Introduction to Hotel Front Office PDF

# Introduction to Hotel Front Office ## CHAPTER FOCUS POINT - Describe the significance of ‘Front Office’ in Tourism and Hospitality business. - Construct Front Office ‘Organization Chart’ within a hotel or any tourism and hospitality business. - Explain Personnel Job Specification, responsibilitie...

# Introduction to Hotel Front Office ## CHAPTER FOCUS POINT - Describe the significance of ‘Front Office’ in Tourism and Hospitality business. - Construct Front Office ‘Organization Chart’ within a hotel or any tourism and hospitality business. - Explain Personnel Job Specification, responsibilities and relationships among position, departments, and division within a hotel. - Describe the activities in each ‘Guest Cycle’ stage of a hotel. ## What is Front Office? Front Office plays a critical part in Tourism and Hospitality Industry. This is because of the fact that the Front Office is the first and last point which interacts with the visitor \ guest \ client. Front office is so called because they are situated at the front of the building, near the entrance of the hotels. ## FRONT OFFICE DEPARTMENT Communication and Accounting are the two most important functions of the Front Office operation. ### Accounting procedure involve - accepting advance booking of hotel rooms - opening of the guest bills - Maintaining & monitoring the account - settling bills at the time of check-out ### *Effective Communication with guest* - processing the guest reservation - handling the guest reception & registration - attend to the guest inquiry regarding usage of services in the hotel such as, Wi-Fi internet, safe deposit, - check-in and check out the guest - co-ordinate with other departments of the hotel etc. - maintaining the room status ## FRONT OFFICE DEPARTMENT - Most important department in the hotel - nerve centre for hotel operations - Interface between a hotel and its guest - Guest makes first contact with FO department - First place that can let guest develop an impression about the level of service, standard, facilities, and hospitality of the hotel. ## Front Office Main Functions A diagram of a front office organization chart with the following structure: - **Front Office Management** - **Revenue Management** - **Reservation & Cancellation** - **Front Desk** - **Concierge** - **Guest Services** - **Bell Desk** - **Night Audit** ## What is Revenue Management? Revenue management is the application of disciplined analytics of past business data that predict consumer behaviour at the micro-market level, and optimize product availability and price so as to maximize revenue growth. Revenue means income from sales. Revenue minus expenses = Profit ## What is Night Audit? A night auditor works at night at the reception of a hotel. The night audit process itself is an audit (inspection) of the guest ledger. The guest ledger (or front office ledger) is the collection of all accounts receivable for currently registered guests. It can also be defined as the collection of all guest folios. A folio (billing receipt) is the account of an individual guest who is currently registered in the hotel. The purpose of the night auditor is, but is not limited to, ensuring the accuracy of all financial information in the folio and gathering all needed paperwork to complete the audit. ## What is a Concierge? - In hotels or resorts, a concierge assists guests by performing various tasks such as making restaurant reservations, booking hotels, arranging for spa services, recommending night life hot spots, booking transportation (like taxi, limousines, airplanes, boats, etc.), coordinating porter service (luggage assistance ...). - [Concierge - Wikipedia](https://en.wikipedia.org/wiki/Concierge) ## Front office department - FO department operates 24 hours a day, every day! - Three main shifts in FO department - **Morning - day shift** - 7:00 a.m. - 3:00 p.m. - **Day - evening shift** - 3:00 p.m. - 11:00 p.m. - **Night shift** - 11:00 p.m. - 7:00 a.m. ## FRONT OFFICE ## ORGANIZATION CHART ## Organizational chart - Organization structure (hierarchy) of FO department varies. - It depends on the size and style of operation of the hotel. - It can be categorized into, - Small-sized hotel - Medium-sized hotel - Large-sized hotel A simple sample follows on the next slide. A diagram of a front office organization chart with the following structure: - **Front Office Manager** - **Reservation** - **Reservation Staff** - **Reception** - **Reception Staff** - **Guest Services** - **Cashier** - **Concierge** - **Guest Staff** - **Bell Staff** - **Accounts** - **Communication** - **Switchboard Operator** - **Night Auditor** ## Front Office Functions Related With Other Positions A diagram of the Front Office Manager in the center of the diagram with the following functions: - **Revenue Manager** - Establishing room rates - **Reservation Manager** - Managing the reservation process - **Desk Staff** - Guest registration - **Concierge** - Guest information - **Bell Staff** - Guest assistance - **Night Auditor** - Managing the Front office related accounting and data collection process ## Responsibilities of Front Office A diagram of a Front Office responsibilities with the following structure: - **PMS & its management** - **Management of guest services** - **Functional areas** - **Data management** - **Revenue & reservation