hotel authorities to charge the outstanding balance to his credit card. The guest agrees to pay the amount finalied by the front des4 cashier after his departure.

/elf chec4'out terminals
self service terminals, which allow guests to
chec4'inchec4out promptly by operating
these interactive machines. The
eliminate the scope of human error

Improper posting of charges in the
guest folio
• There are occasions when a guest6s financial transactions are not properly posted in the guest folio and the final bill is inaccurate. This might be due to human error or system error.
• The front des4 is flooded with chec4'out reuests at pea4 chec4out times and the cashier might ma4e some mista4e in the posting of charges or the calculation of bills.

• The whole e(perience can be uite damaging for the hotel.

3HA8T+ F: ;+/T
;+/T /+9I3+/
9arious ;uest /ervices
• 2uring a guest6s stay in a hotel, the front office staff provides various 4inds of guest services. These services may vary from hotel to hotel and from guest to guest. some of the services provided by front office of the hotel to the guest are:

Handling ;uest 0ail
they need a contact address where they can
receive any urgent mails, calls, parcels, or
fa(es. 2uring their stay in a hotel, guests
may provide their family and clients the
contact details of their hotel for any urgent
communication.
maybe grouped as under:

Incoming 0ail • Incoming mails may be of two types:
• ordinary mail and registered mail. • Or"inar# (ai / 0ails whose delivery record
is not maintained by the delivering agency. Hotels 4eep a record of all mails received at the mail receiving des4 in a mail log boo4.

Proce"&re of Mai Deiver#
• The mails received by a hotel on behalf of its guests are delivered according to the mail handling procedure followed by the hotel. The standard mail delivering process is as under: ) /tamp date and time of receipt on every mail
received. ) /ort the mails as hotel mails and guest mails. ) Arrange the mails in alphabetical order. ) "urther sort hotel mails into official mails and

• The information section assistant will further sort the mails into the following categories:
• esident guest %staying in the hotel& • 3hec4ed'out guest %departed from the
hotel& • "uture guest %guest with a confirmed
reservation for future dates& • The mails of resident guests are delivered in
the guest rooms by the bell boys • The mails of chec4ed'out guests are sent to

!utgoing 0ails
the hotel provides the service of collecting the
mails from the guest room and posting them.
• The charges are added to the guest account
through a miscellaneous charge voucher
• The voucher is authenticated by a competent
authority and sent to the front des4 cashier for
posting into the guest master folio.
• A record of the same is maintained in the
outgoing mail register.
Message Han"ing
a resident guest when she is not present in the
hotel. The process of receiving and delivering
messages to resident guests is 4nown as
message handling.
delivered to guests when they return to the
hotel.
Message Han"ing Proce"&re
• Ever# hote has its o%n stan"ar" o$erating $roce"&re for han"ing g&est (essages3 Most hotes foo% the given $roce"&re : %ith so(e variations/
• 4hen there is a visitor or a tee$hone ca for a g&est: the front "es, assistant sho&" oo, at the infor(ation rac, to see %hether the g&est is a resi"ent g&est: f&t&re g&est: or chec,e"'o&t g&est3

• If g&est has not eft an# instr&ctions or the ocation for( at the front "es,: the front "es, assistant sho&" ta,e "o%n the (essage for the g&est on a (essage si$3
• The (essage si$ is $re$are" in "&$icate; the origina co$# is $ace" in the ,e# rac, an" the "&$icate co$# is $ace" in a (essage si$ enveo$ an" si$$e" thro&gh the "oor of the g&est roo( b# a be bo#3 The $&r$ose of $re$aring the (essage si$ in "&$icate is to ens&re the "eiver# of the (essage to the g&est3

• If there is a ca is for a f&t&re g&est: then the agent sho&" note the (essage on a (essage si$ an" sen" the si$ to the bac, office: %here it %o&" be $ace" aong %ith the reservation recor"3

;uest 8aging
not in her room and is e(pecting a visitor, she
may fill a location form and leave the same at
the front des4. 1hen the visitor comes to
meet the guest, the front des4 agent writes the
name and room number of the guest on a
page board and sends a bell boy to the area
mentioned by the guest on the location form.
In some hotels, guest paging is done through
public address system.
/afe 2eposit -oc4er
• A 4ey concern for guests is the safety of their belongings, especially cash, @ewellery, and important documents. Hotels provide safe deposit loc4ers for the same.
• At the time of chec4'in, guests are advised to 4eep their valuables in the safe deposit loc4ers available at the front des4.

