Answer 1-d, 2-b, 3-b, 4-c, 5-a 3.9 REFERENCE Reference books Bhatnagar, S.K., Front Office Management, Frank Bros, India, 2109 Global Tourism and Hospitality by Andrews. Managing Front Office Operations – Michael L Kasarana& Richard Brooks. Introduction to Hospitality - I & II – Dennis Foster Textbooks Introduction to Hospitality Management, Walker, Fourth Edition (2112). Pearson ISBN: 978-0-13-295994-0. Enz, Canina and Walsh (2101). Hotel Industry Averages: An Inaccurate Tool for Measuring Performance. The Cornell Hotel and Restaurant Administration Quarterly. 101 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 4: CRUISE INDUSTRY 102 Structure 4.0 Learning Objectives 4.1 Introduction to Cruise Industry 4.2Growth of Cruise Industry 4.3 Carriers in the field of Cruise Industry 4.3.1 Cruise ship carrier paths 4.3.2 Cruise (Activities) staff job requirements 4.4 Types of Cruises 4.4.1 Ocean Cruise 4.4.2 River Cruise 4.4.3 Singles or Solo 4.4.4 Family 4.4.5 Adults only & couples 4.4.6 Luxury 4.4.7 Adventure 4.5 Responsibilities of Industry 4.6 Duties of Cruise Industry 4.6.1 Cruise director 4.6.2 Assistant 4.6.3 Social hostess 4.6.4 Cruise staff 4.6.5 Port Lecturer 4.6.6 Golf Instructor 4.6.7 Disc Jockey 4.6.8 Fitness Instructor 4.6.9 Scuba driving Instructor. 4.6.10 Youth staff co-ordination 4.7 Summary 4.8 Keywords 4.9 Learning Activity 4.10 Unit End Questions 4.11 References 4.0 LEARNING OBJECTIVES After learning this unit, the student will be able to Explain the growth of cruise industry. Identify the Careers in the field of Cruise industry. CU IDOL SELF LEARNING MATERIAL (SLM)
Identify Roles and responsibilities 4.1 INTRODUCTION TO CRUISE INDUSTRY Cruise Tourism is becoming an increasingly popular ‘leisure choice’ worldwide. The global cruise industry generates an estimated $38 billion a year in passenger expenditure and is the fastest growing sector of the tourism industry. Cruise tourism has experienced an important expansion over the past twenty years. Fig 4.1 Cruise Industry 4.2 GROWTH OF CRUISE INDUSTRY Brida and Zapata (2010) reported an average annual growth rate of 7.4% in the number of worldwide cruise passengers taking cruises over the period 1990-2008. The participation of the cruise sector in the international number of tourists corresponds to approximately 2% and revenue of cruise corporations represents about 3% of the total international tourism receipts (Kester, 2002; Klein, 2005; Dowling, 2006). The World Tourism Organization stated that an international tourist receipt in 2011 was US$1.030 trillion. International tourist arrivals grew by over 4% in 2011 to 983 million, according to the latest World Tourism Organization Barometer (UNWTO, 2011). With growth expected to continue in the next few years at a somewhat slower rate, international tourist arrivals in 2012 reached a historic 1.035 billion globally as emerging economies regained the lead over advanced economies, with Asia and the Pacific showing the strongest results, (UNWTO, 2013). Cruising is now well established as one of the most service-intensive sectors in the world, with ever more incredible state-of-the-art vessels being built each year. ‘Pampered in luxury\" 103 CU IDOL SELF LEARNING MATERIAL (SLM)
accurately describes the cruise experience. In the early days, casinos, shore excursions, port lectures, cruise conferences, shopping programs and spa services were non-existent. The sector has evolved from a very small part of the oceanic passenger industry into a complete and complex vacation business, including all the different sectors of the travel industry. Cruise tourism as we know it today, can be traced back to the beginning of the 1960s coinciding with the decline of transoceanic ship travel and the introduction of the first nonstop air travel between the USA and Europe. The 1970s and 1980s were a period of moderate growth, increasing from half a million passengers in 1970 to 1.4 million passengers in 1980 and 3.8 million passengers in 1990. In the 1990s this kind of leisure tourism reached Europe, Asia and Oceania and started a period of high growth. According to Kester (2002), the average revenue per cruise trip is almost as high as the average receipts per international tourist arrivals. But the distribution of income from the cruise industry is not equitable. Most ports obtain small contributions from the use of the port as a cruise destination and cruise tourism provide few real jobs and business opportunities for local residents. Even though cruise tourism is an important segment of the tourism sector in the Caribbean, there is a lack of information regarding the real economic aspects of this activity. The economic, social, cultural and environmental impacts of cruise ship tourism have been studied very little. For this reason, many island destinations do not have the tools to establish strategies and policies to manage cruise tourism in an efficient manner. 4.3 CAREER OPPORTUNITIES IN THE CRUISE INDUSTRY If you long to feel the cool ocean breeze and excitement of traveling to exotic destinations all over the world, while still making a living, then the world aboard a cruise liner will be perfect for you. In every port, in every country, there are cruise ships that are constantly looking for eager individuals to hop on board and join the team in one of the many cruise employment opportunities offered. Whether you want to enjoy the carefree life at sea a part of the hotel staff or an instructor, or whether you are looking to further you career as a gourmet chef, entertainer, cruise ship employment will be your best bet. The pay is great, the experience is one of a kind, and you get to travel for months at a time. If you are interested in making a permanent career from working at sea as a sea captain, mate, able seaman, deckhand, oiler, wiper, electrician, or engineer, cruise liner employment will offer you a more glamorous option than working on an oil rig or container ship. Dialling in your cruise career options is easy once you become a member, as you will have instant access to hundreds of real cruise ship jobs that you can apply for immediately. 104 CU IDOL SELF LEARNING MATERIAL (SLM)
You will be able to access all types of shipboard job postings, or shore-based cruise jobs, and locate the best cruise line companies to work for. One of the top cruise liner companies on our member's only database is offering cruise ship employment for their 13-day cruise departing from Los Angeles, visiting Cabo San Lucas in Mexico, then cruising the Pacific Ocean for the next 5 days, reaching Nuku Hiva in the Marquesas Islands, then cruising the South Pacific, reaching Rangiroa in French Polynesia, Moorea, and then overnight in Tahiti. 4.3.1 Cruise Ship Career Paths To work on a cruise liner, you will firstly need to understand the various types of cruises and cruise liner employment that is on offer. Most countries in the world offer ocean liner cruises, but you can also find companies that offer exciting river cruises for example. Some cruises journey mainly in Europe, and The Americas, while some aim for the exotic islands of the Caribbean. The best thing to do when you become a member is to decide where you would like to work and find companies offering cruise ship jobs in that specific area. You can also find cruise liner employment even if you want to be land based. There are tons of jobs at the ports where many of the large cruise liners have private lodges and recreation centres for their guests during land excursion part of the cruise. With most cruise liners being like mini cities (some ships can hold 2,000 guests or more), with staff reaching over 3,000, you can just imagine the multitude of jobs that await. There are certain sections on board a cruise ship where you can find the job that is most appropriate to you and your relevant skills or qualifications: Restaurants (chef jobs, kitchen staff, waiters, barman, manager, etc.) Hotel Facilities (cabin crew, housekeeping, reception, manager, butlers etc.) Leisure Centre (instructors, lifeguards, activity leaders, etc.) Gym (personal trainers, workers, etc.) Salon and Spa Jobs (massage therapist, hair stylist, etc.) Land Excursion Team (tour guide, seaman, recreation staff, etc.) Merchant Marine Jobs (captain, mates, able seaman, deckhands, etc.) Engine Department (chief, DDE, assistant engineer, oiler, wiper, etc.) Shops (cashiers, managers, bookkeepers, etc.) Casinos (dealers, security, hospitality, etc.) Entertainment (production manager, director, actors, comedians, dancers, lighting, sound engineer, backstage crew, etc.) In each of these areas you can find tons of cruise liner jobs that will appeal to you. Certain positions require some form of qualification whether it is in the hospitality industry, retail sector, medical wing, or maritime, but some of the entry level 105 CU IDOL SELF LEARNING MATERIAL (SLM)
positions are open for those that have no qualifications as yet, like students or high school graduates looking for a bit of adventure while they make some money. Some jobs on cruise ships will require you to have some experience in a related field. 4.3.2 Cruise (Activities) Staff Job Requirements: Ability to capture and manage the attention of a large group of people using effective and courteous microphone techniques. Completion of high school or basic education equivalency One to two years master of ceremonies or professional entertainment (theatre, music, dance, comedy, etc.) experience with resorts, cruise lines, entertainment or recreational industries is preferred. Excellent verbal and written command of the English language, knowledge of another language(s) is a plus. Superior customer service, teambuilding and conflict resolution skills Must be professional, polished and guest service oriented. 4.4 TYPES OF CRUISES Ocean River Adults- Adventur cruises cruises only and e cruises couples cruises Singles or Family Luxury solo cruises cruises cruises Fig 4.1 Types of Cruise 106 CU IDOL SELF LEARNING MATERIAL (SLM)
