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UPSELLINGANDUPGRADING
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UPSELLING AND UPGRADING
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What is Upselling?
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Each organisation works with one major motive, and that is to maximize their revenue
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generation. Upselling is a technique as well a process through which guests are

encouraged to use full range of hotel services along with convincing the guest to opt for a
higher priced rooms.. This technique uses SUGGESTIVE SELLING.
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GuestCycle
GuestCycleThemain
functionofthefront
officedepartmentisto
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guesttransactionandservices.
therefore...
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RoleoftheFrontOfficein
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Thefrontofficeplaysamajorrolein
deliveringhospitalitytoguests....
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HOSPITALITYArecordmaintained
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Reservation
RESERVATIONSThe
termreservationis
definedasblockinga
particularroomtypefor
aguest,foradefiniteperiodoftime,
forap...
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Saucesareliquidsorsemi
liquidmixtures.Akeensenseof
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HOW DO I UPSELL??
Upselling can be used as a sales technique by taking into consideration, the following
points:
A.Reservation assistant should:

1.Learn how to control encounter with the guest. A reservation assistant should be
TotalPag
able to take control of the communication flow or encounter.

2.Should learn how to overcome natural inhibitions when dealing with a guest.
3. A reservation assistant needs to be consistent, courteous and confident while
dealing with the guest.
Linkto
4.A reservation assistant should sound enthusiastic while ASKING for a SALE.
5. All of the above mentioned points can naturally be imbibed by a reservation
assistant only if he/she KNOWS THE PRODUCT (Convincing the guest for why
they should select your product). It is important to know what you are selling in
and out in order to convince the guest.
Followers
B.Controlling the encounter:

Avoid open ended questions: What type of a room would you like? Instead ask specific
Members
questions gradually getting the guest towards the choice of a higher priced or medium
priced room:
Example: I can give you a standard twin room Rs 200 for one night however for a 100
more I can offer you a deluxe twin room.
C.Getting rid of natural inhibitions:
http://ihmnotes.blogspot.in/search/label/Front%20Office?updatedmax=20130310T11:01:00%2B05:30&maxresults=20&start=3&bydate=false
Alreadyam
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Do not assume that a room rate is exorbitant or expensive or inexpensive just because
you think it to be.
D.Asking for Sale:

1.Few guests would opt for a better room unless the reservation assistant would
ask for it or suggest it.
2.The selling techniques used are:
High Pressure (Aggressive Selling) or Non Pressure (Suggestive Selling), as a matter of
rule hotels goes for non pressure or suggestive selling technique.
Non pressure or suggestive selling techniques exert little or no pressure on the
guests decision for a room type. This is done to reduce compliance or resistance from the
guests side. In general guests tend to avoid extremes that are least expensive and the
most expensive rooms will be not taken by the guest preferably. The two approaches used
by the hotel are TOP DOWN approach i.e. offering a higher priced room and gradually
moving towards a lower priced room. This approach is also known as DOORS IN THE
FACE APPROACH.
The second approach used is BOTTOM UP APPROACH i.e. suggesting the lower price
room and gradually moving upto a higher price room. This approach is also known as
FOOT IN THE DOOR APPROACH.
UPGRADE: Is a situation when a guest is shifted to better room at the same rate.
DISCOUNT AND ALLOWANCE:

DISCOUNT: Discount is offered to the guests to attract him so the sales can be
increased. The fact is by giving discount hotel tries to increase its sales and hence
increases profit. Discount can be offered under the following circumstances,
1. OFF SEASON DISCOUNT: During off season hotels offer a percentage of
tariffs as discount, on rack rate or offer discounted tariff to attract more
guests.
2.
GROUP TARIFFS: Group of 10 persons and more are offered special
discounted tariff to attract them. The quantum of discount will depend up on

the size of group, season (off or peak), quantum of business the company
gives throughout the year, number of days the group will be staying.
3. AIRLINE TARIFFS: Airline crew, airlines executives, lay over passengers on
airlines account are offered special discounted tariff as they usually give more
number of room nights throughout the year. The discount will entirely
depend on the room nights offered by the airlines throughout the year.
4. SPECIAL TARIFFS: Companies giving more number of room nights business
are also special tariffs to attract them to your hotel.
5. FHRAI MEMBERS: The members of Federation of Hotel and Restaurant
Association of India are offered 30% discount by the member hotels and
restaurants. This discount is offered as a customary and is offered to
members only as per rules.
6. CONFERENCE TARIFFS: These days hotels especially resorts offer special
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tariffs to companies to attract them to hold conferences in their hotels. The

special tariff may be inclusive of sightseeing, pick up and drop facilities etc.
7.FOOD/ ITEM NOT SERVED: Sometimes guests complaint either at the time of
checking out or before but after the bill has been raised that the food /
services charged for were never availed by them. If the hotel is convinced that
the bill has been wrongly raised then the discount is offered to the guest for
the amount he is over charged.
The receptionist on his own cannot offer discount or special tariff to a guest. All
companies who are offered special tariff to a guest are only offered discounted tariff by
reception and if any other guest is to be offered discounted tariffs then it is offered only by
the managers or by those who are authorized to offer discounted tariff to guests.
ALLOWANCE:
Allowance is offered to a guest due to deficiency in services. At times due to some
unavoidable circumstances the hotel residents are unable to get peaceful atmosphere and
are offered allowance on rack rate. At times the food served to the guest was not of hotels
standard and there was a deficiency in service and the management took decision to offer
allowance to the guests on food. To offer allowance, receptionist raises allowance voucher,
approved by an authorized person and enters in the allowance register, as otherwise the
account will not tally.
In brief it can be said that allowance is given due to deficiency in service and the
discount is given to attract more guests and in increasing the sales and profit.
Posted by gurjeet nanda at 10:56 AM

