reservation channels

Woods et al., Professional Front Office Management

© 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

RESERVATION

Compiled BySUNIL KUMAR

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RESERVATION MODES LETTERS FAX E-MIL PHONE TELEGRAM BY PERSONALLY

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Distribution Channel Overview Intermediary: An entity authorized by

a guest to make a hotel reservation on the guest’s behalf.

Travel Agent: A hospitality professional that assists clients in planning travel.

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Distribution Channel Overview Travel Wholesaler: An entity that

purchases blocks of hotel rooms and, in turn, sells them to travel agents.

Step 1: A hotel sells rooms to a travel wholesaler.

Step 2: The travel wholesaler sells rooms to a travel agent.

Step 3: The travel agent sells rooms to an individual guest (or group).

Step 4: The guest or group stays at the hotel.

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Distribution Channel Overview Fiduciary: A relationship based upon

trust and the responsibility to act in the best interest of another when performing tasks.

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Distribution Channel Management Walk-in Telephone Fax E-mail/traditional mail Hotel sales personnel GDS Chain or brand central reservation

system Internet

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Distribution Channel Management Net ADR Yield: The rate (ADR) actually

received by a hotel after subtracting the cost of fees and assessments associated with a room sale.

Room Rate - Reservation - Generation Fees

Room Rate Paid

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Distribution Channel Management Walk-in

Specific steps to help maximize walk-in rate acceptance:

An immediate welcome and friendly “acceptance”

Attractive and clean lobby area Special discounts for “last minute travelers” An upgraded room assignment from a standard

to a higher-level room type Use of a logical fade rate

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Distribution Channel ManagementTelephone

Important areas for potential improvement:

Telephone etiquette Qualifying the guest Describing the property Presenting the rate Overcoming price resistance Up-selling Closing the sale (making the reservation) Re-capping the sale

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Distribution Channel Management Fax

To maximize effectiveness: Provide guests with a designated toll-free fax

number Train reservation staff to respond to a

reservation request immediately upon its receipt

Consider purchasing software that allows the use of the hotel’s e-mail system to reply to reservation requests

Keep adequate supplies on-hand Use professional cover and content sheets

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Distribution Channel Management E-mail/traditional mail

To maximize effectiveness: Reply to all mail inquires within 24 hours For e-mail – use the hotel’s name in the

“response” message title line For traditional mail – use professionally

printed stationary and prohibit use of photocopied “fill-in-the-blank” letter replies

Use automated spell-check software “Sign” all mail clearly

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Distribution Channel Management Group sales department:

Attrition: The difference between the original room request and the actual purchase of a group.

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Distribution Channel Management Global Distribution System (GDS)

To maximize effectiveness: Monitor the number of reservations

received from each GDS Establish a relationship with 1+ contacts

from each GDS Establish a relationship with 1+ travel

agents Consider travel agents as a unique and

important “market” Consider joining and becoming active in the

American Society of Travel Agents

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Distribution Channel Management Central Reservation System (CRS)

typically consists of: Toll-free telephone call center Chain operated website E-mail/traditional mail reservations

division Group sales division

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Distribution Channel Management Central Reservation System (CRS)

To maximize effectiveness: Ensure that all hotel-related information

supplied to the brand’s call center is accurate and current

Conduct periodic shopper calls to the CRS Consider an annual visit to the brand’s call

center Ensure that all information listed on the

website is accurate and up-to-date Supply attractive photos and creative site

copy Follow up promptly on any group business

leads provided by the CRS

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Distribution Channel Management Internet

E-wholesaler: A room reseller that obtains reduced (wholesale) room prices and inventory commitments directly from a hotel or through an agreement with the hotel’s corporate brand managers. It then publishes “retail rates” on its websites, usually at a markup of 20% to 40%.

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Principles to consider: Ensure accuracy Update regularly Monitor placement Manage search engines Maintain rate integrity Monitor results

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Distribution Channel Management Internet property websites:

Factors to consider: Written content Visual and audio content Reservations device Appropriate links

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Distribution Channel Management Internet chain websites:

Lowest Rate Guarantee: A program that assures travelers the lowest available rate for a specific room type on a specific date will be found on the franchisor’s website.

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Distribution Channel Management Internet third-party websites:

Merchant Model: An Internet sales method in which hotels sell or commit rooms to Internet site operators. These sites, in turn, allow consumers to enter requested location and arrival dates. The consumers are then presented with a choice of specific hotels and associated rates available for immediate purchase on the website.

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To maximize effectiveness:– Seek rate parity across all distribution channels– Show the hotel on as many sites as is

realistically profitable– Keep all information current– Promote the use of lower-cost (higher net ADR

yield) sites over higher-cost sites– Use the information found on competitors’

websites to compare and evaluate the hotel’s own rate-management decisions

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Distribution Channel Management Challenges Inventory ownership Website access control Guest- and sales-related issues:

Rate consciousness Group block management Occupancy tax liability

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