Introduction To Hospitality Management - Reservations PDF

INTRODUCTION TO HOSPITALITY MANAGEMENT 6. RESERVATIONS  INTRODUCTION TO HOSPITALITY MANAGEMENT Reservations department functions Getting the maximum level of occupancy and incomes Rate management (revenue management) A room not sold today, cannot be so...

INTRODUCTION TO HOSPITALITY MANAGEMENT 6. RESERVATIONS  INTRODUCTION TO HOSPITALITY MANAGEMENT Reservations department functions Getting the maximum level of occupancy and incomes Rate management (revenue management) A room not sold today, cannot be sold tomorrow. It is a perishable product, with only 24 hours of useful life.  INTRODUCTION TO HOSPITALITY MANAGEMENT The management & coordination of the reservations department depends on: -Sales and marketing policy -Contracts with tour operators -Contracts with conferences and conventions  INTRODUCTION TO HOSPITALITY MANAGEMENT Basic tasks: 1. Booking Control - Availability and occupancy forecast - Room Blocks - Allotments and release dates - Overbooking Control 2. Reservations Management: - Control reservations (changes, cancellations, new reservations) - Correct Personal information / contact data - Statistical data, rate codes, market segmentation, origin...  INTRODUCTION TO HOSPITALITY MANAGEMENT Basic tasks: 3. Rate Policy - Demand - Type of customers - Costs - Competitors Revenue Management: - To develop sales strategies adapted to the behavior of the different market segmentations  INTRODUCTION TO HOSPITALITY MANAGEMENT Basic functions: 4. Rates Knowledge - Public - Special Fairs, Exhibitions and Conferences - Special Groups - Business rate / Corporate rate 5. Contracts and conditions -Allotments (cupos) - Commissions and rappels - Release dates and complimentary rooms (gratuidades)  INTRODUCTION TO HOSPITALITY MANAGEMENT Process to follow in relation with: -no Shows -cancellations - overbooking - Changes and cancellations -Denial of booking -Extensions of stays (overstays) -Reductions of stays … (understays)  INTRODUCTION TO HOSPITALITY MANAGEMENT INCOME MANAGEMENT (IN HOTEL INDUSTRY) = REVENUE MANAGEMENT REVENUE MANAGEMENT is the management model that consists of selling the “correct” service to the “correct” customer at the “correct” price with the aim of maximizing the total revenue of the establishment. INTRODUCTION TO HOSPITALITY MANAGEMENT Sell at Sell at high low prices prices  INTRODUCTION TO HOSPITALITY MANAGEMENT Pricing: techniques to establish rates Efficient price: maximum price that the customer is willing to pay for a product / service The price consists in GOOD FOR ME multiple factors, but at the end it is only perceived by the customer in two ways NOT SUITABLE  INTRODUCTION TO HOSPITALITY MANAGEMENT It is recommended to use revenue management techniques when: -The capacity is fixed -The demand can be segmented -The product is perishable -The product can be sold before consumption -The demand is elastic  INTRODUCTION TO HOSPITALITY MANAGEMENT Management inventory to accomplish maximum revenue: -Create products and rates for specific market segmentations -Control the number and type of discounts offered -Establish barriers and controls INTRODUCTION TO HOSPITALITY MANAGEMENT “If I do have 2,000 customers for a route and I have 400 different rates, obviously I need 1,600 extra prices.” Robert L. Crandall Former General Manager American Airlines  INTRODUCTION TO HOSPITALITY MANAGEMENT Occupancy Indicators: Room Availability: Númber of rooms available in a period of time (day, week, month, year) Total Room Revenue: total income generated related to room sold Average Room Rate (ARR) Average rate of rooms. Total revenue / Total rooms sold Revpar: Revenue per available room: Average revenue per available room. Total revenue / Total available room Wait List Rooming list