4.4.1Ocean cruising Want to set sail on an enormous, floating hotel featuring pools, waterslides, restaurants galore and nightly gala performances? Then ocean cruising is for you. Cruise liners tend to be big and can carry thousands of passengers. They often provide children's programs and activities, 24-hour dining, shopping, late-night entertainment, and days spent travelling through endless seascapes. On the downside, liners can be crowded, with queues for embarking and debarking at ports. While ocean cruises may offer cheaper base fares, they also tend to charge for extras, such as the cost of visiting ports. 4.4.2 River cruising River cruising generally involves smaller ships with fewer passengers and amenities than ocean liners. You're unlikely to get extensive entertainment options or access to swimming pools and will probably have set mealtimes. There are smaller crowds and queues than on ocean liners, less likelihood of seasickness, and river cruises tend to be truly all-inclusive. River cruises mostly travel at night, reaching a new place every day, meaning more time to visit different destinations. Scenery on a river cruise changes more regularly, and ports of call tend to be the main attraction rather than the ship itself, as it is on an ocean liner. You can take a river cruise along the Danube and the Rhine in Europe, the Yangtze in China, the Chobe in Africa, the Lower Ganges in India, Alaska's inland waterways or the Mekong in Vietnam and Cambodia, among others. Find out more in our guide to top cruising destinations. 4.4.3 Singles or solo cruises If you're looking to cruise alone, there are several options available. Some cruise liners offer single-occupancy cabins, and some don't charge a solo supplement, while others facilitate cruise groups for solo travellers. Look for liners that offer solo services such as organised activities like craft, dance and language classes and catch-ups that allow you to meet other singles on-board. 4.4.4 Family cruises Family-friendly cruises offer programs and kids' clubs that will keep younger and older kids entertained. To find the right family-friendly cruise for you, look for one with age- appropriate activities for your kids, such as cartoon characters, pools and water slides and kid-friendly evening entertainment. Make sure you look into which activities and services cost extra. Check whether the ship has onboard babysitting if you want some alone time and find out what the policy is for whether you can leave the ship while your kids are in care. 107 CU IDOL SELF LEARNING MATERIAL (SLM)
If you have a baby, choose a ship that has an onboard crèche. Be aware that some cruises will set a minimum age of between six months and one year for babies, and others will have a minimum age for children participating in kids' clubs. 4.4.5 Adults-only and couples cruises Not keen to share your ship with kids and prefer a more romantic experience? Then an adults- only ship might be for you. Several companies operate over-18s-only cruises, including Viking Ocean Cruises and P&O. If that's not an option, look for ships that don't have amenities geared towards families and kids, or those with adults-only activities and areas. 4.4.6 Luxury cruises Luxury cruises offer VIP service, more refined dining and better amenities. They tend to utilise smaller vessels, and may include such options as flexible itineraries, a personal butler, larger cabins, more exotic destinations and they're more likely to be all-inclusive. 4.4.7Adventure cruises If you're less keen on water slides and cabaret and more interested in nature-watching and remote villages, an adventure cruise may be a good choice. Adventure cruises tend to use smaller ships, which can access more remote destinations such as Antarctica, the Galapagos Islands, Arctic Norway or the Amazon. Shore excursions are wilder – perhaps white-water rafting or mountain climbing. On board, you may be treated to lectures from wildlife experts or historians. 4.5 RESPONSIBILITIES OF CRUISE INDUSTRY Maintains continual interaction with the guests. Hosts and participates in adult and family recreational programs and activities. Socializes with guests in public areas at all times in accordance with cruise standards. Visits guest lounges at specified times to converse with as many guests as possible in the time allotted. Attends Captain's Cocktail Party and Welcome Back Party to provide introductions, collect invitations, socialize and coordinate the flow of the reception line. Participates in shows and events presented by the Cruise Director's Division by taking part in skits, and/ or simple dance routines. Instructs, organizes or facilitates various activities and/or tournaments. 108 CU IDOL SELF LEARNING MATERIAL (SLM)
4.6 DUTIES OF CRUISE INDUSTRY The cruise staff department of the ship is responsible for arranging entertainment and other recreational activities onboard and ashore for the passengers. All cruise ships hire singers, dancers and musicians to entertain guests onboard. For offshore activities and excursions, cruises hire scuba diving instructors, golf instructors, port lecturers etc. Job positions in cruise staff department of ships include Cruise Director, Assistant Cruise Director, Social Hostess, Scuba Diving Instructor, Golf Instructor, Cruise Staff, Disc Jockey, Fitness Instructor, Port Lecturer, Gentleman Host, and Youth Activities Coordinator. 4.6.1 Cruise Director The Cruise Director is the head of the entertainment department. He/she is in charge of planning and implementing all entertainment and recreational activities onboard and ashore. Professional experience in the entertainment department on a ship or in a hotel is preferred for this position. Good public speaking skills and strong organizational abilities are a must for this poison. Fluency in English language is essential. Salary for this position varies widely between US$ 3800-7500 per month, depending on the cruise lines. 4.6.2 Assistant Cruise Director Assistance Cruise Director manages various day-to-day operations as directed by the Cruise Director. He/she assists the director in creating the daily programs. He/she also coordinates the cruise staff activity schedule and can supervise and act as the master of ceremonies on the direction of the cruise director. Previous entertainment or hotel experience preferred, or 1-2 years of onboard experience in cruise staff department is required for this position. Good public speaking skills and strong organizational abilities are a must for this position. Fluency in English language is essential. He/she can be promoted to the position of the cruise director after gaining the required experience. Salary for this position ranges between US$ 2100-2700 per month. 4.6.3 Social Hostess Social Hostess is responsible for conducting social activities onboard the ship. He/she acts as a master of ceremonies at specific entertainment activities as directed by the cruise director. It’s the social hostess that introduces the captain to passengers at the captain’s cocktail party. Previous entertainment or hotel experience preferred, or 1-2 years of onboard experience in cruise staff department is required for this position. Good public speaking skills, delegate responsibilities and strong organizational abilities are a must for this position. Fluency in English language is essential. He/she can be promoted to the position of the cruise director 109 CU IDOL SELF LEARNING MATERIAL (SLM)
after gaining the required experience. Salary for this position ranges between US$ 1900-2400 per month, depending on the cruise line. 4.6.4 Cruise Staff Cruise staff is responsible for organizing daily passengers’ activities such as golf, diving, quizzes, bingo etc. Previous entertainment and hotel experience preferred. Fluency in English language is essential. He/she can be promoted to the position of the assistant cruise director after gaining the required experience. Salary for this position ranges between US$ 1800-2100 per month, depending on the cruise line. 4.6.5 Port Lecturer Port Lecturers delivers lectures about the history and places of interest of various ports of call covered during the cruise holiday. To be eligible for this position, the applicant must be knowledgeable about all ports of call and give suggestions to passengers accordingly. Fluency in English language is essential. Salary for this position ranges between US$ 3200- 3800 per month, depending on the cruise line. 4.6.6 Golf Instructor Golf Instructor is responsible for teaching and playing golf with passengers. They also operate the onboard golf simulator. Prior experience in operating golf simulators is essential. Fluency in English language is desired. Salary for this position ranges between US$ 1600- 3800 per month, depending on the cruise line. 4.6.7 Disc Jockey The position of Disc Jockey or DJ requires diverse knowledge and experience in music to entertain passengers of different tastes and age. Previous hotel or nightclub experience is preferred. Fluency in English language is essential. Salary for this position ranges between US$ 1700-2000 per month, depending on the cruise line. 4.6.8 Fitness Instructor Fitness Instructor is responsible for exercise and sports activities of passengers. A certification in fitness instruction along with a minimum of three months experience in teaching is required. Fitness instructors are required to conduct aerobic classes, offer personal training to passengers as well as supervise the gymnasium. Fluency in English language is essential. Salary for this position ranges between US$ 1800-2200 per month, depending on the cruise line. 4.6.9 Scuba Diving Instructor Scuba Diving Instructor is responsible for planning and implementing the daily diving and snorkeling programs for the passengers. Certifications in diving and First Aid are a must for this position. Fluency in English language is essential. Salary for this position ranges between US$ 1700-2100 per month, depending on the cruise line. 110 CU IDOL SELF LEARNING MATERIAL (SLM)