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Labels: Front Office
Reservation
RESERVATIONS
The term reservation is defined as blocking a particular room type for a guest, for a
definite period of time, for a particular guest. To ensure a safe and secure place for stay
during their visit to another town, guests generally prefer to make advance reservations in
hotels and other types of accommodation units.
All hotels will readily accept advance reservations and booking in order to achieve
high occupancy and to maximize their room revenue. When a guest makes an advance
reservation for a definite time period it is expected that the hotel will accept and honour
its commitment by a contract between the hotel and the guest. A reservation therefore is
this bilateral contract between a hotel and a guest, according to which the hotel must
provide the specified room type to the guest and the guest must agree to pay all relevant
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charges. This is also known as CONTRACT OF BOOKING.

If either the hotel or the guest wishes to alter or cancel the reservation, this can be
done only through a mutual agreement. If a guest fails to inform the hotel about their
cancellation the hotel property may decide to retain the advance deposit received from the
guest earlier to cover up for any loss of accommodation revenue. The amount forfeited
when a guest does not inform about their cancellation to the hotel is termed as
RETENTION CHARGES. Alternatively if the hotel is unable to accommodate the guest at
the time of their arrival, the hotel has to provide alternative accommodation of similar
standard in another hotel and pay for any differences in room rates and any additional
expenses the guest may have to incur. The reservation department handles all reservation
requests for accommodation, interacts with the customers and constantly monitors the
room status and the reservation status.
Importance of Reservation
The role of the reservation department is not limited to making reservation. It
maintains records of the hotel occupancy, which help in planning sales and marketing
strategies
1.Importance for the guests:
1. Ensures room on arrival A guest who makes prior reservation is ensured of the
required type of room, no of rooms for his entire stay in the city. This saves him
from the difficulty of finding accommodation on arrival specially during peak
seasons when most of the hotels are full.
2. Budgeting As he is informed of the tariff at the time of reservation, he is able to
budget his holiday or tour, taking in account the amount he spends on his stay,
food, entertainment etc.
3. He is able to plan his holiday or tour without worrying about the basic needs of
accommodation and food. Any business trip, sightseeing tour or excursions may be
planned separately after fixing the accommodation.
4.Other facilities the guest is ensured of certain facilities offered by the hotel which
can be confirmed by making the reservation e.g. sightseeing tours, business center
offering secretarial services, entertainment etc. He is also able to give the hotel
address to his associates for any meetings, correspondence transfers to and from
the hotel.
2.Importance for the hotel:
1. Prior reservation gives the hotel an indication of the level of business likely to be
encountered during any particular period. The reservations manager knows the
amount of business ensured during that period from the confirmed reservations. It
enables him to forecast future revenue generation and take necessary action to
improve the amount of revenue expected.
2.Guest satisfaction The hotel is able to plan its activities and be prepared to receive
an expected guest. They are able to provide the necessary services and facilities like
security, transfers, preference of rooms to known guests, providing complimentary
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and any particular service asked by the guest at the time of making the reservation.
3.The front office manager is able to make the necessary decision regarding the no of
walkinstant that can be accommodated on a particular day. Rooms requiring be
repairing or taking off for redecoration can be blocked during the slack period as
shown by the reservations. The no of rooms to be blocked for such purposes will
also be determined according to the expected guest arrivals.
4. Scheduling of staff Hotel staff may be scheduled more accurately to void under
staffing or over staffing problems.
MODES OF RESERVATIONS
The mode of reservations tells us HOW the reservation has reached the hotel. For
example a reservation request may reach the hotel through a written mode such as
letter, fax, telex or email or through a verbal mode like telephone or inperson.
1.Written Mode:
Letter This mode is commonly used by travel agents, tour operators, companies and
corporate houses who send in their reservation request to the hotel on their
company letterheads. The hotel will make the reservation as per the details given in
the letter.
Fax Fax or facsimile transmission uses electronic scanning technique to send copies of a
document over an ordinary telephone line over a special machine that prints identical
copies of the document. This makes it possible to send a reservation request
instantaneously. Hotels process the request as per details and send the confirmation
letter to the guest.
Telex or Tele Printer Exchange involves the use of specialized telephone lines, where the
message is communicated in a written form.
Email The most common method of communication Email is an electronic mail
that makes it possible to contact the hotel instantaneously. The hotel will process
the reservation request on the basis of the details given. This mode of reservation is
fast and very convenient.
2. Verbal Mode: Reservation requests may also reach the hotel through verbal mode
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or oral communication i.e. in person or over the telephone. The advantage of oral
communication is that it generates immediate response and feedback and is very
fast and convenient.
In Person If an individual or a representative goes to the hotel to book rooms for

future it is termed as an InPerson reservation. When an individual comes to the
hotel and requests a room for the day it is termed as a Walk In Reservation. The
hotel processes the rooms according to the details given by the guest and issues a
confirmation number and a letter if the reservation is made for future and assigns a
room if the guest requests for one for the same day.
TelephoneThe most common method of direct reservation communications, a
prospective guest may telephone the hotel directly. The reservation assistant takes
the information sequentially as per the script. Most of the hotels these days have
high end systems that record a call which can be used later on for training
purpose.
SOURCES/ CHANNEL OF RESERVATION