;uest oom 3hange
• In case a room doesn6t match the guest6s e(pectations, the guest may want to change the room. There are times when the hotel may wish to change the room of a resident guest.
• If it6s the hotels decision to change a room for guest, this should be communicated in advance
• A room change slip should be completed and copies provided to relevant departments

-eft -uggage Handling • There are times when guests chec4 out of
their rooms but would li4e to leave their luggage in the hotel and collect it later.
• The same facility may be e(tended to a guest who would return to the hotel after a short visit to another city.

8rocedure for -eft -uggage Handling
•Hotels normally follow the following procedure for luggage to be stored in left luggage room: •The agent ma4es sure that the guest wishing to 4eep his luggage has cleared his bills.
• A tag is filled and tied to each luggage. •2etails of the luggage are entered in the left luggage register
•The counterfoil of the luggage tag is torn and handed over to the guest. The guest is reuired to present the same for the collection of his luggage.
•The luggage is 4ept in the left luggage room.

•1hile delivering the luggage to the guest, the following procedure is followed: •The front office agent reuests the guest is to show the luggage tag counterfoil.
•The front office agent tallies the counterfoil with the tag attached to the baggage.
•The front office agent ma4es an entry in the left luggage register and reuests the guest to sign for the delivery of the luggage.

1a4e'up 3all
• Hotels offer wa4e'up call services, wherein the hotel staff ma4es a telephone call at a reuested time to awa4en a guest.
• The guest who wishes to be given a wa4e'up call places a reuest with the front office, and the reuest is entered in the wa4e'up call register .

;uest 3omplaints
• 1hen guests are not satisfied with some services and e(press their discontent to hotel employees, mostly to front des4 staff, their grievances are recorded as guest complaints.

Handling ;uest 3omplaints • The following guidelines may be followed:
• ;reet the and listen silently without interruption, with empathy.
• Apologie and show concern and ta4e complaints seriously. *ever as the guest is always right.
• Than4 the guest for bringing the problem to your attention and do not e(cuse the fault by blaming someone else.
• If possible, isolate the guest so that other guests may not overhear.
• !ffer choices, communicate to relevant staff for action and never ma4e a false promise.

• "ollow up with the guest about the solution to ensure its satisfactory.

!HAPTER <
"ront !ffice Accounting
collecting, recording, summariing, and analying
financial transactions of a business.

The ma@or functions of front office accounting system are:
• 3reation and maintenance of guest and non' guest accounts accurately
• Trac4ing guests financial transactions throughout guest cycle
• 0onitoring the credit limit of guests, and as4ing for a deposit from guests in case of high outstanding balance
• 8roviding management with departmental revenue reports 0aintaining effective control of cash and credit transactions

Types of Accounts
accounts:
;uest Account • A guest account is the record of financial
transactions between a resident guest and the hotel.
• This account is created for an individual guest either during the registration of the guest or during reservation, if the guest ma4es an advance payment.

*on'guest Accounts
• A non'guest account is the record of the financial transactions that ta4e place between a non'resident guest and the hotel, 4nown as a city account.
• The front des4 cashier also maintains other types of non'guest accounts, which include: ) ;uests who leave the hotel without the

) The status of guests, whose accounts are not settled by them %in case of bills to company&, changes from resident to non'resident guests when they leave the hotel. The front des4 cashier transfers the balance to the city ledger and the payment is collected by the accounts department.