4.6.10 Youth Staff/Youth Activities Coordinator / Youth Counselor He/she is responsible for organizing daily children’s activities. Some prior similar experience is preferred for this position. Salary for this position ranges between US$ 1800-2100 per month, depending on the cruise line. 4.7 SUMMARY Worldwide Cruise passengers taking cruise over the period 1998-2008 is7.4 %. Pampered in Luxury accurately describe in cruise experience. The distribution of income from cruise is not Equitable. There is various type of cruise like ocean, river, Family, Luxury etc. Cruise industry generates maximum no. of employment opportunities. The cruise staff department of the ship is responsible for arranging entertainment and other recreational activities onboard and ashore for the passengers. There are various duties like director, port lecturer, social hostessetc. 4.8 KEYWORDS UNWTO – United Nations World Tourism Organisations. Cruise - Cruise ships are large passenger ships used mainly for vacationing. Unlike ocean liners, which are used for transport, they typically embark on round-trip voyages to various ports-of-call, where passengers may go on tours known as \"shore excursions”. Scuba Dive- Underwater diving, as a human activity, is the practice of descending below the water's surface to interact with the environment. Immersion in water and exposure to high ambient pressure have physiological effects that limit the depths and duration possible in ambient pressure diving. River Cruise - A river cruise is a voyage along inland waterways, often stopping at multiple ports along the way. Adventure cruise - An adventure cruise is one of the best ways to immerse yourself in the most remote, natural spaces on the planet. Adventure cruise ships are much smaller than commercial cruises, meaning they can access off-the-beaten-path ports and dock in natural areas that larger cruise ships cannot. Ocean cruise - An Ocean Cruise is typically on a much larger ship usually with 3,000 to 4,000 passengers, there are some ships that will accommodate up to 6,000 passengers. 111 CU IDOL SELF LEARNING MATERIAL (SLM)
Family cruise- With something for everyone onboard and cruising to fun-filled destinations, family cruises are great for both young and old, meaning that parents, grandparents and kids of all ages will love every moment they spend at sea. 4.9 LEARNING ACTIVITY 1. Form a team and split into two teams and do the role of the duties assigned in the cruise industry accordingly. ___________________________________________________________________________ _______________________________________________________________ 4.10 UNIT END QUESTIONS A. Descriptive type Questions Short Questions 1. Explain the responsibilities of cruise industry? 2. Give a brief note about social hostess. 3. What are the duties of a cruise director? 4. Write a short not on royal Caribbean. 5. Write a short note on Norwegian cruise ships. Long Questions 1. Explain in detail the growth of Cruise industry? 2. Describe the types of Cruise industry? 3. Explain duties of cruise industry? 4. Write short note on any two luxury cruise ships in the world. 5. List few Luxurious cruised that operate in India? B. Multiple choice Questions 1. The beginning of the 1960s coinciding with the decline of ------------- travel a. Allure of the ship. b. Titanic ship c. Transoceanic ship d. None of these 2. --------------- is responsible for organizing daily passengers’ activities such as golf, diving, quizzes, bingo etc. a. Director 112 CU IDOL SELF LEARNING MATERIAL (SLM)
b. Hostess c. Cruise staff d. Assistance director 3. The introduction of the first nonstop air travel between the USA and Europe. a. USA and Europe b. Europe and north America c. USA and Canada d. None of these 4. -------------accurately describes the cruise experience. a. ‘Pampered in luxury”. b. Passengers c. luxury in ship d. amenities 5. Oasis of the sea is owned by a. Royal Caribbean b. Carnival Corporation c. Norwegion Cruise line d. None of these Answers 1-c, 2-c, 3-a, 4-a, 5-a 4.11 REFERENCES Reference books Bhatnagar, S.K., Front Office Management, Frank Bros, India, 2109 Global Tourism and Hospitality by Andrews. Managing Front Office Operations – Michael L Kasarana& Richard Brooks. Introduction to Hospitality - I & II – Dennis Foster Textbooks Introduction to Hospitality Management, Walker, Fourth Edition (2112). Pearson ISBN: 978-0-13-295994-0. 113 CU IDOL SELF LEARNING MATERIAL (SLM)
Enz, Canina and Walsh (2101). Hotel Industry Averages: An Inaccurate Tool for Measuring Performance. The Cornell Hotel and Restaurant Administration Quarterly. 114 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 5: FRONT OFFICE MANAGEMENT STRUCTURE 5.0 Learning objectives 5.1 Introduction 5.2 Important Front office department 5.2.1 Pre-arrival 5.2.2 Arrival 5.2.3 Stay 5.2.4 Departure and Post departure 5.3 Reservation: Importance 5.4 Modes of Reservation 5.5 Sources of Reservation 5.6 Summary 5.7 Keyword 5.8 Learning Activities 5.9 Unit end Questions 5.10 References 5.0 LEARNING OBJECTIVES After learning this unit, the student will be able to State the working of Front Office Management. Explain about the details of Phases of Guest Cycle. Identify the channels of FIT & GIT. Analyse the concept of Reservation for rooms. Recognizes the importance of Front office. 5.1 INTRODUCTION The front office is considered as the backbone of any hotel as it handles various important operations of the hotels like computerized reservation of rooms, sales of rooms and accounting operation. From the reservation of rooms to check out, this department takes care of all the needs of the customer by coordinating different departments of the hotel. More than half of the revenue of any hotel comes from the sales of the rooms, the front office department is responsible for the sales of the rooms. Front Office Department is the face and as well as the voice of a business. ... For a business such as hospitality, the front office department comes with an aspect of elevating customer 115 CU IDOL SELF LEARNING MATERIAL (SLM)
experience with the business. Front Office department is a common link between the customers and the business. It is the one of the many departments of the hotel business which directly interacts with the customers when they first arrive at the hotel. The staff of this department is very visible to the guests. Front office staff handles the transactions between the hotel and its guests. The staff receives the guests, handles their requests, and strikes the first impression about the hotel into their minds. Fig 5.1 Front office department 5.2 IMPORTANCE OF FRONT OFFICE DEPARTMENT: The hotel industry provides food and lodging to guests. It is the responsibility of hotels to ensure that their guests do not face any kind of problem during their entire stay at the hotel. Front office department includes. 116 CU IDOL SELF LEARNING MATERIAL (SLM)
•Uniformed services Front•Front Desk •Concierges Office Private •Front Branch Office Exchange Accounting (PBX) System Fig 5.2 Front office There are various stages or phases of interface between a guest and a hotel –Phases/stages of guest cycle -- Post Departure Departure Stay Arrival Pre- Arrival Fig 5.3 Phases/stages of guest cycle All these phases are collectively called Guest Cycle -- Guest – cycle The guest cycle is the complete experience that a guest goes through in hotel: from making the booking to departure and the interaction with the hotel even after departure. 5.2.1 Pre-arrival 117 CU IDOL SELF LEARNING MATERIAL (SLM)
The interaction between a guest and a hotel before the guest arrives at the hotel forms the pre- arrival phase of guest cycle. Reservation is the most important pre-arrival activity. During this phase, the guest first selects a hotel for stay. The guest’s choice about a particular hotel is affected by factors like advertisements, recommendations from family and friends, previous experience with the hotel, reputation, location, etc. Once a hotel has been chosen, the guest or a person designated by him, on behalf of the guest contacts the selected hotel through telephone, e-mail, or fax for reserving room/s for a future period. The reservation request is received by the reservation staff, whose efficiency and competence in handling the request creates a first good impression of the hotel in the mind of the guest. Before confirming a reservation, the hotel may ask for a credit card guarantee or an advance payment/ deposit from the guest. The hotel also makes note of any special arrangements to be made, like a wheelchair, or airport pick up, or extra bed in room, etc. Thus, the functions of the front office in the pre-arrival phase include. Processing the reservation request of the guest. Creation of guest folio (in case the hotel has received any advance payment). Blocking the room for the guest. Making special arrangements for the guest 5.2.2 Arrival Fig 5.4 Pre-arrival CU IDOL SELF LEARNING MATERIAL (SLM) 118
Guests have their face-to-face interaction with the hotel staff on their arrival at the hotel. This is a crucial stage as guests form an opinion about the standards and services that the hotel can provide to them. Fig 5.5 Arrival The functions of Front Office on the arrival of a guest includes. Reception and Registration of the welcome of the guest guest Handing over the Room rate and room room key to the guest assignment to the guest Luggage handling of Delivering the mails the guest by bell desk and messages that the hotel has received on behalf of the guest. 119 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig 5.6 functions of Front Office on the arrival 5.2.3 Stay Fig 5.7 Stay Message coordination During this stage, the guest gets a first- hand experience of the facilities and services offered by the hotel. These services and facilities are the most important part of a guest’s overall experience at a hotel. The stay phase is the most important phase in the guest cycle for the hotel, as guest’s comfortable and pleasant stay at the hotel would bring repeat business and positive feedback from the guest. The front office is the interface between the guest and the other departments of the hotel, so it must coordinate well with other departments to ensure that the guest receives smooth and efficient services and facilities. The functions of the front office during stay of a guest includes: 120 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig 5.8 functions of the front office during stay a) Handling guest accounts: The creation and maintenance of guest accounts by the front desk cashier and the daily auditing of guest accounts by the night auditor. b) Receiving messages or guests when they are not in their rooms and ensuring the delivery of the same on their arrival by the information assistant. c) Key handling: Accepting the room key when the guest goes out of the hotel premises and returning the same to the guest when he comes back to the hotel. Some hotels also issue a key card to the guest at the time of accepting the key and ask the guest to present the key card at the time of collecting the room key. These days, hotels issue Card keys to guest at the time of arrival, therefore key handling, as mentioned above, in large hotels is not required. d) Guest mail delivery: Accepting mails of guests and delivering the same to them. When a guest is not in his room, the front desk receives his mail, keeps it in the room and mail key rack, and delivers it to the guest when he returns to the hotel. If the hotel receives mails for a guest who has a reservation in the future, the mails are sent to reservation section and kept in 121 CU IDOL SELF LEARNING MATERIAL (SLM)
