Front Office OperationsNotes

Front Office Operations
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B.SC HOSPITALITY AND CATERING MANAGEMENT
FRONT OFFICE OPERATIONS
UNIT I

1.1 Introduction to front office
1.2 Layout of front office
1.3 Organizational set up of front office department
1.4 Hierarchy chart

1.1 INTRODUCTION TO FRONT OFFICE

Front office is also known as the face of the hotel. It is the first guest contact area and also
the nerve center of the hotel. All the activities and areas of the front office are geared
towards supporting guest transaction and services

Front Office Operation:
The major functions that is performed as a part of the Rooms Division Department
are:
a) Reservation, registration, room & rate assignment
b) Fulfills guest services and updates room status
c) Maintains & settles guest accounts
d) Creates guest history records
e) Develops & maintains a comprehensive database of guest information
f) Coordinates Guest Services

The sole priority of the Rooms Division Department is ensuring Guest Satisfaction,
which happens when, guest expectations match what the hotel provides.
In order to achieve Guest Satisfaction, front office department should prepare:
a) Careful designed front office organization chart
b) Comprehensive goals, strategies and tactics
c) Planned work shifts

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d) Well designed job descriptions
e) Well designed job specifications

Guest Cycle
The guest cycle describes the activities that each guest passes by from the moment he/she
calls to communicate a reservation inquiry till he/she departs from the hotel. In fact, the
guest cycle encompasses 4 different stages, which are depicted below

Pre-Arrival Arrival Occupancy Departure

Each stage of the guest cycle is associated guest service, and guest accounting activity.
1. Guest services:
Reservation Registration Occupancy services Check-out and history
2. Guest Accounting:
Establishment of credits Posting charges Night auditing Settlement of
accounts

Below is a description of the activities undertaken at each stage of the guest cycle:

1. Pre-arrival:
At the pre-arrival stage, the hotel must create for every potential guest a reservation
Record. Doing this initiates the hotel guest cycle. Moreover, reservation records help
personalize guest services and appropriately schedule needed staff and facilities

The reservation department should, then, complete all the pre-registration activities
and prepare guest folios (applicable only for automated systems). Doing so will
eventually maximize room sales by accurately monitoring room availability and
forecasting room revenues
2. Arrival:


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At the arrival stage, registration and rooming functions takes place and the hotel
establishes a business relation-ship with the guest.
The check-in clerk should determine the guests reservation status (i.e. pre-registered
guests versus walk-ins). Later, he/she shall prepare a registration record or make the
guest sign the already-printed pre-registration record (under some of the semi-
automated and all fully automated systems).
The registration records shall include the following personal and financial details :
a) Personal information:
1. Name and Surname of the guest along with billing address, telephone number,
and any other coordinates
2. Passport number, birth certificate, and/or driving license number (whatever
applicable)
3. Any special needs or requests
4. Guest Signature
b) Financial information:
1. Date of arrival
2. Expected date of departure or length of stay depending on how the
system in the hotel is designed
3. Assigned room number
4. Assigned room rate
5. Guest's intended mode of payment
6. Credit card details

Registration records can be used for various purposes:
a) Satisfy guest needs
b) Forecast room occupancies
c) Settle properly guest accounts
d) Establish guest history records at check-out [personal & financial information]
e) Assign a room type and a room rate for each guest
f) Determine long-run availability [i.e. reservation information] versus short-run
availability [i.e. room status]

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g) Satisfy special categories of guests such as disabled people through barrier-free
designs

3. Occupancy:

At the occupancy stage, the front office department shall coordinate guest services in
a timely and accurate manner. Moreover, front office staff encourage repeat guests
by paying a great attention to guest complaints. This is ensured by placing complaint
and/or suggestion cards in every public place and revenue centers in the hotel.
Moreover, the hotel shall, at least on a daily basis, collect comment cards, proceed
with their analysis, and provide positive feedback to guest as soon as possible.
In addition, effective procedures are designed in order to protect the funds and
valuables of guests. This might be ensured through guest key control, property
surveillance, safe deposit boxes, and well designed emergency panels andexits.
Guest Cycle under Three Different Systems:

1. Non-automated [manual] systems: This very system is the one characterized by the
sole usage of hands. In fact, all formats, procedures, and different kinds of calculations
are done manually.
2. Semi-automated [Electro-mechanical] systems: This system gets use of some
Electro-mechanical equipment. In fact, under the semi-automated system, each
department might have its own computer system under which it handles all its
operations.
3. Fully automated [computer based] systems: That's the best system ever used in the
hotel industry. In fact, it is characterized by the excessive use of departmental software
package programs integrated and connected to a main frame or terminal situated at the
front office department.

At this stage, it is essential to notice that the following stages of the guest cycle under
the three different systems do not conflict with each other. In fact, the only

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differences are due to the nature of the system use. Therefore, what will be discussed
above is not the repetition of the sequence; rather only differences will be highlighted.

4. Departure:

At the departure stage, the guest is walked out of the hotel. Moreover, front office
staff creates guest history record. Finally, cashiers settle guest account outstanding
balances [i.e.: balance the Guest account to 0]
In general, a proper checkout occurs when the guest:
a) Vacates the room
b) Receives an accurate settlement of the guest account
c) Returns room keys
d) Leaves the hotel

At departure, checkout personnel encourage guests to consider returning to the hotel
on any future date. That's why cashiers acts like a true sales person, and might
eventually accept guest future reservations. That way, the stages of the guest cycle
become really a cycle (i.e. start from where it ends).
If at departure, the guest account is not fully settled, then late charges accumulates.
In such an undesired case, the responsibility of collection lies within the accounting
department, however the front office department shall provide all necessary types of
information to make this collection easier, quicker, and feasible.

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1.2 LAYOUT OF FRONT OFFICE

CASHIER RECEPTION COUNTER
BELL
DESK
LOBBY
MANAGERS
DESK
TRAVEL DESK

BUSINESS
CENTER
E
N
T
E
R
A
N
C
E

RESERVATIONS

TELEPHONES

ADMINISTRATIVE OFFICES
LOBBY

GENERAL MANAGERS OFFICE

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ORGANIZATIONAL SET UP OF FRONT OFFICE DEPARTMENT

Hotel organization structure:
In order to carry out its mission, global and departmental goals and objectives, every
company shall build a formal structure depicting different hierarchy of management,
supervision, and employee (staff) levels. This very structure is refereed to as organization
chart. Moreover, the organization chart shows reporting relationships span of management,
and staff/line functions.

1.4 HIERARCHY CHART

The Front Office organization chart shall be designed according to Functions. Doing so
not only enhances the control the Front Office has over its Operations, but also provides
guests with more specialized attention. Such a division according to functions, however, is
not practical in middle and small size hotels due to the fact that these very hotels don't
posses enough and sufficient monetary resources to ensure the existence of at least 3
jobholders (i.e. one for each shift) for each job position. Therefore, in middle size hotels, a
front office clerk might be responsible for more than one work position. This is ensured via
cross training. On the other hand, in small size hotels, one or two front office clerk(s) might
be responsible for all front office activities.

Typical functions and positions under the Rooms Division Department:
Front Desk Agent: Registers guests, and maintains room availability information
Cashier: Closes guest folios, and properly checks out guests
Accounts Receivable Clerk: Posts charges in correct guest folios and updates folios'
outstanding balances
Night Auditor: Controls the job of the Accounts Receivable Clerk, and prepares daily
reports to management (ex: Occupancy Report and Revenue Report)
Mail & Information Clerk: Takes Messages, provides Directions to Guests, and
maintains Mail

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Telephone Operator: Manages the Switchboard and coordinates Wake-up Calls
Reservation Agent: Responds to Reservation Requests and createsReservationRecords
Uniformed Service Agents: Handles Guest Luggage, escorts Guests to their Rooms,
and assists guests for any bit of information requested

FRONT OFFICE
MANAGER
ASST. FRONT OFFICE
MANAGER

LOBBY MANAGER
FRONT OFFICE
ASSISTANT
TELEPHONE
OPERATOR
BUSINESS
CENTRE
SECREATARY
TELEPHONES
SUPERVISOR
BELL BOY
RESERVATION
ASSISTANT
RESERVATION
SUPERVISOR

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UNIT II
2.1 JOB DESCRIPTION JOB SPECIFICATION (Managerial and supervisory level)

A job description by its very nomenclature is a written description of the jobs to be
performed in a particular position.
It is a simple statement of all the tasks a person in a particular position is expected
to carry out.
It specifies the parameters within which a job is to be carried out.

JOB DESCRIPTION OF FRONT OFFICE STAFF

POSITION : FRONT OFFICE MANAGER
DEPARTMENT : Front Office
REPORTS TO : General Manager

Reporting relationship
1. Reports directly to the General Manager.
2. Supervises all Front Office sections and lobby area.
3. Maintains cooperative relationships between the Front Office and other Hotel
divisions and departments by encouraging communication between all areas of
responsibility.

Duties and responsibilities
1. Daily checks on rooms availability status for next 60 days.
2. Reviews room blocks and special requests.
3. Reviews and respond to the incoming correspondence.
4. Greets as many guests as time permits at the Front Desk and supervises
workloads during shifts.

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5. Handles guest complaints.
6. Monitors Guest History
7. Assists in promoting sales for the property as well as other units of the hotels.
8. Reviews all Front Office log books daily and pursues with appropriate action if
necessary.

Span of authority
1. Supervises and administrate all Front Office operations.
2. Maintains the highest standard of services and be responsible for maximizing the
on-day room revenue by obtaining the highest percentage of occupancy and
average rate with a proper control in the room availability status.
3. Liaises with other members of the management team in Rooms Division and work
together to the interest of improving standards of service, percentage of yield, and
the general working environment for all staff members.

Staff development
1. Is responsible for the recruitment and induction of personnel for the department.
2. Supervises and carries out training for all staff to achieve desired results.
3. Administers, reprimands and takes disciplinary action when necessary.
4. Conducts periodic appraisals to ensure an effective communication between
management and staff as well as to upkeep the staff morale.
5. Identifies staffs weakness and develops strengths with a view towards succession
planning.
6. Conducts periodic training on Crises Management and hotels emergency plan of
action to ensure appropriate precautions and actions are taken at all times.
Communication & co-ordination
1. Liaises with Housekeeping and Engineering Departments on daily
operations/projects involving guest rooms and front of the house area.
2. Liaises with Marketing & Sales Department and Reservations Department for all
group and conference movements for future.
3. Liaises with Security Department on guest safety and security arrangements.

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4. Liaises with Credit Office on credit arrangements and to ensure that credit
procedures are being followed.
5. Liaises with Marketing Department in relation to room sales promotion activities.
6. Liaises with Financial Controllers Office in relation to operation control aspects, such
as cash-handling, cash flow, and credit policies.
7. Liaises with Food & Beverage Department on daily operations including F & B
services in the rooms, car-parking requirements and F & B sales promotions.
8. Attends daily operational meetings.
9. Attends weekly Department Head Meeting, monthly Credit Meeting etc.

Administration
1. Maintains job descriptions for all positions and keep them updated.
2. Responds to incoming correspondences which are related to front office activities.
3. Enforces standard of dress, grooming and personal appearance as defined by hotel
policy.
4. Prepares monthly reports with a breakdown of figures and revenue.
5. Prepares forecast reports.
6. Establishes guidelines and standards of Front Office operations.
7. Maintains, updates and enforces standards.
8. Reviews sequence of service with management periodically.

Planning, organizing and controlling
1. Prepare spring-cleaning schedules for guest room together with Executive
Housekeeper.
2. Monitor and control department expenses.
3. Monitor Yield % effectively.
4. Verify with Reservations Department that accurate room status information is
maintained and properly communicated.
5. Plan and monitor staff vacation schedule.
6. Establish annual training program for the department.

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7. Attend and observe technical skills training sessions organized by departmental
trainer to ensure the quality of service rendered to guests by all Front Office
personnel are of the quality standard.

Budgets
1. Assist in preparation of annual budget on room sales revenue.
2. Prepare departmental budgets and objectives annually, with constant revision and
observation.
3. Review payroll, and other operating equipment.

POSITION : ASSISTANT MANAGER - FRONT OFFICE
DEPARTMENT : Front Office Manager
REPORTS TO : Front Office Manager

Job summary
Under the general direction from the Front Office Manager, assist to oversee and direct
all aspects of Front Office Operations. Ensure that the department's operations budget
is strictly adhere to, and that all costs are strictly controlled.

Relationship
1. Reports directly to and communicates to the Front Office Manager on all pertinent
Front Office matters affecting guest service and Front Office operation.
2. Provides functional assistance to the Front Office operational personnel.
3. Interacts with Hotel guests as well as members of the local community.
4. Cooperates and communicates to Front Office Section Heads.

1. Supervises Front Office staffs to ensure optimum occupancy and average room rate
to maximize revenue.
2. Monitors Front Office personnel to ensure guests always receive cordial prompt
attention and personal recognition.

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3. Monitors Front Office personnel to ensure acknowledgment of repeat guests and
other VIP receive special attention and personal recognition.
4. Informs other operating department, such as Housekeeping, of all Front Office
activities which involve them.
5. Establishes and maintains effective employee relations.
6. Assists Front Office Manager in personnel functions related matters such as
interview, appraise and counseling.
7. Identifies training needs, assists to develop formal training plans and conducts
training session.
8. Frequently inspects the cleanliness and orderliness of the Lobby, Front Desk at
random and VIP rooms prior to their arrival.
9. Be knowledgeable of all the Front Office standard operating procedure.
10. Keeps overtime hours to the minimum.
11. Monitors master key control.
12. Maintains continuous contact with Hotel guests to ensure that any problems or
complaints are handled promptly efficiently and courteously.
13. Reviews and completes credit limit report.
14. Assist the Front Office Manager in forecasting yield for future.
14. Assists to conduct monthly Front Office meeting.
15. Assists to prepare the statistical report, forecast, annual budget, strategic plan
and goal program.
16. Performs any other duties assigned from time to time
17. To ensure that all message, parcels and fax are handled and distributed properly.
18. To be constantly up to date on city and in-house activities and to up-sell the hotel
at all times.
19. To maintain a high standard of personnel appearance and hygiene at all times.
20. To respond to any other changes in the department function as directed by the
industry, company or hotel.
POSITION : LOBBY MANAGER
REPORTS TO : Assistant Front Office Manager

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Job summary
Under the general direction from the Front Office Manager and Assistant Front Office
Manager to act on behalf the Hotel Management to ensure maximum levels of guest
service and satisfaction are provided. To continuously monitor staffs and operations and
reporting deficiencies to management.

Relationship
1. Reports directly to Assistant Front Office Manager.
2. Interacts and cooperates with all the Departments within the Hotel.

1. Responsible for the overall day to day operation.
2. Monitors the Hotel personnel to ensure guests always received cordial prompt
attention and personal recognition.
3. Maintains the smooth operation of the Front Office operations.
4. Handles any guest problems according to agreed policy.
5. Ensures special handling for VIP arrival.
6. Be thoroughly understood the service offered by the Hotel, how and where these
facilities could be obtained and aware of all daily events of the day in the Hotel.
7. Using the Duty Manager check list, ensures that every single things are in order.
8. Greets all guest at all times in a friendly and helpful manner and attempts to
learn and use guest name at every opportunity.
9. Fully in charge in the absence of the Assistant Manager Front Office.
10. Reports any hazard to health or safety immediately to the Assistant Manager
Front Office.
11. To co-supervise the key handling procedure ensuring maximum security.
12. Observes and assists other departments in the Hotel.
13. Responsible for the master key.
14. Receives information from previous shift Lobby Manager and passes on pertinent
information to the next Lobby Manager.

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15. Frequently inspects the cleanliness and orderliness of each area of the Hotel.
16. Supervises Front Office Assistants to ensure all guest especially VIP receive cordial
prompt attention and personal recognition.
17. To continuously monitor operations, service and maintenance standards
throughout the hotel and report deficiencies to management.
18. To assist in the training of the employees ensuring that they have necessary skills
to perform their duties with the maximum efficiency.
19. To ensure that all staffs have a complete understanding of and adhere to the
hotel's policy relating to fire, hygiene, health and safety.
20. To ensure that all staff have a complete understanding of and adhere to the hotel's
employee rules and regulation.
21. To be constantly up to date on city, emergency telephone number and to up-sell
the hotel at all time.
23. Performs any other duties assigned from time to time.