9isitors 8aid'out 9oucher • A voucher entitles the bearer to certain
goods, services, or discounts upon
presentation is a documentary evidence of a
financial transaction.
guests is 4nown as visitors paid'out %98!&. A
98! is generally made for the following
charges: 8ayment for ta(i, travel agency
services, theatre tic4ets, 8ostage and courier
charges and +mergency medical e(penses

estaurant$ar 3hec4
beverage in a restaurant, a bill is raisedD in
case a resident guest wishes to utilie the
credit facility offered by the hotel, he should
sign the bill.
financial transactions at the food and
beverage outlets and are treated as
vouchers for posting the charges to the
guest folio.
"olios • A folio is a written record of a guest6s
account and is created at the time of starting a boo4 of account in the name of a guest. It is a statement of all the transactions that ta4e place between a hotel and a guest.
• The initial balance at the time of opening a folio is ero.
• It changes with the credit %3r& and debit %2r& transactions.

-edger
• A ledger is a collection of the same type of accounts. The front office ledger has a collection of folios. There are normally two ledgers maintained by the front office. They are:
• ;uest -edger
• 3ity -edger
;uest -edger
• A guest ledger contains the details of all the financial transactions between a resident guest and the hotel, including charge purchases and the payments received from the guest. It has two parts—debit and credit.
• In a manual system, the financial transactions are recorded in a tabular ledger, or tab ledger, which is of two types:
• Horiontal tabular ledger
"ront !ffice Accounting 3ycle • "ront office accounting involves maintaining
an accurate and up'to'date record of all the financial transactions %credit and debit& between the hotel and each guest, so that all the outstanding accounts are settled and the hotel does not lose any revenue.
• The front office accounting cycle has three distinct phases:
• 3reation of accounts
• 0aintenance of accounts
• /ettlement of accounts

3reation of Accounts
• A guest account is created when the first financial transaction between the hotel and a guest ta4es place. It may happen at one of the following stages:
• At the time of reservation, if the guest pays an advance amount

• A guest folio is created on the day the hotel receives a payment from the guest and the transactions are recorded in the order of their occurrence.

0aintenance of Accounts • All the monetary transactions that ta4e place
between hotel and a guest are recorded in a guest folio in order of their occurrence through either a debit or credit entry. 0ost common debit entries in a guest account include:
• oom charges • "ood and beverage charges %restaurant, bar,
coffee shop, room service, etc.& • Telephone and fa( charges • Health centre, business centre, fitness centre
charges • -aundry charges, 8ostage charges,
Transportation charges and 9isitors paid'out

• 3redit entries in a guest account may include the following:
• 8re'payment, in part or in full %at the time of reservation or between reservation and arrival&.
• 8art payment during the stay. • Allowances given to the guest. • Ad@ustments made in case of any
error in posting in the guest folio. • "inal payment for the settlement of
accounts at the time of chec4'out.

/ettlement of Accounts
the front office accounting cycle.
• The settlement of account means eroing
the balance in a guest folio.
• The formula for calculating the outstanding
balance is:
entries ? O&tstan"ing a(o&nt

• At the time of departure, the final bill of the
guest is prepared and settled in such a
way that the outstanding balance is
brought to ero.
be by cash or credit.
• In case of credit settlement, the account
balance is transferred to the city ledger
and the responsibility of collecting the
balance is transferred to the accounts
department.
*ight Auditing
*ight Audit
• Audit is 5an official e(amination of business and financial records to see that they are true and correct6.
• /ince hotels operate on ?J M G M LF pattern, continuous auditing is a pre' reuisite to safeguard the loss of revenue that may occur due to any error in the posting of charges in the folios

*ight Auditor
• A night auditor is the person who audits the hotel accounts daily at night or at a time when the business is relatively slow.
• The audit team generally comprises members of the accounts department.
• The number of people in the audit team depends upon the sie, location, and products of the hotel.

• A night auditor should also possess the s4ills of a receptionist, as in many small and medium hotels, he may be reuired to carry out the chec4'inchec4'out function at night.


2uties and esponsibilities of *ight Auditor
• +nsures the accuracy of front office accounting records and balances them.
•econciles all the financial transactions between a hotel and its guests.
• 3alculates total revenue generated in a day. • 9erifies and validates the cashier6s posting of charges in the guest accounts.

• 8repares a high balance report of guest accounts e(ceeding house limit.
• 0onitors the current status of discounts, meal coupons, and other promotional activities that are carried out by the front des4 employees.

!ha$ter @
8roperty 0anagement /ystem
• A 80/ is a computer'based management system used to manage guest boo4ings, online reservations, points of sale, telephone, and other amenities.