A hotel receives reservation requests from the different sources or channel like direct
guests, central reservation system, travel agencies etc.
1. Property Direct When a hotel receives a reservation request directly form a guest
without any mediator, it is termed as a direct reservation. An individual or a group
can contact the hotel property directly. A prospective guest may also plan to visit the
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hotel property directly in personthis guest is termed WALKIN.
2. Travel Agents and Tour Operators Travel agents are intermediary retail agents who
sell rooms, airline seats and other products and services to the travellers. On the
other hand Tour Operators are wholesalers who purchase the rooms, airline seats and
other travel products from the various principal suppliers and form a package and
finally sell the packages to a travel agent. Many guests make reservations through a
travel agent or a tour operator. The agent will normally take a pre payment from the
guest and send a confirmation to the hotel, and issue a TAV or a travel agent voucher
on its behalf. Travel agents generally receive a commission for their services to the
guest, or the hotel or both. Sometimes even airlines may give bulk bookings to the
hotel. Because a hotel receives bulk business from the airlines, the operators and the
agents they offer low rates for various room categories.
3.Companies and Corporate Houses Companies and corporate houses may have special
contracted rates, assigned to them on the basis of volume business they provide.
Since these companies and corporate houses also provide bulk business to the hotels,
the hotel property may decide to offer low rates.
4. Corporate Travel DepartmentsMost corporate organizations have a separate travel

department consisting of hired professionals who arrange and cater for the travel and
accommodation requirements of the travellers.
5.
Hotel Sales and Marketing Most of the hospitality properties have sales
representatives who approach various market segments and combine their efforts of
selling products and services offered by a hotel, thus generating a large amount of
revenue for the hotel.
6. Intersell Agencies the Intersell agencies are multiple product handlers i.e. they deal
with multiple products such as hotel reservations, car rentals, travel arrangements,
airline reservations and so on. Intersell agencies such as Travelguru and MakeMyTrip
are a rich source of reservations to the hotels.
7. CRS (Central reservation System) and GDS (Global Distribution System) Central
reservation system or (CRS) is a computer based reservation system, which enables a
prospective guest to make reservations in any of the properties of a single chain. The
CRS office deals with direct guests, corporate houses, travel agents and so on by
means of toll free telephone numbers. Equipped with the necessary communication
equipment, the CRS office works 7 days a week and 24 hrs a day. The systems at
member hotels have accurate up to date information on the number of rooms
available for the day, thereby assisting the guests to make reservation in more than
one hotel through a CRS. In case the rooms are not available the itinerary may be re
planned to accommodate the guest at the desired hotels. In case rooms are not
available the reservation assistant can direct the reservation to the other, member
hotel property.
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8. A GDS or a Global Distribution System is a worldwide computerized reservation

