Management
RESERVATION MODES
 LETTERS
 FAX
 E-MIL
 PHONE
 TELEGRAM
 BY PERSONALLY
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Management
Distribution Channel Overview
 Intermediary: An entity authorized by a
guest to make a hotel reservation on the
guest’s behalf.
 Travel Agent: A hospitality professional
that assists clients in planning travel.
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Management
 Travel Wholesaler: An entity that
purchases blocks of hotel rooms and, in
turn, sells them to travel agents.
 Step 1: A hotel sells rooms to a travel wholesaler.
 Step 2: The travel wholesaler sells rooms to a
travel agent.
 Step 3: The travel agent sells rooms to an
individual guest (or group).
 Step 4: The guest or group stays at the hotel.
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Management
 Fiduciary: A relationship based upon trust
and the responsibility to act in the best
interest of another when performing tasks.
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Management
Distribution Channel
Management
 Walk-in
 Telephone
 Fax
 E-mail/traditional mail
 Hotel sales personnel
 GDS
 Chain or brand central reservation
system
 Internet
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Management
Management
 Net ADR Yield: The rate (ADR) actually
received by a hotel after subtracting the
cost of fees and assessments associated
with a room sale.
Room Rate - Reservation - Generation
Fees
Room Rate Paid
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Management
Management
 Walk-in
Specific steps to help maximize walk-in
rate acceptance:
 An immediate welcome and friendly
“acceptance”
 Attractive and clean lobby area
 Special discounts for “last minute travelers”
 An upgraded room assignment from a standard
to a higher-level room type
 Use of a logical fade rate
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Management
Management
Telephone
Important areas for potential
improvement:
 Telephone etiquette
 Qualifying the guest
 Describing the property
 Presenting the rate
 Overcoming price resistance
 Up-selling
 Closing the sale (making the reservation)
 Re-capping the sale
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Management
Management
 Fax
To maximize effectiveness:
 Provide guests with a designated toll-free fax
number
 Train reservation staff to respond to a
reservation request immediately upon its
receipt
 Consider purchasing software that allows the
use of the hotel’s e-mail system to reply to
reservation requests
 Keep adequate supplies on-hand
 Use professional cover and content sheets
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Management
Management
 E-mail/traditional mail
 Reply to all mail inquires within 24 hours
 For e-mail – use the hotel’s name in the
“response” message title line
 For traditional mail – use professionally
printed stationary and prohibit use of
photocopied “fill-in-the-blank” letter replies
 Use automated spell-check software
 “Sign” all mail clearly
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Management
Management
 Group sales department:
Attrition: The difference between the
original room request and the actual
purchase of a group.
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Management
Management
 Global Distribution System (GDS)
 Monitor the number of reservations
received from each GDS
 Establish a relationship with 1+ contacts
from each GDS
 Establish a relationship with 1+ travel agents
 Consider travel agents as a unique and
important “market”
 Consider joining and becoming active in
the American Society of Travel Agents
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Management
Management
 Central Reservation System (CRS) typically
consists of:
 Toll-free telephone call center
 Chain operated website
 E-mail/traditional mail reservations division
 Group sales division
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Management
Management
 Central Reservation System (CRS)
 Ensure that all hotel-related information
supplied to the brand’s call center is accurate
and current
 Conduct periodic shopper calls to the CRS
 Consider an annual visit to the brand’s call
center
 Ensure that all information listed on the website
is accurate and up-to-date
 Supply attractive photos and creative site copy
 Follow up promptly on any group business leads
provided by the CRS
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Management
Management
 Internet
E-wholesaler: A room reseller that
obtains reduced (wholesale) room
prices and inventory commitments
directly from a hotel or through an
agreement with the hotel’s corporate
brand managers. It then publishes
“retail rates” on its websites, usually at
a markup of 20% to 40%.
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Management
Management
 Internet
Principles to consider:
 Ensure accuracy
 Update regularly
 Monitor placement
 Manage search engines
 Maintain rate integrity
 Monitor results
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Management
Management
 Internet property websites:
Factors to consider:
 Written content
 Visual and audio content
 Reservations device
 Appropriate links
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Management
Management
 Internet chain websites:
Lowest Rate Guarantee: A program that
assures travelers the lowest available rate
for a specific room type on a specific
date will be found on the franchisor’s
website.
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Management
Management
 Internet third-party websites:
Merchant Model: An Internet sales method in
which hotels sell or commit rooms to Internet
site operators. These sites, in turn, allow
consumers to enter requested location and
arrival dates. The consumers are then
presented with a choice of specific hotels
and associated rates available for immediate
purchase on the website.
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Management
Management
 Internet
– Seek rate parity across all distribution channels
– Show the hotel on as many sites as is realistically
profitable
– Keep all information current
– Promote the use of lower-cost (higher net ADR
yield) sites over higher-cost sites
– Use the information found on competitors’
websites to compare and evaluate the hotel’s
own rate-management decisions
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Management
Management Challenges
 Inventory ownership
 Website access control
 Guest- and sales-related issues:
 Rate consciousness
 Group block management
 Occupancy tax liability
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Reservation channels