POSITION : RESERVATIONS SUPERVISOR

Job summary
Supervising the Reservation staffs in implementing Policies and Procedures under
guidance of the Front Office Manager, to provide and carry out any other duties assigned
by the Front Office Manager or Resident Manager

Relationship
1. Reports directly to the Front Office Manager
2. Interacts and cooperates with Sales, Front Office Assistant, Guest Relations,
Accounting and Housekeeping.


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1. Responsible to the Front Office Manager.
2. Understands the entire Reservation procedure well according to the manual and
the system.
3. Responsible for the Hotels worldwide Reservations in coordination as well as the
local ones.
4. Handles correspondence, sorts letters, telexes, fax., cables.
5. Allocates daily tasks to Reservation staffs.
6. Daily reviews reservation booking and arrival report.
7. Prepares occupancy forecast.
8. Trains the Reservation staff accordingly and implement Policies and Procedures.
9. Liaise with the Sales Department in regards to occupancy, rates analysis.
10. Identifies top producing accounts to ensure proper recognition by Reservation
staffs.
11. Prepares various production report and submit to concerned Department.
12. Monitors telephone manner and general performance of Reservation staffs.
13. Ensures special handling of VIP guests.
14. Reviews blocking of Suites room, and any other special group request.
15. Supervises group reservations.
16. Maintains cordial relations with commercial clients.
17. Informs the Front Office Manager when the Hotel availability status will be
changed and prepares necessary action.
18. Schedules work roster and maintains work position at all times neat and in order.


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2.2 JOB DESCRIPTION OF FRONT OFFICE STAFF (Non- supervisory level)
POSITION : FRONT OFFICE ASSISTANT
REPORTS TO : Lobby Manager

Job summary
Responsible for the efficient requirement of VIP guest and visitor of the Hotel that they
receive the high standard of service as stated in the Hotel policy.

Relationship
1. Reports directly to the Lobby Manager.
2. Interacts and cooperates with all departments within the Hotel.
3. Cooperates with all Front Office personnel.

1. Prepares monthly report on Front Office Assistant activities and discuss how to
improve the standard of service.
2. Greets all guests at any time in a friendly and helpful manner and attempts to learn
and use guest name at every opportunities.
3. Takes personal interest and pride to ensure the Lobby area is kept clean and in
order at all times.
4. To assign duties and responsibilities to subordinates, assisting the Lobby Manager.
5. Endeavors to maintain the high standards of the Hotel with regard to the
importance of all clients especially VIPs with reference to the Hotel and
departmental goals.
6. Reports any hazard to health or safety immediately to the Lobby Manager, Front
Office Manager or any other appropriate Department Head.
7. Attends fire/emergency training programs and ensures that the Hotel and
Governmental Fire and Emergency procedures are well understood and abode by.
8. Be familiar with other Park Hotels.

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9. Assists the Lobby Manager.
10. Informs other operation Department Heads of anything involving their
Departments.
11. Checks-in/checks-out VIP as well as other guests.
12. Maintains continuous contact with Hotel guests to ensure that complaints are well
handled in a courteous manner.
13. Gets inputs for guest satisfaction.
14. Handles any guest problems and refers to the Lobby Manager if deemed necessary.
15. Be well groomed, has pleasant attitude and ready to offer assistance at all times.
16. Be thoroughly aware of VIP arrival and departure on day to day basis.
17. Ensure that departing guests have a positive impression of the Hotel services.
18. Always keeps a high standard behavior and appearance expected by The Park in
his/her attitude toward guests and employee alike.
19. Ensures that VIP room are blocked and inspected checked giving special attention
to all amenities prior to guest arrival for 100% readiness.
20. To ensure that all recurring guests are pre-registered.
21. To meet and greet all arriving VIP, ensuring that their needs are satisfied, their
luggage is swiftly sent to their rooms and that there are checked in a courteous and
efficient manner with no delay.
22. To conduct training courses and refresher courses for existing staffs.
23. To coordinate closely with the various department head to keep an effective
communication.
24. To maintain a high standard of personal appearance and hygiene at all times.
25. To ensure that the department's operation budget is strictly controlled.
at all times.
28. To perform any other duties assigned from time to time.

POSITION : RESERVATION ASSISTANT

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REPORTS TO : Reservations Supervisor

Job summary
Under limit supervision of the Reservations Supervisor is responsible to :
- Record reservation on the various standard forms.
- Put into the computer system.
- Make Reservation for other International Hotels.
- Filing.

Relationship
1. Reports directly to the Reservations Supervisor.
2. Interacts with any callers to Reservation Department and make appropriate
action.
3. Interacts and cooperates with the Receptionist, Co-ordinator on Duty,
Accounting/Credit Department and Sales & Marketing Department.

1. Receives all Reservation request by phone promptly and politely.
2. Ensures that complete details are recorded.
3. Ensures all Reservations request by fax, letters and e-mails are replied properly.
4. Enters all Reservation into the system accurately using specified code to denote
the source and type of Reservation.
5. Ensures all guarantee letters and Travel Agent vouchers are received and
approved by the Credit Manager prior to guest arrival.
6. Keeps Reservations supervisor informed of VIP guest, convention or seminar,
consular visit or any special request.
7. Ensures up selling of rooms at the time of taking booking.
7. Be thoroughly familiar with future availability of current status and future dates.
8. Ensures to block room on special request.
9. Be familiar with other hotels and prepares to handle inter Hotel Reservation.

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10. Maintains a neat and orderly work position at all times.
11. Review all expected arrivals one day prior to the arrival date.
12. Ensures preparation of weekly group arrival that has been confirmed.
13. To be in charge of the position of the Reservation Supervisor during his absence.
14. Performs any other duties assigned by the Management from time to time.

POSITIONS : BELL BOY
REPORTS TO : Front Office Assistants

Job summary
Under the general guidance and supervision of the Front office assistants and Lobby
Manager, the Bell Boy is responsible to receive and ensure correct delivery of guest
luggage to and from the room, assists to guest inquiries and requests, performs various
errands for guest needs, comfort and satisfaction.

Relationship
1. Reports directly to the. Front Office Assistants
2. Interacts and cooperates with the Front Office Assistant, Lobby Manager, Room
Boys and Security.
3. Interacts with other sections Lobby Manager as required.

1. Be well groomed, have a pleasant disposition and willing to offer assistance at all
times.
2. Adheres to guest check in and check out procedure pertaining baggage handling.
3. To report for duty punctually, wearing the correct uniform and name tag at all
times.
4. To promptly deliver only guests' message and fax in the hotel.
5. To maintain good working relationships with colleagues, and all other department.

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6. Be thoroughly knowledgeable of the services offered by the Hotel, how and where
the facilities could be obtained and aware of the daily event in the Hotel.
7. Be fully conversant with emergency evacuation and fire procedures.
8. Handles promptly and correctly all guests luggage, avoid any confusion or
embarrassment to the Hotel.
9. Be thoroughly aware of the daily arrivals and departures especially VIPs or
groups.
10. Welcomes guests at the main entrance, greets appropriately, takes particular note
of repeat guests.
11 Guides the guest to the Front Desk and waits behind the guest during the check
in. Keeps an eye on the Front Desk, prepares to receive the room key and key card
from the Receptionist without delay.
12. After receiving the key and key card, asks the guest to follow him to the elevator.
Upon reaching the correct floor, show the guest to the room and always address
the guest by name.
13. Enroute to guest room indicate the location of the nearest fire exit. Up sells the
hotel restaurants and other facilities to the guest.
14. To transfer guests' luggage to rooms in an efficient manner ensuring no damage is
caused to the luggage, furniture, fixtures and walls.
15. Before leaving the room, demonstrate briefly the operation of the radio, television,
minibar and air conditioning system, and turn on the bathroom light.
Simultaneously verifies that guest supplies such as soap, towels are adequate in
proper place. When leaving the room, place the key and key card on the desk in
full guest view and do not obviously appear to expect any tip.
16. Do utmost to learn guests names, especially repeat and long staying guests greet
as they come and go through the Lobby, remain alert of the situations where
assistance may be required by guests.
17. Accept baggage for safe keeping in the store room, following the procedure laid
down in the Front Office Manual.
18. To have a complete understanding of and adhere to the hotel employer handbook
and adhere to all regulation therein.

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19. At all times stands at the station assigned by the Lobby Manager and follow
further instructions.
20. Maintains cleanliness of the lobby area.
22. To maintain an accurate record of check-in and check-out guests.
23. Ensure that departing guests have a positive impression of the hotel services.

POSITION : TELEPHONES SUPERVISOR

Purpose
Be responsible for planning, organizing, directing and controlling of all staff activities in
the Telephone Department with the objectives of achieving the highest possible
standards of the hotel, and the maximum telephone revenue.

Relationship
1. Reports directly to and communicates with the Front Office Manager.
2. Supervises Telephone Department operations personnel.
3. Co-operates, co-ordinates and communicates with other Departments all times.

1. Supervises the operators to ensure prompt, courteous and accurate handling of all
telephone calls.
2. To ensure efficient and accurate implementation of all wake-up
calls for guests.
3. To maintain a close liaison with the Telephone Company to ensure efficient
provision of telephone services.
4. Ensure efficient provision of message relay services by supervising message-taking
activities and paging services for both hotel staff and guests.

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5. To arrange duty roster and ensure that all operators report for work punctually.
6. To make decisions and resolve any problems and complaints which occur in the
Telephone Department, or if necessary, refer them to Front Office Manager for
further action.
7. To ensure that all staff have a complete understanding of and adhere to the hotels
employee handbook rules and regulations.
8. To ensure that all staff are familiar with all emergency procedures.
9. To ensure that the Executive telephone lists is up-to-date in case of emergency.
10. To assign trainers to newly hired staff and to other employee on cross training
program.
11. To conduct training courses and refresher courses for existing staff.
12. To maintain condition of the Telephone Department and its equipment are in good
condition.
13. To promote Inter Hotel sales and in-house facilities to all guest.
14. To review and up-date in-house telephone directories.
15. To conduct training courses and refresher course for existing staff.
16. To perform any other duties assigned by the Management.

POSITION : BUSINESS CENTRE SECREATARY
REPORTS TO : Lobby Manager

Purpose
Be responsible for ensuring that secretarial services are provided for in-house/city
guests with the objective of maximizing guest satisfaction by achieving the highest
possible standards of the hotel and the maximum Business Centre revenue.

Relationship
1. Reports directly to Lobby Manager.
2. Cooperates with other Department Heads and subordinates.
3. Interacts with outside parties and guests as appropriate.

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Duties And Responsibilities
1. To ensure prompt, courteous and accurate handling of all guests requests and
other administrative duties.
2. To monitor and ensure efficient and accurate handling of all incoming and
outgoing facsimiles for both hotel guests and staff.
3. To make decisions and resolve any problems and complaints made by guests or
staff in the Business Centre.
4. To promote guest contact and assist guests in their requests.
5. To promote the Business Centers conference area and conference rooms for rental
to guests or outsiders for temporary or long term periods.
6. To maintain the Business Centre and its office equipment in good condition at all
times.
7. To source business information and contacts locally for guests requirements.
8. To provide information on events, exhibitions or conferences going on in the city
generally.
9. To perform any other reasonable duties required by the department head from
time to time.
10. To liaise with the Banquet Department on all guests needs relating to provisions
offered by the Business Centre, such as Banquet rooms, equipment, etc.
11. To ensure that the grooming, appearance, personal hygiene, attitude and
telephone manner are up to the hotels standards.
12. To prepare various reports to ensure proper functioning of Business Centre.

POSITIONS : TELEPHONE OPERATOR
REPORTS TO : Telephone Supervisor

Job Summary

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Under the general guidance and supervision of the telephone supervisor and within the
hotel Policies and Procedures, to handle incoming and outgoing calls to and from the
Hotel guest room.

Relationship
1. Reports directly to the telephone supervisor.
2. Interacts with guest appropriately and with other Department as required.

Duties And Responsibilities
1. Answers the Telephone console promptly, friendly and efficiently in a natural voice
tone.
2. Handles international/city operator assisted calls, direct dialing,
international/city calls for non resident guest.
3. Handles wake up calls.
4. Attends telephone briefing and quarterly meeting.
5. Ensures punctual attendance and adheres to duty schedules as directed by the
Telecom supervisor.
6. Ensures working area is clean and tidy.
7. Ensures messages left by caller to guest or others are passed on to the receiver
without delay.
8. Familiar with all extension in the Hotel and outside emergency numbers.
9. Familiar with Hotel emergency procedure.
at all times.
11. To ensure that proper charges are written out for operator assisted calls, as per
agreed instructions.
12. To ensure that the doctor is contacted with the minimum delay, and the telecom
supervisor is informed upon requested by guests.
13. To be aware of the Hotel security, fire and safety procedures.
14. To keep the daily log book up-to-date.

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15. To maintain good working relationships with colleagues, and all other
departments.
16. To have a completed understanding of the hotel employee handbook and adhere to
all regulations therein.
17. Perform any other duties assigned from time to time.

REVIEW QUESTIONS
1. What is the major function of Front Office Operation?
2. Draw a Layout of front office and write in brief the function of each section of front
office
3. What is a guest cycle? Explain in brief all the stages of the guest cycle
4. Write a note on Organizational set up of front office department
5. Write the Job description of the following
a. Front office manager
b. Assistant front office manager
c. Lobby manager
d. Telephone operator
e. Front office assistant
f. Bell boy
g. Reservation supervisor


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UNIT III
3.1 Types Of Rooms
3.2 Tariff- Definition
3.3 Types Of Plan

Room: an area within a building enclosed by walls and floor and ceiling

Guest room: A room for the accommodation of a guest.

Each hotel has a variety of rooms to suit the needs of the guest. Hotel room can be
classified based on:
Number or size of bed in the room
Dcor of the room, size or the view
Accommodation for a particular type of guest ex. Presidential suite for VIP guest

Type of guest room

1. Single Room: A room that has one single bed and which is meant for a single
person. Size of the bed is 36 inches by 75 inches

2. Double Room: A room that has a double bed and is meant for two people. Size of the
bed is 54 inches by 75 inches

3. Twin Room: A room that has two single beds, separate by each other meant for two
people. Size of the bed is 36 inches by 75 inches

4. Twin double room: A room that has two double beds separated by each other meant
for four people


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5. Triad Room: A room that has three single beds separated from each other meant for
three people

6. Quad room: A room that has four single beds separated from each other meant for
four people

7. Hollywood twin bed room: A room that has two single beds but has a common head
board, meant for two people

8. Parlor: A sitting room or resting room attached

9. Studio Room: A parlor set up with one or two studio beds or couches or sofa cum
beds

10. Suite Room: The most luxurious room in a hotel which has two or more bedroom
with kitchenette
a. It is the most important room because
b. Size of the room is larger than other rooms
c. More facilities are offered like a compact kitchenette
d. The room has facilities like refrigerator, beverage pantry etc.
e. A particular type of dcor or color which would give the suite its name
f. Very elaborate fittings and fixtures
g. Most expensive room in the hotel

11. Types of suite are:
a. Single suite/mini suite/junior suite- This is a single room with one living room
b. Double suite This is double room with a living room
c. Duplex suite This room spreads over two floor with inter connecting staircase

12. A duplex room: Rooms spread over two floors with an interconnecting staircase


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13. Inter connecting rooms: Two rooms adjacent to each other having an
interconnecting door allowing entry from one room to the other without having to go
through the corridor. The interconnecting door can be locked to discontinue its use.
These rooms are generally preferred by families

14. Penthouse Suite Or Room: A room situated on the terrace a part of which may be
opened to the sky

15. Cabana: A room used for changing or bathing, usually situated next to the pool. It
is usually attractive with a small bar attached. It may also be furnished with sofa
cum bed

16. Adjacent Room: Room next to each other along the corridor

17. Adjoining Room: Room with common walls but no connecting doors

18. Efficient Room : Room with kitchen facilities usually found in residential hotels,
motels and resort

19. Hospitality Rooms : A room let out to a hotel guest to entertain their own guest it
is usually charged on hourly basis

20. Lanai Rooms : A room with a verandah that over looks the gardens, the lawns, the
beach

21. Queen Size Bed Room : It has a queen size bed

22. King Size Bed Room: It has a king size bed
23. Serviced Apartment : A room or suite of rooms designed as a residence and
generally located in a building occupied by more than one household. These
apartments can be a part of the hotel where all the facilities are given by the hotel

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like housekeeping room service etc. These apartments are generally taken by long
staying guests and families

2.1 Tarrif- Definition and Types Of Plan

Tariff is defined as schedule or list of prices or rates. For instance, the tariff of a hotel is
the schedule or list of prices at which it provides accommodations. Tariff is also said as a
comprehensive list or "schedule" of merchandise with applicable duty rates to be paid or
charged for each listed article; together with governing rules and regulations.(A "customs"
Tariff.)
A schedule of rates and charges applied by a business, especially a common carrier,
together with a description of the services offered and the rules and regulations applicable.