network, and is used as a single point of access for reserving hotel rooms, airline
seats, car rentals and various other travel related items and services by travel agents,
large corporations and online reservation sites. Being a link between the producers
and the end users of travel related products and services, GDS provides a bundle of
products and services to the prospective user across geographical boundaries. The
most common GDS used around the globe are Amadeus, SABRE, Galileo, and
Worldspan.
TYPES OF RESERVATIONS
Hotel accept reservations for their accommodation units after checking certain
factors such as availability of rooms, room rates preferred by the guests, forecasts,
profile of the guests and so on. The reservation made by a guest could be tentative,
confirmed or waitlisted. Once a reservation request is confirmed by a guest, the hotel may
proceed to make a non guaranteed or a guaranteed reservation
1. TENTATIVE RESERVATION: In the early stages or in the initial phase all reservation
requests are tentative reservations. A tentative reservation is one in which the hotel has
not sent a confirmation letter to the guest and as a result has not received a confirmation
from. In this case the hotel may hold the room till a particular time period also known as
stipulated time period or a cutoff date, by which the hotel must receive the confirmation
from the guest. Most hotels sent a confirmation letter, acknowledging the details of the
guest within 8 hrs, 24hrsor 48hrs of receiving the reservation details. The guest in turn
may be given a time period, a week or so (stipulated time or cutoff date) to confirm their
reservation.
2. CONFIRMED RESERVATION: A confirmed reservation is one in which the hotel has
acknowledged the reservation request of the guest for a particular date and for a specified
duration and is able to assure the guest of the accommodation in the property on the
requested date and in the requested guestroom category.
This acknowledgement is sent in the form of a confirmation letter containing the
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following information:
Name of the guest.
Date and Time of arrival.
Room Type.
Duration of Stay.
Room Rate.
Number of People in the party also known as PAX.
Reservation classification (guaranteed or non guaranteed)
Reservation confirmation number.
Any special request made by the guest.
A confirmed reservation is generally of two types
a.Confirmed Guaranteed Reservation: A guaranteed reservation is a confirmation that the
hotel will hold the reserved room for the guest and will not release that to any other guest
even if the guest does not arrive on the arrival date. This type of reservation requires the
guest to make an advance payment (according to the hotel policy and hotel occupancy),
irrespective of whether the guest avails the reservation or not, unless the reservation is
cancelled according to the hotels cancellation policy. A guaranteed reservation assures
the guest that the hotel will hold a room until a specific time of the day following the
guests scheduled arrival date.
The guest in turn guarantees to pay for the room, even if it is not used. Guaranteed
reservations provide some kind of protection for the hotels revenue even in case of No
Show (When a guest does not arrive or register on the day of their arrival and also not
inform the hotel of their cancellation)
A reservation can be guaranteed through the following modes:
1. Prepayment: A guaranteed reservation through a prepayment requires that a
prepayment in full be received at the time of registration or at a stipulated time
period or a cutoff date prior to the guests arrival. This type of guarantee towards a
reservation is the most desirable form in resorts. Prepayment can be done either
through a demand draft or depositing cash. In case of payment of high amounts,
hotels might ask guests for their PAN numbers (Permanent Account Number).
2.
Credit Cards/ Charge Cards: The most common method of guaranteeing a
reservation these days, here the credit card company ensures that the lodging
property will receive payment in case of noshows. The hotels must check the
validity and authenticity of the card before using it as a guarantee. The booking
amount is charged to the card when the reservation is guaranteed through this
mode. A percentage of the charge might be reversed in case the reservation is
cancelled within the cancellation period or retained if the reservation is not
cancelled.
3. Advance Deposit: An advance deposit guaranteed reservation requires that the
guest should pay the hotel a specific amount of money as deposit (This amount of
money is generally one room night rent) up till a stipulated time period or a cutoff
date. In this case if a guest holding a reservation fails to register or cancel (i.e. the
guest is a no show) the hotel may retain the amount paid as advance deposit and
may cancel the reservation for the entire stay and may release the booked room for
further sale.
4.Contractual Agreements: A hotel may enter into a contract with an individual or a
company for providing guaranteed reservations. According to such a contract the
hotel may confirm the reservation for an individual or a group referred to by the
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travel agent or a company on a guaranteed basis because the travel agent or the
company assures guaranteed business to the hotel and also agrees to pay in case
of noshow. Hotels may have contractual agreements with business entities such
as travel agents, corporates, airlines, companies and so on. Based on these
contractual agreements a hotel property may receive reservations through
Travel Agents: The travel agent or tour operators make bulk purchases of room
at a relatively low contracted price. They guarantee the hotel a minimum
number of room nights in a particular period and agree to pay the room
charges even they fail to fill the rooms as per their agreement. The hotels will
guarantee these reservations on the basis of TAV or travel agent voucher
issued by the travel agency. This TAV or travel agent voucher has three copies
one with the guest, the hotel and the travel agent each. Thus in case of a no
show the hotel generally bills the travel agency for the payment.
Miscellaneous Charge Order (MCO): The Airline Reporting Corporation or ARC
issues MCOs and thus guarantee payment to the hotel if the travel agency
defaults on payment or if the guest is a no show.
Corporate: A corporate guaranteed reservation involves a company entering
into a contract with the hotel and therefore accepts the financial responsibility
no show business travellers sponsored by the company.
Allotment: Allotment is a set of rooms booked for a particular period of time for
a company or for a group. This type of reservation is made for training courses,
conferences or for private parties. A guest may be asked for a booking
reference or any other verification before they are provided a room. Allotments
are managed by the reservations manager or the group coordinator and the
operational issues are checked on a daily basis.
b. Confirmed Non Guaranteed Reservation also known as 6:00 p.m. Hold Or 6:00 p.m.
Release Reservation A nonguaranteed reservation assures the guests that the hotel will
hold a room until a stated reservation cancellation hour on the day of arrival (this time is
generally until 6:00 p.m. This type of reservation does not guarantee that the property
will receive payment for no shows thus, if the guest does not arrive by the cancellation
hour, the hotel is free to release the room for future sale. This cancellation hour is
generally prescribed to be 6:00 p.m. If the guest arrives after this cancellation, the hotel
will accommodate the guest IF a room is available.
3. Waitlisted ReservationA reservation is waitlisted when a requested category of room is
not available for the requested dates. A waitlisted reservation will be confirmed when a
hotel receives a request for cancellation in the same category. The hotel does not
guarantee a room in case of a waitlisted reservation, it is understood that the room will be
assigned to the guest in case of a cancellation or a no show. While processing the
reservation a hotel informs the guest that their reservation request is on waitlist status
and can be confirmed at a later date if some rooms are made available due to
cancellation. This situation normally occurs during high occupancy time. To avoid
overbooking (A situation when the total number of rooms reserved for a certain period of
time exceeds the total number of rooms available for sale), the reservation department
makes a list of the waitlist on the basis of the earlier records of reservation compared to
actual arrivals. The hotel keeps clearing waitlists on a regular basis as per the
cancellations received and the overbooking level for the day.
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SYSTEM OF RESERVATIONS
1.DIARY SYSTEM: This is a manual system of reservation. In this system a daily diary
is kept, in which the reservation agent lists all arrivals due on a particular day. It is
the primary system of reservation. Hotels using the diary system of reservation do
not have a different reservation section. The register has 365 pages (plus a few more
so that the reservations of the subsequent year can be recorded). It has a practical
usage in small properties.
2. WHITNEY SYSTEM: Whitney system is a manual system of reservation used for

Managing reservations and other front office operations. It was introduced by the
Whitney Duplication and check company (New York). It is a highly efficient system of
reservation. It drastically changed the way hotels worked. It can be used in hotels
have any no. of rooms.
THE WHITNEY SYSTEM OF RESERVATION
Why it is called Whitney system?
This system was produced by WHITNEY DUPLICATION AND CHECK CO. of New York
from which it takes its name.
Tools required for the effective functioning of Whitney system are as follows:
Room Reservation Request Sheet
Peg Board
Whitney slip
Advance Reservation Rack
Correspondence File
Registration Card
Temporary Arrival Notification Slips
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Permanent Arrival Notification Slips

