Hotel Room Sales & Reservations - Midterm Discussion Notes

Types of Hotel Clients

Walk-in Guests: Guests who arrive without prior booking, seeking rooms upon arrival.
Corporate Accounts: Companies or institutions with pre-arranged credit and booking agreements with the hotel.
Associations: Groups of individuals united by a shared purpose, like hobbies or beliefs.
Travel Agencies: Agencies with pre-booked arrangements for tour groups at specific hotels.
Government Institutions/Offices: Entities that might have special booking or credit arrangements.
Free Independent Travelers (FIT): Tourists traveling independently, including foreign individuals not part of a tour group.
Educational Institutions
Local/Domestic Travelers: Tourists from within the country. Hotels sometimes offer discounted rates (e.g., "Sariling Atin") for this segment.
Balikbayan: Filipinos residing/working abroad who are returning to visit. Special rates may apply.
Other Accounts: A general category for various client types.

When establishing room rates, hotels should consider:

Competitiveness: Rates should align with those of similar hotels to avoid losing customers.
Revenue Generation: Rates must cover operational costs and provide profit.

Room rates reflect the prevailing prices of comparable hotels in the area based on location, size, and classification.

Cost Rate Formula: Based on the hotel's construction cost.
- Formula: \frac{\text{Cost of Construction (including land & building)}}{\text{Number of Rooms}} \times 1000 = \text{Average cost per room}
Hubbart Formula: Developed by Roy Hubbart, this method considers the hotel's operating costs and desired return on investment.

Regular Reservations: An agreement to hold a room until a specific cut-off time.
Confirmed Reservations: Reservations confirmed verbally or in writing (via mail, email, or fax).
Guaranteed Reservations: An agreement to hold a room regardless of arrival time.

The content includes a sample reservation form, chart, and confirmation notice.

Reservation Form Example:
- Crown Royale Hotel Reservation Form, including fields for Booking Person, Arrival/Departure Dates, Guest Name, Company, Address, Nationality, Contact Information, Room Type, Billing Arrangement, Discounts, and Special Requests.
Reservation Chart: Visual representation of room booking status (Tentative, Confirmed, Out of Order, House Use).
Confirmation Notice: A letter confirming reservation details (dates, room type, rate, billing).
Reservations Diary: Serves as an arrival list, detailing room number, guest name, room type and rate.

Reservations can be received through:

Use a separate form to record amendments at the front desk. Examples include:

This form updated daily by staff to keep chart updated with “in house” movements.

Only confirm reservations for Top Accounts (with manager's permission).
Update availability board to reflect "on request" or "close out".
Duty manager should verify reservations without flight information and remind companies of the 6:00 PM policy.

Guests with reservations must arrive by 6:00 PM on the arrival date.

Room nights
Room rates/revenues
Number of guests per nationality, per account
Occupancy percentage
Average room rate (P/$): \frac{\text{Total Revenue}}{\text{Total Rooms Sold}}
DBL Occ. Percentage: \frac{\text{Total Number of Guests}}{\text{Total Rooms Sold}}

Commercial Accounts Productivity Report (CAPR): Tracks guest names, booking companies, and occupied rooms. Submitted weekly to the sales office.
Airline Booking Report: Similar to CAPR, but tracks airline accounts.
Report on Sariling Atin: Tracks this special package for domestic travelers.
Monthly Rooms Statistics Report: Compiles room nights, percentages, and data from the above reports.
Breakdown of Number of Guests: Categorizes guests by nationality, account type, and room type.
Top Ten Accounts: Lists top accounts by individual, group, and commercial categories.
Comparative Record of Occupancy from Competitive Hotels (Operations report): Compares occupancy rates and average rates with competitor hotels.
Types of Account based on Source of Business: Includes commercial accounts, local travelers, groups, walk-ins, travel agencies, seminars/conventions, airline crew, and balikbayan.