Ch.3 The Front Office - Lecture notes for Chapter 3 PDF

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Lecture notes for Chapter 3...

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Ch.3 The Front Office Thursday, February 1, 2018

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11:00 AM

The guest cycle ○ Pre-arrival - Reservation ○ Arrival - Registration ○ Occupancy- Services ○ Departure- Check-out and history Reservation ○ One of the major functions within the front office department ○ The first point of contact between prospective guests and the hotel ○ Contributes to maximizing hotel revenue by aiming to sell all available rooms at maximum rates § The selling function is getting more important as revenue management concept is prevalent ○ Major responsibilities § Receiving and processing reservation requests § Generating reservation records § Confirming the reservation records § Maintaining up-to-date room availability and rate information § Producing reservation and forecast reports etc. Types of reservations ○ Guaranteed reservations § Prepayment guaranteed- requires payment in full prior to the day of arrival § Payment card guaranteed- puts ahold of some $ amount on the guest's payment card § Advance deposit -requires payment of a specific amount of money prior to arrival § Voucher or miscellaneous charge order (MCO) travel agent guarantee § Corporate- a corporations payment agreement ○ Miscellaneous charge order (MCO) § An accountable IATA (International Air Transport Association) document, similar to an old-style airline ticket, used to process

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Non-Guaranteed reservation § The hotel agrees to hold a room for the guest until a stated reservation cancellation hour on the day of arrival § Not guarantee that the hotel will receive payment for no-shows § Hotels planning on full occupancy can accept only guaranteed reservation Reservation channels § The more channels, the more opportunities □ Property reservations department ® Telephone, email, website ® Reservation staff sales process ◊ Greet the caller ◊ Identify the callers needs ◊ Provide an overview of the hotels features and benefits ◊ Make a room recommendation ◊ Close the sale ◊ Gather the reservation information and then thank the caller § Central reservation systems □ Maintain a room availabity inventory for each property participating in the system □ Affiliate reservation network-chain hotels reservation network ® All franchisees are contractually relates □ Non-affiliate reservation network- a subscription system designed to connect independent or non-cahin properties § Global distribution system (GDS) □ Connected to the central reservation system and travel agency terminals □ Provide automated reservation service for the hotel and travel agencies □ SABRE, Galileo, Amadeus, WorldSpan Group Reservation § Made by sales and marketing department § Meet accommodation needs of corporate meetings, association conference and convention, and special event groups § Most hotels allocate a certain number of rooms to the sales

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department for group sales § Some terminologies □ Transient guests- non group guests □ Block-rooms set aside for a group □ Booked -rooms within a block reserved for specific guests in the group □ Wash down- reducing a block based on the groups history Registrations ○ Pre-registration § Produces a registration document in advance of guest arrival □ Creation of a guest account □ Room and rate assignment □ Helps facilitate the registration process □ Helps provide more sophisticated services □ Some hotels limit pre-registration only to VIP guests or groups § Creating registration record □ Collecting important guest info ® Verify personal data and other info (eligibility for discount or tax exempt) ® Confirm payment method ◊ Incorrect payment method set up is a common service failure ◊ Ex) failure to verify direct billing application, charge to incorrect credit cards, incorrect billing address □ Obtaining guest's signature to indicate acceptance of the room rate and date of departure ○ Assigning guest room and rate § Involves identifying and allocating an available room in specific room category to a guest § Room status □ Occupied □ Vacant □ On-change □ Out- of-order □ V/O- vacant and on-charge □ V/C- vacant and cleaned □ V/I- Vacant and inspected

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□ O/C- Occupied and cleaned § Room status discrepancies □ Sleeper- guest has settled his or her account and left the hotel, but the hotel has failed to properly update the room's status □ Skipper- guest left hotel without settling their account, office still shows room as occupied § Room rates □ Typically confirmed as part of reservation process □ Assigning rates for walk-in guest the responsibility of front desk staff § Type of rates □ Rack rate- standard rate □ Seasonal rate □ American plan, (AP), European Plan (EP), and all inclusive rate □ Corporate rates, group rates, day rates, frequent traveler rates, etc. Establishing payment method § Cash- pay during registration in advance § Personal checks- some won't accept § Credit/debit- check expiration date and location validation, and then validate payment cards (through online authorization approval) and put a hold of specified amount on guest's card § Direct billing- bill the guest or guest's company direction based on agreement made in advance. Guest is only responsible for incidental charges § Payment issues for groups □ Guests room and tax charges are direct-billed to a group master account □ Other charges may be the guest's responsibility (incidental charges) □ Credit for incidental charges needs to established for each member of the group Verifying identity § Many hotels require positive identification- ask for photo identification § Common in Europe and Asia, especially for international guests § Become common at u.s hotels after 9/11 Iss ing the room ke