the reservation docket attached to the reservation form. The mail is later attached to the GRC (Guest Registration Card), which is handed over to the guest at the time of registration. e) Guest Paging: Locating a guest in the specific area of the hotel when he is not in his room. f) Safety deposit locker: Providing the locker facility to guests to keep their valuables like important documents and jewellery. Safety lockers are located in the back office. g) Guest room change: Changing the room of a guest, in case the guest’s preference of room could not be fulfilled at the time of check-in due to unavailability of such a room. The room can also be changed if there is any defect in the room that requires extensive maintenance work or in case of upgrading. Upgrading is allotting a room of a higher price band without any extra charge from the guest. h) Handling guest queries and complaints: This is an important step which builds a greater trust and support with the guests and will be a factor for them to choose the same place to stay next time. i) Providing information about the hotel, its products and services: The guests should have all information including the safety aspects, emergency exits, route map and travel desk details for making their more convenient. j) Providing information about the city. k) Making intra and inter- city travel arrangements for the guests, if required. 5.2.4 Departure and Post Departure Fig 5.9 Departure and Post Departure The front office should try to cover up any unpleasant episodes during guest’s stay by ensuring smooth and hassle-free departure of the guest. The functions of front office at the time of departure are as follows. 122 CU IDOL SELF LEARNING MATERIAL (SLM)
a) Preparation and presentation of guest bills: The front desk cashier prepares a guest’s bills on the basis of financial transactions between the hotel and the guest recorded in the guest folio. The bill is presented to the guest for settlement. b) Settlement of guest account: A guest’s account is settled by zeroing the guest folio balance. The folio balance may be debit or credit. If the guest folio balance is in debit, then the required amount of money is received from the guest to make the balance zero. If the balance of guest folio is in credit, then the balance amount is returned to the guest to settle his account. c) Luggage handling by bell desk d) Left luggage handling e) Sales and Marketing activity for future reservation: Giving promotional materials to guests, informing them about upcoming offers, and making future bookings in the same hotel or sister concerns in other cities. f) Warm farewell It is important to keep in touch with guests even after their departure, generally done by sales and marketing team, which sends flyers with special offers or discounts, gift vouchers etc and wish guests on their important life events. 5.3 RESERVATIONS: THE IMPORTANCE OF THE RESERVATION DEPARTMENT The role of the reservation department is not limited to making a reservation. It maintains records of the hotel occupancy, which help in planning sales and marketing strategies etc. The reservation department plays an important function for both the guest and the hotel. Below are some of the important functions of the reservation department in the hotel’s day to day operations. Importance of reservation department for the guests: 123 CU IDOL SELF LEARNING MATERIAL (SLM)
Ensures room on arrival Other facilities Reservation Budgeting Department Plan Holiday or Rooms Fig 5.10 Importance of reservation department for the guests: 1. Ensures room on arrival - A guest who makes a 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 especially 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. Plan Holiday or Rooms - 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, a business centre 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. Importance of reservation department for the hotel: 124 CU IDOL SELF LEARNING MATERIAL (SLM)
Forecasting Rate Floating Scheduling of staff Planning Availability Guest satisfaction Fig 5.11 Importance of reservation department for the hotel: 1. Forecasting - 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. Rate Floating - The reservation department make sure that the hotel's rates are available on online and offline channels without any rate parity. 3Availability - The reservation department is also responsible to maintain the hotels available on all online and offline channels. 4. 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 and any particular service asked by the guest at the time of making the reservation. 5. Planning - The front office manager is able to make the necessary decision regarding the no of walk-instant 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. 125 CU IDOL SELF LEARNING MATERIAL (SLM)
6. Scheduling of staff - Hotel staff may be scheduled more accurately to void understaffing or overstaffing problems. 5.4 MODES OF RESERVATIONS Mode of reservation generally refers to the ways of receiving the accommodation booking through various communication systems. The following modes of reservation are encircled in front office operation. Fax Telephone Teletypwriter Email Internet Fig 5.12 Modes of Reservations Fax/ Facsimile: The word facsimile derived from Latin facsimile, “Make similar” i.e., “Make a copy.” is a tele-communications technology used to transfer copies of documents especially using affordable devise operating over the telephone network. E-Mail: It is most commonly abbreviated email is a method of exchange digital messages across the internet that is very essential to operate input/ output operation for reservation of rooms. Teletypewriter: Teletypewriter exchange was the first data communication service that used typewriter like terminals. Telephone: The telephone is a telecommunication device that transits speech by means of electric signals. It is one of the most common modes of reservation which is very easy to handle. 126 CU IDOL SELF LEARNING MATERIAL (SLM)
Internet: Hotel industries offer online reservation services through their internet sites. The variety of potential guests accessing internet sites to place reservation has prompted travel and hotel to simple reservation procedure. 5.5 SOURCES OF RESERVATION The reservation in of accommodation in a hotel is usually generated through the different organization as they are determined to get the stay and take delivery of the service facilities. The various sources through which the reservation comes to the hotel are listed below: a) Travel and Tour Organization: Tour operator: These are wholesalers who coordinate with different mode of transportations, hotels, tour, associations, tourist offices etc. Travel agencies: Travel agencies are the backbone of the tourism industry and potential source of business for any hotel. They are the generator and creator of the hotel business. They collect travel and tour information regarding purpose of visit and develop new idea and promote new destinations as well. Trekking agencies: Trekking is simply defined as foot travel on mountain, trails or walking on foot in discomfort areas. They are the source of reservation in hotel for accommodation and food. Rafting agency: Rafting agencies organize trip on fast flowing river water by boat/ dug out/ rafts/ canoe for short or long distance. It is one of the most sought-after water sports which is full of adventure. In Nepal wildlife watch, fishing trip are very popular offered to the guest in the form of package. Mountaineering agencies: It is related to the show covered high altitude mountains. The duration of stay in the hotel is very short due to camp out programs. Airlines: The role of airlines, whether international or domestic is to provide quick transportation to the masses. Airlines promote tourism growth and help in earning considerable amount of foreign exchange. Companies and Commercial Business role uses: The companies and commercial business role uses reserve rooms for their clients or guests, participants, employees, etc. When they are out of station on deputing. NGOs and INGOs the organization provide accommodating reservation and other facilities for their guest and employees. Embassy and consulate offices: They are good source of reservation. They reserve the room for the expatriates and officials from their country. 127 CU IDOL SELF LEARNING MATERIAL (SLM)