management** - **Accounting for guests** ## What is Property Management System (PMS)? - In hotels a Property Management System, also known as a PMS, is a comprehensive software application used to cover tasks like coordinating the operational functions of front office, sales and planning, reporting, etc. - [Property management system - Wikipedia](https://en.wikipedia.org/wiki/Property_management_system) ## Front Office: The PMS & Its Management A diagram of different aspects of the PMS with the following structure: - **Room rates, reservations, and room assignments** - **Reservations** - **PMS: Computerized System** - **Guest Histories** - **Accounting information system** - **Management Information System (MIS)** - **Other selected guest services** ## What is Guest History? The data obtained from a guest during reservation, registration, stay, and check-out is stored for future reference. When a repeat guest makes a new reservation, the information from past reservations is displayed and can be automatically copied into the new reservation, saving time, effort, and money. The buying habits of the visitor may become the basis for personalized service, as well as timely and accurate marketing & sales efforts in future. ## What is Management Information System (MIS)? In a management information system, modern, computerized systems (PMS) continuously gather relevant data, both from inside and outside an organization. This data is then processed, integrated, and stored in a centralized database (or data warehouse), where it is constantly updated and made available to all who have the authority to access it, in a form that suits their purpose. ## Front Office : ## Revenue & Reservations Management A diagram of a Front Office revenue and reservations management with the following structure: - **To maximize hotel's Revenue Per Available Room (RevPar)** - **Increase** - **Occupancy % & Average Daily Rate (ADR) by selling more rooms.** - **Occupancy % x ADR = RevPar** - **To improve RevPar** - **Estimate (forecast) guest demand for rooms** - **Practice yield management** - **Control occupancy** ## Occupancy %, ADR & RevPAR Occupancy % = No. of Rooms Occupied x 100 / No. of Rooms in Hotel Average Daily Rate (ADR) = Revenue Earned Today / No. of rooms sold RevPAR = Revenue Earned Today / No. of Rooms Available for Sale ## Revenue & Reservations Management: Forecasting Guest Demand For Rooms Knowing demand for rooms is key ! - When demand for rooms is high, drive ADR up. (e.g., college football game: sell-out at a high ADR) - When demand for rooms is low, drive occupancy, (e.g., the night before Thanksgiving: offer lower rate). For forecasting demand, Front Office should: - keep accurate historical records to understand past demand history & pattern - know of special events or circumstances that impact future room demand ## Revenue & Reservations Management: Practicing Yield Management Yield Management - A strategy using demand forecasts to maximize RevPar. - Demand for rooms > supply, sell at “rack rate” - Demand for rooms < supply, offer discounts **Yield Management strategy based on room demand** | Forecasted room demand | Rate strategy | |---|---| | 90-100% occupancy | Offer no discounts | | 70-90% occupancy | Offer discounts up to 10% | | 50-70% occupancy | Offer discounts up to 20% | | Less than 50% occupancy | Offer discounts up to 30% | ## Yield Management - Yield management is a variable pricing strategy, and other two techniques, based on understanding, anticipating, and influencing consumer behaviour in order to maximize revenue or profits from a fixed, time-limited resource (such as airline seats or hotel room reservations or advertising inventory in TV, Print, Internet etc.). - [Yield management - Wikipedia](https://en.wikipedia.org/wiki/Yield_management) ## Revenue & Reservations Management: Managing Occupancy Room availability strategies - “Closed to Arrival” (CTA): Hotel declines reservation for guests attempting to arrive on this specific date. - “Minimum Length of Stay” (MLOS): Hotel declines reservations for guests seeking to stay for lesser days than the minimum established by the hotel. **Example: Forecasted room demand (Hotel with 300 rooms)** |Rooms left to sell| Friday | Saturday | Sunday | |---|---|---|---| | | 120 | 25 | 250 | Identifying Saturday as the day that is CTA, thus, saying no & MLOS of two days to maximize total weekend occupancy ## Managing Guest Reservations: ## By Types & Delivery Methods **By reservation type** - Transient sales: rooms and services sold primarily via Front Office & its staff to Free Independent Traveller (FIT) - Group sales: rooms and services sold primarily to large groups (GIT), via Sales & Marketing department, and given to the Front Office for recording and servicing. **By delivery method** - Global distribution system: great use by travel agents worldwide. - Franchise 800 numbers: significant source of transient room reservations. - Internet: accuracy of current info on the web-site is important. - Hotel direct: the effectiveness of the telephone sales effort is important. - Walk in: “curb appeal” is important. ## FRANCHISE Leads are a franchise’s lifeblood. That’s why many of the country’s most successful franchises use Dial800 to help make sure their inbound lead funnel is optimized by: - Increasing the volume of their inbound leads by using toll-free