Bill
1.The information of request for future reservations, whether by telephone or telex or
in person or mail, is entered on a room reservation request sheet or room
reservation form. This becomes the master document for all future actions in this
system.
2. The booking is entered on the Peg Board, one peg for each day the room has been
booked.
3. The key information is typed on to a Whitney slip, size 4 x 1.5 in duplicate,

showing on the top line the date of arrival, the guest name, room rate and expected
date of departure. Other information, like date on which the reservation was
received and the person who took the reservation is also mentioned. A colour code
which is a vertical bar, in the centre, enables quick visual distinction between
private bookings, travel agent bookings, blanket bookings and bookings requiring
special attention.
4. The top copy of the Whitney slip is folded in half and slipped into a metal slide or
carrier and this in turn is placed in chronological & alphabetical order in the
Advance reservation rack for the date of arrival of the guest. There is a separate
rack for each day of the current month, and then they are less frequent for the
remaining months and years. The Whitney slip is placed on the rack for the day
when it is anticipated that the stay of the guest will begin. The advance reservation
rack or the whiney rack replaces the booking diary of the conventional system.
5.The second copy of the Whitney slip and any correspondence regarding the booking
along with the room reservation request sheet is clipped together and put inside the
Correspondence File for the date of arrival of the guest. There are as many
correspondence files as there are Advance reservation racks.
6.One day before the date of arrival of the guest, the Correspondence File for the next
day is taken, and the correspondence arranged in alphabetical order. Then the
duplicate Whitney slip is married with the original in the Advance Reservation
Rack for the next day and any adjustments for confirming the reservations is now
done.
7.For all confirmed reservations, a Registration Card is typed out with all the known
information of the guest. The registration card is serially numbered and the process
is called Preregistration. The typed registration card is put into the correspondence
file and both the Correspondence File and the Advance Reservations Rack goes to
the Front Desk the evening before the guest arrives. During the night the room
allocation for the confirmed reservations is done. The Advance reservations rack
and the correspondence file is kept at the Registration section. The Advance
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Reservations Rack replaces the Expected Arrivals List of the conventional system.
8. When the guest arrives, he mentions that he has a booking and you find out the
Preregistered Card and give it to him to fill up the remaining blank spaces and
sing. During this time the receptionist will fill up the Key Card. After verifying the
entries on the Registration Card, call the bell boy and give him the key asking him
to escort the guest to his room. After the guest has left, Temporary Arrival
Notification Slips are written out and sent to the various departments. One copy
goes into the Room Rack and another goes into the Alphabetical Rack.
9.Whenever there is some free time, the Permanent Arrival Notification Slips and the
Bill are typed out simultaneously. When the Permanent Arrival. Notification Slips
are received, the Temporary Arrival Notification Slips are destroyed. Then the
Registration Card and the Bill are sent to the Cashier. At the end of the day the
Correspondence File and the Advance Reservations Rack is sent back to the Back
Office to be reused.
10. When the guest checks out and settles his bill, the Receptionist folds the Room
Rack Slip in half, (or writes a H on it) to indicate that the guest has checked out.
When the housekeeping informs that the room has been cleaned and ready for the
new guest, the room rack slip is taken out and collected. At night it goes to the
back office to enter in the Arrival and Departure Register.
11.After the Bill is settled, the Cashier stamps PAID and the bill and registration card
are sent to the receptionist. At the end of the day, the registration card is sent to
the Back Office where it is field in Alphabetical Order or Numerical Order.
Date
Arrival
Mode
Reservation
of Name
Guest
of
of Room Type Rate
Reserved
by
Date
of
Departure
Date
Received
Agency (if any)

Billing Instruction
Confirmation Date
Whitney Slip
Room Availability Records used in Manual System: Processing a reservation request

tools which can help ascertain the availabilityof rooms for the desired duration. The
following room availability records are used in manual systems:
Bed room Journal,
Conventional Chart / advance letting chart,
Standard density chart
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Bed room Journal: it is very similar to the reservation diary. Tilled in the datewise
sequence, each page of the journal contains the occupancy details for that date the
name of the guest, the room number and the type of room.
Date............................
Name
of Room
Guest
No.
Particular
Bed room Journal

Conventional Chart: also known as advance letting chart, is an improved version of the
Bed room Journal and is simple to understand. The chart is prepared for each month so
only twelve charts are required for one year. The room number and room category is
mentioned in one column, and there are 2831 more columns, depending upon the
number of days in the month. The name of the guest is written between the days of their
stay.
Standard density chart: A density chart is prepared for each category of rooms for the
duration for one month.
3.Automatic System
Automated reservation systems are computerised reservation systems that are used
to store and retrieve room status information and conduct transactions. The information
stored in the automatic system is the same in a manual system. However, the processing
of reservation request does not require manual study of Bed room Journal, Conventional
Chart / advance letting chart, Standard density charts. The reservation assistant can
check the availability of rooms by clicking on a link on the computer. In this system, the
reservation information is keyed into the electronic format of the reservation form, and
this information is transferred to the central server where the room status is updated
automatically. The automated system saves the trouble of manually updating the records.
It also generates electronic confirmation letter that sent to the guests. The system is also
equipped to automatically generate reports like occupancy records or forecasts and lists
like expected arrival lists, expected departure lists etc. Central Reservation system (CRS)
and Global Distribution System (GDS) are examples of automated systems.
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POINTS TO BE CONSIDERED WHILE ACCEPTING A RESERVATION