Universities and other Educational Institutions: These are also good source of reservation students’ associations, professors, technicians and employees are the reliable reservation source to hotel. Ministries and Government offices: They reserve the room for their guest, diplomats or government employees. Usually, they are sent for official programs. Participation in international conference/ summit, seminars or sports events is the main objective of these group. UN organization and Banks: These are valuable source as they come for special mission for short duration. Special packages rates are offered at high discounts on rooms and food and beverages. Free Individual travelers (FIT): A group coming to a hotel as an individual and not as a part of a group is typically referred to as an FIT. They don’t seek the service of travel agencies. Chain Hotel and Referable from other hotels: Through the channel of group hotels, rooms are booked for guest mostly on confirmed reservation request. These guest from chain hotels or other individual hotels usually come under guaranteed reservation. Global Distribution System (GDS): GDS is a network of providers that bring, products and services that are geographically spread to the doors representation of costumer anywhere in the world. Central Reservation System (CRS): CRS are another expanding phenomenon to make booking easier. They provide toll free telephone number to encourage travelers to use their facility. FIT and GIT are the terms used by the employees in the Tourism industry for the holiday packages. FIT stands for Free Independent Travelers and GIT stand for Group Inclusive Tour. FIT packages are for the smaller group of travelers who wish to travel at their pace and would like to customize as per their preference. 128 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig 5.13 FIT FIT - Free Independent traveler: It is a small number of tour package that means only 5 persons, or couples can choose this tour package at the time of travel by their own choice. The rate of this tour package is high, but it takes much security and attention from the operators. The FIT package is costlier than the GIT package due to group size, customization, etc. Fig 5.14 GIT GIT - Group Inclusive Tour: It is a large number of tour package that means more than 5 persons can travel as a group. 129 CU IDOL SELF LEARNING MATERIAL (SLM)
The rate of this tour package is low, based on the size of the group, and it includes all the expenses of food, meals, sightseeing transportation, accommodation, entry tickets, etc. GIT is cheaper compared to FIT package because of the size of the group. 5.6 SUMMARY Travel agencies are the backbone of the tourism industry and potential source of business for any hotel. Front office is the backbone of hotel industry. Guest Cycle starts from check- in to the hotel and till the time of check- out. Importance of Reservation for Guest, like check-in, food,sightseeing,etc CRS are another expanding phenomenon to make booking easier. Importance of Reservation for Hotels, GIT is a large number of tour package that means more than 5 persons can travel as a group. GDS is a network of providers that bring, products and services that are geographically spread to the door’s representation of costumer anywhere in the world5. Guest Paging Locating a guest in the specific area of the hotel when he is not in his room. 5.7 KEYWORDS CRS –Central Reservation System is a type of reservation software that is used to update and maintain information of a hotel pertaining to inventory and rates so that hotels are able to manage guest reservations and the process around such reservations in real time. GDS- A global distribution system is a computerised network system owned or operated by a company that enables transactions between travel industry service providers, mainly airlines, hotels, car rental companies, and travel agencies. The GDS mainly uses real-time inventory to service providers. FIT-- Free independent travellers (FIT) are travellers who plan their own trips and prefer to travel alone or in small groups. They are the opposite of mass tourists, who travel in large groups and buy predefined travel packages. GIT– Group Inclusive Tour: It is a large number of tour package that means more than 5 persons can travel as a group. The rate of this tour package is low, based on the 130 CU IDOL SELF LEARNING MATERIAL (SLM)
size of the group, and it includes all the expenses of food, meals, sightseeing transportation, accommodation, entry tickets, etc. 5.8 LEARNING ACTIVITIES 1. Collect the samples of vouchers, Bills Reservation slip and materials regarding front office and prepare a presentation of how the booking and cancellation are happening in the hotel. ___________________________________________________________________________ ___________________________________________________________________________ 5.9 UNIT END QUESTIONS A. Descriptive Questions Short Answer Questions 1. Write the Functions of front office-Arrival of Guests? 2. Explain Pre-Arrival and Post-arrival of a guest in a hotel. 3. What is the Importance of Reservation for Hotel? 4. Describe STAY in front office management? 5. What is a transient Hotel? Long Questions 1. Describe in detail the sources of Reservation? 2. Explain the importance of front office management? 3. Describe the hotels based on location? 4. Enlist the hotels based on star categories and explain? 5. What is GDS. What is the role in Reservations? B. Multiple choice Questions 131 1. GDS stands for. a. Global distribution system b. Green Distribution System c. Guest Distribution System. d. Guest Dividing System. 2. FIT stands for a. Foreign independent Traveller CU IDOL SELF LEARNING MATERIAL (SLM)
b. Free independent traveller c. Frequent independent traveller d. None of these 3. The modes of reservations are: a. Mail b. Fax c. Telephone d. All of these 4. Guest Cycle - which one is correct sequence in below options? a. Registration ------ Checked -In ------- Reservation -------- Checked Out. b. Reservation ------ Checked -In ------- Registration -------- Checked Out. c. Reservation ------ Checked Out ------- Registration -------- Checked In. d. Reservation ------ Registration ------- Checked -In -------- Checked Out. 1. Functions of front of is______ a. Receive guests. b. Reservations c. Bill payment d. All of these Answer 1-a, 2-b, 3-d, 4-d, 5-d 5.10 REFERENCES Reference books Bhatnagar, S.K., Front Office Management, Frank Bros, India, 2109 Global Tourism and Hospitality by Andrews. Managing Front Office Operations – Michael L Kasarana& Richard Brooks. Introduction to Hospitality - I & II – Dennis Foster Textbooks Introduction to Hospitality Management, Walker, Fourth Edition (2112). Pearson ISBN: 978-0-13-295994-0. Enz, Canina and Walsh (2101). Hotel Industry Averages: An Inaccurate Tool for Measuring Performance. The Cornell Hotel and Restaurant Administration Quarterly. 132 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 6: RESERVATIONS STRUCTURE 6.0 Learning Objectives 6.1 Introduction 6.2 Types of Reservation 6.3 Cancellation 6.4 Guest history 6.4.1 Marketing and Distribution 6.5 Common tariff plan 6.6 Summary 6.7 Keyword 6.8 Learning Activities 6.9 Unit end Questions 6.10 References 6.0 LEARNING OBJECTIVES After reading this unit the student will be able to Identify the concept of Reservation. Analyse about various types of Reservations. Explain the common tariff plans in a hotel. Recognise the organising methods of Reservations. 6.1 INTRODUCTION The term reservation is defined as ‘blocking or booking 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 unit. The term 'reservation' used in the context of a hotel, means the booking or reserving of a room (accommodation) by a guest. Reservations lead to reserving of a particular type of room for a particular guest for a given period of time. It also gives the guest the first impression of the hotel. 6.2 TYPES OF RESERVATIONS 133 CU IDOL SELF LEARNING MATERIAL (SLM)
Reservation confirmed Guaranteed Tentative Wait Listed Non- Guaranteed Fig 6.1 Types of reservations Tentative Reservation – It is a reservation request that a prospective guest makes on a tentative basis for his particular stay dates. The hotel holds the room for the guest till a cut-off date, by which the guest should confirm the reservation. Upon confirmation from the guest, the hotel changes the tentative reservation to a confirmed reservation and updates its records accordingly. If the confirmation is not received from the prospective guest by cut-off date, the reservation is cancelled, and the rooms’ inventory is updated. Confirmed Reservation – Once a guest confirms a reservation request, the hotel blocks a room for specified stay dates and sends a written confirmation of the same to the guest either through letter or email. Confirmed reservation is of two types- i) Non- guaranteed Reservation: When a guest confirms her reservation at a hotel but does not guarantee it 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 (which is usually 6 PM), unless the guest informs the hotel about his late arrival. If a guest does not arrive by cancellation hour, the hotel is free to release the room and sell it to any walk-in guest. This enables the hotel to cover the probable loss due to a no-show. Hotels nearing full occupancy might accept only guaranteed reservations once a specified number of expected arrivals is achieved. ii) Guaranteed Reservation: A guaranteed reservation is a confirmation that the hotel will hold the reserved room for the guest and not release it to any other guest even if the guest doesn’t arrive on time. This requires the guest to make an advance payment (part or full, depending on the hotel policy and hotel occupancy for requested stay dates). The hotel has to hold the room for such guests even beyond its cancellation hours, till next day’s check-out 134 CU IDOL SELF LEARNING MATERIAL (SLM)