• A hotel 80/ may interface with central reservation systems %3/& and revenue or yield management systems, front office, bac4 office, and 8!/ systems.
• There are many types of 80/s—it is up to a hotel to choose the one that best fits its needs. There are different modules of 80/ to manage individual departments of a hotel, such as front office module, house4eeping module, restaurant management system, bac4 office module, etc.
• The reuirement for automation may vary for each hotel on the basis of its sie, location, volume of business, operations, etc.

80/ Application in "ront !ffice • The 80/ application for the front office has
different modules for the efficient functioning of the
whole department. /ome of the common modules
used in front office are:
• eservations module
eservations 0odule
The reservations module is used to create and manage guest reservations, both for individuals as well as groups .The reservations module includes the following features:
• It provides room status records when the date of arrival, date of departure, and type of guest room are entered in the system.
• It colour codes the room status by using different colours .It can chec4 the reservation status of a guest uic4ly as it can search by guest name, company name, group I2, confirmation number, or arrival and departure dates.
• It displays room availability status %of up to =J days at a time& by simply selecting a date.

• It can automatically calculate rates based on the room type, the rate code, arrival and departure dates, and the number of adults and children.
• It can create special group rates. • It can pre'assign rooms to guests when ma4ing
a reservation or at any time using a graphical tape chart.
• It automatically transmits confirmation of a reservation via e'mail, fa(, or Internet.
• It is able to post an advance deposit on a room. • It can enter 5remar4s6, which are visible upon
reservation retrieval. • It can reserve and trac4 the availability of service
items such as rollaway beds, cribs, and refrigerators.

"ront 2es4 0odule • The front des4 module manages the registration of guests. The
following featuresfunctions are included in the front des4 module:
• It can access guest information easily and uic4ly for viewing, modification, or chec4'in procedures.
• It displays a graphical room layout with the room status information, which shows the e(act location of rooms.
• It trac4s all guest activity for the length of their stay.
• It prints registration cards.
• It attaches individual, group, company, or travel agent information to each guest folio.
• It automatically transfers guest accounts to the city ledger when the guest chec4s out.
• It can create an incidental folio.

ooms 0odule • The rooms module allows the staff to manage the hotel6s rooms and floor
plans. The following are some of the functions performed by this module: ) It displays the entire layout of a hotel, showing a single floorwing at a
time. !ne can easily go to another floorwing by using the scroll buttons, and enlarge or reduce the sie of floor plans by using the oom buttons.
) The display of the floor plan can be changed to show house4eeping, front des4, or specific room status.
) It provides latest room status information to both house4eeping and front office departments.

3ashier 0odule The cashier module is used to manage guest folios, raise bills, and perform
chec4out procedures .The following are some of the functions that can be performed with the cashier module: ) It can add incidental folios and move charges between folios with one
clic4. ) It can locate any account by entering the room number or name. ) It manages all aspects of the guest folio, including debits, credits,
ad@ustments, transfers, and voids. It allows the viewing or printing of folio details and summary information.
) It consolidates all transactions and produces an accurate bill uic4ly, enabling a speedy chec4'out.
) It allows the attachment of unlimited folios to each guest account. ) It carriers out the transfer of charges from folio to folio, from one room to
another, in amounts or by percentage.

*ight Audit 0odule • The night audit module is used to balance the day6s activity and
complete the hotel6s accounting functions for the day. The following are some of the featuresfunctions of the night audit module: ) It can perform routine tas4s of posting room charges,
changing non'guaranteed rooms reservations to no'shows, and changing the status of guaranteed no'shows with one touch.
) It ta4es an automatic bac4'up of data to optical dis4. It has the ability to rebuild room availability afresh in case there is a system failure.
) It has direct access to the reports module. ) It automatically posts service charges li4e garage fees, crib
fees, etc. and finance and recurring charges. ) If a room is scheduled for maintenance wor4, it automatically
changes the room status to out of order. ) It automatically sets the house4eeping status of occupied
rooms to dirty.
) It can do batch printing of registration cards. ) It has the ability to process no'shows with
deposit payments. ) It can print customied reports automatically. ) It can archive all records. ) It has the ability to perform close'out without a