numbers that are easy for prospects to recall. - Use AccuRoute, Dial800’s intelligent call routing platform to send leads to the most relevant geo-targeted franchisee. - Record and monitor calls to make sure that prospect’s questions are answered accurately and efficiently. ## Global Distribution System (GDS) - The premier global distribution systems are Amadeus, Galileo, Sabre, and Worldspan. They are owned and operated as joint ventures by major airlines, car rental companies, and hotel groups. Also called automated reservation system (ARS) or computerized reservation system (CRS). - What is Global Distribution System (GDS)? definition and meaning ... [www.businessdictionary.com/definition/Global-Distribution-System-GDS.html](www.businessdictionary.com/definition/Global-Distribution-System-GDS.html) ## Managing Guest Reservations: ## Delivery Methods (Global Distribution System) **To Make Reservations** A diagram of a flow chart of the GDS booking system with the following steps: - **GDS Users** - Travel agents, or Third-party sites - **GDS** - Worldspan, Amadeus, Sabre, or Galileo - **Switches** - Pegasus or WizCom - **Hotels** - Hotel's Reservation system **To Confirm Reservations** A diagram of a flow chart of the GDS booking system with the following steps: - **Hotels** - Hotel's Reservation system - **Switches** - Pegasus or WizCom - **GDS** - Worldspan, Amadeus, Sabre, or Galileo - **GDS Users** - Travel agents, or Third-party sites **Data\Information Flow of the GDS Booking System** ## Managing Guest Services **Variety Of Guest Services** - Airport transportation - Parking cars - Handling luggage - Providing directions to local attractions - Making restaurant reservations - Taking guest messages - Routing mail - Newspaper delivery - Management of safety deposit boxes - Supplying directions for areas within the hotel - Setting wake-up calls - Providing guest security via careful dissemination of guest-related information - Handling guest concerns and disputes ## GUEST CYCLE STAGE A diagram of the guest cycle stages: - **Pre-Arrival** - **Arrival** - **In-House** - **Departure** - **Guest Cycle Stage** (in the center of the diagram) ## Managing Guest Services: Front Desk - Arrival **Pre-arrival** - Printing "reg card" for guests scheduled to arrive next day - Reg card: legal contract existing between hotel and guest (guest name / guest address / guest telephone number / arrival date / departure date / # of adults in the room / rate to be paid / room type / form of payment) **Bell station** - Assisting guests in getting baggage into hotel and their rooms - Explaining hotel services and guest room features to guests **Valet** - Bell staff should be friendly, well groomed, properly uniformed, and respectful of guest property ## Managing Guest Services: Front Desk - Arrival ## (continued...) **Five-step registration process** - **Greeting guests** - Minimize wait / make guests feel welcome - **Confirming the info on reg card** - Reg card serves as the record of guest’s stay. - **Securing a form of payment** - Authorize (validate) the card at the time of registration - **Room assignment** - Accommodate guest preference for room types (location, view, bed type & amenities) - **Issuance of keys** - Control issue of guestroom keys for guest safety ## Managing Guest Service: ## Front Desk- Guest Privacy **Guest information** - Without a guest’s permission, never confirm or deny that he or she is in fact registered. - Without a guest’s permission, never release information related to his or her stay. - Always be vigilant in informing guests of any third-party information requests regarding their stay. **Room information** - Without a guest’s permission, never reveal his or her room number to any third party. - Never perform registration tasks in ways allowing guest room information to be overheard by others. - Never write room numbers directly onto keys. - Never issue a duplicate room key to anyone except a registered guest. ## Managing Guest Service: ## Front Desk - Stay & Departure **Guest satisfaction issues** - When guests’ issues are handled professionally and their legitimate complaints are treated courteously, their experience is enhanced. **The walked guests** - Apologize to guest for any inconvenience. - Clearly explain hotel's walk policy to guest. - Offer any reasonable assistance to minimize guest difficulties. ## The 'Walked' Guest!? - Hotel industry term for the practice of lodging an arriving guest at another hotel (typically for one night), because the reserved accommodation cannot be made available to him or her, due to overbooking, or some other reason. - What is walk definition and meaning - [BusinessDictionary.com](www.businessdictionary.com/definition/walk.html) ## Accounting For Guests **Front office’s accounting related tasks** - Accurately collect and post charges to the guest "folios" - Maintain an accurate list, by room number, of guestroom occupants - Verify accuracy of the room rates charged to guests - Confirm the check-out dates **Billing to Folio** - The detailed list of a guest’s room charges, as well as other charges authorized by the guest or legally imposed by the hotel. - Appropriate guest charges incurred are posted to the appropriate guest’s folio. - All independent supporting documentation should be thoroughly reviewed prior to posting. ## Accounting For Guests: ## Room