Types Of Plan

Most of the hotels generally run on plan system. There are various types of plan, which are
internationally recognized. Hoteliers according to their convenience or the policy of the
management can adopt these. The list in which the prices of hotel services are incorporated
is known as hotel tariff. On the basis of tariff pattern hotel are divided as follows:

European plan
In this case only the lodging i.e. bed is offered. Thus the charges are made for lodging only.
The client is free to take or not to take teas, breakfast, and meals in the hotel. He has a
choice of eating at any other good restaurant. The guest is booked to pay for lodging only
and is charged separately for all other things or services he enjoys or consumes. This
system is generally followed by youth hostels or hotels which are situated in metropolitan
cities. European plan hotels fix the prices of rooms separately so that guest may either have
their meals in the hotel dinning at its regular prices or go to the other restaurant. In India

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most of the hotels are being run on European Plan. Almost all the public sector hotels are
run on this basis.

Continental plan
In the case of continental plan bed and breakfast are included in the charges. Thus bed is
offered along with breakfast and the client is, however, free to take his meal and tea as he
likes. Thus the guest tariff includes lodging and breakfast and for other he is separately
billed.

American plan
Hotel where American plan is prevalent, board lodging is provided in the charge. The tariff
fixed includes board and lodging. It is an all inclusive full board tariff. Accommodation and
three meals daily are included in the price of the room. It includes bed, breakfast and two
principal meals and evening tea. It does not include 'EMT nor coffee after lunch, or dinner.
The needs are usually 'table d' hote'. It is also known as 'full pension '.

This means that guests day ends about 24 hours after his arrival that is, the guest arriving
between lunch and dinner is entitled to retain his room until the next afternoon and to
have dinner the first night and breakfast and lunch the following day for the fixed rate.

This analysis is mostly used at those tourist resorts, which are not situated in big cities.
Most of the tourists who do not want to carry too much, has go for all inclusive
accommodation so that the entire amount is paid at the starting point. These terms are
supposed to be sold to the guest, though for internal record, a clear apportionment of
charges between accommodation and meal is made. This is particularly important where
some guests stay on inclusive terms and others not.

According to American plan only one charge is made to guests for room and board. But
they separate the rate, applying part of it as room sales and part as restaurant sales. The
distinction is necessary because of the two more reasons:

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If a guest has a launch at hotel both on the day of his arrival and the day of his
departure an additional charge is to be made for extra lunch.
If a guest arrives after dinner and leaves before lunch he is entitled to some credit for
the two meals he did not eat, but which are included in his daily tariff.
The rate should be divided into two-fixed sum for meal and the reminder for the
room.

The American plan was started in the 1930's and 40's when " Americans were churning
around the west, and the upstart cities were springing up". In 1955 the American Plan had
become so standard that when the original Parker House opened,)t become known as one of
the first hotel in USA to operate on the "European plan" meals and room change being
made separately. The American Plan specially suited the resort where families might stay
for the season and many resorts even to day operate on the American plan.

Modified American plan
The tourists mostly prefer this plan, as it is comparatively flexible. It is offered in most of
the good hotels and is normally by arrangement. It includes hotel accommodation,
breakfast and either lunch or dinner in the price of the room. Thus, in this type of
accommodation bed and breakfast and along with it one principal meal, lunch or dinner, at
the discretion of the client is also included. It generally includes continental breakfast (q.v.)
and either 'table d' hotel' (q.v.) lunch or dinner in the room rates. It is also known as ' demi-
pension '.

It has been observed that the Indian style hote Is in India follow the European plan, and
the western style hotels which cater the foreign tourists, operate the American plan. In the
past foreign tourists used to visit India for pleasure and leisure trips. They had plenty of
time to travel and stay. Nowadays, we have typical tourists, businessmen or travelers, who
would like to visit the country for a week and the city for a day. They do not have time and
desire to return back to their hotels again and again. There are good restaurants and
nightclubs outside, which are equipped with comfortable furniture and super decor.
Therefore, they like to enjoy their lunch, dinner outside. Under these circumstances the

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American plan once famous for its acceptance, became inconvenient for the foreigner. He is
forced to come for the different services offered. It restricts the freedom of the guests.
Therefore, the American plan is being discarded and most of the hoteliers and the tourists
preferred the European plan. The hotels all over the world have shifted to European plan.
In America; Europe, Far Eastern countries and other important tourist destinations, the
American plan is out dated and outmoted.

The location of hotels and the type of guest it hopes to attract are two principal factors,
which make important difference in the style of one hotel against another. The entire hotel
differs in appeal and personality and according to the people who operate them and the
people who patronize them. The classification of hotels is given in Figure. The description of
same of the categories is given here.

Executives, who by the very nature of their responsibilities are the leader of their
profession, direct enterprises in the international group. A number of these hotels belong to
the luxury class. Their service embraces the finest amenities procurable and a high pitch of
comforts prevails throughout and charges are scaled accordingly. A few establishments
offer all the amenities of a luxury hotel upon a more commercialized scale and at the
popular prices.

Hotels in the international grouping are mostly owned 'by public companies and controlled
by a Board of Directors. The President/Chairman of the Board is usually a prominent figure
of the industry, the secretary, a chartered accountant, and the managing director, a leading
personality in the hotel industry. The overall operational responsibility of the company's
affairs falls to the managing director.

These hotels are generally divided into various departments under a resident/general
manager who is, directly responsible to the managing director. The relationship and
responsibilities of the departmental heads, general manager and. Managing director should
be clearly defined and understood. The general manager manages the hotel through his
departmental heads and all immediate operational data are his responsibility. The

ICHM Page 34

managing director takes charge of the broad operational and financial policies of the
company.

Apart from the profitable lettable accommodation-the suites, flat lets, and studio rooms:--a
considerable revenue is extracted from catering. There is a restaurant, which opens for
luncheons and where also there are tea dances, and evening dinner dances.

UNIT IV

4.1 Organization Of Hotels Based On Location , Size, Length
Of Stay And Facilities Offered
4.2 Types Of Rooms

Organization Of Hotels Based On Location , Size, Length Of Stay And
Facilities Offered

According to type of plan (Tariff pattern)
American Plan (AP)
European Plan (EP)
Continental Plan (CP)
Modified American Plan (MAP)
Go-plan.
Bermuda Plan

According to the size
It can be indicated either by rooms as is done in America or by the number of beds as is
done in Europe.
Small hotels: 25 rooms or less
Average hotels: 25 rooms to 90 rooms
Above average hotels: 80 rooms to 250 rooms
Large hotels: 250 rooms and above

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According type of patronage
Hotels catering to women only
Hotels catering to families only
Hotels catering to commercial men only
Hotels catering to high society or affluent category only 0 Hotels catering to retired
people only
Hotels catering to students only

According to visitors stop-over
Transient hotels
Semi-transient hotels
Residential hotels

According to the length of operating period
Seasonal hotels
Two-seasonal hotels
Entire year hotels

According to their location
Resort hotels.
Suburbs hotels
Airport hotels (Airtel)
Sea side hotel or Beach hotels 0 Coastal hotels
Transient hotels
Country hotels
Floating Hotels.
City hotels
Highway hotels.
Town center hotels
Space resorts

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Hill or Mountain hotels 0 Boatels
Hotels
Inland hotels

According to the purpose
International hotels
Commercial hotels.
Hostels
Business hotels
Holiday hotels
Transient hotels
Resort hotels
Motels
Inns
Clubs
Convention hotels

According to the degree of comfort
(Amenities and facilities)
This classification is based on the degree of equipment, the volume of services and the price
of services provided.
Low class hotels./ Budget hotels
Middle class hotels
Luxury hotels.

OR
One star hotels
Two star hotels
Three star hotels
Four star hotels
Five star Deluxe hotels

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OR
'A' Class hotels
'B' Class hotels
'C' Class hotels
'D' Class hotels

OR

Modern hotels
Comfortable hotels
Deluxe hotels

OR
Tourist class hotels
Standard hotels
Super class hotels

According to its relationship with transport
Motels
Motor hotels
Railway hotels
Airport hotels
Floating hotels

According to facilities and amenities
Luxury
Quality (falling short of luxury)
Standard (Economy)
Basic.

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According to ownership and management
Independent hotels (hotel consortium / cooperation)
Chain/ group hotels (public owned / franchise)
Private hotels.

REVIEW QUESTIONS
1. What are the different types of rooms found in hotels
2. Define Tariff
3. Write a note on different Types of plan used in hotels
4. How are hotels organized on the basis of location, size, length of stay and facilities
offered?

UNIT V
5.1 Classification Of Hotels
5.2 Types Of Owner Ship

5.1 Classification Of Hotels

Hotel
Common Law states that a "Hote1 is a place where all who conduct themselves properly,
and who being able to pay and ready to pay for their entertainment, are received, if there be
accommodation for them, and who without any stipulated engagement as to the duration of
their, stay or as to the rate of compensation, are while there, supplied at a reasonable cost
with their meals, lodging and other services and attention as are necessarily incident to the
use as a temporary home."
A hotel may be called as an establishment where primary business is to provide to the
general public lodging facilities and which may also furnish one or more of the various
services such as food: beverage, laundry, uniformed services etc. Hence, hotel can also be
called as home multiplied by commercial activities.


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As per the Reader's Digest Dictionary the term 'Hotel' refers to 'a house of entertainment of
travelers'.

According to the Encyclopedia Britannica the word 'Hotel' is of ancient origin, but its use in
English for a house offering lodging and food for travelers is recent. The Hostlers of London
took the name of Inn keeping in 1473. The world Hostler' or 'Ostler' having come to mean
an inn servant.

The term 'Hotel' was used in England in about 1760. British law as a place where a
bonafide traveler can receive food and shelter, provided he is in a position to pay for and is
in a fit condition to be received defines hotel or inn.
In legal terminology a: hotel is an inn and is required under common law to offer to its
visitors lodging, food and protection, 10 their baggage. Hotel service is generally based on
these three fundamental necessities of life. In addition to these a modem hotel provides its
visitors many luxuries of modem urban city living, all under one roof.
1. Inns Public houses in early times in England were called inns. Normally the term
'Inn' was meant for the finer establishments catering to nobilities and clergy: In
France these were ca1led 'HOTELLERIES.
2. Taverns. The house frequented by common man was known as taverns. The less
important establishment in France was called CABARETS.
3. Hostel Derived from the word' Host' and was used very late. The head of the hostel
was called" 'HOSTELER' in French, while in England he was called 'Inn-Keeper'.

History Of Hotels And Accommodation Industry And Their Development

Early history of accommodation for travelers can be traced back to the Greek word 'Xenia',
which not only meant hospitality but also the protection given to a traveler from
discomforts. The city was bound to offer hospitality. In Sparta city, although due to
rigorous customs visitors were not encouraged, yet goddess Athena was considered as
protector of strangers and hence her name was 'Xenia Athena'.


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In this period travelers were mainly diplomats, philosophers; intellectuals arid researchers.
Guests were invited to stay with noblemen. In ancient Olympia, buildings constructed with
the aim to accommodate strangers can be seen. They were called 'Leonidio' and were, built
in 4th century B.C. The concept of hospitality can also be drawn back to ancient times.
Homer finds mention of it in Iliad and The Odyssey.

Hotel keeping can also be traced back to many centuries and its evolution through the,
ages has been brought about by Britains economical and industrial changes and
developments.

During the seventh and eighth centuries, it was thee monasteries that applied hospitality to
strangers and, as no charge was made for the accommodation, a travelers were expected to
contribute according to their means to the Abeey funds. As more people began to travel
they grouped themselves together not only for company but for mutual protection from
highway and robbers. Consequently travelers arrived in groups at a monastery and it was
often difficult to accommodate them all. To overcome this, separate lodging houses, called
'Inns' (a Saxon word) were built. The word 'inn' came to mean a 'Lodging House' and until
the passing of the Hotel proprietors Act in 1956, it was the legal term for 'Hotel' and hotel
proprietors were legally referred to as 'Common innkeepers'. 'Common' in this sense
referred to Common Law.

In the thirteenth and fourteenth centuries, manor houses, being hospitable 'places;
willingly gave accommodation to travelers. As no payment was expected, travelers tipped
the servants as a 'thank you' for the generous hospitality received-thus the practice of
tipping was born.
When high taxes crippled the generosity and hospitality of the owners of the manor houses,
many became commercial inns. During Elizabeth the First's reign, posting houses were
established and travelers, in addition to getting refreshment were able to change horses
before continuing their journey.


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The turn of the century saw an era that was called the 'Belle Epoch when the grand and
luxurious hotels flourished. A few hotels are still operating today. In London and some
other cites attempts have been made to recapture some of the grandeur of the past era in
the making of modem hotels, and bring back the memories the grand hotels of olden days.

The next stage in the cycle of evolution of the hotel industry was the coming of the
motorcar. It enabled people to visit those parts of the country not reached by railways. This
gave birth to inland resorts and the hotel Industry began to flourish.

International air, travel has helped create the modem 'stop-over' hotel. With the increase in
this form of travel, the number of hotels built close to airports has multiplied.

Another trend in hotel keeping is the motel, which is the twentieth-century version of the
old 'Coach Inn'. People traveling the country by car, stopping overnight here and there,
require not only refreshment for themselves, but also safe parking for their cars. Post
Houses, developed by the Trust House Forte Group are in fact the modern version of the old
coaching inns.

Classification Of Hotels
INTERNATIONAL CORPORATE HOTELS
These are large chains, which are almost household words in the industry, such as Hilton,
Inter-Continental, Hyatt. Some of the groups are a combination of company owned,
franchise and management contract operations while others are entirely owned by an
individual or a company. Their main features include standardization of service, facilities
and price, and many chains endeavor to operate a hotel in most major capitals throughout
the world.

International Hotels
There are modem western style hotels in all large cities as well as important tourist centers.
These have been classified on the internationally accepted star ranging from 5 star to 1 star

ICHM Page 42

hotels. These are the hotels of international repute having more than 200 rooms with their
counter parts in all the large cities. These establishments provide accommodations,
restaurant facilities, grillrooms, banqueting suites and bars as an integral part of their
businesses. There normal activities are often 'supplemented by shops 'of diverse kinds,
garages, laundry and similar services. Also, in many instances, residential, furnished and
unfurnished flats equally belong to the over all operating company. For example, in India
Oberoi Hotel have some luxurious 2 or 3 bedroom apartments or a contemporary 4 bed
room cottages. It provides swimming pool and landscaped lawns.

National Hotel Companies
Some countries have national hotel companies, which operate hotels at home and abroad,
such as, the Taj and Oberoi hotel groups. These are both Indian companies which are well
known outside India.
Small Hotel Groups
Not all groups of hotels are large or widely dispersed. Some companies own a group, which
may consist of no more than four to five hotels, and they may be confined to a particular
area such as the beach resorts.
Independent Hotels
These are hotels which" are privately owned or independent of any company. Many guests
enjoy staying at an establishment of this type because of the individuality of the operation.
Hotel Consortium
Independently owned hotels form a liaison which provides them with the advantages of
shared advertising costs, bulk purchasing and referral of bookings. The guest has the
advantage of knowing each hotel in the consortium will be of similar standard and price.
Best Western Hotels is an example of! Worldwide network of independently owned hotels.

Development in the field of transportation, communication and increase in population had
effect on the growth, type and location of hotels and supplementary accommodation. To day

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we find many hotels and catering establishments of varied character, size and nature
opera-ting in different cities and tourist centers. The classification of these hotels and
supplementary units with in the industry is a complicated task. Hotels are of various types
depending on number of factors like the nature and facilities offered, size, location etc.
Classification in the real sense separates accommodation into different categories or class
on the basis of objective criteria, for example, by the" type of accommodation, such as
hotels, motels, tourist lodges, holiday camps etc. It seeks to present information about
tourist accommodation units in a form, which enable the user to find information he
requires. Information thus obtained will help to compare like with like. Classification thus,
separates accommodation according to physical features.