/et'up 0odule • The set up module is used to define system settings. These settings allow
for customiation. /ome of the 4ey featuresfunctions of this module are as follows: ) It can s$ecif# (an"ator# fie"s for re9&ire" infor(ation ) It can c&sto(i0e accor"ing to the (ar,et: so&rce an" rate co"es ) It can generate an" c&sto(i0e coo&r co"es3 ) It ao%s access the f&nction areas in the s#ste( &sing &ni9&e &ser IDs an"
$ass%or"s3 ) It s$ecifies rate co"es: roo( rates: an" rate avaiabiit# aong %ith the restriction of
rate avaiabiit# b# "ate range: "a#s of the %ee,: or (ini(&( sta#3 ) It creates an" (aintains $rofies of in"ivi"&as: gro&$s: co($anies: an" trave
agents3 ) It can "efine the $hone e8tension for each roo(: inc&"ing (&ti$e $hone
e8tensions for a singe roo(3 ) It can "is$a# a (essage $ro($ts an" screen te8t in the oca ang&age3 ) It creates a ist of a roo( feat&res avaiabe thro&gho&t the hote an" generates the
"is$a# of attach(ents to s$ecific roo( t#$es an" roo(s3 ) It can c&sto(i0e the reservations caen"ar %ith &ser'"efine" te8t for hoi"a#s:
s$ecia events: an" re(in"ers3 ) It sets a ti(e i(it for retaining the g&est foios an" $rofies3 ) It assigns re9&est co"es to antici$ate the s$ecia nee"s of g&ests these re9&ests
are either chargeabe or co($i(entar#3

eporting 0odule
which allow the management to retrieve operating or
financial information at any point of time.
• 1ith this module, the management can uic4ly access
information such as:
) The number of guests arriving on a specific day
) -isting of guests6 folio balances
) !utstanding balance reports
$ac4 !ffice 0odule
managing the hotel6s financial and statistical information.
• It simplifies accounting processes such as posting of accounts
payable, transfer of accounts receivables, compilation of the
payroll, budget preparation, and the production of the hotel6s
profit'and'loss statement and balance sheet.
• The financial information entered on a terminal in bac4 office
updates all accounting records.
• The bac4 office module is also lin4ed with the night audit
module, which helps in streamlining the accounting process.

80/ Interface with /tand'alone
/ystems • The 80/ can be integrated with other stand'alone automation
systems li4e points of sale, energy management system, call accounting system, and electronic loc4ing system, it becomes more effective and useful for hotel operations. ) Point of Saes In a hote/ The points of sale %8!/& are the productsservices
other than accommodation from where the hotel generates revenue. These include restaurants, bars, discotheue, night club, health centre, etc. +ach point of sale is euipped with a stand'alone automated support for billings. If this is lin4ed with the 80/, the data is immediately transferred to other modules for further processing.

3ontdO ) Energ# Manage(ent S#ste(/ An energy management system
is designed to manage the operations of euipments and instruments that consume energy. !ne typical function would be to shut down the operations of euipments that are not is use.

2ifferent 8roperty 0anagement
/ystems • There are several companies that provide the 80/ software
to hotels, with their own uniue features to suit the different
reuirements of various hotels. /ome of the companies
providing 80/ software also provide other tailor'made
products to their clients are:
• 0icros
• Amadeus
0icros
hospitality industry through:
O$era Enter$rise So&tions • The O$era Enter$rise So&tion 6OES7 is a f&# integrated suite of
products that can be easily combined for deployment at any sie of organiation from a single'property hotel to a global, multi'branded hotel chain. !pera modules include: ) Opera Reservation ystem! %he &pera 'eservation "ystem #&'"( is
a centrally managed computer reservation system that handles all types of reservations individual, group and party, company, travel agent, multi' legged, multi'rate, and waitlisted.
) Opera "ustomer In#ormation ystem! %his gathers and manages profile data of guests, travel agents, sources, groups, and companies in a central database that can be shared by multiple properties.