Management / Assignment **At front desk check-in** - Guests present themselves to begin the registration process - Special check-in areas may be available, depending on the level of service and priority of guests. - Front Desk Agent confirms the status of the selected room prior to room assignment **At self check-in, system should allow staff to:** - verify and document identification of guest to whom the room is rented. - assign guests, whenever possible, to requested room type. - assure that assigned room status is "clean & vacant". - confirm the rate guest pays, prior to issuing room keys. - confirm guest’s departure date, prior to issuing room keys. - secure an acceptable form of payment from guest. ## Accounting For Guests: Bucket Check **Bucket** - Industry term for the location of actual registration cards signed by guests at check-in **Cross referencing method** - Physically verifies that information on a guest’s registration card is complete and matches that in the PMS **Manual procedure for assuring accuracy of:** - Guest’s actual room assignment / rate to be paid / departure date / form of payment / any other accounting-related information. **Bucket check helps reduce errors related to billing guest’s folio.** ## Accounting For Guests: Night Audit **Night audit function: eight key functions** - Posting appropriate room tax and tax rates to guest folio - Verification of accurate room status (in PMS) of all rooms - Posting any necessary adjustments or allowances to guest folios - Verification that all legitimate, non-room charges have been posted, throughout the day, to proper guest folio - Monitoring guest account balances (e.g., guest's credit limit) - Balancing and reconciling Front Desk's cash bank - Updating and backing up electronic data maintained by Front Office - Producing, duplicating and distributing all management mandated reports (e.g., ADR, occupancy %, business source, in-house guest lists) ## Accounting For Guests: Check Out **Two essential tasks accomplished by Front Desk agent** - **Settlement of guest’s bill** - Confirmation of guest’s identity - Checking for late faxes \ messages not yet delivered to guest - Inquiring about and returning guest belongings in hotel’s safety deposit boxes - Posting any final charges - Producing copy of folio for guest’s inspection - Processing guest’s payment - Revising room’s status in PMS to designate room as vacant - **Re-booking of guest for a future stay (selling opportunity)** ## Data Management: Credit Cards **Accuracy** **Commitment to security** **Processing guest credit cards** **Credit card acceptance & processing guidelines** - Confirmation that the name on card matches that of the individual presenting the card for payment - Examination of card for any signs of alteration - Confirmation that card has not expired - Comparison of signature on card with signature by guest paying with that card - Documentation (usually initialing) by employee processing the charge - Balancing and reconciling credit card charges at the conclusion of each Front Office shift ## Data Management: Locking / Security Systems **Re-codable locking system** - Increasingly utilized to ensure guest safety - Installed cost is about $300 - $500 per guest room - Independent & stand-alone (no wiring back to PMS is necessary) **Managing a re-codable lock system** - Be trained to issue duplicate keys only to confirmed registered guests. - Maintain an accurate data system that actually identifies registered guests and their assigned room numbers. ## Data Management: Telephones **Private Branch Exchange (PBX)** - Hotel internal system to process incoming, internal, and outgoing telephone calls **Call accounting system** - Records time, length, and number called, of each telephone call made within each guestroom. - Posts phone charges directly to guest’s folio when interfaced with PMS. **Wake-up calls** --**Voicemail** **Message on hold** ## Data Management: Point of Sale (POS) **Point of Sale (POS)** - Any sales recording system not located at Front Desk (a location, excluding Front Desk, at which hotel goods & services are purchased) - Mostly interfaced with the PMS **Multiple POS systems in large hotel operations** - restaurants / room service / lounges / laundry / valet / shops / fitness centers / business centers - Ensure all legitimate purchases & charged purchases are posted to the correct guest or non-guest folio ## Data Management: In-Room Services A diagram with the following structure: - **In-room service** - **Movies** - Pay-per-view movie system - **In-room mini-bars** - Interfaced with the PMS(automatically posted to guest's folio) - **Games** - “video” games on television screen in guest room - **Internet connections** - Pay-to-connect basis in guest room - **Safes** - In-room safes for guest use ## Data Management: Back Office System **Back office accounting system** - System used by the controller to prepare hotel’s financial documents such as Balance Sheet, Income Statement, etc. **Back office accounting system should offer:** - good underlying technology - strong company behind the product, including good leadership - compatibility with popular hardware products - sizable customer base - good customization capabilities - expandability - ease of use by non-technological staff - excellent support via telephone - excellent online support - potential for PMS interface