country inns & suits

7/30/2019 Country Inns & Suits

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Standard Operating Procedure

Food & Beverage Service

H & G Hospitality Group

FRONT OFFICE

STANDARD OPERATING

PRODEDURES MANUAL


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1. Staff will not tell customers to contact other departments but will make these

contacts on clients behalf.

Special requests are opportunities to reestablish our image as a competent hotel preparedfor unique preferences and choices. Some of the requests we might get are listed below:

TYPE OF SPECIAL REQUEST

DIRECTED TO (Dept)

HOUSEKEEPING (Extn:)REQUESTS REQUIRED TIME REMARKSBaby sitterHeaterHot water bagThermometerFlowers DecorationFlowers Boquet(outsourcing)

24 hours in advance10 minutes5 minutes5 minutes24 hours30 minutes

Check with LM if at a shortnotice

Check cost with LobbyManager & confirm

BELL DESK (Extn:)CourierFilm rollsExtra NewspaperPicture postcards

30 minutes30 minutes5 minutes5 minutes

Film rolls should beavailable with shop, call &check

TRAVEL DESK (Extn.)Car(Without escort)

(With escort)Air tickets(confirmation or new)Training tickets

15 minutes

15 minutes45 minutes15 minutes

24 hours

Check with Lobby Mgr/Travel Desk & confirm


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GUEST RELATIONS/ LOBBY MANAGER (Extn:)Gift wrapping 15 minutes

TELEPHONES/ OPERATOR (Extn:)Speaker phones 10 minutes

BUSINESS CENTER (Extn.)Meeting room

(to confirm/ deny) 5 minutes

BANQUETS (Extn: 1901)Extra chair 10 minutes

CONTRACTEDCell phone charger 30 minutes

TYPE OF REQUESTS (Reception Related)

Restaurants See good food guide at reception/or check withLobby Manager

Places to visit, Shopping Reading File Cellphone Lobby Desk Video Player FOMs Office Doctor Lobby Desk/FOMs Office Trekking & other requests Lobby Desk


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2. There will be sufficient staff to cover 24 hours daily shifts

STANDARD FRONT OFFICE STAFFING:

Room Division/Front Office Manager 01Asst. Front Office Manager/Asst. Manager Front Office -Lobby Execs! Guest Relations Exec. 01Asst. Manager/Public Relations Exec! -Sr. Front Office Supervisor/Front Office Supervisor 01

Front Office Assistant /Reservations Assistant 06Business Centre Executive! Secretary Telephone Supervisor 01Telephone Operator -Bell Captain 02Bell Boy -Pool Attendant 03

TOTAL 15

The Front Desk, Lobby Desk, Bell Desk are manned 24 hours a day. Sufficient staffing isprovided in all the shifts i.e. Morning (0730 hours to 1630 hours), Afternoon (1330 hoursto 2230 hours) and Night Shift (2230 hours to 0730 hours).


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3. There will be a quick, efficient check-i and check-out wit/i individual

queues not to exceed 4 guests.

I. At the time of check in, the front desk must be prepared with a pre-registeredcard, pre allocated room (as far as possible) and all related correspondence.

II. For all regular guests, the guest history should provide the necessary details,billing instructions, etc. This would facilitate a quick check in where only theguest signature is required.

A. All group arrivals are taken towards the L.H.S of the counter, enabling a

corporate /V.I.P check-in at the R.H.S.

B. Regular/VVIP guests can be checked in at the GRE Desk/in the room.

4. Registration cards will be prepared iii advance for all arriving guests and

contain all information available from reservations

All guest history records should be linked at the time of creating the reservation in thesystem to ensure that the pre-registered card has as much information as possible, suchas: credit card number, expiry date, passport no., etc.

Format Attached.


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16. Top VIPs will be registered in their room or suite

I. Arrival time to be confirmed at the time of taking reservation! Reconfirmingreservation.

II. Pre-registered card with guest history (credit-card! passport details, address) tobe placed in the room in a leather folder along with a pen.

III. Ensure that a welcome letter! welcome back letter is placed prior to arrival.IV. Ensure that VIP amenities are arranged in the room well in advance.V. Guest on arrival to be escorted to the room by the LMJ GRE! Reception in-

charge, request the guest to sign the registration card, explain the room features

and check for any tea!coffee!refreshinent requests.

17. If guests with guaranteed reservations or those with confirmed

reservations (arriving before 1800 hours,) are turned away, they will

receive complementary rooms at a comparable hotel, with transport to

other hotel and a long distance call to home and office arranged, at

no extra cost to patron.

Guest with guaranteed reservation (where the payment has been made) should not berelocated. However in case such exigency occurs a dummy bill indicating occupancy androom change should be raised and a paid out released to pay the other hotel.


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18. Guests with confirmed, but non-guaranteed reservations arriving after

1800 hours will be referred to a hotel of comparable quality and rate.

I. The Front Office Manager would decide before l800hrs about any relocation ofguests and plan accordingly.

II. When the guest is to be relocated, a sequence of events must be followed to ensurethat the experience is as convenient to the guest as possible;

A. Before reaching the reception the Lobby Manager should recognize the guest, takehim aside break the news and offer help.

B. Details of all the services /packages offered by all the hotels should be known toextend immediate assistance.

C. One long distance call should be allowed to the guest.

D. Complimentary drink and car drop to be offered.

E. Senior person should escort Guest to the referred hotel.

F. Once the guest settles down, the Lobby Manager should give him a courtesy callabout his stay.

G. Operators should be informed immediately about the same so that all his/hermessages can be diverted to the referred hotel.


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9. Staff will establish & maintain eye contact, smile and greet guest

using guest name.

Even while attending to another call or to another guest, the staff concerned shouldcommunicate through body language and establish eye contact.

Good Morning, Reception, Laxmi speaking, How may I help you?

During the conversation and while ending the conversation guest name must be used to

personalize the conversation.

A CURVE THAT CAN SET A LOT OF THINGS STRAIGHT!


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10. Name, spelling, rate, address and bed type will be reconfirmed. Upgrade

will be explained, when offered.

On guest arrival a pre registered card is offered.

I. For all guests using, hotel for the first time reconfirm the name spelling, forexample Mr. Gupta kindly guide us on the spelling, Sir.

II. Establish preferences for room type:

You prefer a room near the elevator, Sir, with a king-size bed

III. Confirm rate charged for segment:

We are pleased to extend a X% discount on our published tariff of---, Sir.

IV. In case of an upgradation

Script:

Mr. Singh, we do not have the type of room you have been booked for, however wewould like to accommodate you at The Residence, our deluxe floor at the same price.

May I escort you to The Residence, sir.

NOTE: Do not use the word UPGRADE during the conversation, as the hotel is not in aposition to deliver what it had promised.


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15. All guests will be roomed as soon as possible. A System to identify and

welcome first time guests should be established

Rooms for corporate and first time users must be pre allocated based on arrival time toensure quick check in.

Identifying first time users is very important, as these are opportunities to create firstimpressions.

When Regional Sale Office/Sales office informs about a guest visiting us for the firsttime or we can establish first time usage:

I. AT RESERVATIONS

A. Pick up clues that indicate first time usage, for example

Where is the hotel located?Distance from the airport?Type of rooms?