Micros .i"eio
• Micros .i"eio range of soft%are $ro"&cts inc&"e $ro$ert#
(anage(ent systems %80/&, reservation systems, and points of sale
%8!/& systems.
) %roperty Management ystem +t takes care of tasks like guest
information, night audits, inventory control, profit management, and
report generation.
) Reservation system Configured to a hotel’s specification, it gives the
hotel staff instant room status and availability report, leading to instant
reservations.

Amadeus 80/ • Amadeus property management system can be integrated with front office,
salesmar4eting, and financial management functions. It allows the user to move faster in all core aspects of guest e(perience management. ) .ront Office Mo"&e This module offers full availability, reservation,
yielding and billing functionalities, which in turn generate useful performance statistics. It provides data on performance indicators such as sales, accounts, source, and segment activity, which is monitored to analye business efficiency and used to generate management reports.
) Saes an" Mar,eting Mo"&e This module aids the sales and mar4eting professionals to target potential guests and effectively manage customer relationships.
) !onference an" *an9&eting Mo"&e +vent planning is a feature that helps generate revenue for hotels. The 4ey features of the conference management system include real'time conferencemeeting room availability and euipment management. An interface with front office helps the sales agent to boo4 rooms according to conference dates and guest preferences.

I2/ "ortune • It offers the following three 80/ for all categories of
hotels: ) .ort&ne Enter$rise It provides centralied data integration
along with colorful displays to aid the absorption of the important facts at a glance.
) .ort&ne E8$ress This has the fle(ibility needed to manage mid'segment and budget hotels. A single database 4eeps all aspects of management, speeding up information sharing for greater efficiency.

/haw0an
handle guest reservations simultaneously across many
units, including an integrated web'based reservation agent
and an auto confirmation manager.

HOTEL FRONT OFFICE
Jatashanar R! Te"ar#$ %a&' %anars# Das Nat#(na) Inst#t'te (*
Te+hn()(, . /ana,e0ent$ L'+n("
1
!ha$ter B
Kield 0anagement • Kield management or revenue management is
the process of understanding, anticipating, and influencing consumer behavior in order to ma(imie revenue or profits from a fi(ed, perishable resource such as airline seats or hotel rooms.
• The challenge is to sell the right resources to the right customer at the right time for the right price.


Manage(ent
• Hotels fulfill the three essential conditions for practicing yield management. They are:
) There is a fi8e" a(o&nt of reso&rces avaiabe for sae : Hotels have a limited inventory of rooms available for sale to guests.


Industry
products of the hospitality sector—if a room
is not sold on a particular day, the entire
potential revenue that could be generated
from it is lost for ever. Hotels have come to
realie that mere volume sales do not
generate the desired revenue, and that they
have to thin4 of uality deals in terms of
revenue generated per sale.
• evenue managers see4 to ma(imie
revenue by controlling forecast information
with the help of the three tools:
) /elective !verboo4ing3apacity
Seective Overboo,ing)!a$acit#
Manage(ent
• Overboo,ing is the $ractice of intentiona# seing (ore roo(s than avaiabe: in or"er to offset the effect of canceations: no'sho%s: an" ear# "e$art&res3 The avaiabiit# of roo(s increases in the foo%ing sit&ations/
)arly departure' under-stay )"ancellations )(o-s)o*s

) Past histor# of "ata reate" to/ • !anceation statistics • Un"er'sta# statistics • No'sho% statistics • T&rn a%a# statistics
) Activities in to%n • S$orting events • !&t&ra events • *&siness events • Protest)&nrest)e(ergenc#
) The e8$erience of the reservation (anager

2ifferential pricing 2iscount Allocation
• 8rice is a ma@or criteria for a guest while choosing a hotel for stay.
• The pricing of a hotel6s accommodation products is based on its demand in the mar4et.
• Kield management attempts to get the right sales mi(.


2uration restriction 2uration 3ontrol
• 2uration control places time constraints on accepting reservations, in order to protect sufficient space for multi'day reuests.
• A hotel may e(ercise the length of stay restriction to control the imbalance of occupancy during the wee4.

• The hotel may also put restrictions of minimum and ma(imum lengths of stay to ma4e a balance of occupancy throughout the duration.

