FACS Hotel Management

Automated Inventory Tracking System
Is able to determine the number of rooms available for sale for a given date. Offers various status reports under the reservations module.
Committed Rooms
Yesterdays stay-overs + today’s reserved arrivals
Out of Order Rooms (OOO)
Temporarily unavailable due to fixable problems. Can be fixed quickly if absolutely essential. Can be sol at a discount if un-fixed, with disclosure.
Out of Inventory Rooms (OOI)
Unavailable long-term due to non-fixable problems. Cannot be sold due to unacceptable condition.
Understay
Guest who leave earlier than expected
Overstay
Guest who stay longer than booked
Stayover
Continuing guest, as per booking
Overbooking
More rooms sold than available, done deliberately.
Expected Arrivals
Guests booked to arrive today
Expected Departures
Guest booked to depart today
No Show
Guest with confirmed/guaranteed booking who does not arrive, but has not cancelled
Early Arrivals
Guest who arrive days before booking
Walk-ins
Guest without reservations needing rooms
Room Count
Status of rooms sold and available
House Count
Number of guests in hotel
Walking the Guest
Sending a guest with confirmed or guaranteed booking to another hotel as we are full
Components of the Simple Room Count
-Rooms available
-Occupied last night
-Expected check-outs
-Stayovers
-Today’s Reservations
-Rooms committed today
-Rooms available for sale
-Occupancy percentage
Adjusted Room Count
More sophisticated, accounting for many issues
Reservations to take
-Advanced reservations (the best)
-Guaranteed Reservation
-Confirmed Reservation
Overbooking percentage
5-7%
Where did we steal Yield Management from?
The Airlines
Global Distribution System (GDS)
The role that airline reservation systems played
Four Global Distribution System Providers
1)Amadeus
2)Galileo
3)Sabre
4)Worldspan
What are these global distribution system providers worth?
In 2001, Galileo was purchased by Cendant Corporation for $2.9 billion.
Central Reservation System (CRS)
The electronic system, including the last-room availability interface with individual chain properties. Linked airlines with travel agents.
Seamless Connectivity
Faster, more accurate, sells more rooms at higher rates
Electronic Switch Technology
Speaking the same language within incompatible systems
Application Service Providers (ASPs)
Software companies that offer a suite of software applications via Internet-based access.
Pegasus Solutions
The lodging industry’s oldest and most popular provider of ASP Central Reservations software.
Four primary functions of ASPs
-A CRS
-GDS connectivity
-Connections to “alternate” distribution systems
-Internet Reservations
How many minutes should it take to process a reservation?
2-3 minutes
Central Reservation Office (CRO)
The actual office site at which chain reservationists reside.
In-House Reservation Center
When a person calls directly to the hotel to book their reservations.
Internet and Web-Based Reservations
Travel related bookings are the largest category of Internet transactions. Each year, the Internet attracts a larger share of reservations away from more traditional sources, growing at a rate four times faster than the rest of the industry.
Search Engine Optimization
80% of web visits start in a search engine. Need to be in the top .0005% of the search to be listed in the top few.
Hotel Web Sites
40% of annual marketing budget may be spent on online products. Booking through own website nets more revenue than booking through 3rd party websites.
Chain Sites
Encourage booking by enhancing quality of website, offering lowest price guarantee, letting users research for multiple brands at multiple price points with one click.
Third Party Travel Sites
Sites that are not controlled either by the hotel or the chain. (hotwire, expedia, travelocity, orbitz etc..)
Meta-Search Technology
Sites that search all available websites to present side-by-side comparisons and booking options (kayak, sidestep or travelzoo)
Independent Reservation Services
CRS for hire, used by smaller chains, independent hotels.
Yield Management Revolution
The act of controlling rates and restricting occupancy to maximize gross room revenues
Corporate Guests
Less price sensitive, seek flexibility, weekday travel, book at the last minute, cannot wait for deals
Leisure Guests
Very price sensitive, weekend travel, will trade price for restrictions, are motivated by deals
Group Guests
Place and date more important than rate.
PHASER complete Access Reports
Breaks the hotel rates into two categories, GDS and CRAS and looks for the lowest available rate in each of these areas
Smith Travel Research’s STAR Reports
Based entirely on historical date. Does not share specific performance date for each competing property.
Travel Information Management Services (TIMS)
Rates are gathered through the CRS’ seamless connection. Displays discounts and lowest available rates for all hotels in the competitive market set
Hotelligence Report
Compares a manager’s room available with those available in the competitive market set and room -nights sold for the manager’s hotel against room-night sold across the competitive set
Expedia Competitive Price Grid Report
The hotel wants to see the rates it is listing in Expedia as well as the rates listed by competitors in order to manage its own hotel-direct Web site
Role of Yield Management Systems
-Establishes and monitors rate structure
-Continually monitors reservations activity and sets inventory controls as needed
-Aids rate negotiations with bulk buyers
-Monitors and restricts the number of reservations that can be taken for any particular room rate/room type
Artificial Intelligence/ Expert Systems
Use stored data to form rules that govern decisions. Allows for instantaneous response to changing conditions
Nests and Hurdles
Hurdle point is set, lower rates rejected
Fenced Rates
Logical rules that give options based on sensitivity
Optional Reservation Data
-Estimated time of arrival
-Special Requests
-Smoking preferences
-Discounts or Affiliations
-Address
Guest History Database
History and preferences of that particular guest. Being used more often today
Amendments/alterations to the reservation
Changes in dates, names, numbers, room types etc.
Group Business
Estimated over $80 billion. Group delegates spend more dollars.
Categories of Group Business
1)Tour Groups
2)Convention Groups
3)Exposition and Trade Shows
Adjusting the Room Block
Blanket reservation is made initially. Is adjusted as dates come closer. Convention hotels cooperate to determine “show rate” of a particular group from past records.
Convention and Vistor Bureaus (CVBs)
Publicly funded, quasi-govermetnal organizations to represent city’s hospitality industry. Represent bid for large and small conferences
ASAE
The American Society of Association Executives
Role of the Housing Bureau
Needed for large conventions where delegates may stay in many hotels
Attrition/Pick-Up Rate
100 booked, 40 used means 60% attrition, 40% pick-up
Flat Rate/Run of the House
Some get suites, some get singles, all pay same rate
Spread Rate
A negotiated discount below the rack rate. Members pick the rate they want to pay
IT packages
Hotel sets up and sells own package to individuals. May be better than the group rate.
Selling Against Room Block
As individual room requests arrive at the hotel, they are booked against the group room block. Reservation received after the closeout date, 20 to 30 days before the convention starts, are accepted on an availability basis only
Unidentified Delegates
Convention guest who try to get a better rate by using other deals