B. Confirm, Sir, is this your first visit to our hotel? or Mr. Sharma is this Mr.Gupta first visit to our hotel?

C. Indicate in the remarks column, 1StVISIT, SPL. ATTN

II ON ARRIVAL (On check in or while escorting the guest to the room)

A. If the guest inquires about our restaurants, business facilities, type of rooms, thenconfirm 1st time usage.

B. Check purpose of visit, if business traveller introduce Business Centre, meetingrooms, etc. If leisure traveller introduce F&B, Recreational, Health Club and Pool,

etc.


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11. Quick check out facility will be offered

I. Departure time would be ascertained at the time of check-in by the Front OfficeAssistant and entered in the system accordingly.

II. Airport drop request conveyed to the Lobby. Manager and marked on the GuestRegistration card.

III. Expected departure list will be printed by the night/morning shift.

IV. Reconfirm departure date for those pending

V. FOO/Bell Desk / Minibar to be given a copy of the same.

VI. Airport drop consolidated sheet to be made and approved by the ReservationManager.

VII. Handed over to Travel Desk/Security as pet- requirement.

VIII. On guest request for a check out, bell desk to be informed for luggage to bebrought down and cashier regarding the bills.

IX. Bell-boy to inform regarding minibar - to be approved.

X. In case of airport drop cal-/taxi to be arranged at the porch while the guest checksout.

XI. feedback form to be taken by FOG / Reception I GRE in co-ordination.

XII. Guest to be escorted to the main porch by Lobby Manager / GRE / FOA. Have acomfortable flight.

Hope to have you back with us soon.

12. Guest will be asked for next destination & offered a booking atA Hotel.

Reception and Reservations staff to be well versed with the facilities offered at otherlocations of A Hotel in India (Entry Point Training)

Special feature I packages to be taken up regularly in the briefings conducted. Reservation to inform the Front Desk regularly regarding the sold-out dates. Next destination column to be updated and instant confirmation at to be offered.


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13. No guest will wait for more than 3 minutes to a complete check-in

At the time of check in, the front desk must be prepared with a pre-registered card, pre -allocated room (As far as possible) all related correspondence

I. For all regular guests, the guest history should provide the necessary details,billing instructions, etc. This would facilitate a quick check in where only theguest signature is required.

II. All group arrivals are taken towards the L.H.S of the counter, enabling thecorporate /V.I.P check-in at the R.H.S.

III. Regular/VVIP guests can be checked in at the GRE Desk/in the room.

14. Any guest waiting for their room will be correctly advised as to tile length

of wait. They will be shown to a comfortable p and offered free

refreshments, alcoholic & non-alcoholic. Bell staff will store luggage and

coats. When the room is ready, the guest will be advised immediately and

escorted to room.

Script:

Mr. Gupta, I am sorry we would require ---- minutes for your room to be ready. MayI offer you a cup of tea /coffee while it gets ready.

I. Escort the guest to the-coffee shop, ensuring that a bellboy is handed over theguest luggage.

II. Inform Coffee shop Manager and Lobby Manager to ensure an EDM is raised forthe refreshment.

III. Make sure that room is allocated in the time span mentioned and escort the guestto the room, apologizing once again for the wait and thanking the guest for

cooperating.

Mr. Gupta, I am sorry we kept you waiting, may I escort you to your room Sir.Thank you for our cooperation.

IV. Coordinate with the belldesk to have the luggage placed in the room.

V. Enter the information in the guest history.


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5. Guest history records for all individual guests will be checked for

personal preferences.

Guest relations calls guests on a daily basis and feedback is recorded on the GuestCourtesy Call Sheet and Guest Service Recovery Module. The feedback is informed tothe Front Office Manager daily who updates other HODs regarding their relevant points.

Any special requests I complaints are updated in the guest history for future reference.Format: Guest Courtesy Call Sheet & Guest Service Recovery Module Sheet.

6. Staff will ascertain if guest is on any rate package

At the start of the morning shift all guest on corporate or travel agency packagesare referred to.

In case of a missing rate /authorization billing letter from the company/travelagency voucher, a consolidated list is given to reservation for their follow up.

The same is up dated and handed over to the reception shift-in - charge. Check relevant formats / documents.


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19. All turned-away guests will receive pick-up arrangements the following

day, VIP treatment, letter of apology from the General Manager and room

upgrade (suite, nice touch (if available)

I. A senior person should go to the hotel to receive him along with a bouquet offlowers / cake/ bottle of wine/ cookies/ chocolates and the room key.

II. Car pick-up shall be arranged, with uniformed chauffeur.III. FOM to welcome the guest back to the hotel.IV. GMs letter of apology to be placed in the room.V.

Guest to be upgraded if possible.

VI. All relevant departments have to be informed for SPL. ATTN.

20. When possible, registration cards will be supplied to the agent prior to

arrival for completion

I. First visit:

A. Reservation should ensure that naming list and passport details are arranged prior

to group arrival.

B. The tour leader /agent would be offered the registration card and rooming list prior

to arrival for room allocation.

II. Second visit

A. Reservation to indicate in the remark column whenever- a group has a

second visit.

B. Reception should ensure that rooming list /passport details are retained.


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21. Groups and crews will register iii a different check in area, located

away from main reception.

I. Based on arrival time, group keys to be prepared & kept separately along withrooming list / arrival card I Key Card.

II. Must take details of meals I wake up call or any other information which may berequired by hotel / group members. (FORMAT EXISTING)

III. If rooming list received prior to arrival, rooms should be blocked accordingly anda copy of the list should be given to bell desk. case of last minute change in room

number, bell desk should be notified.

IV On second visit of the grouprooms blocked as per first visit, take out passportdetails, check on programme if any

V Tour Leaders Room to be blocked & noted as per - previous TA request.Welcome letter and VIP amenities to be placed prior to arrival.

VI. Groups to be checked in on the le1 and side of the Reception or GR desk (for VIPgroups and crews). All corporate and individual FITs to check in on the right handside.

VII. All VIP groups or in case of special request Arti / Tikka / Traditional welcome byGRE / Reception to be provided. Check in to be taken at GR Desk.


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23. Final rooming list will be give to bellboys within 10 minutes of arrival

I. Reservation to request for a rooming list along with the travel agency vouchers. Incase of more than one visit, the remark column to mention See 1st visit on_______to facilitate reception staff to maintain the records for the next visit.

II. The room numbers to be pre-allocated and keys kept separately prior to grouparrival at a separate counter.

III. Amendments if any need to be done within 5 minutes of group arrival afterdiscussion with the escort I group leader.

IV. For second visits rooms can be pre - allocated as per 1St visit status.

24. All phone calls will be answered before 4th ring, using standard script and

guest flame.

Standard Script:

Good Morning, Reception, Dimgla speaking, How may I help you?

I. During the conversation and while ending the conversation guest name must beused to personalise the conversation.

II. While handling one telephone, politely if another phone rings inform the guest tohold, pick up the other telephone within 3 rings. Inform the guest that you arespeaking n the other extension, give option of holding the line or calling back theguest.


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7. Rooms for guests wit!, special requests will be allocated

At the time of room reservation guest preferences should be confirmed, for example, eastfacing / west facing /pool facing, corner room, near to the elevator, twin beds etc. Thesame should be updated on the LAN. Guest relations while pre- blocking rooms for thearrivals keeps these preferences in mind. These preferences are also updated in guesthistory where relevant.