+lements of Kield 0anagement
• 4hie "eveo$ing a s&ccessf& #ie" strateg#: the foo%ing ee(ents are ver# i($ortant/
• -ro&$ Roo( Saes/ *# st&"#ing gro&$ boo,ing "ata: hotes can antici$ate gro&$ behavior an" accor"ing# (a,e $rovisions for/ !anceations: Mo"ifications in gro&$ reservations an" -ro&$ boo,ing ea"'ti(e (eas&res to acce$t an a""itiona gro&$

• .oo" an" *everage Activities/ A oca foo" an" beverage f&nctions sho&" be vie%e" in the ight of the $otentia for boo,ing gro&$s that nee" a (eeting s$ace: foo" an" beverage service: an" g&est roo(s3


$enefits of Kield 0anagement
• There are a lot of benefits associated with the use of yield management in the hospitality sector, especially in hotels. These benefits include the following:
) Improved forecasting
) Identification of new mar4et segments
) Identification of mar4et segment demands
) +nhanced coordination between the front office and sales divisions

) 2etermination of discounting activity
) Increased business and profits
) Initiation of consistent guest'contact scripting

) Reven&e Manage(ent Tactics "&ring High "e(an"
• 3lose or restrict discounts to generate more revenue • Apply minimum length of stay restrictions carefully • educe group room allocations as groups get very
low room rates • educe or eliminate L p.m. holds to avoid last
moment no'shows or cancellations • Tighten guarantee and cancellation policies to avoid
last moment no'shows or cancellations • aise rates as consistent with competitors to
generate optimum revenue
• 3onsider a rate increase for pac4ages instead of giving more discounts
• Apply rac4 rates to higher category of rooms li4e suites and e(ecutive rooms
• /elect dates that are to be closed'to'arrivals • Apply deposits and guarantees to the last night
of stay ) Reven&e Manage(ent Tactics "&ring Lo%
"e(an" • /ell value and benefits li4e spa treatments • !ffer pac4ages and special offers • 7eep discount categories li4e advance
purchase rates, corporate rates open • +ncourage upgrades

• !ffer stay'sensitive price incentives • emove stay restrictions • +stablish relationships with competitors • -ower rates to attract more guests and to
generate more revenue for the hotel

0anagement
• The yield management techniues and the models of overboo4ing, if applied aptly, would definitely ma(imie the revenue of the hospitality industry. $ut there are some challenges or problems in this, which include:
• Meas&ring $erfor(ance of a #ie" (anage(ent s#ste( : !ccupancy rates and yield are measures that are affected by e(ternal competition.


"orecasting
happenings, based on the precise analysis of
the data available rather than guesswor4.
• "orecasting plays an important role in short'
term planning.
$enefits of "orecasting • In the hotel industry, reservation forecasting is very
useful in the following ways: ) Helps the reservation or revenue manager to
pro@ect future volume of business and the revenue
) The volume of reservations will help the "!0 and the management to plan the following: • /taff reuirement • 0inimum inventory of items reuired • Allocation of resources • 0aintenance and replacement reuirements • /pecial arrangements to be made for the
arrival of groups, commercially important persons %3I8s& and 9I8s.

) 8rovide the necessary data to practice yield management.
) Helps to ta4e selective overboo4ing, based on the reservation forecast
) 8rovides information about the lean days )eveal the sold out dates, which will

+ssentials for "orecasting • "ollowing are reuired for forecasting: ) Thorough product 4nowledge. ) A good @udgment about what could happen in the
future. ) Thorough 4nowledge about their area of operation
in the hotel. ) The profile of the target mar4et to which the hotel is
catering. ) The events that are scheduled in the area during
the forecasted period. ) 8ercentage of no'shows. ) !verstay percentage. ) nder'stay percentage. ) Turn'down statistics.

) "uture plans for renovation or addition of more rooms in the property.
) "uture plans regarding the opening of any new property in the vicinity of the hotel.
) A precise 4nowledge about the room status in competitor6s property.
) 7nowledge about competitor6s plans with respect to activities %li4e renovations&, which will reduce the supply of rooms in their property.
) 3ancellation statistics. ) 1ash out percentage

Documents

Introduction Front Office Operations