Issuing the room key § Complete the registration process by issuing a room key § Should never announce the room number when handing a guestroom key to a guest for security reasons § Arrange bell attendant service if requested ○ Filing special requests § Acknowledge and act on special requests that guests make. § Some specials requests that may involve guest □ Locations □ Amenities ○ Registrations options § Registering group guests or VIPs at special location § Registering off-site such as airports and shuttle vans, allowing guests to check in without being present at the front desk § Self check-in § Self check-in kiosks § Self check-in apps Front office communications ○ Transaction file (also called concierge file or log book) § A chronological journal that lists unusual events, guest complaints or requests § Should detail what happened, why, when, and the final action taken to solve the issue ○ Information Directory § Contains information to give answer guest questions □ Common guest questions involving; ® Local restaurant recommendations ® Contracting transportation companies ® Directions to local attractions, a business, a shopping center, a bank, etc. § Front office communications □ Reader board ® Displays information regarding daily events ◊ Names of groups, meeting rooms, agenda items and meeting times ◊ Todays reader board is interactive and serves as information directory ○ Mail and message handling § Procedures: ○

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Procedures: □ Incoming mail- sort guest and hotel mail □ Guest mails are time-stamped and sorted in a mail rack □ For registered guests- notify the guest by using an in-room telephone or by delivering a form □ For guests who has not registered-placed with note on the reservation record □ For departed guests- be time-stamped a second time, then sent to the guest's forwarding address or returned to its sender □ Special mail Telecommunication services § Telephone skills □ Smile □ Sit or stand up straight □ Use a low voice pitch □ Match your speaking rate to the caller □ Avoid extremes in volume □ Avoid expressions such as yeah § Taking a message □ Date □ Time of call □ Name □ Affiliation □ Time zone □ Number □ Message Account § Collection of all transactions incurred by guest □ Guest account ® A record of financial transactions that occur between a guest and hotel ® Created when a guest guarantees their reservation § Non-guest account □ An account assigned to non-guest businesses □ A hotel may extend charge privileges to local businesses or groups □ Created when a guest does not settle his or her account in full by cash at time of departure §

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Folios □ Statement of transactions affecting the balance of a single account ® Guest folios, master folios, non-guest folios, room folios(A), and incidental folios (B) § Posting □ The process of recording transactions § Vouchers □ Detail a single transaction to be posted to a front office account ○ Point of sales § Describe the physical location at which goods and services are purchased § Enables remote terminals at the point of sales to communicate directly with the front office system ○ Ledgers § Summary grouping of accounts □ Guest ledger ® A set of guest accounts that corresponds to registered hotel guests □ City ledger ® Collection of all non-guest accounts (credit card account, direct billing account) Creation and maintenance of accounts ○ Charge privileges § Enables a guest to make charge purchases at hotel point of sale § Require a payment card or direct billing authorization at time of registration § Guests who use cash or debit cards to pay at registration are typically not extended charge purchase privileges (No-post status) and are called "paid-in-advance or PIA guests" ○ Credit monitoring § Must monitor guest accounts to ensure they remain within acceptable credit limits □ Floor limit is the amount of money above which credit card transactions must be authorized by the issuing credit card company. □ A house limit §

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Amount limit on the amount the guests can charge to their accounts without partial settlement ◊ High balance accounts - an account that approaches its credit limit Tracking transactions § Cash- at front desk it is posted as credits and decreases the balance of account § Charge purchase □ Deferred payment transactions, which increases outstanding balance of account □ Must be communicated to front desk for proper folio posting through means of a charge voucher § Account correction □ Resolves a posting error on folio through means of a correction voucer □ Made on same day error is made before the night audit § Account allowance □ Used to decrease a folio balance for compensation for poor service or rebates for coupon discounts □ Used to correct a posting error detected after the night audit § Account transfer □ The charge is transferred from one account to another § Cash advance □ Cash paid by the cashier on behalf of the guest for some expense □ Considered as debit transactions Internal control § Cash banks □ Amount of cash assigned to a cashier so that he or she can handle the various transactions that occur during a shift § Net cash receipts □ Amount of cash and checks in cashiers drawer- the amount of initial cash bank + the cash paid out ® Overage- occurs when cashier returns less cash to guest than required ® Shortage- occurs when cashier returns more cash to guest than required. § Night auditor V ifi ted tri f t d t ts

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Verifies posted entries for guest and non-guest accounts ® Post all transactions from other revenue ® Checks accurate posting to designated account Balances all front offices accounts Resolves room status discrepancies ® Bucket check: cross check room status system with the guest registration cards in the buckets ® Produce management reports...