8. All rooms will be allocated on a priority basis regardless of rate.

I. At the time of Reservation room preference should be taken along with thearrival time and flight details and maintain accordingly in the system.

II. Rooms to be reserved for groups / crews etc in order to have a correctinventory for corporate arrivals of that day. Corporate / VIPs to be reserved forsuperior & twin rooms to be allocated accordingly

III. (KG king-size bedroom & TW for twin-bed room) - to be approved.IV. This inventory would also indicate the variance in Room Reservation. In this

situation, deluxe room should be sold. (Upselling)V. Morning shin at the Reception to take out arrivals of the day based on

Expected Arrival Time.VI. The arrivals for evening / late evening should also be blocked based on

Expected Departures (departure time) of the day.VII. Guest preferences / remarks to be updated based on in the guest history /system.


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25. Voice messaging will be offered when caller cannot be connected.

Automated voice-mail facility is available in all the guest rooms.

I. The receptionist will inform the caller that the guest is not in the room and has notleft a message with the reception.

Sir, would you like to leave a message on the answering machine?

II If yes, connect to the answering machine and the voice prompt will guide himfurther. If declined, a handwritten message is taken in duplicate on the messageslip with complete details.

III. One copy is put in the key slot and other delivered in guestroom within 10minutes.

Printed message - Not applicable yet being processed.

A. In case caller wants to page the guest, the reception will assist in paging the guestthrough the Bell Desk.

B. Use Ball Point pen only.

C. The Message pad carbon must be replaced daily.

D. Message must be written in capitals.

E. Always take message in duplicate copies.

F. Listen carefully to the caller.

G. Repeat message especially phone numbers.


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26. Front office assistant will verify guest name and room number beforeissuing duplicate keys.

Script: To ascertain the guest is issued key for the right roomnumber

Sir, may I have your name please. Check for the room number in the computer and then issuethe keys accordingly.

27. Receptionist will always reconfirm rate to guest requests for a room

change.

______________________________________________________________________________

Guest will always the informed in writing if his room rate is being changed.

Update the registration card Request the guest to re-sign.


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28. Disabled guests will be noted on all in-house guest list, and switchboard

and security will be advised in case of emergency.

When prior information is available that a disabled guest would be checking in, a note should besent out mentioning the disability of the guest to concerned departments namely: -

Telephone Exchange Housekeeping Security Room ServiceTo ensure special attention. The following format-is recommended


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HANDICAPPED ROOM (Room No.)

We have one wheel chairs at AHotel in case of use by handicapped people. The guest room door has 32 of clear opening width. The key to the guestroom door is easily operable by one hand without tight gripping or

twisting. A person sitting on a wheelchair can reach the height of the lock

The door to the bathroom is a swinging door and provides 32 clear opening width. It alsoprovides turning space, in case of moving the wheel chair.

The faucet is operable with a closed fist. The toilet seat is 17to 9above the floor. And there is adequate maneuvering space in front

of and beside the toilet.

There is a hand held shower on a hose in the bathtub and the shower control is operable witha closed fist.

The air conditioning controls, light switches, television and individual lamp controls arewithin easy reach of the person

Drawers are easily operable by one hand without tight gripping or twisting.29. Front Office Manager will contact 5 non- VIP guest daily to check [ hotel

services meet their requirements. Shortfalls will be relayed to appropriate

departments and guest contacted following day to double- check status of

problem.

Guests are met and their feedback recorded during:

Met on Arrival

While Escorting Courtesy Calls On DepartureThis feedback is recorded at tile Lobby Manager / Guest Relations Desk to avoid any overlapand to ensure smooth follow The shortfalls are immediately reported to the departments alongwith an updation in the guest history.


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30. Staff will smile & establish eye contact, greet and ask for guest name

rather than room number. Guest will be asked if he enjoyed stay, and

comments will be passed on to appropriate departments.

_____________________________________________________________________________

Script:

Good Morning, Sir. May I have your name pleaseT

How was your stay, Sir?

If he says yes:It was our pleasure having you here, Sir. Your feedback I very valuable for us, Sir.If he says NO:I am very sorry to heai- that, Sir. Was there anything in particular that caused discomfort?

I will report this to my manager, Sir and we will ensure this does not happen again.

- Enter the information the Guest Service Recovery Module.

31. Late check-out will be authorised, without any extra charge, for fit Guestsuntil 1800 hours, based on space availability and agreement with the front

office manager, prior to guest request.

______________________________________________________________________________

Whenever departure time / flight details of the guest are known, provision for late check outshould be considered. On guest arrival/check in, confirm:

Mr. Matthews, since you would be flying by Swissair, we have extended your check-out

On acceptance of the off ensure time validity on registration land for a late check out ANDmention the departure tune in the guest folio in the system and on the registration card.


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32. Outstanding message and mail will be checked for the guests

________________________________________________________________________

I. Pre-Arrival

For confirmed reservations, a note is made in the remark column in the guest reservation. Thisinformation is entered in the Guest Message register at the reception.

FORMAT

On arrival, the message is handed over to the guest and the same is mentioned in the register.

II. During guest stay

Check if the guest is in the room. If not, send a message informing the guest.

Kindly contact the reception - A parcel received for you at 1800 hrs. Akash Singh.

III. On Departure

If a guest leaves a parcel to be collected by some one, then check for the following details:

A. Sir, When would Mr. Joy Arora be collecting the parcel?

B. Address and phone number should be taken while taking deliveries.C. Also confirm as to what should be done if the person does not collect the same in the

stipulated time.D. All messages/mail /parcels should be entered in the register.E. In case of a forwarding address or information, the message should be forwarded within

one week.F. Perishable items should be disposed depending on shelf life or after 1 week.


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33. Luggage assistance will be offered.

______________________________________________________________________________

When the guest calls up regarding his departure, inform bell desk to provide luggage stanceimmediately.

SCRIPT: May I send a bellboy to bring the luggage down now, Sir?Check for number of pieces of luggage and inform the bell-desk accordingly.

How manypieces of luggage are there, Sir?

Would you require a transport to be arranged for you, Mr. Mittal?

34. Guest will be thanked for choosing AHotel and invited to return.

______________________________________________________________________________

SCRIPT

Mr. thank you for staying with us/ we hope you had a pleasant stay. See you again soon, Sir.orMr. Singh, we.stay. When do we see you again sir?

orMr. Singh, we. stay. Have a nice journey, Sir.


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35. No guest will wait more than 8 minutes to complete a check-out.

______________________________________________________________________________

I. Departure time should be ascertained at the time of check in.II. Morning shift to refer to the expected departures of the day to ascertain departure time

where no mentioned. If the guest mentions any other departure date, confirm departuretime and amend details in the system accordingly.

III. Inform Bell Desk /cashier / [& Mini bar?] regarding expected departures of the day.IV. Belldesk to offer luggage assistance closer to the departure time.V. FOC to process billing closer to departure time.VI. While the guest is waiting for billing process GRE/Reception to check for feedback

Thank the guest for staying with us.

36. There will be atleast 4 incoming telephone lines and four in-house

telephone lines, with call hold, transfer capability and one facsimile

capability.

______________________________________________________________________________

Reception counter has two telephone connections with DIGITAL MULTI KEY TELEPHONEinstruments. These telephones indicate guest name and room number OII receiving a call fromroom ext or the extension number in case of an administrative extension. . The instrument haskeys facilitating calls to be put on hold or transferred to any extension numbers.