Classification Of The Hotel And Catering Industry
The first comprehensive standard industrial classification (SIC) for the United Kingdom was
issued in 1948. The classification was revised in 1958, in 1968, and in 1980. All the
revision have been grouped by an interdepartmental committee representing the main
government department collecting and using the statistics. The 1980 SIC groups economic
activities into nine divisions each of which is then subdivided into classes, which in turn be
sub divided into groups and finally into activities. As per standard industrial classification,
1980 gives hotel and catering a very broad scope as shown in Figure: Yet even here parts of
employees and welfare catering are omitted.

Classification of the hotel and catering industry

Eating places supplying food for consumption on the premises
Take away food shops
Public houses and bars
Night clubs and licensed clubs
Canteens and messes
Hotel trade
Other tourist or short stay accommodation


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In a system of classification hotels are ideally grouped into reasonably homogenous
sections according to their important general characteristics. Any classification of the
industry into its component sections is bound to be rough one as has been observed that
hotels and catering services are in joint demand, therefore, an attempt is made here to
create such groups of undertakings which only share some common characteristics.

Hotel is an establishment selling service-food, drink and shelter. The value and the
potentiality of a hotel is assessed by the size, location, the number of rooms and other
revenues earning points it possesses. The classification of hotels with in the industry is a
complicated task. Hotel can be classified on different basis.

Followings are some of the basis of classification:

According to type of plan (Tariff pattern)
American Plan (AP)
European Plan (EP)
Continental Plan (CP)
Modified American Plan (MAP)
Go-plan.
Bermuda Plan

According to the size
It can be indicated either by rooms as is done in America or by the number of beds as is
done in Europe.
Small hotels: 25 rooms or less
Average hotels: 25 rooms to 90 rooms
Above average hotels: 80 rooms to 250 rooms
Large hotels: 250 rooms and above

According type of patronage
Hotels catering to women only

ICHM Page 45

Hotels catering to families only
Hotels catering to commercial men only
Hotels catering to high society or affluent category only 0 Hotels catering to retired
people only
Hotels catering to students only

According to visitors stop-over
Transient hotels
Semi-transient hotels
Residential hotels

According to the length of operating period
Seasonal hotels
Two-seasonal hotels
Entire year hotels

According to their location
Resort hotels.
Suburbs hotels
Airport hotels (Airtel)
Sea side hotel or Beach hotels 0 Coastal hotels
Transient hotels
Country hotels
Floating Hotels.
City hotels
Highway hotels.
Town center hotels
Space resorts
Hill or Mountain hotels 0 Boatels
Hotels
Inland hotels

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According to the purpose
Commercial hotels.
Hostels
Business hotels
Holiday hotels
Transient hotels
Resort hotels
Motels
Inns
Clubs
Convention hotels

According to the degree of comfort (Amenities and facilities)
This classification is based on the degree of equipment, the volume of services and the price
of services provided.
Low class hotels./ Budget hotels
Middle class hotels
Luxury hotels.
OR
One star hotels
Two star hotels
Three star hotels
Four star hotels
Five star Deluxe hotels
OR
'A' Class hotels
'B' Class hotels
'C' Class hotels
'D' Class hotels

ICHM Page 47

OR
Modern hotels
Comfortable hotels
Deluxe hotels
OR
Tourist class hotels
Standard hotels
Super class hotels
According to its relationship with transport
Motels
Motor hotels
Railway hotels
Airport hotels
Floating hotels

According to facilities and amenities
Luxury
Quality (falling short of luxury)
Standard (Economy)
Basic.

According to ownership and management
Independent hotels (hotel consortium / cooperation)
Chain/ group hotels (public owned / franchise)
Private hotels.

Details of Some Categories

There are modem western style hotels in all large cities as well as important tourist centers.
These have been classified on the internationally accepted star ranging from 5 star to 1 star

ICHM Page 48

hotels. These are the hotels of international repute having more than 200 rooms with their
counter parts in all the large cities. These establishments provide accommodations,
restaurant facilities, grillrooms, banqueting suites and bars as an integral part of their
businesses. There normal activities are often 'supplemented by shops 'of diverse kinds,
garages, laundry and similar services. Also, in many instances, residential, furnished and
unfurnished flats equally belong to the over all operating company. For example, in India
Oberoi Hotel have some luxurious 2 or 3 bedroom apartments or a contemporary 4 bed
room cottages. It provides swimming pool and landscaped lawns. Executives, who by the
very nature of their responsibilities are the leader of their profession, direct enterprises in
the international group. A number of these hotels belong to the luxury class. Their service
embraces the finest amenities procurable and a high pitch of comforts prevails throughout
and charges are scaled accordingly. A few establishments offer all the amenities of a luxury
hotel upon a more commercialized scale and at the popular prices.

Hotels in the international grouping are mostly owned 'by public companies and controlled
by a Board of Directors. The President/Chairman of the Board is usually a prominent figure
of the industry, the secretary, a chartered accountant, and the managing director, a leading
personality in the hotel industry. The overall operational responsibility of the company's
affairs falls to the managing director.

These hotels are generally divided into various departments under a resident/general
manager who is, directly responsible to the managing director. The relationship and
responsibilities of the departmental heads, general manager and. Managing director should
be clearly defined and understood. The general manager manages the hotel through his
departmental heads and all immediate operational data are his responsibility. The
managing director takes charge of the broad operational and financial policies of the
company.

Apart from the profitable lettable accommodation-the suites, flat lets, and studio rooms:--a
considerable revenue is extracted from catering. There is a restaurant, which opens for
luncheons and where also there are tea dances, and evening dinner dances.

ICHM Page 49

Good band and international fame cabarret artists are employed. The cliental dances to
famous bands and are entertained by well-known cabaret artists. True to tradition the
restaurant specializes in entertainment, the grillroom caters for the epicures and the
banqueting suites, large and small, handle all the special and functional catering.

The new thought in maximum revenue promotion from catering advocates three main
regular activities over and above the banqueting business and the room service on the
floors a large restaurant for entertainment operating a moderate allin" tariff, a popular
priced cafe complete with snack-bar and a small, select grillroom, a rendezvous of the
gourmet working on a high price allocate service in return for the finest fare that money
can purchase.

The practice of operating separate kitchens from the restaurant, grill and often functional
catering, gives way to one large production unit under an executive 'chef de cusine', This
considerable centralization, which includes bringing the whole catering industry under a
chief executive, follows the new policies of scientific operating which aims at streamlining
production costs, greater economized working and increased efficiency. It is, of course, very
dependent upon the actual layout and design, of premises, but quite definitely it is the
policy of the future. The potential of the international hotel is limited. There is a need for
limited hotels in a particular region. These hotels are opening able in the largest of
communities where there are prosperous businessmen.

Residential hotels

These hotels can be described as an apartment house with hotel service and for this reason
are often referred to as apartment hotels. The rooms are sold on yearly or monthly leases,
furnished or unfurnished, single or 'as suite'. Nearly all hotels in this category operate
restaurant and render telephone, laundry and valet service. Rents are usually collected
monthly in advance which charges are billed weekly. These hotels are mostly situated in big

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cities and operate almost exclusively under the European plan. A purely residential hotel is
not a hotel in the legal sense of the word since its tenants are not transients. Its methods of
operation are quite similar to those of residential hotels. They serve a few rooms for visiting
friends of their tenants, and most of them are glad to accommodate other transients in
order to fill rooms that may be vacant. Example of such hotels is Oberoi Apartments, Qutab
Hotel, and Oberoi Maiden etc.

These are the largest group of all. They meet great need that of the resident. An endless
mixture of varied sizes of residential establishments exists ranging from a few exclusive
hotels to boarding houses of all kinds. Many of the quieter residential towns, large cities
abound with these establishments. This group can be classified by the wealth of their
patrons. The guests are drawn from different walk of life, people of independent means,
from retired folk living on investments or pensions and from-men women wage earners.

The residential hotel is the development of USA, evolving after people discovered that
permanent living in hotels offer many advantages. A residential hotel usually apartment
building with the service of a hotel, maid and linen services, dinning room and room
services with board and possibly a cocktail lounge. Some are luxurious, and offer full
suites, whereas others are moderate and feature single rooms. Although they are few in
numbers, they usually let a room for a long period of time. In some of the cases their terms
are weekly. They have fixed hours for breakfast lunch tea, dinner etc. These hotels are
generally in the hands of private operators. Services and amenities provided are
comparable to that of average well regulated home. The food is more or like a home style.
As the residents are having fixed income, therefore it arises a number of economic problem
for the owner. The revenue of residential are more or less fixed where as the operating cost
is increasing day by day. There are some advantages. The rent from room is fixed although
most of the times these people are away from their rooms and secondly they are much less
trouble some than any other residential. These types of hotels are the product
individualistic family system. These hotels are found in USA.


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Terms are weekly. The turnover of residential is very slow, especially in good houses,
although the more enterprising of residential housekeepers frequently set rooms aside for
regular short stay visitors. The general standard of comforts of establishment can be
described as adequate and resembles that of the average well regulated home.

There are set hours to rise, to breakfast, lunch, and dinner. Though public rooms are
provided the guest spends much of their time in their bed sitting studio type rooms. These
hotels are usually privately owned owner operated. The staff consists of one or more
waitresses or waiters, cook, kitchen and floor maid etc. The food is more home style. The
economic of residential establishment has its problems. The average owner-operated house
is purchased as an investment. If the terms are moderate and comforts are good, there
should be few vacant rooms. But the question of terms, in an area of high operation costs,
raises its difficulties where one considers the residents, whether retired or working, rely for
the most part on fixed earned or invested incomes.

The earnings or revenue of residential seldom increases but the operators' costs are never
static. Operation with assured weekly rentals coming in must pre-budget their costs and
set a side their profits to a good degree of exactitude. In short, scientific ap-proaches should
be applied.

Professional people and similar salaried wage earners are always sought after. They are
only in for meals, are out of their rooms and off the premises most of the day and their
rentals is guaranteed. Further more it is found that the working guest is usually much less
trouble some than many of other types of residents.

The practice of letting rooms unfurnished as well as furnished, deserves much
consideration. Many people have their own furniture and like to have it around them and
this has its advantages.

The future of the residential establishments relies upon the service flat Service flats range
from great block to smaller houses letting out one room letting out one room flat lets. The

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block of flats has its own restaurant, catering for residents and chance customers alike,
and operates a room catering service. Experience has shown, that with this type of
restaurant unless there is a possibility of strong and regular chance trade, both luncheon
dinner and functional, the venture can prove very precious. Small one room flat both
furnished and unfurnished are always good propositions. The latest thought advocates the
equipping of small kitchen units comprising cooker, freezer and wash-up for those who find
for themselves. Sometimes a room service is available in the form of room trays. The flats
are centrally heated and serviced. Apartment houses of this nature are more reasonable to
live in than guest houses, offering a fuller and more personal service. Residential premises
equipped to be operated in the self-help idiom with a much labour-saving equipment as
possible and the entire outfit designed to warrant the minimum of maintenance is the
answer to high costs will become the guest house of the future for people of limited means.
Classification of Hotels stay is longer than a week. at the end of the seven day.

Semi-residential hotels

These hotels offer its rooms at weekly or monthly rate or daily rate. The rates arc reduced
for prolonged occupancy. They also attract permanent tenants who do not wish to be bound
by lease, as well as many transients who want to take advantage of the reduce rate for
longer stay. They also operate under the European plan and are situated in cities.

Transient hotels

Most of the people are away from homes for a day, week or month on business or for
pleasure. A transient hotel is one that caters to the need of the traveling public while they
are away from home. This type of the hotel is the direct descendent of the old inn, operated
primarily to accommodate the traveler. It distinguishing character is that it sells its room
including board if operating under the American plan, without previous agreement with the
guest as to the length of his stay. Its rate is fixed on the per day basis. These hotels
situated in large cities are operated almost exclusively under the European plan. In smaller
sites some use the American plan. It is the usual custom of transient hotel to render a bill

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for all service at the time of the guest's departure, or if his stay is longer than a week, at the
end of the seven day.
Commercial hotels

Commercial hotels direct its appeal primarily to the individual traveler for business
reasons, although some do have permanent guests. This hotel depends mainly on
executives and on the individual traveling for pleasure. Thus these hotels mainly cater for
the commercial traveler and they are not found in all the larger provincial towns. As the
hotel caters primarily to business people, it is generally convenient to establish these hotels
near to office buildings, restaurant and entertainment outlets. All firms with connexions
upon a nation wide scale send out their representatives on the road. Some 'reps', hi1ly an
area to cover, others range the whole country, some travel with a display of goods, other
travel light all have travel and lodging allowances. Commercial travelers, with their set and
often-limited expenses require in expensive accommodation. But being for the most men
from good homes, they require a certain standard of comfort. These businessmen like
company and enjoy getting together with their fellow travelers. For these reasons there are
commercial hotels catering for their needs.

The commercial requires good, plain, home-style food, a comfortable bed, clean
surroundings and a place where they may read or write in peace. Stock rooms, let at a
rental for displays, are usually available at these hotels. Facilities typically include small
meeting and conference room, a medium sized restaurant and lounge and a swimming
pool. Since occupancy at there hotels usually declines on weekends, many hotels have
installed elaborate recreational amenities, health club, tennis court, all-year-round
swimming pools. Commercial hotels are normally owner run and a successful business
depends upon their operating on a friendly and comfortable use. A good name is a sound
asset with the 'knights of the road', who, amongst their community will recommend the
good and warn against the not so good house.
Success again depends upon the building of a consistent and regular business. The
commercial is certainly a regular caller and will always patronize and remain faithful to a
house where he is known and where a warm and comfortable welcome is guaranteed. The

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number of rooms in these hotels varies around the fifteen mark. The average guest stay is
of short duration, though some have a wide area to cover and make the hotel their
headquarters.

Meals are served at fixed hours, the principal ones being breakfast and dinner, luncheons
not always being required. The terms are on a bed and breakfast rate with additional
charges for all other meals. As many of the guests come by road there should always be
nearly parking and garage facilities. Conventions are also another important source of
business in many larger transient hotels. Conventions, sale meeting and exhibits not only
attract many people to help fill the hotel rooms, but also utilize the hotels group business
facilities-meeting room, exhibit areas and private dinning rooms, thus generating a
additional revenue from the rentals of these spaces and the sale of food and beverage to
these groups.

In some of the big industrial towns largely fully licensed commercial hotels exist complete
with grill room, functional accommodation and garage, It must be emphasized that the
commercial hotel is not and should never be taken for a poor type of 'lodging house. Neither
should a bad concept be formed of the traveler. The modern commercial is an important
businessman, a representative carefully selected by his firm. Marked attention is paid by
the sales director to engage the right type-a man of education and integrity, because its
representative knows a firm and obviously he must be carefully selected.

Hoteliers who make a specialization of catering for the commercial traveler not only find a
regular and remunerative business, but a pleasant task as well. The commercial is
invariably loyal and appreciative, easy to get on with not a lot of trouble and regular in his
patronage.

Airport hotels

'The location of airport at a long distance from city, the growth of the airline industry, the
increase in air traffic and the postponement or cancellation of flights, has made the airlines

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companies responsible to take care of hundreds of passengers and built the hotels near the
airports. The glaring example of such hotels is the Centaur Hotel at Delhi and Bombay
owned by Hotel Corporation of India, a, subsidiary of Air India. Similarly there is an Airport
Hotel at Calcutta owned by the ITDC. These hotels get business from other travelers who
require a place to rest while waiting for connecting flights. Many travelers prefer to arrive at
the airport the night before and get a good night rest at these airport hotels. In addition to
room, restaurant facilities, coffee shop and main dinning room, most hotels have added
banquet and meeting rooms to attract the social functions and meetings from companies
located nearby, in order to run their business profitably. In most of the big cities these
hotels are favorite location for area meetings, as it result in saving in taxi fares and times.

Grading separates tourist accommodation into different categories or grades on the basis of
subjective judgment or of a combination of these and objective judgments such as standard
of amenities and services. The tourist need to know the availabilities of accommodation
which meets his requirements as to type, price, amenities facilities and other criteria. A
grading system provides qualitative judgment on the amenities and facilities of a particular
accommodation unit. It enables the user to choose the quality of accommodation he is in
need of. The physical facilities, food and other services of the establishment are graded
individually or collectively. The system of grading varies both in range of categories and
methods of classification. It is usually represented any of the following methods :
1. Numbers 1, 2, 3, 4, 5, or First class, Second class, Third category etc.
2. Letters A, B, C, D, E, etc.
3. Symbols Star/s: , ,

The precise definition of what constitutes a hotel and conditions for hotel registration and
grading are governed by the legislation in 50 countries, including almost all the major
tourist destinations.

