Chapter 3 Hotel Structures - PowerPoint Presentation

Chapter 3 Hotel Structures

Learning Objectives Understand the various decisions facing a reservations manager with regard to forecasting the number of rooms available for sale. Understand and discuss the overbooking dilemma.Define and utilize basic vocabulary terms and industry jargon specific to forecasting availability and overbooking reservations.The ability to develop a practical working model of both a simple, unadjusted room count and an adjusted room count. Understand deterrents for cancellations and early departures.

Forecasting Available Rooms (1 of 8) Automated Inventory Tracking Systems Computer updates reservations in real timeShows projections a week at a timeShows today's arrivals by name, room type, group affiliation, other codesShows reservations by qualityShows room availability by room type and status

Automated Inventory Tracking Systems - Example of A One-Day Rooms Inventory

Forecasting Available Rooms (2 of 8) Room counts are done for each day in advance. Less accurate as we look further aheadTables next slidesDone many times a day for today.6 AM, 11AM, before and after 4/6 PM

Forecasting Available Rooms (3 of 8)

Forecasting Available Rooms (4 of 8) Committed Rooms = (Yesterdays stayovers + today's reserved arrivals)Out of Order (OOO) Rooms = Rooms temporarily unavailable due to fixable problems Can be fixed quickly if absolutely essentialCan be sold at a discount un-fixed, with disclosureOut of Inventory (OOI) Rooms = Rooms unavailable long-term due to non-fixable problemsCannot be sold today due to unacceptable condition Exhibit 4-5 for inventory calculation issues

Forecasting Available Rooms (5a of 8)

Forecasting Available Rooms (5b of 8)

Forecasting Available Rooms (6 of 8)Stayover - Continuing guest, as per bookingUnderstay – Guest who leave earlier than expected Overstay - Guest who stays longer than bookedNo show - Guest with confirmed/guaranteed booking who does not arrive, but has not cancelledCancellations - provides the opportunity to resellEarly Arrivals - Guest who arrive day/s before booking Adjusting Toda’s ReservationsThe Adjusted ResultPeriodic RecountsAdjusting by Reservation Quality

Forecasting Available Rooms (7 of 8) – Simple & Unadjusted Room Count

Forecasting Available Rooms (8 of 8) – Adjusted Room Count

Overbooking (1 of 8)Overbooking - More bookings than rooms! Done deliberately for number of reasonsSome guests will be no-showsLast minute change of plansSome guests deliberately make multiple bookingsSome guests will be early departures Some guests will be last minute cancellationsToo late to fill these last-minute empty roomsSo hotels overbook to protect itself from revenue lossDone with historical statistics as guide The Perfect Fill?

Overbooking (2 of 8)

Overbooking (3 of 8) Reservations as legal contracts. Courts say that reservations are legal contracts.However, not worthwhile for individuals to sue.Meeting planners have sued and won!Threat of Legislation.State Legislation Whose Fault?

Overbooking (4 of 8) Overbooking Policies Hotel overbooking solutions.Check nearby hotels for room availability.“Walk” overbooked guest to another property. Chains do it within chainWatch for unethical FO Clerks who do it for money!Pay for taxi, phone call, comparable room.Air-taxi in the Bahamas!Apologize with gift, etc.

Overbooking (5 of 8)

Overbooking (6 of 8)Overbooking and antiservice syndromeIndustry should police itself, or congress will pass laws!Airlines are regulated by law - ask for volunteers and give them money and free ticketsProblem is due to few hotels with poor serviceNo-Show Policies Cancellation Policies

Overbooking (7 of 8) – Sample Cancellation Policy of OTAs

Overbooking (8 of 8) Minimizing the Overbooking Problem. Increasingly Restrictive Policies.Early Departure FeesThird Party Guarantees. Trip InsuranceCredit Card DisputesTravel Agent GuaranteesAdvance Deposit Reservations.