time in case of no-show of guest. The guest is sure of desired accommodation ready for him even he arrives late without any prior information to the hotel. Sources of Reservations People travel for various reasons such as personal as well as for MICE. There are various sources from whom the requests of reservation pour in: Direct Request from Guests: The prospective guests can approach individually to the hotel for reservation of accommodation mostly when they are single travellers or family travellers. Request from Travel Agent: They can approach the hotel for booking accommodations for group travellers. Request from Corporate Agent: An organization can request a hotel to accommodations for their employees, clients, or visitors. Request from Airlines: The airlines can reserve accommodations for their working staff for routine stay as well as in case of flight cancellations. Request from Institutions: Various SMERF or NGO institutions request to reserve hotels for sports people, delegations of embassies, or performing-art program groups, workshop groups, and alike who travel to different location. 6.3 CANCELATIONS When a guest makes a booking, their reservation is confirmed immediately. So, it’s not possible to reject a reservation. Depending on your policies, a guest may be able to cancel their reservation using a link in their confirmation email or via their Booking account. In some cases, you’re able to initiate a cancellation request if a guest asks you to do so, or if there are issues with guest payments. See below for more information. Request by guest: If the guest contacted you to request a cancellation you can follow these steps in your extranet or within the Pulse app to notify us. No-show: If the guest hasn’t shown up, mark the reservation as a ‘no-show’ in the extranet or on the Pulse app. Invalid credit card: For information on what to do when the guest has an invalid credit card, please read this article. 135 CU IDOL SELF LEARNING MATERIAL (SLM)
No deposit/pre-payment received: If you have not received these as expected, you can find out more about the actions you need to take in this article. Overbooking: For help on what to do when you have an overbooking, please contact the Customer Service team. If you want to learn how you can avoid overbooking. Amendment Any changes made to a reservation after successfully submitting the order online and 7 days before the tour departs for single day and 24 days before the tour departs for multi day tours will be subject to a minimum $30.00 Amendment Fee (per change). Reservations will be confirmed within one to two business days. The following constitute as an amendment to a tour: • Changing departure date • Changing pick up time or location • Changing tour • Changing guest name • Changing itinerary • Removing / Replacing a guest • Adding / Replacing a guest • The $30.00 amendment fee is a minimum tour change fee. If you request multiple changes and/or request the adjustments at the last minute, additional fees may apply (in addition to the $30.00 amendment fee). Paying the $30.00 amendment fee does not guarantee a change can or will be made. • To cancel a passenger from a reservation with promotions such as \"Buy 2, Get 1 Discounted\" or \"Buy 2, Get 2 Discounted\" within seven days of the departure date, please refer to the \"Pricing\" tab of the product page for penalty fees. If the cancellation is beyond seven days of departure date, the $30.00 fee will be applied per person. Room selling techniques. A Front Office employee must always keep in mind that his first job is to incur profit for the hotel. In order to do so, he may follow certain techniques and procedures. There are mainly two techniques applied while trying to sell a room. They are. Up-selling Discounts 136 CU IDOL SELF LEARNING MATERIAL (SLM)
1. Up-selling The word up selling is basically meant to describe the activity of the front desk staff is being able to sell a higher priced room to a guest who might have come with a concept of hiring a comparatively a lower category room. It is also called as selling high where a good receptionist with the ability to be a good salesman can persuade a prospective buyer to buy a higher priced room by projecting the features of the room in such a way that the prospective buyer is alluded to buy the proposed accommodation without raising many queries. Upselling is also called suggestive selling. The role of a receptionist is very important. Upselling is an art and skill of good salesmanship. \"Factors affecting Room tariff\" may be added for better understanding. \"Factors affecting Room tariff\" may be added for better understanding. \"Factors affecting Room tariff\" may be added for better understanding. Guests may not be aware of upgraded options, especially when the reservation was made by the third party such as a travel agent or administrative assistant. The guest’s needs might change while en route. Business travelers, for example, might have pop-up meetings or projects to work on, requiring additional workspace in their room. It’s possible to be very specific about what is offered by particular rooms or suites since the front desk knows exact inventory that day. Successful up-selling programs have three components: a rate structure that makes upgrades a reasonable value, a staff training experience to expose them to the various techniques and tactics, and a recognition and incentive program. 2. Discounts The word discounts mean a deduction of nominal value or price of anything for payment before it is due or for prompt payment. Discounts rates are of many types are offered to achieve maximum occupancy and ultimately maximum profits. The main aim of variance in the room rate from the rack rate i.e., discounting is to get more business and to make the product as closely as possible to the needs of the prospective buyer for e.g., to attract more business from companies and corporate offices the hotel may offer a specific percentage of discount may be given to travel agent for providing group business to the hotel. The front office must be made aware and briefed about various categories of tariffs to enable them to identify as to whom to be is offered what rate when they come to the hotel. The principle of giving a discount is same in all cases. An organization which gives the most of business to the hotel are given a discount. Discounted offers to various categories of guest in addition to corporate and conferences organizers, discounted rates are also given to senior citizen and government officials etc. Key handling 137 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig 6.2 Key handling It is the duty and responsibility of the front desk staff to ensure the right guest is given the key to his room and his safety and security pertaining to issuance of key is not compromised or violated during his stay in the hotel. Front Desk Agent should never give keys, room numbers, messages, parcels or mails to any person without first requiring appropriate identification. For Security reason hotels uses at least three types of keys, Emergency Key, Master key and guest room keys. Types of keys used may vary hotel by hotel but the process of handling them remains pretty much the same. Emergency Key: A key that can open all doors double locked in hotels, among others like the Guest room door (Guest Room), Door Office (Office), Door Warehouse (Store). This key is usually held by the Management Hotel or GM can use the emergency moment / emergency. Guest Room Key: Key available for use by the guests to open the rooms such as CARD or a special card and some form of regular keys, so-called Key Tag if the child is the key hanger. Master Key: A key that can be used to open the door on one floor / floor or one section area all single locked. So, if the hotel consists of 8 floors / section in the hotel so there will be 8 pieces Master Key. When Guest Request for room key: Request for Guest’s last name and room number. Cross check the information given against by guest against the reservation details on the hotel software. If there any mismatch is the details provided then request for any valid photo identification like passport, Driving license, government ID cards etc. Do not handover the room keys without proper authentication of the guest identity. If no picture identification is available by the guests, the Front office assistant must accompany the guests to the room to confirm the identity. When being challenged by our actions, we are to inform the guest: “We are doing this for your security and safety. We appreciate your understanding.” 138 CU IDOL SELF LEARNING MATERIAL (SLM)
Only in an emergency situation can we use the information on the guest passport number, date of birth, address given to the hotel on arrival etc. to ascertain against computer’s record. When in doubt with the identity and guest refused to be escorted to room, inform the Front office manager immediately. If the Lobby Manager or Front Office Manager – Front Office could recognize the guest, give the duplicate key to the guest while reinforcing politely why we need to perform the identity check. Keys must never be issued to persons claiming to have the guest’s permission to enter the room unless the guest has personally given his /her verbal or written authorization to the Front Office team. Room numbers should not be written on the keys in case keys are misplaced. A set of codes are encoded to differentiate keys being held by guests. Complaint handling Even in the best companies, not everything runs smoothly all the time: Ultimately, it is very difficult to anticipate the wishes and needs of every single customer. It could be that the great majority of the target group is in fact satisfied with your offering, yet some of them nonetheless have problems with your product or service. There are also times when something simply goes wrong during manufacturing, provisioning, or delivery. The product that the customer receives isn’t quite like it’s advertised, or the service isn’t provided as you had planned. Mistakes can happen – yet the fact that paying customers are not happy with it is something that probably every business professional can understand. 6.4 GUEST HISTORY Fig 6.3 Guest history Guest history module plays a vital role in guest-hotel interactions. It provides quick information on the previous visits of a guest during check-in. That way, exhausted guests 139 CU IDOL SELF LEARNING MATERIAL (SLM)