The usefulness of grading of hotels, informing the public and authorities is universally
recognized. The majority of the countries have undertaken such classification. These

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schemes differ in various countries. Some of the countries-incorporate approval alone,
some also gradation, some also classification. However, the official system of grading differ
from one country to another. The number of categories varies from two. to sixteen classes
or subclasses. For example, Greece-5 classes, Bulgaria 7 classes, France-13 classes, India
6 classes. The designation of categories differs. For example, by letters - the hotels of
category' A', 'B', 'C', 'V, in Greece, by figures in Italy, by stars in Jordan, by combination of
letters and stars in France.
The draft of international classification suggested by WTO (World Tourism Organization)
had given five main categories:
Luxury
First
Second
Third
Fourth

62 member countries of the organization approved it in 1967. It was observed that the
varieties of official classification in different countries prevent statistical comparison on
national as we as international basis. For example, three star hotels (***) of France cannot
be graded with hotels' A' or 'B' of Spain or the category of I and II of Italy. The standards are
different from country to country. In practice, only many journeys and personal experience
permit comparison of the hotel of one country with another. The knowledge of travel agents
is valuable in the field of classification for comparison.
The classification and criteria necessary for the purpose of grading of hotels vary from
country to country. Following are the different ways in which the hotels are categorized in
'different countries;
Austria - - - A, B, C, D
Ireland - - - Deluxe and four other categories.
Italy - - - Deluxe I, II, III, IV.

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In USA and UK there is neither official nor non-official classification/grading by the
hoteliers. The Automobile Association and the Royal Automobile Club have classified the
hotels for the use of their members and general public. Majority of the tourist conscious
countries has adopted a system of gradation for hotels in their Terri tones. As long as the
gradation is. based on the standard of comforts and the amenities offered by the hotel
establishments there .is everything to be said _ favor of such gradation.

The discussions that took place during the deliberations of the IUOTO in its session held in
Vienna in 1956 and in Washington in 1957, led to a serious misgivings on the part of the
hoteliers that the classification is only a precursor to the clapping down of rigid price
control by the government of the concerned country. The general consensus of opinion in
the IUOTO member countries, however, was an unfounded apprehension on the part of the
hoteliers and the IUOTO came to a final conclusion to recommend classification. The
system of classification could enable the tourists to be fully informed as to what to look for
by way to hotel accommodation in any given place rather than find out the standard of that
hotel only after the tourist has registered as a guest in that hotel. The gradation of hotels
should be really objective and impartial. It should be undertaken by an agency, which has
the interest of the consumer i.e. the tourist as well as of the purveyor i.e. the hotelier at
heart. In some countries this is done by the hotel organization. In countries, which have no
official classification, this task has been undertaken by certain non-official organizations.
In all others countries this is done by the tourist department or other appropriate
governmental body.

A great care is taken by the various countries in categorizing hotels exactly according to the
standards prevailing amongst them. A particular set of criteria cannot be applied uniformly
to every country in the world. It is not possible even within the confines of a particular
country to fix the criteria in such a manner as would give a uniform and result in different
climatic conditions and different local surroundings. For instance, a deluxe hotel in a
country with the climatic conditions prevailing as in our country must necessarily install
air-conditioning and preferably provide swimming pools also. There are number of big cities

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where because of the limitations of space, it is impossible to provide a swimming pool
although such, hotels can perhaps come within deluxe category. The criteria for
classification of the hotels must correspond with the degree of comfort and satisfaction
accorded 10 and the amenities provided to the tourists. The criteria would differ from
region to region. The same criteria will apply differently to hotels in hill stations and hotels
in the plains. The climatic factor has, therefore, always to be kept in mind.. On a hill
station it would not be necessary with a seasonal influx of visitors, to provide for air-
conditioning. However, air-conditioning is a absolute necessary in a climate like that of
tropical region.

The object of fixing the criteria for hotel grading is to provide correct and uncontestable
information to visiting tourists so that they can make their own choice and are not be
misled into believing that a certain category of hotel has been provided for them whereas in
reality that category is not in existence. The tourist is the hotels best publicity agent.

Star Ranking
In addition to the approval of a hotel project at the planning stage from the point of view of
its suitability for foreign tourists, the hotel on completion is inspected as a functioning
establishment or approval and placement in the appropriate "Star" category. There are five
such categories ranging from 5 star for hotels which to one star for hotels which offer
adequate standard of comfort and cleanliness. For the guidance of entrepreneurs in
planning a hotel to qualify for a particular category, the government dearly lays down the
facilities expected of establishments in each category.

A detailed study and analysis of the whole system of classification prevalent in various
countries shows that there are no uniform criteria at international level for grading and
classification of hotels. When inquired the reaction of the tourists, it was pointed out that it
is more important to list facilities alone with the rates fixed, thereby giving them the choice
to select. Quality is more important to them than the physical aspects of a hotel.
Many hoteliers pointed out that the star system creates an impression of luxury and waste
-an artificial label with unwanted connotations. Material criterias are unsatisfactory. These

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criterias 30 not contain any built in guarantees. Facility wise, a luxury hotel will not merit
any consideration of, for instance, it does not employ sufficient personnel. Quality of service
is very important consideration. After all, hotels constitute a service industry.

Star Ranking In India

The standard for gradation of hotels in India are laid down by the government of India from
the points of view of the suitability of the hotel for foreign tourists. All hotels which are
approved get worldwide publicity through tourist literature published by the government
and distributed in India as well as abroad/overseas and are eligible for foreign exchange for
their essential imports of equipment and provision and for their advertising, publicity and
promotion abroad, from the government's special quota of foreign exchange for tourist
promotion. In addition to the approval of a hotel project at the planning stage from the
point of view of suitability for foreign tourists, the hotel on completion is inspected 25
functioning establishment for approval and placement in the appropriate star category.

There are certain general features, facilities and services expected of establishments in each
category. For example, hotels in the category of four, five star, and five star deluxe should
be completely air-conditioned, three star hotels need have air-conditioning in only 50% of
rooms; two star hotels need not serve continental cuisine and one star hotels need have
only 25 attached baths.

According to the regulatory conditions for approved hotels, the officials of the government
or any other officer deputed by it to inspect hotel premises from time to time will be allowed
free access with or without prior notice. In the event of breach of any of the conditions by
the hotels, the government shall have the right to withdraw the approval. .

Complaints regarding luggage having been rifled, valuable stolen and impolite treatment of
the staff are common from the guests. In most of the hotels left the message in the guest
rooms requesting them to deposit their valuables and jewellery with the management.

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Similarly, in some of the hotels the air-conditioned plants have not worked effectively. The
guests also make many other complaints.

The government, who forwards it to the representatives of the region concern, also receives
many of these complaints. These representatives find it impossible to complain and take
the action against them because of their friendship with the hotel management. Not only
this, these representatives are well known to the staff of the local hotels and therefore, are
not in a position to carry out a surprise check of the hotel's facilities and services.

A satisfied tourist will help in the development of tourist traffic. A dissatisfied tourist will be
injurious to the tourist industry and spoil the reputation of hotels and the tourist region.
Official registration approval and grading requirements provide valuable guidelines in
planning hotels and other accommodation, indicating the standard of space and facilities
needed to satisfy a particular marketing criteria, conditions for grants of subsidies, loan
facilities, agreement for subsequent management, are also generally linked to these
facilities.

One Star Category Hotels

The general construction of the building of one star category hotels should be good and the
locality and environs including immediate approach should be suitable. The hotel should
have at least 10 lettable bedrooms of which at least 25% should have attached bathroom
with a bathroom for every 4 of the remaining rooms. At least 25% of the bathrooms should
have western style WCs. All bathrooms should have modern sanitation and running cold
water with adequate supply of hot water, soap and toilet paper. The rooms should be
properly ventilated and should have clean and comfortable beds and furniture.

There should be a reception counter with a telephone and a telephone for the use of guests
and visitors. There should be a clean and moderately well equipped dining room/restaurant

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serving clean wholesome food, and there should be a clean, well-equipped kitchen and
pantry.

There should be experienced, courteous and efficient staff in smart and clean uniforms and
the senior staff coming in contact with guests should possess a. working knowledge of
English Housekeeping at the hotel should be of a good standard and clean and good quality
linen, blankets" towels etc. should be supplied. Similarly crockery, cutlery and glassware
should be of good quality.

Two Star Category Hotels
The building of two star category hotel should be well constructed and the locality and
environs including the approach should be suitable for a good hotel. The hotel should have
at least 10 lettable bed room of which at least 75% should have attached bath rooms with
showers and a bath room for every four of the remaining rooms and should be with modern
sanitation and running cold water with an adequate supply of hot water, soap and toilet
paper. 25% of the rooms should be air-conditioned (except in hill stations where there
should be heating arrangements in all the rooms ),and all rooms must be properly
ventilated, clean and comfortable, with all the necessary items of furniture. There should be
a well-furnished lounge.

There should be a reception counter with a telephone. There should be a telephone or call
ball in each room and there should be a telephone on each floor unless each room has a
separate telephone. There should be a well-maintained and well-equipped dining room I
restaurant serving good clean wholesome food, and a clean, hygienic and well-equipped
kitchen and pantry.

There should be experienced, courteous and efficient staff in smart and clean uniforms. The
supervisory staff coming in contact with guests should understand English. There should
be provision for laundry and dry cleaning services. Housekeeping at the hotel should be of
a good standard and clean and good quality linen, blankets, towels etc. should be provided.
Similarly crockery, cutlery and glassware should be of a good quality.

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Three Star Category Hotels
The architectural features and general construction of the building of three star category
hotels should be of a very good standard and the locality including the immediate approach
and environs should be suitable for a very good hotel and there should be adequate parking
facilities for cars. The hotel should have at least 20 lettable bed rooms, all with attached
bath room with bath tubs and/or showers and should be modem in design and equipped
with fittings of a good standard, with hot and cold running water. At least 50 per cent of the
rooms should be air-conditioned (except in hill stations where there should be heating
arrangements in all the bed rooms, dining rooms, restaurant and lounge) and the furniture
and furnishings such as carpets, curtains etc., should be of a very good standard and
design. There should be adequate number of lifts in buildings with more than two stories
including the ground floor. There should be a well appointed lounge and separate ladies
'and gentlemen's cloak rooms equipped with fittings of a good standard.

There should be a reception and information counter attended by qualified and experienced
staff, and a bookstal1, recognized Travel agency, money changing and safe deposit facilities
01} the premises. There should be a telephone in each room (except in seasonal hotels
where there should be a call bell in each room and a telephone on each floor for the use of
hotel guests) and a telephone for the use of guests and visitors to the hotel. There should
be a well equipped and well maintained air-conditioned dining room I restaurant and
wherever permissible by law there should be a bar permit room. The kitchen, pantry and
cold storage should be clean and organized for orderliness and efficiency.

The hotel should offer good quality cuisine Indian as well as continental and the food and
beverage service should be of a good standard. There should be qualified, trained,
experienced, efficient and courteous staff in the smart and clean uniforms and the
supervisory staff coming in contact with the guests should understand English and the
Senior staff should possess a good knowledge of English. There should be provision for
laundry and dry cleaning service. Housekeeping at the hotel should be of a very good
standard and there should be adequate supply of linen, blankets, towels etc. of good

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quality. Similarly, cutlery, crockery, glassware should be of good quality. Each bedroom
should be provided with a vacuum jug /thermos flask with cold, boiled drinking water. The
hotel should provide orchestra and ball room facilities and should attempt to present
specially choreographed Indian cabaret.

Four Star Category Hotels
The facade, architectural feature and general construction of the building of four-star
category hotel should be distinctive and the locality including the immediate approach and
the environs should be suitable for a hotel of this category. There should be adequate
parking facilities for cars. The hotel should have at least 25 lettable bedrooms, all with
attached bathrooms. At least 50% of the bathrooms must have long baths or the most
modern shower chambers, with 24 hours service of hot and cold running water. All public
rooms and private rooms should be fully air-conditioned (except in hill stations where there
should. be heating arrangements) and should be well furnished with carpets, curtains,
furniture, fittings, etc. in good taste. It would be advisable to employ the services of
professionally qualified and experienced interior designers of repute for this purpose. There
should be an adequate number of efficient lifts in buildings of more than 2 storeys
including the ground floor. There should be a well-appointed lobby and ladies' and
gentlemans cloaks room equipped with fittings of a standard befitting a hotel of this
category.

There should be a reception, cash and information counter attended by trained and
experienced personnel. There should be a special room for conference/banquet purposes.
There should a bookstall, recognized travel agency, money changing and safe deposit
facilities and a left luggage room on the premises. There should be a telephone in each
room and telephone for the use of guests and visitors and provisions for a radio or relayed
music in each room. There should be well equipped, welt furnished and well maintained
dining rooms/restaurants on the premises, and wherever permissible 'by law, there should
be an elegant, well-equipped bar/permit room. The kitchen pantry and cold storage' should
be professionally designed to ensure efficiency of operation and should be well equipped.


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The hotel should offer both international and Indian cuisine and the food and beverage
service should be of the highest standards. There should be professionally qualified, highly
trained, experienced, efficient and courteous staff in smart, clean uniforms, and the staff
coming in contact with guests should understand English. The supervisory and senior staff
should possess a good knowledge of English. It will be desirable for some of the staff to
have a knowledge of foreign languages and staff knowing at least one continental language
should be rotated on duty at all times. There should be 24 hours service for reception
information and Telephones. There should be provision for reliable laundry and dry
cleaning services. Housekeeping at the hotel should be of the highest possible standard and
there should be a plentiful supply of linen, blankets, towels etc. that should be of the
highest quality available. Similarly, the crockery, cutlery and glassware should be provided
with a vacuum jug / thermos flask with ice cold, boiled drinking water except where
centrally chilled purified drinking water is provided. There should be special
restaurant/dining room where facilities for dancing and an orchestra are provided.

Five Star Category Hotels and Five Star Deluxe Hotels
The facade, architectural features and general construction of the building of five star and
five star deluxe hotels should have the distinctive qualities of a luxury hotel of this
category. Five star deluxe category hotels are a qualitative extension of the five star
categories, while quantitatively, the basic features are as of a five star category. In a five
star deluxe hotel, the comparative all around standard of service and amenities are of very
superior quality and high standard.

The locality including the immediate approach and environs should be suitable for a luxury
hotel this category, and there should be adequate parking space for cars. The hotel should
have at least 25 lettable bedrooms, all with well appointed, attached bathrooms with long
baths or the most modern shower chambers, with 24 hours service of hot and cold running
water. All public rooms and private rooms should be fully air-conditioned (except in hill
stations where there should be heating arrangements) and should be well appointed with
superior quality carpets, curtains, furniture, fittings, etc. in good taste. It would be
advisable to employ the services of professionally and experienced interior designers of

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repute for this purpose. There should be an adequate number of efficient lifts in building of
more than 2 storeys including the ground floor, with 24 hours service. There should be a
well-designed and properly equipped swimming pool (except in hill stations). There should
be a well-appointed lobby and ladies and gentleman cloakrooms equipped with fittings and
furniture of highest standard.

There should be a reception, cash and information counter attended by highly qualified,
trained and experienced personnel, and conference facilities in the form of one each or
more of conference rooms /banquet halls and private dining rooms. There should be a
bookstall, beauty parlor, barber shop, recognized travel agency, money changing and safe
deposit facilities, left luggage room, florist and a shop for toilet requisites and medicines on
the premises. There should be a telephone in each room and telephone for the use of guests
and visitors and provision for a radio or relayed music in each' room. There should be a
well equipped, well furnished and well maintained dining room/ restaurant on the
premises; and wherever permissible by law there should be an elegant, well equipped
bar/permit room. The kitchen pantry and cold storage should be professionally designed to
ensure efficiency of operation and should be well equipped.

The hotel should offer both international and Indian cuisine and the food and beverage
service should be of the highest standards. There should be professionally qualified highly
trained experienced, efficient and courteous staff in smart, clean uniforms, and the staff
coming in contact with guests should understand English. The supervisory and senior staff
should possess a good knowledge of English. It will be desirable for some of the staff to
have knowledge of foreign languages and staff knowing at least one continental language
should be rotated on duty at all times. There should be 24 hours service for reception,
information and telephones. There should be provision for reliable laundry and dry-
cleaning services. Housekeeping at the hotel should be of the highest possible standard and
there should be a plentiful supply of all lines, blankets, towels, etc. which should be of the
highest quality available. Similarly, the crockery, cutlery and glassware should be of the
best quality available. Each bedroom should be provided with a vacuum jug/thermos flask
with ice cold, boiled 1.rinking water except where centrally chilled purified drinking water is

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provided. There should be a special restaurant drinking room where facilities for dancing
and an orchestra are provided.