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37. Guest name display part of telephone system

______________________________________________________________________________

As soon as a check-in is shown on the computer, the time and the room number gests displayedon the DMKT telephones. While receiving calls from the guestroom guests must be addressedby their names as Mr. ______________ or Ms__________ in order to personalize theconversations.

38. Voice-mail service for guests

______________________________________________________________________________

The telephone instruments installed in the guests room have voicemail facility. A caller canleave a message in the automated voice mail guided by the voice-prompt.

VOICE MAIL SYSTEM

Pick up the handset/ hand free dial.

Press /Retrieve messages button.

Listen to voice prompts and access the listening option by pressing _____

To retrieve messages press_____.

To review messages press ______.

To delete messages press ______.

After listening to your messages press _____ to exit.

Put handset back/press HF dial.


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39. Computer screen and printers

_____________________________________________________________________________

To Computers for checking in guests and handling queries are installed at the reception. Thesecomputer are on LAN and have updated information regarding room reservations. All generatedby the reception are printed at the spooler located at the reservations.

40. Leather writing pads and quality pens.

______________________________________________________________________________

To Be Developed


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41. Accepted credit cards.

Credit Cards accepted by A HotelI. MasterCardII. VISAIII. AMEX (American Express)IV. Dinners/ Citibank cardV. Can Card (Canara Bank)VI. BOB Card (Bank of Baroda)

42. Airport tax

Applicable while leaving from India on departure at the airport. Rs._______have to be paid the

airport authorities.For SAARC Countries (Bangladesh, Srilanka, Pakistan, Bhutan, India & Nepal) Rs.________has to be paid. This amount is payable in Indian Currency only.However sometime this amount is billed in the airfare itself.


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43. Tariff Card

Available for the guests at the reception and in the rooms to offer current tarrif and facilities of

A Hotels. Explain address, location, rates and validity, taxes, facilities, services and sales-

offices contact numbers/ addresses.

Format Attached


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44. Office amenities

RECEPTION PAR

STOCK: (WEEKLY)

S. No. Item In Hold Stand by StockNormal

Stand by StockPeak

1 REGISTRATION CARDS 1 2

2 ARRIVAL CARDS 2 5

3 MESSAGE PAD 6 12

4 MESSAGE PAD (EXPECTED) 3 35 SCRIBBLING PAD 1 1

6 INDEX FILES 2 2

7 FLAT FILES 3 5

8 PLASTIC 3 3

9 KEYCARD (WITH THREAD) 3 6

10 KEY PASSPORTS 2 4

11 SCOTCH TAPE 2 2

12 BROCHERS 25 50

13 ENVELOPES 24 50

14 ENVELOPES (PLAIN, SMALL) 2 4

15 BROWN ENVELOPES A4 SZ 24 8016 LOG BOOK 1 1

17 REGISTER (SMALL) 1 1

18 PLAIN SHEETS A4 SIZE 1 1

19 C-FORM BOOKLET 5 10

20 MEAL COUPONS (WHITE) 3 5

21 MEAL COUPON (BLUE) 5 10

22 STAPLE PINS 5 5

23 WAKE-UP CALL BOOKLET 2 3

24 MOVEMENT SLIPS 3 3

25 SCALE (12) 1 126 ERASSER 1 1

27 MATERIAL REQUISITION 1 1

TOTAL 137 271


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45. Log books

A logbook is kept at the Lobby Desk and the Reception, which is entered by each shift to pass onany relevant information to the next shift.

Lobby Logbook

This contains the closing of the previous business date, which is entered by night shift. Besidesthis, each shift enters any follow ups to be done for the day I by the next shift r bills on hold,special amenities to be provided, rate check, messages to be passed on etc. Group schedules -wake up calls, departures etc are also entered in the logbook. It also contains a record of VCP,VCR, videocassettes and cell phones and information regarding new corporate rates, new billing

instructions etc.

Reception Logbook

The closing of the previous business date and the groups expected the night shift enter the nextday. Besides this, any messages and packets in hold are also entered in the logbook. Each shiftenters any followups to be done by the next shift. E.g. date checking etc.

Handover format to be attached (As per manual).


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46. Electronic lock systems

SUMMARY OF THE SYSTEM FUCTION

Each time the reception check-in a guest, a new key card can be made by using the mputerizedencoding system.

The guest slides his card on the lock of his room, activating the lock and accessing the room.

The following information are encoded on the card: room number, day and hour of the check-out. The card can open until the expiry time is reached.

It is possible to encode cards for operators, staff and other with particular functions.

SUMMARY OF THE SYSTEM FEATURES

In order to access the encoding system, and operator card with the appropriate personal passwordis required. This allows only authorized operators to issue cards.

The system operates with re-codable magnetic cards.

Lost guest card can be easily replaced. In this way it is not necessary to replace the mechanicalcylinder, which is the only way to keep security in the mechanical systems. Sliding a new guestcard on the lock will invalidate the previous one.

The guest card, which is the same size of a credit card, can be kept by the guest conveniently,and does not require to be deposited to the front desk each time the guest leaves the hotel orcheck-out.

The electronic locks operate independently from each other without wiring connection and arepowered by common alkaline battery.


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47. Hotel information file

Available At the Reception

48. Registration cards system

All arrivals of the day are registered by the night shift and are placed serial number wise (as perthe arrival list) in the an index leatherbound file. On guest arrival, the registration card can beaccessed as per the serial number.

If the cards is not used/ void and enter the cards in the arrival departure register.


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49. Registration cards rack holder by room, floor.

NineRacks Floor wise is installed at the reception, the registration card is placed in individualfolders and kept in the slot for easy access. All bills and folios related to the guest are attached tothe registration card.

Registration Cards of upgraded guests are also placed at the Front Office Cash.

Note: Numbers in the rack, which are not serial wise, should be checked when renovating.


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51. Welcome pack

To Approve

52. Note block with hotel name, address, facsimile and telephone number.

Available at the reception. Website to be included.


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52. Pre-printed pad for hand-written messages

Format

54. Pre-printed facsimile form for guest use

Format


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55. Next destination at AHotel booking confirmation.

I. Guest will be asked for next destination & offered a booking at A Hotel ifavailable or can arrange for other A hotel.

II. Reception & Reservation staff to be well versed with the facilities offered atother cities or locations in India (Entry Point Training).

III. Special features/ packages to be taken up regularly in the briefings conducted.IV. Reservations to inform the Front Desk regularly regarding the sold out dates.


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57. There will be dedicated reservation staff during normal business

hours.

RESERVATION STAFFING:

Reservation Manager/ Assistant Manager Front Office [01]

Senior supervisor Reservations [01]

Reservation Asst [03]

The Reservation staff works during the normal local business hours i.e. 0900-1800 hrs.extending upto 2000 hrs depending on work exigencies. After 2000 hours, the callsshould be transferred to the reception. Zero dual should be locked.


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58. All front staff will be able to handle reservations, thus extending 24

hour service.

I. RESERVATIONAnswer all calls with the standard scriptGood Morning, Reservations, Pawan speaking, how may I help you

On general enquiries for room bookings:On which date would you be requiring the reservation?

If rooms are available;Mr. Singh, it would be our pleasure to offer you the room/ rooms. May I have the guestname please?