1. Write names clearly. Surname in block letters. A slight difference in the spelling
may delay a receptionist in locating the reservation of a guest on arrival. Ask for the
first name or the initials of the guest name. Always get the last name and the first
name correctly with spelling.
2.Ask for the exact date and time of arrival and departure.
3.
Avoid taking a reservation for an indefinite date. This will create additional
correspondence with the guest. If it is impossible to give the exact date, inform the
guest to write or to telephone the hotel as far in advance as is possible but do not
confirm the booking.
4.For the time of arrival apply the European system of 24 hr.
5.Clarify the type of plan to the guest.
6.If the arrival time is given after midnight, make sure the reservation is recorded for
the next day. e.g. Arrival Saturday night, 30 min. after midnight, Sept. 15 Check
in time is 0030 hr. Sunday Sept. 16.
7. Always specify the type of rooms and the no. of rooms required. e.g. request for
accommodation for Mr./s Sigh and a party of 5 pax does not reveal whether the
party is one family, single people or couples. Therefore the hotel is not in a position
to offer the type of rooms that are best suited.
8.Guests who want rooms before 0600 hr. are usually charged for the previous night
also as the hotel has to hold the room for the guest from the previous night itself.
Explain this carefully to the guest.
9.Explain to the guest that the rooms may not be available at the early morning hours
since the checkout hour is generally noon or later in most of the hotels. The only
way a guest can be guaranteed a room for very early occupancy is to have it
reserved from the night before.
10. When referring to previous correspondence or booking in case of a change or
cancellation, inquire from the guest their original date of arrival as all records are
filled under original date of arrival.
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11.In case of the reservation for the honeymooners always check that the reservation
is made in the bridegrooms name and not in the maiden name of the bride.
RESERVATIONS PROCESS
The standard procedure of responding to a guests request is
Receiving Reservation Inquiries
Determining room availability
Accepting or denying request for reservation
AMMENDMENTS AND CANCELLATIONS
1.Occasional Reservation Change or Cancellation:

Potential guests initially asking for an accommodation might make up their
minds later (before arrival) and call back for a reservation modification. In fact,
guests might change their arrival date, expected departure date, method of
payment or call for any other item change previously confirmed in their
confirmation letter or simply call to cancel their previous reservation. In such a
case, if possible reservation clerks shall proceed as to satisfy guest needs. Below,
are two possible examples of guest modification. The first one concerns modifying a
reservation type from nonguaranteed to guaranteed. This might be because the
guest's airplane schedule has changed in a way that the guest is no more certain to
reach the hotel by the cancellation hour. On the other hand, the second example
depicts a situation where the guest calls to cancel a reservation (both guaranteed
and nonguaranteed cancellations will be discussed).
2.Modify a reservation type (from nonguaranteed to guaranteed):

In this very case, the reservation clerk shall:
a)Obtain the guests name, and access the correct nonguaranteed reservation
b)
Obtain the guests credit card type, number and expiration date, and the
cardholders name, and verify the validity of the credit card (Here assuming that the
guest would like to guarantee via a credit card)
c)Assign the guest a new reservation confirmation number, if it is the hotels policy
d)
Complete the reservation type change from nonguaranteed to guaranteed
reservation status according to additional propertys procedures, if any

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3.Reservation Cancellation:
Reservation clerks accepting a reservation cancellation shall behave in a
polite, courteous and effective manner even though that reservation might
make the hotel faced with unsold room(s). The main reason is that guests are
doing the hotel a favour, especially under the nonguaranteed type of
reservation, to communicate the hotel their cancellation to let you adjust
your room availability, and try to find alternative potential guests beforehand.
When cancelling a reservation, the reservation clerk shall issue and
communicate a cancellation number to the guest. In accordance to
confirmation numbers, cancellation numbers shall be meaningful as to be
used for statistical purposes, and as to prove whether a reservation has been
properly cancelled according to hotel cancellation policies or not.
I.Cancellation of a nonguaranteed reservation:

In this very case the reservation clerk shall:
a)Obtain guests name and address
b)Obtain number of reserved room(s)
c)Obtain scheduled arrival and departure dates
d)Obtain the reservation confirmation number, if applicable
e)Access the right account, and cancel it
f)Assign a cancellation number
g)Suggest an alternative reservation
II.Cancellation of a guaranteed reservation:

All the above mentioned procedure applies also for the cancellation of a guaranteed
reservation. Moreover, the reservation clerk shall pay attention to the following:
a)
In the case of a cancellation of a credit card guaranteed reservation, the
cancellation number acts as a proof of whether a certain guarantee shall be

refunded to the potential guest or not.
b) In the case of advance deposit guaranteed reservation, again the cancellation
number acts as a proof of whether a certain guarantee shall be refunded to the
potential guest or not.
c) In the case of any other guaranteed reservation, the reservation clerk shall obtain
the representatives coordinates and mail him/her a letter documenting the
cancellation
4.Reservation Reports:
In the reservation department, the widely used management reservation reports
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include:
a)Reservation transaction report
b)Commission agent report
c)Turn away (Guests who cannot be accommodated in the hotel for certain reasons or
sometimes when a guest himself or herself refuses to go ahead with the reservation
due to certain reasons) report (sometimes called the refusal report)
d)Revenue forecast report.
5.Expected Arrival, Stayover, and Departure Lists:

On a daily basis, the reservation department shall prepare the expected arrival,
Stayover, and departures lists and communicate them to the front office
department.
a)Arrival list: List of the names, and surnames along with respective room number of
the guests who are expected to arrive the next day.
b) Stayover list: List of the names, and surnames along with respective room number
of the guests who are expected to continue occupy their rooms the next day.
c)Departure list: List of the names, and surnames along with respective room number
of the guests who are expected to depart the next day.
6.Processing Deposits:
Guests who decide to guarantee their reservation by paying a certain deposit to the
hotel shall be informed about the procedure of sending deposits (i.e. how, when to
send the deposits?). Moreover, only employees who do not have access to
reservation records shall process deposits (ex: General Manager Secretary or hotel's
general cashier). The reason is if reservation and monetary transaction overlap,
then internal control over one of the most important assets of the hotel (i.e. cash)
becomes very weak.
When a hotel assigned agent receives deposit, he/she shall:

a)Endorse deposit checks with the hotel stamp as soon as it is received
b)Record in the deposits received log the check number, amount, date received, guest
name, arrival date, and confirmation number, if known
c)Only the log shall be sent to the reservation department
7.Maintaining Reservation History Statistics:
The reservation department shall maintain, and update various reservations history
statistics to be used in the future whenever needed (ex. to integrate statistics in a
model to solve overbooking, to come up with operational ratios, to help for Rooms
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Division budget preparation). The following items are some of the data that might
be stored in the reservation department system:
a. Number and distribution of guests by market segment, age, income, and
nationality
b.Number of expected occupied rooms
c.Reservation volumes by sources of reservation
d.Reservation volumes by types of reservation
e.Number of turnaway guests with reasons of refusal
8.Potential Reservation Problems:
While processing reservations, reservation clerks might be faced with lot of

problems. Below is a tentative categorization of 4 main common problems that
might be encountered:
a) Errors in a reservation record:
A.Record a wrong arrival or departure date
B.Misspell the guests name or reverse it
C.Reserve for the caller instead of the guest
b) Misunderstandings due to industry jargon:
A.Confirmed versus guaranteed reservation
B.Double room versus 2 beds
C.Connecting rooms versus adjacent rooms
c) Miscommunications with external reservation systems:
A.Book a guest in the wrong hotel
B.Book a guest in the wrong city
d) Central reservation system failures:
A. Fail to update central reservation system concerning room availability or to
communicate rate changes in real time
B.Delays in communicating reservation requests
C.Equipment used may become technologically obsolete or inoperable
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RESERVATION TERMINOLOGY
No show: This term refers to those bookings made by the prospective guests who
due to some reason, fail to arrive on the day of arrival and also do not cancel the
booking on time. This situation increases the availability of rooms for sale and may
cause loss of potential revenue.
It is preferable to keep a record of the no shows fort each day. This record is
kept in the form of a No Show Register. This record helps the reservation
department to take policy decisions like charging retention charge, calculation of
the no show factor for room availability forecast or calculation of overbooking
percentage. Billing the guest for retention charge depends on the relationship of the
guest with the guest or with the source of booking.
Time Limit: This term means specifying a particular time by which the prospective
guest with reservation must checkin the hotel and after that the room will be
released to any other person who may be a walkin. Time limit is fixed for those
reservation where the guest does not pay any advance or does not provide any
guarantee. It is also called as the 6 p.m. release reservation. Generally 6 p.m. is
fixed as the time limit for hotels with 12 noon as their standard checkin checkout
time. This done to avoid total loss of revenue in case the guest does not arrive and
becomes a no show. If the guest arrives at the hotel after the has been released,
may be refused the accommodation. This condition must be made very clear to the
guest at the time of reservation or in the confirmation letter. The hotel should also
make efforts to accommodate the guest, if not in the same hotel, some other hotel
of similar standards in near vicinity.
Over Booking: This term refers to the process of accepting more bookings than the
total no. of rooms available. All the prospective guests are sent with confirmation
letters. Purpose of over booking is to compensate for :
a.No shows
b.Early departures
c.Cancellations
d.Walk outs.
The objective is to achieve 100% occupancy or at least maximum possible

occupancy. The front office department should have the no shows, cancellations
and early departure records for taking over bookings. There are various factors
which determine the over bookings figure or the over bookings percentage. Some of
them are as follows:
i.Business segment: covers the type of clients
ii.Source of booking and its past record.
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iii.Purpose of visit of the prospective guests.
iv.Type of hotel.
v.Lead time or the time gap between the date of booking and the date of arrival.
vi.Period of business or the season.
vii.Any special festival or event held in the town.
Although no definite figure can be fixed for the over bookings, a rough guideline can be
calculated with help of a formula:
Over booking %: Cancellations + no shows + early departures