5.2 TYPES OF OWNER SHIP
Sole proprietorship
A sole proprietorship, or simply proprietorship is a type of business entity which legally
has no separate existence from its owner. Hence, the limitations of liability enjoyed by a
corporation and limited liability partnerships do not apply to sole proprietors. All debts of
the business are debts of the owner. The person who sets up the company has sole
responsibility for the company's debts. It is a "sole" proprietorship in the sense that the
owner has no partners. A sole proprietorship essentially refers to a natural person
(individual) doing business in his or her own name and in which there is only one owner. A
sole proprietorship is not a corporation; it does not pay corporate taxes, but rather the
person who organized the business pays personal income taxes on the profits made,
making accounting much simpler. A sole proprietorship does not have to be concerned with
double taxation, as a corporate entity would have to.
A sole proprietor may do business with a trade name other than his or her legal name. In
some jurisdictions, for example the United States, the sole proprietor is required to register
the trade name or "Doing Business As" with a government agency. This also allows the
proprietor to open a business account with banking institutions.

Disadvantages
A business organized as a sole trader will likely have a hard time raising capital since
shares of the business cannot be sold, and there is a smaller sense of legitimacy relative to
a business organized as a corporation or limited liability company. It can also sometimes be
more difficult to raise bank finance, as sole proprietorships cannot grant a floating charge
which in many jurisdictions is required for bank financing. Hiring employees may also be
difficult. This form of business will have unlimited liability, so that if the business is sued,
the proprietor is personally liable. The life span of the business is also uncertain. As soon
as the owner decides not to have the business anymore, or the owner dies, the business

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ceases to exist. The business owner must also be well rounded, as he or she will take
charge of all aspects of business.
In countries without universal health care, such as the United States, a sole proprietor is
also responsible for his or her own health insurance, and may find difficulty finding any if
one of the family members to be covered has a previous health issue.
Another disadvantage of a sole proprietorship is that as a business becomes successful, the
risks accompanying the business tend to grow. To minimize those risks, a sole proprietor
has the option of forming a corporation. In the United States, a sole proprietor could also
form a limited liability company, or LLC, which would give the protection of limited liability
but would still be treated as a sole proprietorship for income tax purposes.

A sole proprietership hotel is also known as unit property which are generally smaller. Eg
Goldfinch hotel Bangalore

Partnership
A partnership is a type of business entity in which partners (owners) share with each
other the profits or losses of the business undertaking in which all have invested.
Partnerships are often favored over corporations for taxation purposes, as the partnership
structure does not generally incur a tax on profits before it is distributed to the partners
(i.e. there is no dividend tax levied). However, depending on the partnership structure and
the jurisdiction in which it operates, owners of a partnership may be exposed to greater
personal liability than they would as shareholders of a corporation.

Companies
Generally, a company is a form of business organization. The precise definition varies.
In the United States, a company is a corporationor, less commonly, an association,
partnership, or unionthat carries on an industrial enterprise." Generally, a company may
be a "corporation, partnership, association, joint-stock company, trust, fund, or organized

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group of persons, whether incorporated or not, and (in an official capacity) any receiver,
trustee in bankruptcy, or similar official, or liquidating agent, for any of the foregoing."
In English law, and therefore in the Commonwealth realms, a company is a form of body
corporate or corporation, generally registered under the Companies Acts or similar
legislation. It does not include a partnership or any other unincorporated group of persons.
Eg Taj group of hotels owned by Indian hotel company limited

REVIEW QUESTIONS
1. Write a note on history of hotel industry

2. Classify hotels in brief
3. What are the different types of ownership in hotels? Comment
4. Write in detail the following category of hotels
Residential hotels
Semi-residential hotels
Transient hotels
Commercial hotels
Airport hotels
5. Write a note on star ranking of hotels


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UNIT VI
6.1 AFFILIATIONS
Referral hotels
Chain hotels
Franchise management contract
Lease agreement
Apartment hotels

6.1 AFFILIATIONS

Referral hotels
Referral group consists of independent hotels which have bonded together for some
common purpose. While each property in the referral system is not an exact replica of the
others, there is sufficient consistency in the quality of service to consistently satisfy guest.
Hotels within the group refer their guest to the other affiliated properties. Through this
approach independent hotels may gain a much broader level of exposure

Chain hotels
- This category includes hotel and motel chains and brands. Chain ownership generally
imposes certain minimum standards, rules, policies and procedures to restrict affiliate
activities. Chain hotels need to have a strong control over the individual properties. E.g.
Oberoi group of hotels

Franchise management contract

A business strategy allowing one party (the brand) to use the logo, trademarks and
operating systems of another business entity in exchange for a fee

The Hotel Franchise Relationship

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A network of interdependent business relationships allowing a number of people
1. to share brand identification,
2. to develop a successful method of doing business, and
3. to establish a strong marketing and distribution system.

For the franchisee, franchising helps reduce risk
Proven operational methods are used
Franchisees and their financial capital expand the brand faster than franchiser could do
solo

Benefits
What is franchising?
History of hotel franchising is relatively short
First significant hotel franchising arrangement began in 1950s with Kemmons Wilson
and his Holiday Inn chain
Today hotel owners increasingly affiliate their hotels with other hotels under a common
brand name.

Hotel Franchising: Origin & Structure
Company administering and directing the brand itself is not an owner of hotels, but rather
a franchise company.
Majority of franchise companies do not actually own the hotels operating under their brand
names.
Those companies have right to sell brand name & determine brand standards

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Conflict can arise between hotel owners and brand managers. Supply potential franchisees
with disclosure document at either the first face-to-face meeting or ten business days
before any money is paid by franchisee to franchiser

Federal Trade Commission (1979):
Hotel Franchising:
Governmental Regulations Related to Franchises
Provide evidence, in writing, of any earning claims or profit forecasts made by
franchiser
Disclose number and % of franchisees achieving earnings rates advertised in any
promotional ads that include earnings claims
Provide potential franchisees with copies of basic franchise agreement used by
franchiser
Refund promptly any deposit monies legally due to potential franchisees that elected
not to sign a franchise agreement with franchiser
Do not make claims orally or in writing that conflict with written disclosure
documents provided to franchisee
Name of franchiser and type of franchise it offers for sale
Business experience of franchise companys officers
Fees & royalties that must be paid
Initial investment requirements
Rights & obligations of franchiser & franchisee
Territorial protection offered by franchiser
Required operating policies
Renewal, transfer, and termination procedures
Earnings claims

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Name and address of legal representative of franchiser

The Franchise Agreement: Major Elements
Detailed definitions
Any definitions subject to misinterpretation by parties to the agreement are defined.

License grant
Description of how the owner is allowed to use the brands logo, signage, and name
in operating the hotel.
Term (length of agreement)
The most common franchise agreements are written for 20 years.
Also include windows at fifth, tenth, & fifteenth years with early outs.
Lease agreement
Different definitions
Binding agreement containing the terms of a renter's occupancy.

The contractual agreement between the lesser and the lessee that sets forth all the
terms and conditions of the lease.

The formal legal document entered into between a Landlord and a Tenant to reflect
the terms of the negotiations between them; that is, the lease terms have been
negotiated and agreed upon, and the agreement has been reduced to writing. ...

A document granting possession of a property for a given period without conferring
ownership. The Lease Agreement specifies the terms and conditions of occupancy

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by the tenant.

Used to verify your monthly obligation. Often the landlords phone number is
required for verbal verification.
A contract whereby the landlord allows the tenant temporary use of a dwelling, in
return for payment, known as rent.
Hotel leasing contract
Contract granting use or occupation of property during a specified period in exchange for a
specified rent.
Property used or occupied under the terms of such a contract is called leased.
1. To grant use or occupation of under the terms of a contract.
2. To get or hold by such a contract
Apartment hotels
An Apartment Hotel (also ApartHotel, Apart Hotel and Apart-Hotel) is a type of
accommodation, described as "a serviced apartment complex that uses a hotel style
booking system". It is similar to renting an apartment, but with no fixed contracts and
occupants can 'check-out' whenever they wish.
Apartment hotels are flexible types of accommodation; instead of the rigid format of a hotel
room, an apartment hotel complex usually offers a complete fully fitted apartment. These
complexes are usually custom built, and similar to a hotel complex containing a varied
amount of apartments. The length of stay in these apartment hotels is varied with
anywhere from a few days to months or even years. Prices tend to be cheaper than hotels.
The people that stay in apartment hotels use them as a home away from home, therefore
they are usually fitted with everything the average home would require.

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Origins
Apartment hotels were first created in holiday destinations as accommodation for families
that needed to 'live' in an apartment rather than 'stay' as they would in a hotel. The
apartments would provide a 'holiday home' but generally be serviced. Later on these
apartments evolved to be complete homes, allowing occupants to do everything they would
at home, such as cleaning, washing and cooking.

Services and facilities
Essentially the apartment hotel combines the flexibility of apartment living with the service
of a hotel. Many of the apartments take advantage of prime locations with panoramic views
of cities seen through wall to ceiling windows. Suites usually include high quality finishes,
broadband connection & interactive TV, servicing and integrated kitchen and bathroom.
High quality leather sofas in the living area and king size beds bring the hotel experience to
a whole new level. Those are the luxuries, they also come with the basics: satellite or cable
TV, washer, dryer, dishwasher, cooker, oven, fridge, freezer, sink, shower, bath, wardrobes,
all the furnishings to be expected in a luxury home.
Extended stay hotels
Extended stay hotels are a type of lodging with features unavailable at standard hotels.
These features are intended to provide more home-like amenities. There are currently 27
extended stay chains in North America with at least 7 hotels, representing over 2,000
properties. There is substantial variation among extended stay hotels with respect to
quality and the amenities that are available. Some of the economy chains attract clientele
who use the hotels as semi-permanent lodging.
Extended-stay hotels typically have self-serve laundry facilities and offer discounts for
extended stays, beginning at 5 or 7 days. They also have guestrooms (or "suites") with
kitchens. The kitchens include at a minimum usually: a sink, a refrigerator (usually full
size), a microwave oven, and a stovetop. Some kitchens also have dishwashers and
conventional ovens.

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Extended stay hotels are popular with business travelers on extended assignments, families
in the midst of a relocation, and anyone else in need of temporary housing. Extended stay
hotels are also used by travelers who appreciate the larger space a typical suite provides.
Residence Inn is credited with popularizing the "extended stay" concept. The chain was
launched in 1975 in Wichita, Kansas by Jack DeBoer, and acquired by Marriott
Corporation in 1987. As of April 2005, there were over 450 Residence Inn hotels in the
United States, Canada and Mexico. Jack DeBoer has jumped back in the Extended Stay
market developing a concept called Value Place.
Other upscale brands of extended-stay hotels, such as Staybridge Suites which is part of
the InterContinental Hotels Group, have made this segment of the lodging industry one of
the fastest-growing.

6.2 ORGANISATIONAL STRUCTURE OF DIFFERENT HOTELS
Small
Medium
Large

Organizational set up of front office Department

Hotel organization structure:
In order to carry out its mission, global and departmental goals and objectives, every
company shall build a formal structure depicting different hierarchy of management,
supervision, and employee (staff) levels. This very structure is refereed to as organization
chart. Moreover, the organization chart shows reporting relationships span of management,
and staff/line functions.

Hierarchy Chart


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The Front Office organization chart shall be designed according to Functions. Doing so
not only enhances the control the Front Office has over its Operations, but also provides
guests with more specialized attention. Such a division according to functions, however, is
not practical in middle and small size hotels due to the fact that these very hotels don't
posses enough and sufficient monetary resources to ensure the existence of at least 3
jobholders (i.e. one for each shift) for each job position. Therefore, in middle size hotels, a
front office clerk might be responsible for more than one work position. This is ensured via
cross training. On the other hand, in small size hotels, one or two front office clerk(s) might
be responsible for all front office activities.

Typical functions and positions under the Rooms Division Department:
Front Desk Agent: Registers guests, and maintains room availability information
Cashier: Closes guest folios, and properly checks out guests
Accounts Receivable Clerk: Posts charges in correct guest folios and updates folios'
outstanding balances
Night Auditor: Controls the job of the Accounts Receivable Clerk, and prepares daily
reports to management (ex: Occupancy Report and Revenue Report)
Mail & Information Clerk: Takes Messages, provides Directions to Guests, and
maintains Mail
Telephone Operator: Manages the Switchboard and coordinates Wake-up Calls
Reservation Agent: Responds to Reservation Requests and creates Reservation
Records
Uniformed Service Agents: Handles Guest Luggage, escorts Guests to their Rooms,
and assists guests for any bit of information requested


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Hierarchy of a small size hotel

Hierarchy of a Medium size hotel

FRONT OFFICE
MANAGER
LOBBY
MANAGER
FRONT OFFICE
ASSISTANT
TELEPHONE
OPERATOR
BELL BOY
RESERVATI
ON
ASSISTANT
FRONT OFFICE
MANAGER
ASST. FRONT
OFFICE MANAGER

LOBBY MANAGER
FRONT OFFICE
ASSISTANT
TELEPHONE
OPERATOR
BUSINESS
CENTRE
SECRETARY
TELEPHONE
SUPERVISOR
BELL BOY
RESERVATIO
N ASSISTANT
RESERVATI
ON
SUPERVISO
R

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Hierarchy of a large size hotel

FRONT OFFICE
MANAGER
ASST. FRONT
OFFICE
MANAGER

LOBBY
MANAGER
FRONT
OFFICE
ASSISTANT
TELEPHONE
OPERATOR
BUSINESS
CENTRE
SECREATAR
Y
TELEPHONES
SUPERVISOR
RESERVATI
ON
ASSISTANT
RESERVATI
ON
SUPERVISO
R
DOOR
MAN
AIRPORT
REPRESENTA
TIVE
RESERVATI
ON
MANAGER

ACCOMODATIO
N MANAGER
VALET
S
GUEST RELATION
EXECTIVE
BELL BOY
TRAVEL DESK
REPRESENTATIV
E

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6.3 FRONT OFFICE EQUIPMENTS
Manual
Semi automatic
Automatic

6.4 FRONT OFFICE EQUIPMENTS
.
Front Office Systems:
Until the 1960's, nearly all hotels were operating under the manual system. At late
70's, with the introduction of computers, hotels shifted to semi-automated systems.
Nowadays, most of the five-star hotels operate under the fully automated system.
Below is a brief description of the three different systems under which hotels might
operate.

1. Non-automated [manual] systems: This very system is the one characterized by the sole
usage of hands. In fact, all formats, procedures, and different kinds of calculations are
done manually.

2. Semi-automated [Electro-mechanical] systems: This system gets use of some Electro-
mechanical equipment. In fact, under the semi-automated system, each department might
have its own computer system under which it handles all its operations.

3. Fully automated [computer based] systems: That's the best system ever used in the
hotel industry. In fact, it is characterized by the excessive use of departmental software
package programs integrated and connected to a main frame or terminal situated at the
front office department

Guest Cycle under Three Different Systems:
At this stage, it is essential to notice that the following stages of the guest cycle under the
three different systems do not conflict with each other. In fact, the only differences are due

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to the nature of the system use. Therefore, what will be discussed above is not the
repetition of the sequence; rather only differences will be highlighted.

1. Non-automated systems:
A- Pre-arrival activities:
At the pre-arrival stage, reservation requests should be introduced in a loose-leaf notebook
or index card. Moreover, only reservations up to 6 months horizons shall be honored.
Lastly, it is not practical, under this very system, to issue reservation confirmation
numbers, initiate pre-
Until the 1960's, nearly all hotels were operating under the manual system. At late 70's,
with the introduction of computers, hotels shifted to semi-automated systems. Nowadays,
most of the five-star hotels operate under the fully automated system. Below is a brief
description of the three different systems under which hotels might operate.

Registration activities (at the exception of VIP and groups) and prepare occupancy
forecasts. The reason is, time and money loss along with insufficient labor force to
manually conduct all the above mentioned activities.