May I note down Mr. Gupta nationality please?May I have his flight details please?What would be the expected date of departureWould the guest be paying directly, Mr. Singh

If the caller mentions that the bills have to be sent to the company, check credit policy

If the company is on the credit list:May I request you for a billing letter authorizing us to forward the bills to yourcompany?

Take down the booking makers telephone & fax number:Mr. Singh, may I note down your phone number, your fax number, please?

End the calls by reconfirming all the details by reading them out to the callerSir, May I repeat the reservation, - ___________________

Thank the guest before disconnectingThank you for calling, Mr. Singh Have a nice day/ pleasant evening.

II. CANCELLATION

When the caller announces that Mr. MITTAL has cancelled his trip/ planMr. SINGH, May I have Mr. MITTAL full name please?


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59. Caller will be greeted with a welcoming voice.

I. All calls to be received before 4th ring using the standard script.

Reservations, Good Morning, XYZ speaking, How may I help you?II. Workshops to be held regularly for employees for acquiring the attitude and basic

skills required for handling the telephone. To be conducted by Training & FrontOffice Managers.

III. Briefings to emphasise on feedback from managers/ supervisors & colleagues.

IV. Regular audits to be done through phantom calls & scores to be put on the noticeboard, shared in briefings.

FORMAT

Area _______________________

Call picked up in how many rings _______________________

Courteous _______________________

(Name used/ Listening/ Concluding/Disconnect Sound happy/ Personal

Cheerfulness- enquiry) _______________________

Attitude _______________________

Skill Level _______________________


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60. Staff will be able to list all hotel facilities, and be familiar with software

and telecommunication techniques. They will also have current

information on credit policy and all hotel services available for reference.

I. Computer system at Country Inn & Suites by Carlson, has a IDS/FIDELIO

software package.

II. LAN i.e. Local Area Network which operates between all departments of all hotel.

The Reservation, Reception (Front Office).

III. The software provides various MIS (Management Information System) reports.

IV. There are various modes to access the software department wise e.g. Login Front-

for Front Office.

V. E-mail is also centralized through LAN.

VI. AHotel hotel website is available on internet. (www.a-hotel.in). This provides

guests all over the world to know about and their feature in India.

VII. Business Center rates for Internet for guest are

A. E-mail servicesEmail address to Email address

Rates:

Email: Rs.__per mail./ Rs. ____ for an attachment

B. Internet Rs. ______ per hour.

THINGS TO REMEMBER WHILE EXTENDING CREDIT

I. No credit is to be extended to any company until approved by the Sales &

Marketing Manager, who sends out a letter to that effect. This is then okayed by

the Financial Controller/ General Manager and the credit is okeyed.

2. Credit for a No Credit Listed company can be approved on an adhoc basis by

A. Sales & Marketing Manager
http://www.a-hotel.in/http://www.a-hotel.in/http://www.a-hotel.in/http://www.a-hotel.in/


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B. Financial Controller

C. Front Office Manger

III. Companies who are not on the credit list can only pay by the following ways:

Cash

A. Credit card

B. Demand Draft

C. Personal cheques are not accepted

IV. There is a Credit Meeting held every fortnight. This meeting is attended by the

General Manager Financial Controller Sales & Marketing Manager Front Office Manager Reservations Manager Credit Manager F&B Manager Banquet & Banquet Sales Manager Sales Executives

The main points discussed in this meeting are:

Outstanding Blacklisted companies Outstanding collection follow up

V. The following files are maintained at the Reservations for reference by anyone

who should so require:

Credit Listed Companies File No Credit Listed Companies File


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62. Staff will be aware of hotels fit yield policy and will be able to

react to guest and hotel requirements.

FIT YEILD POLICY

What is yield?

Yield is an evaluative technique to maximise room revenue or in other words profit.To achieve high revenue/profit the right combination of pricing and allocation asdepending upon the demand and supply conditions. e.g.

High Demand-Low Supply - Increase ARK, only high priced bookings can be accepted.Low Demand-High Supply - Increase occupancy. High volume bookings can be acc

Forecast information can be controlled in these ways through yield management

I. Capacity Management: Control of room supplyThis may be done through:A. Selective overbooking i.e. overbooking by room typeB. Predetermination of the number of walk ins to takeC. Monitoring the available capacity of other hotels.

II. Discount Allocation : Allocate discounting based on the demand for that roomtype in the given period

A. Protect enough rooms that may be sold at a higher rate to satisfy the demand atthat rate while at the same time filling rooms that would otherwise have remainedunsold.

B. Encourage upselling depending upon the price elasticity of the market.

III. Duration Control

A. Control reservations based on duration of stay i.e. on a high occupancy date,maximise yield by accepting multiday stays rather than one night stays.

B. These strategies may be combined to give the desired yield. e.g. A 3 night staymay be on a discount whereas a one night stay may be on rack rate.

IV. Potential High Demand Tactics

A. Determine the right market segment mix in order to sell at the highest possibleroom rates.

B. Monitor new business bookings and close out low room rates


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C. Fix a number of rooms to be given to walk- ins only.D. Establish a minimum number of nights per stay.

V. Low Demand Tactics

A. Design a flexible pricing policy well in advance in anticipation of low demandperiods.

B. Closely monitor group bookings and trends in corporate travel.C. Solicit price sensitive groups through lower rates.D. Maintain high room rates for Walk ins.E. Consider upgrading in order to build value.


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63. Automatic call sequencing system in hotel will switch to queue incoming

calls amid advise these caller that next available agent will respond

Hunting Facility Introduced

64. All calls will be answered before 4th ring, using standard script, and

guest name, if known. Callers will not be rushed or made to feel.

All calls to be received before 4th ring using the standard script.

Reservations, Good Morning, XYZ speaking, I-low may 1 help you?Workshops to be held regularly for employees for acquiring the attitude and basic skillsrequired for handling the telephone. To be conducted by Training & Front OfficeManagers.Briefings to emphasise on feedback from managers / supervisors & colleagues. Regularaudits to be done through phantom calls & scores to be put on the notice board, shared inbriefings.


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65. The possibility of full pre-registration check-in will be offered

At the time of taking guest reservation all the relevant details should be taken in order tofacilitate a speedy check-in. detail like guest name, first & last name, designation and companydetails, arrival date and time, flight number, departure date and flight number, room requirement& preference, billing instructions, any airport assistance, transfers required.

One all this information is updated on the system, all this information can be pre-registered on tothe registration card and the guest only needs to sign the card at the time of check in. this notonly increases efficiency, but also leaves a perfect first impression.

66. Calls will be concluded by a reconfirmation of booking details and thanks

for choosing A/Hotel

After making down the reservation always and the call by reconfirming the details;Mr. Malhotra, may I reconfirm the details please Mr. Gautam Kaul arriving on 10th May by IC-404, departure on 11th May at 2pm; Airport transfer not required. He would be settling his billsby credit card.Thank you for calling Sir.


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Staff will confirm or deny all airlines and travel agent reservations within two office

hours.

_________________________________________________________________

The Reservation jobs have been allocated individually. Moreover the entire team has

individual printed confirmation formats. As soon as a corporate reservation is taken, all

confirmations should be faxed to the booking maker. For all out station and overseas

reservation e-fax should be sent to save on cost

There will be atleast 3 incoming telephone lines and 2 in-houses telephone lines, withcall hold, transfer capability free-hand option, if possible)

_________________________________________________________________

The reservation department has _______ extensions, _______/ ______/______and ________.