X100
Total no. of rooms lettable
Walk In: This very common term. This term refers to those guests of the hotel who arrive
without any prior notice or reservation in the hotel. These guests arrive at the hotel
hoping that there will be some room available for them. The hotel has to be very careful
while dealing with the walkins. If the guest is paying by cash, then it is preferable for a
hotel to ask for some advance from the guest. The advance should be sufficient enough to
cover at least one night stay and some extra expenditure in the hotel. Such guests should
be referred to the lobby manager and authorization should be taken from him on the
registration cards of such guests. It also important to inform the other revenue centers
about these PIA (Paid In Advance) or Cash Only guests. These guests will not be allowed
credit for any services or amenities provided to them. The desk agent should try and sell
higher priced rooms to such guests (up selling).
Turn Away: This term refers to those guests who come to the hotel without prior
reservation and the hotel does not provide them with accommodation. This can be
basically because the hotel is completely booked or because the guest is not in fit
condition to be received or he is a black listed guest. In any case the hotels staff will
have to be very tactful in refusing accommodation to such person. Generally the
safest way is to tell them Sorry, we are fully booked and are in no position to
accommodate you. In case the guests are refused accommodation due to non
availability of rooms, the front desk staff should make an effort and help the guest
in seeking accommodation at some other similar hotel in the near vicinity.
Advance Payment: It is the procedure of collecting the cash or the cheque from the
guest much before his arrival at the hotel. Advance payment may be asked by the
hotel from the prospective guest in case he is a new customer, not known to the
hotel management. Advance can also be requested from a walkin guest or a guest
with scanty baggage. This acts as a precaution against the revenue loss in case of
noshow or skipper. When the advance payment is taken at the time of reservation,
a cash receipt is prepared and the original copy is mailed or faxed to the guest. The
advance payment will also be indicated on the reservation form and Whitney slip (in
case of Whitney system being followed). When the guest leaves after having stayed
at the hotel, this amount is adjusted in his bill. Similar procedure is followed if the
advance is taken from a guest at the time of arrival. The receipt of the payment is
not mailed to the guest but is handed over to him. In case an advance payment is
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taken and the guest becomes a noshow, the money can be forfeited. By making an
advance payment the guest has an added guarantee that the room for him will be
ready at the hotel even if he reaches the hotel late and will not be released and
given to any walkin.
An important point to be considered while taking advance payment against
the booking of a room from the prospective guest is to inform them about the
refund, cancellation and forfeiting of amount policy of the hotel preferably through
the offer letter.
Stay Over: This term refers to all the guests staying in the hotel on a particular
night and further continuing staying in the hotel for next night. In other words,
stay overs are those guests who have been registered in the hotel and are not
leaving the next morning at the checkout time but will continue to stay for another
one or more nights. This can also be called as House count for a particular night
and the guests can be called inhouse guests.
Over Stay: This is one of the biggest problems a hotel front office management may
have to face at times. Over stay term refers over staying of a guest. In other words it
refers to those guests who are scheduled to leave or checkout of the hotel on a
particular day as specified by them at the time of reservation or registration, but
due to some reasons they do leave the hotel on that particular day and insist on
staying further for one or more nights. this situation can create a problem while
accommodating the guests who are supposed to arrive on that day.
AMMENDEMENTS: In certain cases the guest may change his original booking
programme and inform the same to the hotel with a request to make amendments
in hotel record. The change usually is in dates of booking. Sometimes it may be in
number/type and rates of rooms also. The reservation section will first confirm
from their record whether the request can be accepted or not. In case the hotel
decides to accept the request of the guest, necessary amendments in the records
shall be made and communicated to all concerned departments. The guest will also
be intimated. The process of amendment involves two basic functions
i.Cancellation of previous booking
ii.Making of a new booking.
The hotel on receiving an amendment request shall first cancel the previous
booking and then make a new booking as per guest request and the process will involve
updating records in Diary/ Whitney slips and rack / computers booking chart or any
other record whichever is being used by the hotel for reservations. The complete set of
documents is also updated.
Cancellation of Reservation: The cancellation of a reservation occurs when a
guest with a confirmed reservation informs the hotel about her intention to cancel
the reservation. As cancellation might lead to the loss of room revenue, hotel
discourages cancellation by imposing retention charges. In case a guaranteed
reservation, if the cancellation is not made before a stipulated date and time, the
hotel may charge retention charges, which may be equal to the rent of one night or
more.
22/23
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UPSELLING AND UPGRADING

generation. Upselling is a technique as well a process through which guests are

A.Reservation assistant should:

able to take control of the communication flow or encounter.

B.Controlling the encounter:

D.Asking for Sale:

DISCOUNT AND ALLOWANCE:

GROUP TARIFFS: Group of 10 persons and more are offered special

discounted tariff to attract them. The quantum of discount will depend up on

tariffs to companies to attract them to hold conferences in their hotels. The

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charges. This is also known as CONTRACT OF BOOKING.

In Person If an individual or a representative goes to the hotel to book rooms for

SOURCES/ CHANNEL OF RESERVATION

hotel property directly in personthis guest is termed WALKIN.

4. Corporate Travel DepartmentsMost corporate organizations have a separate travel

8. A GDS or a Global Distribution System is a worldwide computerized reservation

Credit Cards/ Charge Cards: The most common method of guaranteeing a

2. WHITNEY SYSTEM: Whitney system is a manual system of reservation used for

Permanent Arrival Notification Slips

3. The key information is typed on to a Whitney slip, size 4 x 1.5 in duplicate,

of Room Type Rate

Agency (if any)

Room Availability Records used in Manual System: Processing a reservation request

Bed room Journal

POINTS TO BE CONSIDERED WHILE ACCEPTING A RESERVATION

AMMENDMENTS AND CANCELLATIONS

1.Occasional Reservation Change or Cancellation:

2.Modify a reservation type (from nonguaranteed to guaranteed):

Complete the reservation type change from nonguaranteed to guaranteed

reservation status according to additional propertys procedures, if any

I.Cancellation of a nonguaranteed reservation:

II.Cancellation of a guaranteed reservation:

In the case of a cancellation of a credit card guaranteed reservation, the

cancellation number acts as a proof of whether a certain guarantee shall be

5.Expected Arrival, Stayover, and Departure Lists:

When a hotel assigned agent receives deposit, he/she shall:

7.Maintaining Reservation History Statistics:

8.Potential Reservation Problems:

While processing reservations, reservation clerks might be faced with lot of

The objective is to achieve 100% occupancy or at least maximum possible

ii.Source of booking and its past record.

iii.Purpose of visit of the prospective guests.

vi.Period of business or the season.

vii.Any special festival or event held in the town.

Over booking %: Cancellations + no shows + early departures

ii.Making of a new booking.

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