Arrival activities:
At the arrival stage, guests shall either sign a page in the registration book or fill
manually a registration record. Under this very system, the most widely used front office
equipment is the room rack, in which registration records are inserted to serve as room
rack slips. Moreover, registration books and records shall be time stamped as an internal
control proving when the guest exactly came, who registered him/herLastly; guest folios
shall be opened for each registered guest.

Under the occupancy activities, registration records shall be prepared with multi-copies.
In fact, one copy shall be distributed to room rack, another stamped to the guest folio,
another given to switchboard operators, and a final copy handed to the uniformed service
personnel. Lastly, guests with charge privileges charges and payments shall be posted to
respective guest folios.

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Departure activities:
At departure stage, cashiers should settle each guest account's outstanding balance and
get room keys back from guests. Moreover, cashiers shall notify the housekeeping
department that the room is no more occupied (i.e. room status change) to let this very
department clean the room and prepare it for new arrivals. In addition, cashiers shall
remove room rack slips from room racks to indicate departure. Lastly, these very rack slips
of departed guests shall be filed in a cardboard box to serve as a guest history record
This very system is less common in small and middle size hotels. For, these very hotels,
financially wise, might not afford the huge investments associated with the installation of
different hardware and software.
The main advantage of this very system over manual system is that various reports can
automatically be generated. However, the major disadvantages associated with this system
are various complexities of operating and controlling devices due to the fact that these
equipment are not integrated with other systems and are subject to frequent maintenance
problems.
At this very stage, guests can either call a national reservation network or directly contact
the hotel. Moreover, reservation clerks can prepare pre-registration records, guest folios,
and information rack slips.

B- Arrival activities:
At this very stage, already reserved guests shall verify their pre-registration forms and
have only to sign it. On the other hand, walk-ins shall complete a multiple copy registration
record from the beginning.

Occupancy activities:
At the occupancy stage, in order to track the different guest charge expenditures and all
other possible guest transactions, hotels get an intensive use of various kinds of vouchers.
Moreover, the most widely used equipment, under this very stage, is the mechanical cash
registers and front office posting machines. Lastly, under this very stage, night auditor

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shall continuously resolve any discrepancy in guest accounts and efficiently reconcile guest
folios.

2. Semi automated system
This very system is less common in small and middle size hotels. For, these very hotels,
financially wise, might not afford the huge investments associated with the installation of
different hardware and software.
The main advantage of this very system over manual system is that various reports can
automatically be generated. However, the major disadvantages associated with this system
are various complexities of operating and controlling devices due to the fact that these
equipment are not integrated with other systems and are subject to frequent maintenance
problems.

At this very stage, guests can either call a national reservation network or directly contact
the hotel. Moreover, reservation clerks can prepare pre-registration records, guest folios,
and information rack slips.

At this very stage, already reserved guests shall verify their pre-registration forms and
have only to sign it. On the other hand, walk-ins shall complete a multiple copy registration
record from the beginning.

C- Occupancy activities:
At the occupancy stage, in order to track the different guest charge expenditures and all
other possible guest transactions, hotels get an intensive use of various kinds of vouchers.
Moreover, the most widely used equipment, under this very stage, is the mechanical cash
registers and front office posting machines. Lastly, under this very stage, night auditor

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shall continuously resolve any discrepancy in guest accounts and efficiently reconcile guest
folios.

D- Departure activities:
At this very stage, cashiers shall relay room status information to the housekeeping
department. Moreover, they should place registration records of departed guests in
propertys guest history files.

3. Fully automated systems:
Under this stage, the reservation department is equipped with a software package, which
is interfaced and connected with one or more central reservation office(s). Moreover, the
reservation department can automatically generate letters of confirmation, produce
requests for guest deposits and handle pre-registration activities for all types of guests and
generate daily expected arrival lists, occupancy and revenue forecast lists

At this stage, various reservation records can be transferred to front office department.
Moreover, hotels might be equipped with an on-line credit authorization terminals for
timely Credit Card Approval , self check-in / check-out terminals. Lastly, all guest charges
and payments are saved in electronic guest folios.

C- Occupancy activities:
Under this very stage, guest purchases at different revenue outlets are electronically
transferred and posted to appropriate guest accounts. Moreover, the front office department
can run and process continuous trial balances and, therefore, eliminate the tedious work
for the Night Auditor.
D- Departure activities:
As far as walk-ins are concerned, all registration activities should be initiated from the
very beginning.

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At this very stage, cashiers can automatically produce bills to be sent to various
guests with direct billing privileges and create electronic guest history records.

Front Office Forms:
At different stages of the guest cycle different forms are used depending on which
operating system a hotel chooses. Below are some of the common forms used:
1. Pre-arrival activities:
b) Letter of confirmation
a) Reservation record or a reservation file
c) Reservation rack and reservation rack slips

2. Arrival activities:
a) Registration card (or record) or registration file
b) Room rack and room rack slips

3. Occupancy activities:
a) Guest folio: shall be of duplicate forms and pre-numbered for cross-indexing control
purposes
b) Vouchers: support documents detailing facts of a transaction, but does not replace
the source document (i.e. the invoice). Examples of vouchers might include charge
vouchers, allowance vouchers, paid-out voucher, and correction vouchers
c) Information rack slips

4. Departure activities:
a) Credit card vouchers
b) Cash vouchers
c) Transfer vouchers
d) Guest history records
e) Personal check vouchers

Front Office Functional Organization:

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Whatsoever system and setting the hotel might use, it should reflect easy access to the
equipment, forms, and supplies necessary. Moreover, the setting shall reflect position
flexibility. Moreover, nowadays trend shows that traditional mail, message, and key racks
are unnecessary at the Front Desk. Rather, they shall be stored in drawers or slots located
under or away from the Front Desk. For, this would ensure security and safety of guests.
1. Front Desk designed alternatives:
a) Circular or semi-circular structure: this very structure provides an effective service to
more guests and appears more modern and innovative but since guests will approach
the Front Desk from all angles, more staff is needed.

b) Traditional straight desk: Under this very design, fewer staff is needed, but fewer
guests can be served at the same time.

c) Desk less environment: Under this design, there is no Front Desk at all. This is
usually replaced by a hostess, or steward welcoming the guest, seating him or her on a
chair/sofa, and conduct registration activities there while, for example, having a cocktail
or a drink.

Front office equipment
a) Room rack
b) Mail, message, and key racks
c) Reservation racks
d) Information racks
e) Folio trays or folio buckets
f) Voucher racks
g) Cash registers
h) Account posting machine
i) Telephone equipment


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New technology is being introduced rapidly to hospitality organizations, especially in the
front office area, Managers must assess the benefits to be gained from computerization and
develop a plan for successful implementation. To develop evaluative and judgmental skills.
Competences Required for this Case
Theoretical knowledge of computer systems and their application to the front office
area; and
Ability to apply theory to practice with regard to the implementation of the change
process,

Computers have a number of applications in the front office department. Advance
reservations control registration billing and cashiering are the main areas in which new
technology usually features. Given the pace of change with regard to technology, managers
need to keep up to date with new applications and their benefits to ensure their
organization has the competitive edge. In answering the questions you should consider the
following:
(a) The basic components of a computer system:
The hardware.
The software.
(b) The benefits of a computer system to:
The organization. The guest.
The management. The staff.
(c) The implementation of a computer system:
Who should be involved?
Time scale.
The conversion process from the old to the new system.

REVIEW QUESTIONS
1. What are the different affiliations used in the hotel industry?
2. What do you mean by Referral hotels
3. What do you mean by Franchise management contract

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4. What is Lease agreement? How is it used in hotels
5. What are Apartment hotels? what is the other name for it?
UNIT VII
7.1 RESERVATION
Importance of reservation
Modes and sources of reservation
Dealing with reservation enquiries
Cancellations and amendments
Computerized reservation
Group reservation
Instant reservations
Overbooking policies

7.1 RESERVATION

Importance of reservation

The main function of the reservation process is to match room requests with room
availability. Below is the detailed process of reservation:
a) Conduct the reservation inquiry
b) Determine room and rate availability
c) Create the reservation record
d) Confirm the reservation record
e) Maintain the reservation record
f) Produce reservation reports

Reservation and Sales:
Prior to Computerization era, the main function of the Reservation Process is only to
determine Basic Room Availability. That is to say, the reservation clerk can only tell the
potential guest that a room is reserved for him/her. However, the reservation clerk can not
tell you the type of the room, rate honored Nowadays, with the wide use of reservation

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software package programs, it is now possible to reserve a room-by-room type, rate, and to
accommodate all the possible special requests of the guest. Therefore, the selling function
shifted from the front office to the reservation department. Hence, projections of Room
Revenues and Profitability Analysis became one of the basic functions of the Reservation
Department.

Reservation Activities
Guaranteed Reservations
Sources of Reservations
Central Reservations Systems
Global Distribution Systems
Property Direct Reservations
Reservation Record

In parallel, reservation department and reservation agents should have sales goals to
achieve which might focus on number of room nights, average room rate, and/or booked
room revenue.

Types of Reservations:

1. Guaranteed Reservation:
Insures that the hotel will hold a room for the guest until a specific time following the
guests scheduled arrival date [i.e. Check-out time or start of the hotels day Shift or any
time the lodging property chooses]. On return, the guest shall guarantee his/her
reservation of room unless reservation is properly canceled. In order to guarantee a
reservation, guests might opt for one of the following methods:
a) Prepayment guaranteed reservation
b) Credit card guaranteed reservation
c) Advance deposit or partial payment
d) Travel agent guaranteed reservation
e) Voucher or Miscellaneous Charge Order [MCO]

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f) Corporate guaranteed reservation
2. Non-guaranteed Reservation:
Insures that the hotel agrees to hold a room for the guest until a stated reservation
cancellation hour (Usually 6 p.m.) on the day of arrival.
Reservation agents shall make sure to encourage their guests to guarantee their
reservations especially in the high season

Reservation Inquiry:
Guests can communicate their reservation inquiries in person, over the telephone, via
mail, through facsimile, telex, e-mail Moreover, reservation inquiries can be made
through a Central Reservation System or an Intersell Agency.
While getting a reservation inquiry, the reservation agent shall obtain the following guest-
related information:

a) Guests name, address and telephone number
b) Company or travel agency name
c) Date of arrival and departure
d) Type and number of rooms requested
e) Desired room rate
f) Number of people in the group, if applicable
g) Method of payment and/or guarantee
h) Any other special requests

Most of the above mentioned information is used to create a reservation record.

Modes and sources of reservation

Sources of Reservations:
1. Central Reservation Systems
2. Intersell Agencies
3. Property Direct Reservation System

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1. Central reservation systems:
The majority of Lodging Properties belongs to one or more Central /Reservation
Systems
A central reservation system is composed of a central reservation office, member hotels
connected together via communication devices, and potential guests.
Central Reservation Office [CRO] offers its services via a 24-hours toll free telephone
number(s) [Green Numbers].

Hotel members of the central reservation system shall provide and exchange accurate
room availability data to central reservation offices. To illustrate, central reservation offices
and member hotels shall communicate (on real time) any reservation transaction. This is
possible, nowadays, with the sophisticated communication equipment available. These very
equipment shall be provided by central reservation offices to its member hotels. Such
equipment may range from Teletype, telex, facsimile machines, to personal computers,
Internet connections
On return, central reservation offices charges a fee for the
utilization of its services which might take the form of a flat fee and a variable fee, or a flat
percentage of potential room revenue, actual room revenue, and/or Rooms Division gross
profit

Central Reservation Offices are divided into two:
A) Affiliate reservation network:
B) Non-affiliate reservation network:

A) Affiliate reservation network:

This very network is referred to as the hotel chains reservation system. In fact, it is
composed of a CRO, and hotels, which are members of the same chain. The main
advantages of affiliate reservation network are:


ICHM Page 91

a) Streamline the process of reservation
b) Reduce overall system costs
c) Attract business for or refer business to another chain property
d) Affiliate reservation networks might serve, in addition to its main function, other
duties like:

Serve as an inter property communication network
Serve as an accounting transfer tool
Serve as a destination information center
Serve as a connection with Global Distribution Systems [GDS] System including
several Central Reservation Offices connected to each other

B) Non-affiliate reservation network:

A non-affiliate reservation network is composed of a central reservation office, potential
guests, and member independent hotels.

2. Intersell Agencies:
Intersell Agencies are special types of central reservation offices contracting
to handle reservation for more than one Product Line [ex: Handle at the same time
Airline Tickets, Car Rental, Hotel Reservation] One Call Does it All Approach!

3. Property Direct Reservation System:
Even though many of the five-star hotels rely heavily on central reservation offices and
intersell agencies, some potential guests might still find it convenient, and personal to call
directly the hotel to communicate a reservation inquiry.

Group Reservations:
Conducting a reservation request for a group shall be treated differently than
accommodating a reservation of individual guests (i.e. Frequent Independent Traveler). The
main reason, is that individual reservation requests are treated by the reservation

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department, while group reservations are initiated by the Sales & Marketing division, and
finalized through a careful coordination of the reservation from one hand and the
marketing from the other.
Below is a detailed procedure of how group reservation, in a typical hotel, is conducted:

1. A group representative, a member of the travel agency or the tour operator, not
individuals, shall communicate group reservations' request to the hotel's marketing
department

2. Upon availability, the hotel's reservation department shall block the requested
number of rooms for this very group

3. The Hotel shall give a deadline for the group, in order to receive their final list. That
deadline is called Cut-off Date

4. After receiving the final list, the reservation department shall change the desired
number of rooms' status from blocked to booked (or reserved) rooms, and release the
remaining rooms (if any left) as vacant
5. If the hotel did not receive the final list by the cut-off date, then the reservation
department has all the right to cancel the group reservation and release all the initially
booked rooms into vacant rooms. However, management shall use this right with
precautions especially when it comes to groups reserving from travel agencies and tour
operators of which the hotel is frequently operating.

Reservation Availability:
After receiving a reservation request, the hotel might accept it, as it is, if there is room
availability. If not, the reservation department should suggest alternative room types, dates,
and/or rates, to the potential guest. If, however, the potential guest insists on his/her
previous request, the hotel should suggest an alternative hotel. That's one of the main
reasons why we need to maintain good relation-ships with nearby competing Hotels

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The reservation department should always compare historical reservation volumes against
actual arrivals. The main reason is to cope with overbooking, which a situation occurring
when the total number of rooms reserved for a certain period of time exceeds the total
number of rooms available for sale, for the same period of time.
In order to cope with the overbooking problem, some statistical and historical data should
be stored and processed by the hotel and should be continuously updated.
Such data should include:
a) Number of rooms reserved for a specific date
b) Number of rooms occupied by stayovers (for a certain specific date)
c) Forecasted no-shows percentage
d) Forecasted understays percentage
e) Forecasted overstays percentage
f) Forecasted cancellation percentage
g) Number of out of order rooms for a specific date

Equipment Tracking Room Availability:
In order to function properly, the reservation department shall maintain control books,
wall charts, and/or a computerized system. Whatsoever system chosen, the reservation
department shall maintain and update that system to include any reservation transaction
(i.e. whether a reservation, cancellation, modification). Below is a description of the three
commonly used sets of equipment to track room availability under the manual, semi-
automated and fully-automated systems:

1. Control books:
Control books are standard three-ring, loose-leaf binders with a tally Page assigned
to each day of the year. Under this very system, when a potential guest calls to have
a reservation, the reservation clerk shall check the cells corresponding to rooms. If
there is an empty cell for all the length of stay of the guest then the reservation clerk

ICHM Page 94

mark it as X (i.e. reserved). If the guest is expected to continue staying the next day,
then the reservation clerk shall mark the next day's respective room cell as O (i.e.
Stayover). Lastly, the reservation clerk is encouraged to use colors while updating
information or the cells on the control book.

2. Wall charts:
These are charts stapled on the wall depicting days of the month versus hotel
rooms. Moreover, upon need and convenience, these charts might be customized to
track appropriate room Numbers, rates, and codes, hence, is advantageous to control
books. Moreover, in this very system, different colors are used to differentiate
between different reservation transactions, types of guest reservingLastly, wall
charts eliminates the erasures and rewriting associated with control book, hence lees
errors might occur.