The telephones are XYZ models with options to hold, transfer and redial facilities. In order to transfer a call to an internal extension number press flash button

followed by the extension number.

Zero- dialing must be locked at the end of the working day.


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Facsimile and photocopier facility.

_________________________________________________________________

To Process

Automatic call distribution system

Hunting facility ensures that if an extension is engaged, the call gets forwarded to the

next possible free extension.

For e.g. if"A" is busy, the call will be transferred to B automatically.


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71. Computer terminal & printer (as is system)

_________________________________________________________________

Reservations has 2 computer terminals. Attached to one fax/main printer.

72. Filing system

____________________________________________________________________

Once the reservations are registered or updated in the computer system, all the records

are maintained date wise in the filing cabinet. The cabinet comprises essentially of two

shelves. The top shelf contains --- files. One for each date for the current month. The

bottom shelf comprises of --- files for the subsequent month.

Records for the following months are filed in one file for each month.


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73. Wall mounted notice boards.

_________________________________________________________________

Information about the following would be put up

Promotions Festivals Interoffice memos Notices Days Follow ups Occupancy Forecasts New Corporate Accounts

74. Pictures of all room types will be documented.


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75. An up-to-data listing of corporate accounts, special flyer programmes, special

promotions and hotel wholesaler tour operator contracts will be readily available to

reservation agents.

_________________________________________________________________

Any information related to promotional activities such as special packages

(summer/weekend) or suite promotions is displayed on the notice board. This information

is also shared in the briefings.

Internal notices

_________________________________________________________________

Format

Correspondence amenities with hotel address, telephone and facsimile number

_________________________________________________________________

Website to be included. Being processed.

"Full pre-registration" application forms

_________________________________________________________________

Being Processed.


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Revenue

Management

Training


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What is Revenue Management?

_________________________________________________________________

Learning Objectives

As a result of this module you will be able to

Define Revenue Management Understand its widespread uses throughout various industries, and its importance

in the hotel industry.


List some ways that your hotel practices Revenue Management

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________


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_________________________________________________________________

REVENUE MANAGEMENT DEFINED:

Knowing and understanding your customers in order to accurately forecast demand, thus

enabling you to

- Sell the right rooms- At the right price- To the right market segment- At the right time- At the right length of stay

In order to Maximize Room Revenues!

KNOWING YOUR CUSTOMERS AND ACCURATE DEMAND FORECASTING

ARE THE KEYS TO EFFECTIVE REVENUE MANAGEMENT:

List some other industries and how they practice Revenue Management

Name of Industry How They Practice Revenue Management

What is the foundation they all have in common?

________________________________________________________________

________________________________________________________________


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Learning Objectives

Upon completion of this module, you will be able to

Define RevPAR Understand why occupancy and average rate alone are not a true measurement of

success.

Calculate RevPAR

For many years, hoteliers used only once factor to measure their success. Some arguedthat the occupancy of a hotel told the story. Others said that the average rate was the

magic number. But consider this: What if a hotel was running 89% occupancy year to

date? What if the same hotel was running 89% occupancy but had an average rate of S39.

The problem with using just one factor, is you are not considering the important other one

Occupancy is an incomplete measurement because it fails to account for lostrevenue due to unsold rooms.

RevPAR blends both occupancy and average daily rate.

What does RevPAR stand for?

1. 2.


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RevPAR Index

_________________________________________________________________

Based on the (fictitious) RevPAR's identified on the previous pages. Calculate the

RevPAR Index for the following hotels.

Hotel RevPAR RevPAR Index

Country I&S $41.88 _________

Hampton Inn $51.52 _________

Fairfield $36.57 _________

Holiday Inn $39.42 _________

Clubhouse $36.29 _________

Residence Inn $47.70 _________

__________

Competitive $42.97

Set

Which Hotels are achieving more than their fair share? ___________________

_________________________________________________________________

_________________________________________________________________

Which Hotels are achieving less than their fair share? ____________________

_________________________________________________________________

_________________________________________________________________


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What is a Point of RSI Worth?

Why is RSI so important? You may not realize have much a 1 point loss of RSI willcost your hotel. Remember this is a measurement of your market share.

To find out hat a point of RSI is worth to your hotel use your STAR Report and thefollowing formula.

(Comp Set RevPAR * (Comp Set Rooms * Days in Period) / 100 *Country % ofSupply=the value of a point change in RSI for a hotel for the period of time you haveused in above formula.

What you are actually calculating is first the dollar size of the room revenue pie for the

entire competitive set, then what 1% of the pie is, then the country fair share

1

of that 1%of the room revenue pie. This would be the dollar value of a point change in RSI for theperiod of time chosen.

1. Fair Share is the same % of the rooms sales as the Country has of the room supply,so every Country's fair share is different.

The components of the above formula can all be found on different pages of the STARreport.

Comp Set RevPAR - self explanatory. Comp Set Rooms - at the bottom of the YTD or month STAR Report in section

called "Market Sample" You need to use the Census Rooms number (not theSample rooms)

Days in the period - you need to know how many days in a year or a month orwhat ever period of time you have chosen to analyze.

Country % of Supply - This information is on the Trends page of the STAR reportunder Market Share Supply or on the Month or YTD page under Market Share -Rooms Available If the supply percentage is 18.8% then use .188 in yourformula.

It is best to choose a 12-month period rather than perform the above formula on a singlemonth. It might be interesting to perform the calculation on each of twelve (or more)months to see if and by how much the value of a point in share changes from month tomonth.

What is a point of RSI worth to your hotel? _______________________


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The Competition

_________________________________________________________________

The report shares information regarding your competitive set, but in order to successfully

gather statistics, it promises anonymity. In order to determine which hotels in your

market have more than their fair share, it is necessary to uncover their ADR and

Occupancy.

List some ways in which you gather information from your competitors:

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

Competitive Set Worksheet

This worksheet will provide you with the following valuable information

ADR Occupancy RevPAR RSI

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________


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The Black Book

_________________________________________________________________

PACE STATISTICS

Every day you should look at and record, the status of 5 different dates. You willturn 5 different pages in the Black Book

60 days out 30 days out 10 days out 4 days out Yesterday's Actuals

Pace indicates how far out people will book your hotel Pac can vary by season, and day of the week A Pace Calendar is provided at the back of your Black Book

How far out will a customer typically book a corporate hotel?_________________________________________________________________How far out will a customer typically book a reason hotel in season?_________________________________________________________________What conclusions would you make if you were a resort hotel with 20 rooms on the books

4 weeks from arrival?

_________________________________________________________________Assume today is What dates will you complete Pace Statistics for?

___________________________________________________________________________How can understanding your booking pace help you with revenue management

decisions?_________________________________________________________________


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The Black Book

_________________________________________________________________

ACTUAL DATA RECAP

The second page of the book is to record statistics regarding the date. Most of this

information is to be completed after the date has passed.

Avg. Length of Stay

Your average length is stay is calculated by

Segmentation

This area can be utilized to segment your business as you like The number of rooms sold, the average daily rate, and the total revenue for each

segment should be included.

Group Break down

This area should contain information regarding individual groups Provides history regarding block pick up and rate

Competition Information

The status rates and availability of your competition should be recorded hereCommunity Events

Any information that may effect demand such as city wide conventions, regionalevents, etc. should be recorded here.