needn't spend a long time at the front desk for the check-in formalities. This module consists in itself the record of each guest who has stayed earlier along with a separate entry for each such guest visit. The information displayed includes Last visit, Total visits, Preferred Room type, Revenue generated, Discounts given, and Number of days stayed. More detailed information on previous visits like Reservation number, Room number, Mode of reservation, Mode of check- in, Check-in and Check-out dates, Bill number, and Room plan are listed. Personal details such as Name, Mobile number, Email, D.O.B and Address of the guests are also available. The history is categorized into three heads based on the type of guests as In-house guests, Checkout guests, and Reservation guests. It can be accessed by providing any one of the following as inputs — Guest name, Mobile number, Email ID, Customer ID or Reservation number. The display of guest history during check-in is helpful in applying discounts and redeeming reward points. Moreover, details from the history database can be used to send personalized letters and e-mails. Such periodic mailing helps to increase loyalty. In addition, potential guests can also be added to the mail loop which may lead to probable conversions and increased occupancy. The history of all the guests stored in the Guest Folio can be exported as .xls and .pdf files and be printed for reviews and audits. Types of rooms In Hospitality, the days of a hotel only offering guests standard rooms for reservations are long gone! Nowadays, there are myriad room types and suites at hotels around the world – a delightfully eclectic selection – meaning that any size of group and most preferences can be catered for. Of course, variously sized and styled room are made available at differing rates, but prices can be adjusted depending upon occupancy, time of year, and other factors. Rooms tend to fall into categories when it comes to price-bands, the type of décor, whether a room is pool-side or ocean-side… Images and descriptions of main features and amenities applying to each room category will usually be included on a hotel’s brand website and across its distribution channels. Even though rooms may vary hotel by hotel, the following room-type definitions are common: Single: A room assigned to one person. May have one or more beds. Double: A room assigned to two people. May have one or more beds. Triple: A room assigned to three people. May have two or more beds. Quad: A room assigned to four people. May have two or more beds. Queen: A room with a queen-sized bed. May be occupied by one or more people. 140 CU IDOL SELF LEARNING MATERIAL (SLM)
King: A room with a king-sized bed. May be occupied by one or more people. Twin: A room with two beds. May be occupied by one or more people. Double-double: A room with two double (or perhaps queen) beds. May be occupied by one or more people. Studio: A room with a studio bed – a couch that can be converted into a bed. May also have an additional bed. Types of Suites can include: Master Suite: A parlour or living room connected to one or more bedrooms. Mini-Suite or Junior Suite: A single room with a bed and sitting area. Sometimes the sleeping area is in a bedroom separate from the parlour or living room. Other types of rooms can include: Connecting rooms: Rooms with individual entrance doors from the outside and a connecting door between. Guests can move between rooms without going through the hallway. Adjoining rooms: Rooms with a common wall, but no connecting door. Adjacent rooms: Rooms close to each other, perhaps across the hall. Also, it is important to point out that flexible hoteliers will always consider adding an additional bed (e.g., for a child), where a couple with a toddler wish to all sleep in the same room, or perhaps for an assigned caregiver. Also, in some rooms with single or double beds, a couch can be made into an extra bed where necessary. Finally, we should mention that often double rooms are booked by individual travellers who perhaps have trouble getting to sleep in a single bed and prefer a double bed for their overnight stay or if they are staying for longer. 6.4.1 Marketing and Distribution Marketing and distribution costs are the most significant changes the industry has seen over the past couple decades, Corcoran said. Distribution (or place) is one of the four elements of the marketing mix. Distribution is the process of making a product or service available for the consumer or business user who needs it. This can be done directly by the producer or service provider or using indirect channels with distributors or intermediaries. The other three elements of the marketing mix are product, pricing, and promotion. 141 CU IDOL SELF LEARNING MATERIAL (SLM)
Distribution Promotion Marketing Product MIx Pricing Fig 6.4 Marketing and distribution At the strategic level, there are three broad approaches to distribution, namely mass, selective and exclusive distribution. The number and type of intermediaries selected largely depends on the strategic approach. The overall distribution channel should add value to the consumer. “The delivery cost for getting customers into hotels was changed significantly by the business model, which was primarily based on brand and travel agents that were being paid at a 10- percent rate to the OTAs,” he said. “In addition, the traditional marketing—whether it was billboards, newspaper, television, radio—that hotel companies did has been replaced by digital formats in the form of ads through social networking, Google, etc.” When third-party intermediaries came on the scene about 20 years ago, they were welcomed by hoteliers as innovative new channels to market hotels and reach guests, according to Rogers. Over time, that relationship changed. “The relationships between hoteliers and TPIs have created some unique challenges from commission charges, equitable tax remittals and increased market share and reliance,” he said. 142 CU IDOL SELF LEARNING MATERIAL (SLM)
Corcoran said one change that relationship has seen is commission rates. When TPIs were introduced, commissions were higher than they are today. But then, the landscape looked different than it does now. “You had a lower demand going on. You still had remnants of travel agencies that were beginning to slowly disappear, but they were still a bit part of our business back then,” Corcoran said. “A lot of people in the beginning saw OTAs potentially as incremental and not stealing business at the time.” However, he said that because of their marketing dollars, OTAs had a huge impact that would affect consumer behaviour—a belief that guests could get the best and cheapest price if they booked via third parties, helping to fuel OTAs’ market share and bringing the issue top of mind for hoteliers’ wallets. Strategically, there are three approaches to distribution: Selective Distribution Mass Distribution Exclusive Distribution Fig 6.5 Strategically Distribution Selective distribution: A manufacturer may choose to restrict the number of outlets handling a product. Mass distribution (also known as intensive distribution): When products are destined for a mass market, the marketer will seek out intermediaries that appeal to a broad market base. For example, snack foods and drinks are sold via a wide variety of outlets including supermarkets, convenience stores, vending machines, cafeterias and others. The choice of distribution outlet is skewed towards those than can deliver mass markets in a cost-efficient manner. 143 CU IDOL SELF LEARNING MATERIAL (SLM)
Exclusive distribution: In an exclusive distribution approach, a manufacturer chooses to deal with one intermediary or one type of intermediary. The advantage of an exclusive approach is that the manufacturer retains greater control over the distribution process. In exclusive arrangements, the distributor is expected to work closely with the manufacturer and add value to the product through service level, after sales care or client support services. Another definition of exclusive arrangement is an agreement between a supplier and a retailer granting the retailer exclusive rights within a specific geographic area to carry the supplier's product. 6.5 COMMON TARIFF PLAN Basis of Charging Different hotels follow different policies while charging tariff from their customers. Following are the common basis on which tariff is charged: 12 noon / Check-in check out basis It is the most common & convenient for both hotel and guest to fix a check-in and check- out time. Most commonly hotels fix 12 noon as the check-in & check-out time. If a guest checks in at the check-in time decided by the hotel and checks out next day at the same time, then he will be charged for one day. But if he exceeds the check- out time, he may be charged for two days. 24 Hour Basis – There are some hotels that charge according to 24-hour basis. The time when the guest checks-in becomes the check-out time for guest. The guests are charged one day rent only when they have spent 24 hours or a part of 24 hours in the hotel. Number of Night basis – There are some hotels that charge the room rent on the basis of nights spent in the hotel. If a guest spends one night, then he is charged for a day and if he spends two nights, then he is charged for two days. Day Use – Sometimes a guest wants to stay in a hotel for few hours only (maximum 6 hours). These guests are charged room rent on day basis irrespective of the check-in and check-out time. 144 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig 6.6 Hubbert’s Formula There are three methods of establishing room rates: Market Condition Approach In this method, the management looks at similar hotels in the area and sees what they are charging for the same product. These properties are often called the competitive set, which is made up of a number of properties in a market that are a property’s most important competition. The competition can be based on location, type, brand or other factors. According to this approach, the hotels will charge only what the market will accept. This information is available through various public domain sources and periodic blind calls to competing hotels. A blind call does not identify the hotel making the call and simply asks for availability and rates on specific dates. The Rule-of-Thumb Approach This method sets the rate of a room at Rs.1/- for each Rs.1000/- of construction and furnishings cost per room assuming a 70 percent occupancy. For example, if the average construction cost of a hotel room is Rs.80000/-, the average room rate will be Rs.80/- according to this method. The emphasis on the hotel’s construction cost fails to consider the effects of inflation. It also fails to consider the contribution of other facilities and services towards the hotel’s desired profits. The rule-of-thumb approach should also consider the hotel’s actual occupancy level instead of a fixed 70 percent occupancy. Hubbart Formula Approach 145 CU IDOL SELF LEARNING MATERIAL (SLM)