3. Computerized systems:
Computerized systems are by far the best systems that track room availability. In
fact, these very systems control room availability data and automatically generate
many reservation-related reports in an accurate manner. Moreover, computerized
systems can itemize room availability for future periods by open dates, closed dates,
versus special event dates. Lastly, this very system can forecast room availability for
any reservation horizon needed in the future.
In the case of non-availability of room type, the system can further suggest
alternative room types, rates, or even other nearby hotels.
Reservation Record:
Each reservation department shall prepare a reservation record, which depicts the
various personal and financial data of guests, for each reservation transaction. The
aim is to identify guests and their occupancy needs before guests arrival. Moreover,
the hotel can personalize or customize guest services and better schedule staff
accordingly


ICHM Page 95

In order to create a reservation record, the following items are needed:
a) Guest name (and group name, if applicable)
b) Guests home or billing address
c) Guests telephone number, including area code
d) Name, address, and telephone number of guests company, if appropriate
e) Name of and pertinent information about the person making the reservation, if not the
guest
f) Number of people in the group, and perhaps ages of any children
g) Arrival date and time
h) Number of nights required or expected departure date, depending on how the system
is programmed
i) Reservation type [Guaranteed versus Non-guaranteed]
j) Special requirements [i.e. infant, disabled guest, or no-smoking accommodation]
k) Additional information, if needed [i.e. late arrival, method of transportation, flight
number, room preferences]

At the reservation process, reservation agents shall keep in mind that a rate quoted and
confirmed must be honored. Moreover, reservation clerks should be aware of the following:
a) Supplementary charges for extra services or amenities
b) Minimum stay requirements in effect for dates requested
c) Special promotions in effect for dates requested
d) Applicable currency exchange rates, if quoting rates to an international tourist
e) Applicable room tax percentages
f) Applicable service charges or gratuities

Reservation Confirmation:
The hotel should communicate guests by telephone, telex, mail, or e-mail a Letter of
Confirmation, which confirms the important points of the reservation agreement. This very
letter might be shown at the registration process in order to accelerate the pace of
registration and prove that the guest has the right to have a room at the hotel.

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The Hotel shall send a confirmation letter to all reserved potential guests, whether their
reservations are guaranteed or non-guaranteed. Below are the main points that should be
communicated in a confirmation letter:

a) Name and address of the guest
b) Date and time of arrival
c) Room type and rate
d) Length of stay
e) Number of persons in a group, if any
f) Reservation type [guaranteed or not]
g) Reservation confirmation number
h) Special requests, if any
1. Confirmation numbers:

Hotels shall communicate meaningful confirmation numbers to their potential guests.
These numbers shall have statistical meanings, which might help the hotel in maintaining
an efficient historical database. Here is an example:
32 02 G JC 63
a) 32: Guests scheduled arrival date on Julian dates calendar.
b) 02: Group reservation. In this very system, 01 might mean Frequent Independent
Traveler.
c) G: means that the reservation is guaranteed. If N is written, it means non-guaranteed.
d) JC: are the initials of the reservation agent who processed the reservation
e) 63: Consecutive numbering of all reservation confirmation numbers issued in the
current year.
DAILY ARRIVAL, STAYOVER, AND DEPARTURE REPORT
Date: 28/11/XX Time: 10:55
Date
Arrive
Stayon Depart Guests Sold Unsold Revenue
01/12/XX 19 83 4 135 102 43 $ 5,185.00

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02/12/XX 34 57 45 131 91 54 $ 4,604.00
03/12/XX 37 55 36 130 92 53 $ 4,495.50
04/12/XX 15 6 86 29 21 124 $ 1,116.00
05/12/XX 12 14 7 36 26 127 $ 1,252.00

Cancellations and amendments

I. Occasional Reservation Change, or Cancellation:
Potential guests initially asking for an accommodation might make up their minds
later (before arrival) and call back for a reservation modification. In fact, guests might
change their arrival date, expected departure date, method of payment or call for any
other item change previously confirmed in their confirmation letter or simply call to
cancel their previous reservation. In such a case, if possible reservation clerks shall
proceed as to satisfy guest needs. Below, are two possible examples of guest
modification. The first one concerns modifying a reservation type from non-
guaranteed to guaranteed. This might be because the guest's airplane schedule have
changed in a way that the guest is no more certain to reach the hotel by the
cancellation hour. On the other hand, the second example depicts a situation where
the guest calls to cancel a reservation (both guaranteed and non-guaranteed
cancellations will be discussed).

1. Modify a reservation type (from non-guaranteed to guaranteed):
In this very case, the reservation clerk shall:
a) Obtain the guests name, and access the correct non-guaranteed reservation
b) Obtain the guests credit card type, number and expiration date, and the cardholders
name, and verify the validity of the credit card (Here assuming that the guest would like
to guarantee via a credit card)
c) Assign the guest a new reservation confirmation number, if it is the hotels policy

ICHM Page 98

d) Complete the reservation type change from non-guaranteed to guaranteed reservation
status according to additional propertys procedures, if any

2. Reservation Cancellation:
Reservation clerks accepting a reservation cancellation shall behave in a polite,
courteous and effective manner even though that reservation might make the hotel
faced with unsold room(s). The main reason is that guests are doing the hotel a favor,
especially under the non-guaranteed type of reservation, to communicate the hotel
their cancellation to let you adjust your room availability, and try to find alternative
potential guests beforehand.
When canceling a reservation, the reservation clerk shall issue and communicate a
cancellation number to the guest. In accordance to confirmation numbers,
cancellation numbers shall be meaningful as to be used for statistical purposes, and
as to prove whether a reservation has been properly canceled according to hotel
cancellation policies or not.

A) Cancellation of a non-guaranteed reservation:

In this very case the reservation clerk shall:
a) Obtain guests name and address
b) Obtain number of reserved room(s)
c) Obtain scheduled arrival and departure dates
d) Obtain the reservation confirmation number, if applicable
e) Access the right account, and cancel it
f) Assign a cancellation number
g) Suggest an alternative reservation
B) Cancellation of a guaranteed reservation:

All the above mentioned procedure applies also for the cancellation of a guaranteed
reservation. Moreover, the reservation clerk shall pay attention to the following:

ICHM Page 99

1. In the case of a cancellation of a credit card guaranteed reservation, the cancellation
number acts as a proof of whether a certain guarantee shall be refunded to the potential
guest or not.
2. In the case of advance deposit guaranteed reservation, again the cancellation number
acts as a proof of whether a certain guarantee shall be refunded to the potential guest or
not.

3. In the case of any other guaranteed reservation, the reservation clerk shall obtain the
representatives coordinates and mail him/her a letter documenting the cancellation

Reservation Reports:
In the reservation department, the widely used management reservation reports include:
a) Reservation transaction report
b) Commission agent report
c) Turn away report (sometimes called the refusal report)
d) Revenue forecast report

Reservation Reports
Turnaway Report
Tracks number of reservations refused because rooms were not available

Revenue Forecast Report
Multiply projected occupancy by room rates

Expected Arrival, Stayover, and Departure Lists:
On a daily basis, the reservation department shall prepare the expected arrival,
stayover, and departures lists and communicate them to the front office department.

1. Arrival list: List of the names, and surnames along with respective room number of
the guests who are expected to arrive the next day.

ICHM Page 100

2. Stay over list: List of the names, and surnames along with respective room number
of the guests who are expected to continue occupy their rooms the next day.

3. Departure list: List of the names, and surnames along with respective room number
of the guests who are expected to depart the next day.

Processing Deposits:
Guests who decide to guarantee their reservation by paying a certain deposit to the hotel
shall be informed about the procedure of sending deposits (i.e. how, when to send the
deposits?). Moreover, only employees who do not have access to reservation records shall
process deposits (ex: General Manager secretary or hotel's general cashier). The reason is if
reservation and monetary transaction overlap, than internal control over one of the most
important assets of the hotel (i.e. cash) becomes very weak.
When a hotel assigned agent receives deposit, he/she shall:
a) Endorse deposit checks with the hotel stamp as soon as it is received
b) Record in the deposits received log the check number, amount, date received, guest
name, arrival date, and confirmation number, if known
c) Only the log shall be sent to the reservation department

Maintaining Reservation History Statistics:
The reservation department shall maintain, and update various reservation history
statistics to be used in the future whenever needed (ex. to integrate statistics in a model to
solve overbooking, to come up with operational ratios, to help for Rooms Division budget
preparation). The following items are some of the data that might be stored in the
reservation department system:
a) Number and distribution of guests by market segment, age, income, and nationality
b) Number of expected occupied rooms
c) Reservation volumes by sources of reservation
d) Reservation volumes by types of reservation
e) Number of turn away guests with reasons of refusal

ICHM Page 101

Potential Reservation Problems:

While processing reservations, reservation clerks might be faced with lot of problems.
Below is a tentative categorization of 4 main common problems that might be encountered:
a) Errors in a reservation record:
1. Record a wrong arrival or departure date
2. Misspell the guests name or reverse it
3. Reserve for the caller instead of the guest

b) Misunderstandings due to industry jargon:
1. Confirmed versus guaranteed reservation
2. Double room versus 2 beds
3. Connecting rooms versus adjacent rooms

c) Miscommunications with external reservation systems:
1. Book a guest in the wrong hotel
2. Book a guest in the wrong city [ex: Pasadena, California versus Pasadena, Texas]

d) Central reservation system failures:
1. Fail to update central reservation system concerning room availability or to
communicate rate changes in real time
2. Delays in communicating reservation requests
3. Equipment used may become technologically obsolete or inoperable

Reservation Phone Techniques
Agent: " Thank you for calling the Sherwood Inn. This is the reservations office, Gregory
speaking.
Guest: " This is Holly Letsche in Kansas City. Im going to Dallas and I need a room at your
hotel.

ICHM Page 102

Agent: " How many are in your party?
Guest: " Just me. "
Agent: " Are you part of a group or convention at the Inn? "
Guest: " No, I am not, but I do have an Air Attic Frequent Flyer discount card. "
Agent: " Great. What date will you be arriving and how many nights do you plan to stay? "
Guest: " On December 11
th
, for two nights. "
Agent: " Would you care to reserve a suite in our special service tower, Ms. Letsche?"
Guest: " Yes, I stayed there last time; thatll be fine. "
[The agent now checks the control book, wall chart, or computer file for rooms available on
the dates requested. Knowing that Ms. Letsche has been a guest at the Sherwood Inn
before might also suggest a quick check of the hotels guests history records. ]
Agent: " A suite is available. Do you have any other special requests that the Inn can
provide, such as a no-smoking room? "
Guest: " Yes, I think Id like that. "
Agent: " May I have the spelling of your first and last names and your area code, phone
number, and the home address? "
Guest: " H-o-l-l-y L-e-t-s-c-h-e. My phone number is area code, and the number is 816, and
the number is 555-7676. My home address is 4729 Elk Lake Drive, Kansas City, Missouri,
6441. "
Agent: " May I have you Air Attic Frequent Flyer certificate number? "
Guest: " Thats A37-P4088. "
Agent: " What time do you expect to arrive on the 11
th
, Ms. Letsche? "
Guest: " I expect to be there around nine oclock that evening. "
Agent: " Since youll be there after 6 P.M., you might wish to make a guaranteed reservation
with your credit card. This ensures that your room will be held after our 6 P.M. cancellation
hour. You can arrive any time that evening and a room will be waiting for you. If your plans

ICHM Page 103

change, simply call us before 6 P.M. Dallas time on the 11
th
to cancel. Would you like to
make a guaranteed reservation, Ms. Letsche? "
Guest: " Yes. Do you take American Express? "
Agent: "Yes, we do; may I have your card number and expiration date? "
Guest: " Its card number 1234-567890-12345, and it expires 04/05. "
Agent: " Fine. Your guaranteed reservation is confirmed for a non-smoking suite at the
Sherwood Inn in Dallas, arriving the night of December 11
th
, and departing on the morning
of December 13
th
. Your reservation confirmation number is 293GG566. My name is
Gregory. Well send you a letter of confirmation, which you should present at the front desk
when you arrive. If your plans change and you have to cancel or change your reservation,
please call the hotel before 6 P.M. Central Standard Time on the 11
th
. Do you have any
questions? "
Guest: " No thats it. "
Agent: " Thank you, Ms. Letsche. Have a good day. "

Reservation equipments
Room Board
Used in larger' hotels, the board is made up of slots located next to each room number. As
a guest arrives a small card is filled out with details of the guest and length of stay and this
is placed in the room slot. When the guest checks out the card is removed and thrown
away. This is a quick, visual guide to room status but it does not provide a permanent
record as the bed room book or bed sheet do. The room card can record more information
then the bedroom book or bed sheet. '

Bedroom Book
Very basic, completely manual. Page for each day with a line ruled for every room. The
guests name is written next to the room number on registration, and rewritten every day
until departure. Room types are printed next to the room number.

ICHM Page 104

Bed Sheet
Development of the Bedroom Book - used in hotels of up to 200 rooms. The information is
recorded on a pre-printed sheet with room numbers, types and three sections divided on. it
departing arrivals and staying.
Enables receptionist to see quickly rooms available to let and also possible to allocate
rooms before guest checks out.

105

Whitney Room Status System
1. Rack of all the rooms in the hotel.
2. Slot for each room.
3. Centre of each slot has a perspex slider; 3 colours,
RED
YELLOW
WHITE

The room type is shown in the centre of each slot.
The centre can also show room type, each room.
The maximum amount of information presented to the receptionist.
When A Guest Checks In
1. Receptionist consults room rack, allocates room and pushes the slider to access the
room key and registration form.
2. No other receptionist can now allocate this room.
3. Receptionist removes Whitney slip from and the room number allocated is printed in
the centre of the slip.
4. If there are several copies one is attached to another sent to and another copy could
be sent to accounts.
5. On the night before a guest departs corner of the slip is folded down.
6. On departure a red line is drawn through the slip to signify that the guest has left the
hotel and this can be distributed around the hotel. On the Whitney rack the slider
can be pushed to which shows that the room is checked out
Overbooking policies-

It has been stated:
Ofttimes guests, because of delay in closing business transactions, retain their rooms
beyond the period announced when they register in. This is almost a matter of common
knowledge. Automatically this practice throws the plans and commitments of the hotel
proprietor out of gear, especially when all the rooms are filled. The room occupant cannot

106
well be thrown out without notice. Notice or other proceedings require time, and of course,
time is an element of the contract for the man who has that particular room reserved and
demands immediate occupancy.

The fact that overbooking has long ago been recognized as a standard in the industry to
ensure that the hotel is full as often as can be possible does not absolve the innkeeper of
potential liability, both civil and now criminal from committing this long recognized
procedure and either not accept or reject someone from checking into the inn with or
without a reservation. In order to understand the potential liability for overbooking, we
must examine the innkeepers duty to accept those who come into the inn, both with and
without a reservation. The overbooking % followed in the hotels is 10% to 20%

Reservation Terminology
PMS: Property Management Systems
Computer software package that supports a variety of hotel management activities.

POS: Point-of-Sale
Connects revenue centers to the front office for automatic posting of charges.

Reservation Record
Guest name & address
Telephone number
Group/company name
Person making reservation
Number in party
Special requirements
Expected arrival
Number of nights
Expected departure
Room rate
Reservation type
Guarantee method

Reservation Types

107
Guaranteed
Hotel holds room for guest
Credit card; Advance deposit; Corporate
Guest is billed even if they do not use the room
Non-Guaranteed
Hotel holds room until 4 p.m or 6 p.m.
Not accepted as hotel nears full occupancy
Confirmed
Hotel verifies that a guest has a reservation
Can be guaranteed or non-guaranteed
Block
A number of rooms set aside for a group
Booked
Rooms actually reserved by group members
Reservation agents should ask guests if they are associated with a group
Cut-off Date
Date when group blocked rooms return to hotel room inventory
Displacement
Turning away transient guests for lack of rooms due to group business

Wash
Booking fewer rooms than requested by the group based upon past group
history
Overbooking
Accepting more reservations than rooms

Walk
Send a guest with a guaranteed reservation to another hotel
Usually pay for room, cab and phone call


108
No-show
Guest who made a reservation but did not arrive
Guaranteed reservations are still charged

Reservation Reports
Turn away Report
Tracks number of reservations refused because rooms were not available

Revenue Forecast Report
Multiply projected occupancy by room rates

REVIEW QUESTIONS
1. What is hotel Reservation? Explain the procedure.
2. Give the Importance of reservation
3. What are the different modes and sources of reservation
4. How would you deal with the reservation enquiries?
5. What is the procedure for cancellations and amendments of reservation? Explain
6. Write a note on the following
a. Computerized reservation
b. Group reservation
c. Instant reservations
7. What is the overbooking policies used in hotels?

REFERENCES:
Front Office Operations, Sudhir Andrews

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