Comments

Any additional information should be tracked hereToday's Reservation Activity for Future Days

These statistics should be transferred from your call conversion sheet


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Room Statistics Tracking Sheet

_________________________________________________________________

The Room Statistics Tracking Sheet (RSTS) should be used in conjunction with the

Black Book. The RSTS tracks vital statistics by month, and gives you averages by day of

the week, making it a very powerful tool for making revenue management decisions

Among the statistics tracked by day of the week are

No Show Factor (both 6 pm's and gtd') Length of Stay Denials Arrivals RevPar

_________________________________________________________________

_________________________________________________________________


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The Black Book

===============================================================

TOP 10 REASONS FOR MAINTAINING A BLACK BOOK

Help us create a top 10 list

10 ________________________________________________________________

9 ________________________________________________________________

8 ________________________________________________________________

7 ________________________________________________________________

6 ________________________________________________________________

5 ________________________________________________________________

4 ________________________________________________________________

3 ________________________________________________________________

2 ________________________________________________________________

1 Because theyre free!

Contact Worldwide Reservation Services at (402) 498-5006 for your supply!


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Forecasting

===============================================================

Did this hotel maximize their revenues by closing out their discounts for the last 10

rooms?

_____________________________________________________________________

What could they have done differently?

_____________________________________________________________________

How Do I Forecast Demand?

A demand forecast must be done prior to filling all of your rooms When doing a demand forecast ask yourself the following question: If I had

unlimited capacity, how many rooms could I sell?

Demand forecasts can be over 100%A demand forecast may be over 100%. In order to determine which rates to sell, you mustfirst determine how many people you will turn away.

In order to anticipate excess demand, a demand forecast must be done far enough inadvance to maximize revenue and occupancy on shoulder dates.How often should a 9-day demand forecast be done?_____________________________________________________________________

How for out should you forecast demand?

_____________________________________________________________________

This area represents excess

demand. You will turn away

this many guests

100%


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Forecasting

===============================================================

Exercise

Many factors need to be evaluated to prepare an accurate demand forecast. Listed beloware some of the factors that will require research. What information you will be lookingfor, why is it important, and where you will find it?

PACE-

LAST YEAR

PACE-

THIS YEAR

HISTORY

GROUPS ON THE

BOOKS-LAST YEAR

GROUPS ON THE

BOOKS-THIS YEAR

COMPETITION

DENIALS

COMMUNITY EVENTS


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THE ADCS OF YIELD MANAGEMENT

We cannot leave yield management reports on the shelf. They are one of the bestbusiness planning tools a hotelier can have. Yield management cannot generate demand,

of course, but it can show a hotelier markets that might have been overlooked.

Yield management is the business planning tool for hoteliers in the 1990s

and beyond. The computerized functioning of yield management is complex, but the

concept is simple: by using a combination of pricing and inventory control, a hotelier can

maximize profits from the sale of rooms and services.

We should be prepared to build at least part of our operation around yield

management. Some hoteliers have created manager has reporting responsibility and

ownership of the data produced by the system.

With labor costs what they are, it may seem difficult to justify another

senior staff position, yet this is necessary.

Yield management is a new approach to selling hotel space which

involves the entire notel organization. The yield manager must retain a global vision of

the business. He or she should not be involved full-time in any other duty.

The role of the yield manager should be to collect historical data regarding

occupancies over at least a three-year period; check the accuracy of that data against

special circumstances, such as the Olympic Games; and collect pricing information-not

only for our hotel but for our competitors, along with lists of the competitors facilities.

The yield manager also should record special events scheduled for the

future, along with seasonal booking trends. He or she should conduct ongoing checks to

verify results. It should be the yield managers job to find out why forecasts do not

always match actual results. Make sure our yield manager is empowered to call regular

meetings with other senior staff to discuss the results of the reporting process.

Yield management should give us a workable control on overbooking,

based on statistical demand, cancellation and noshow trends.. But, it should not be an

excuse to say no to reservations. Remind reservation agents that any reservation can

quickly turn into a cancellation or no show.


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To maximize yield managements forecasting abilities, we must make sure

reservation agents note why reservations were turned do and make it easy by creating

imple categories, such as: hotel fully booked; price too high; only wanted suites, but

suites sold out. Then use the data in reviewing our sales strategy, segmentation mix and

room types.

The reporting function of yield management also can tell us whether selling

techniques are effective, which promotions generated the best results, whether discounts

were given correctly and how attractive weekend packages were functions have various

audit trails. Reports will tell us exactly how each reservation was captured.

Forecasting should be a major role of yield management. Yieldmanagement should be able to help us find trends in customer behavior, business

evolution and scheduled events. That information will help us forecast occupancy and

plan for times when room sales are slow. (Of course, no system can predict natural

disasters.)

It also should be used to plan backof-thehouse activities that -will

support the expected business volume - including staffing and the purchasing of supplies.

We may want to develop contingency plans that deal with cancellations and noshows,

fluctuations in actual length of stay and even how, competitors will respond to our sales

promotions.

Information an high and low booking periods is essential in controlling

sales to convention groups. The marketing department should work with the yield

manager to maximize not only occupancy, but access to other hotel facilities and services

and anticipated spending power. That should translate into maximum profitability for the

hotel.

Forecasting has limited benefits if we do not-check it against actual

results. If we expect 80Y. occupancy on a certain day and get only 70Y., we must try topinpoint the reasons. Open room inventory should be updated constantly to minimize the

number of unsold rooms each night. Both the yield manager and controller should be

involved in analyzing the variances. Over time, this ongoing analysis should reveal trends

showing why we are missing some business opportunities.

YIELD MANAGEMENT


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Accepting certain business, such group bookings at large discounts can cost any hotel

more than it brings in. With yield analysis, The Sales staff can determine when to accept

a booking and when to turn it down in favor of potentially more lucrative business.

When Measuring sales performance, hotel management wont high

occupancy, others watch the average rate and still others compare actual results to

budget. Managements selection of performance criteria affects the decision making,

priority setting and overall behavior of all departments and units within a hotel company.

Many of the traditional performance criteria employed by the industry today do not other

decisions that are in the best interest of the hotel. The sales department measured by

roomnight productivity, for instance will inevitably accept group business whenever

possible and then be forced to turn away higher-paying, laterbooking individualcustomers.

Yield management, can help a hotel gain on optimum business mix and

meet: its revenue goals.

Reduced to essentials, hotels are in the business of generating revenue from

space. Guest rooms, restaurant seats and function rooms are the scarce resource of hotels,

in much the same way that seats arc the scarce resource of the airline industry.

Managements principle function is to produce, the best possible return, or yield, from the

space available.

PERCENTAGE

The basic yield statistic is a straight forward measure of the effectiveness of

practices and policies applied to generating revenue from room sales. This statistic can be

expressed as follows:-

Revenue RealizedYield = ------------------------

Revenue Potential

Revenue potential is the income that could be secured if 100 percent of

available rooms ore sold at their full rack rates. So, for 300 - room hotel with a $100 rack

rate, the revenue potential is $30,000. Revenue realized is the actual sales receipts. If the


69/98




hotel sold 200 rooms at on average rate of $80, the revenue realized would be $16,000.

The yield would be $10,000 divided by $30,000 or 53.3 percent.

MORE EQUAL THAN OTHERS

.Many combinations of occupancy and average rate could result in the same revenue and

the same yield percentage. Some managers might contend that all the cases of a 53.3

percent yield are not equal. One could assert that the above is preferable for instance,

because the cost of cleaning and heating 160 rooms is lower than any of the alternatives.