It is a bottom-up approach to pricing rooms. This approach considers operating costs, desired profits, and expected number of rooms sold to determine the average rate per room. It is considered a bottom-up approach because its initial item – net income (profit) – appears at the bottom of the income statement. The second item – income taxes – is the second item from the bottom of the income statement, and so on. The Hubbart Formula approach involves the following eight steps: 1. Calculate the hotel’s desired profit by multiplying the desired rate of return (ROI) by the owner’s investment. 2. Calculate pre-tax profits by dividing desired profit (Step 1) by 1 minus the hotel’s tax rate. 3. Calculate fixed charges and management fees. This calculation includes estimated depreciation, interest expense, property taxes, insurance, building mortgage, land, rent and management fees. 4. Calculate undistributed operating expenses. This calculation includes estimating expenses for the following categories – administrative and general, information technology, human resources, transportation, marketing, property operation and maintenance, and energy costs. 5. Estimate non-room operated department income or loss, that is, food and beverage department income or loss, telecommunications department income or loss and so on. 6. Calculate the required rooms department income. The sum of pre-tax profits (Step 2), fixed charges and management fees (Step 3), undistributed operating expenses (Step 4), and other operated department income (Step 5) equals the required rooms department income. 7. Determine the rooms department revenue. The required rooms department income (Step 6), plus rooms department direct expenses of payroll and related expenses, plus other direct operating expenses equals the required rooms department revenue. 8. Calculate the average room rate by dividing rooms department revenue by the expected number of rooms to be sold. Holiday Inn Example Holiday Inn, a 200-room property, is projected to cost Rs.9900000/- inclusive of land, building, equipment and furniture. An additional Rs.100000/- is needed for working capital, bringing the total cost of construction and opening to Rs.10000000/-. The hotel is financed with a loan of Rs.7500000/- at 12 percent annual interest and cash of Rs.2500000/- provided by the owners. The owners desire a 15 percent annual return on their investment. A 75 percent occupancy is estimated. Thus 54750 rooms will be sold during the year (200 x 0.75 x 365). The hotel’s income tax rate is 40 percent and additional expenses are estimated as follows: Property tax expenses Rs.250000/- Insurance expenses Rs.50000/- Depreciation expenses Rs.300000/- Administrative and general expenses Rs.300000/- 146 CU IDOL SELF LEARNING MATERIAL (SLM)
Data processing expenses Rs.120000/- Human resources expenses Rs.80000/- Transportation expenses Rs.40000/- Marketing expenses Rs.200000/- Property operation and maintenance Rs.200000/- Energy and related expenses Rs.300000/- The other operated departments’ income (losses) is estimated as follows: Food and beverage department Rs.150000/- Telecommunications department Rs.50000/- Rentals and other departments Rs.100000/- The rooms department estimates direct operating expenses to be Rs.10/- per occupied room. The Hubbart Formula is very useful in setting target average rates. Item Calculation Amount Desired Net Income Desired Profit = Owner’s Investment X ROI 2500000 x 0.15 = 375000 625000 Pre-tax Income = Net Income / 1 – T Pre-tax Income =375000 / 1 – 0.4 Plus: Interest Expense Interest Expense = Principal x interest rate 7500000 x 0.12 + 900000 Income needed before interest = 1525000 expense and taxes Plus: Estimated Depreciation, + 600000 property taxes and insurance Income before fixed charges = 2125000 Plus: Undistributed operating + 1240000 expense 147 CU IDOL SELF LEARNING MATERIAL (SLM)
Required operated departments = 3365000 income – 150000 Departmental results excluding – 100000 rooms + 50000 Less: Food and Beverage 3165000 department income + 547500 = 3712500 Rentals and another department ÷ 54750 income = 67.81 Plus: Telephone Department Loss Rooms department income Plus: Rooms Department direct expense 54750 X Rs.10/- Rooms Revenue Number of Rooms Sold Required average room rate Table 6.1 The Hubbert Formula Types of Rate Room Tariff Card – It is a document published by the hotel for use by prospective guests. It includes prices of various rooms and meal plans. Different rates for a hotel guestroom include: 1) Rack Rate: This is the rate printed on the room tariff card. This rate is usually negotiable as it is the highest published rate of rooms. It is a rate before any discount. 2) Crib Rate: It is a special rate charged for children above 5 years and below 12 years of age who are accompanying their parents. The hotel provides a crib (baby bed) in room for infants. 3) Corporate Rate: This is a promotional rate to attract the corporate market segment. This rate is generally 10 to 20 percent lower than the rack rate. 148 CU IDOL SELF LEARNING MATERIAL (SLM)
4) Seasonal Rate: Hotels may offer different rates for different seasons. Destinations may have high, low, and shoulder seasons. The duration when the tourist traffic at a particular place is high is known as the peak season; when the demand for hotel rooms drops down, it is known as off-season rate. Hotels in these locations mention their seasonal rate and off-season (discounted) rate. 5) Advance Purchase Rate: Though popular in the airlines industry, it is a new concept in the hospitality industry. It entails heavy discounts on room rates when room bookings are done in advance. The rate of discount depends upon the advance period and the number of rooms available for the time of booking. For instance, a hotel may offer more discount for a room that is booked two months in advance as compared to a room that is booked fifteen days in advance. 6) Weekday/ Weekend Rate: The demand for hotel rooms may be more on certain days in a week. Hotels analyse their demand levels over a period of time and fix a higher rate during high demand periods and a lower room rate during low demand periods. 7) Day and Half Day Rate: The day rate, charged from guests not staying overnight at a hotel, is lower than the rack rate. Sometimes, a guest may wish to stay for a very short duration of time, not exceeding six hours. In these cases, the half day rate, which is a bit higher than the numerical half of the rack rate, is charged from guests. 8) Group Rate: As a large group (15 and more than 15 persons) provide bulk business to a hotel, hotels offer discounted rates to groups. 9) Travel Agent Rate: Travel agents sell travel products like hotel rooms, airlines bookings, etc., on a commission basis to the guests. They provide a substantial amount of business to hotels; hence hotels offer them special discounts. E.g., Of travel agencies – Thomas Cook, Cox & King, SITA Travels etc. 10) Company Volume Guaranteed Rate: (CVGR/CGVR) Hotels may offer a special rate (lower than the rack rate) in order to attract high volume of business from special market segments like Companies. A hotel may have a contractual agreement with a company, according to which the company’s representatives are entitled to a special discounted rate when they reserve a room in the hotel. The percentage of discount will depend upon the volume of business promised and the mutual understanding between the hotel and the company at the time of making agreement. 11) Airlines and Crew Rate: 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. 12) Government Rate: Some hotels offer special discounted rates to Government Officials when they are on an official tour and staying in a hotel. 149 CU IDOL SELF LEARNING MATERIAL (SLM)
13) Educational Rate: These are special rates offered by hotels to students and educationists, as they are a significant source of business because of their large numbers and frequency of travel. 14) Membership Rate: These rates are offered to guests who are members of influential organizations like FHRAI, United Nations etc. The rates are much lower than the rack rate and may also include discounts on food and beverage. 15) Introductory Rate: This rate is offered by the hotel on the opening of a new property in the town. This rate is generally offered to attract guests and is offered till the hotel is established in the market. 16) Complimentary Rate: When a hotel does not charge the room rent from a guest, it is called complimentary rate or Comp. rate/ room rate. Hotels generally offer such rates to tour/group leader, tour operators, travel agencies, and local dignitaries who are vital to the public relations programme of the hotel. 17) Package Rate: A package rate is quoted for the bouquet of products or services. The rate is generally lower than the sum of the prices of individual products or services offered in the bouquet. It is a market strategy to sell the slow-moving items along with hot selling products. Package Rate in the hospitality industry means that a room rate that includes the sales of goods and services. The most common time of package rate is in an all- inclusive hotel where in the purchase of a room also include a certain number of drinks, meals and activities during a stay. Hotels may offer the following packages Meeting/ Conference Holiday Packages Meal Marriage 150 CU IDOL SELF LEARNING MATERIAL (SLM)
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