Someone else might say that having 300 occupied rooms is best, because a full house

would inevitably mean more revenues in other profit centers such as restaurants, Loungos

and telephones. The manager sensitive to how statistics can create powerful impressionsmight hold that one of the interm alternatives was best, because a full house would

inevitably mean more revenues in other profit centers such as restaurants, lounges and

telephones. The manager sensitive to how statistics can crease powerful impressions

might hold that one of the intermediate alternatives was best, because it would be least

likely to raise a red flag with the owners or at headquarters. In fact, each of the foregoing

arguments has validity. For the balance of this case, we will assume that all combinations

of rate and room sales that produce the same yield are equally desirable to the hotel.

CLOSE COUSINS

The yield statistic is closely related to the industry standbys of occupancy percentage and

average rate. The occupancy percentage of course, is actually a ratio of the number of

rooms sold to the rooms available for sale. We usually express average rate as a simple

dollar figure, but we could also express the average rate as a ratio of actual rate to

potential rate. In case B above, for instance, the average-rate ratio is $88.88 divided by

$100, or about 89 per Knowing that you have an 89 percent rate ratio and a 60 percent

occupancy rate is not especially helpful, until you multiply the ratios together, as shownin Exhibit. So the yield to is closely related to the combination of occupancy and average

rate. The only difference is that average rate is converted into a ratio. But the yield

statistic is a more flexible and consistent way to judge a hotels performance.


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SEESAW

Most seasoned managers know that results like case B (with its dismal. 60-percentoccupancy.) would likely be follow by a call from headquarters or owners asking why

occupancy was so low. In response to this concern, management might relax rate

expectations regarding groups, sell more rooms to economy- mined transients and

allocate more rooms for specially priced packages. I these measures are effective, the

results for the next month might look more like case E, in which occupancy rises while

average rate sinks. The manager then would not be surprised to receive another call, this

one inquiring why average was so low.


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The Point here is that both cases are essentially equal .n term of Revenue and Yield and

they are probably equally profitable for the hotel. By considering yield the Manager

would have a single integrated measure that tracks closely with contribution to

profitability.

EXHIBIT 1

Different scenarios for identical Revenues

Case Rooms Sold Occupancy Average

Rate

Rooms

Revenue

Yield %

ABC

DEFG

160180220

240260280300

53.3%60.073.3

80.086.693.3100.0

$ 100.0088.8872.72

66.6661.5357.1453.33

$ 16,00016,00016,000

16,00016,00016,00016,000

53.353.353.3

53.353.353.353.3

EXHIBIT 2

Typical Yield Calculation

Occupancy Ratio x Average Rate Ratio is the same as:

PotentialRateAverage

RoomsSoldofRateAverageX

SaleforAvailableRooms

SoldRooms

Using case B as an example:

rateaverageimum

RoomsSoldofRateaverageX

SelltoAvailable

SoldRooms

max100$

44.88$

300

180

This calculate as:

Yieldpotentialrevenue

realizedrevenue%3.53

000,30$

000,16$


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Boosting Yield

Managements responsibility is to increase yield. There are two basic yield -managementstrategies, each appropriate for different conditions of guest-room supply and demand.

High demand calls for tactics geared to maximizing the revenue associated with rooms

sold (high rates). Excess supply requires an emphasis on maximum room sales, even it a

lower average rate is the cost associated with these tactics.

A hotels effectiveness in improving yield is based on its infrastructure in the following

four critical areas:

Forecasting Good forecasts of daily rooms demand with a

system for continuous updating;

Systems and procedures Automated systems, rate setting policies,

promotional packaging and specially trained

personnel with sufficient flexibility to adapt to

changes in demand conditions of work.

Strategic and Tactical Plants Cohesive strategies supported by tactics that can

quickly respond to varying demand conditions.

Feedback system Methods to assess the effectiveness of tactics

and provide information vital to personnel

seeking to improve performance.

Forecasting


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The most effective yield-management tactics have a daily, rather than so orientation. For

example, decisions, regarding the vai1ability of packages designed for rate sensitive

markets should be made .for individual future days and not as single policy for all days in

a season. Forecasting must provide estimates of future demand on a daily basis for it to

be helpful in optimizing yield.

Many hotels that make daily forecasts look only at the upcoming 60 to 00 days. Since

most commercial hotels realize the vast majority of transient reservations within a few

weeks of receiving them, daily forecasts with a t. or threemonth horizon would seem

sufficient. But longer-range estimates of transient demand are critical for hotels that do

even a small portion of their business with group segments.

The trade off between group business and transient business is often one of occupancy

versus rate. Groups generally make room commitments far in advance of transients,

thereby boosting known occupancy percentages. But most hotels find that transient

guests, on average, pay higher rates than do groups. Therefore, the displacement of

future, high-rate transient reservations by groups that are paying lower rates must be a

carefully considered decision. This decision takes on an added dimension when one

considers that a portion of the displaced transients will be spending the night at a

competitors hotel. It is clearly imperative to base todays decision on whether to book a

prospective group on forecasted transient demand for the specific days underconsideration. The common s approach of considering all Mondays through Thursdays as

essentially the same often leads to unwise displacement or to empty rooms that could

have been filled.

Forecasts must consider both transient and group demand. In evaluating whether to book

a group two years in advance at a marginal rate, the sales manager must determine the

likelihood of displacing other groups, as yet unknown to the hotel, that might be willing

to pay higher rates.

Computer as forecasting methods can facilitate the necessary data handling and analyses.The risk with in some forecasting models is their oversimplification of the factors

affecting demand. A program that fails to look at the interaction between neighboring

days, for example, may result in misinformation. Taking each day individually, a

program might predict occupancy well in excess of 100 percent on Monday night and 95

percent on Tuesday night. A well thoughtout program would make adjustments in the


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Tuesday estimate to reflect the lack o availability on Monday. If Monday sells out

prematurely, Tuesdays full potential will not be realized.

Systems and Procedures

Daily demand forecasts, regardless of accuracy, are not sufficient to enhance yield.

Policies, procedures and personnel training for yield maximization must be in place to

take advantage of the forecasts and act in ways that enhance the propertys revenues. The

following is a sampling of tactics that cultivate higher yields.

High Demand

When demand is high, a hotel can

(1) restrict or close availability of low-rate categories and packages to transients.(2) requite minimum lengths of stay and(3) commit rooms only to those groups willing to pay higher rates.

Low Demand

When demand is low, a hotel can

(1) provide reservation agents with special promotional rates to offer transientswho balk at standard rates.

(2) Solicit group strees from organizations and segments that are characteristicallyrate sensitive and

(3) Promote limited-availability low-cost packages to the local market.

Through these tactics are not novel, their application in many busy hotels is often loess

than through. In my experience, it is not uncommon to find hotels taking only partial

steps to maximize yield. For example, a hotel anticipating demand in excess of a sellout

might restrict availability of all but the highest rate categories, while inadvertently

keeping open rates for special segments (e.g. government).


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Sometimes the intention is right, but the tactic is off-target, until recently, a major hotel

company had a policy of closing lower rates on a fixed schedule, according to the number

of rooms left to sell. This meant that someone calling for a reservation when there were

300 unsold rooms would be quoted lower rates than another called in

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