Front office management

CHAPTER 1 INTRODUCTION TO FRONT OFFICE MANAGEMENT Objectives Ø List the importance of Front Office department Ø Explain the organization charts of Front Office department Ø Explain the

HANOI OPEN UNIVERSITY FACULTY OF TOURISM

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FRONT OFFICE MANAGEMENT

Credit: 3 Lecturer: Ms Tran Thu Phuong

(FOR INTERNAL USE ONLY)

Hanoi - 2019

Chapter 6 REVENUE MANAGEMENT AT FRONT OFFICE

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CHAPTER 1 INTRODUCTION TO FRONT OFFICE MANAGEMENT

Objectives

Ø List the importance of Front Office department

Ø Explain the organization charts of Front Office department

Ø Explain the interaction of Front Office with guests and other

departments

Ø List management functions in general and at Front Office particularly

Ø Explain skills needed by a Front Office Manager

Ø Explain responsibilities and duties of a Front Office manager

1 Introduction to Front Office department

1.1 Importance of Front Office department

Front Office department plays a key role in the smooth functioning of different processes in a hotel Out of all the different departments in a hotel, Front Office department plays a crucial role for the simple reason that it is the very face

of the hotel Although, all organizations have front desk in their offices to welcome the guests, but in hotels the role and responsibility of front desk management becomes more valuable Consequently, this needs to be organized well to impress the guests

A hotel is a multi-faceted entity It has numerous departments and each one has its own prominent role to play Front Office acts as a coordinating center among different departments: housekeeping, marketing, food and beverage, etc Undoubtedly, Front Office operations form an important part of the hotel management curriculum Without well-planned Front Office operations, it will be very difficult for a hotel to operate and serve its guests well Without a good Front Office department, the operations in a hotel will be thrown out of gear The synchronization between other departments will be disrupted and running the hotel will become an arduous task Therefore, the importance of well-functioning Front Office department in a good hotel can never be denied

Front Office plays an essential role in delivering the hotel to its guests It sets the stage for a pleasant or unpleasant visit Guests, often in an unfamiliar setting and anxious to proceed with their business or vacation plans, are eager to learn who, what, when, where and how the new environment is Requests for information often begin with the door person, bell person, switchboard operator, front desk agent, cashier, or concierge, because these employees are the most visible to guests and are perceived to be the most knowledgeable about the place These employees are believed to have their finger on the pulse of the organization and the community Their responses to guests’ requests for information on public transportation, location of hotel facilities, special events in the community, and the like indicate how well the hotel has prepared Front Office

Accordingly, Front Office staff must take an active role in gathering information that will be of interest to guests They must also be active in developing procedures for Front Office to expend this information

1.2 The major functions of Front Office department

Front office department includes:

• Front Desk

• Uniformed services

• Concierges

• Front Office Accounting System

• Private Branch Exchange (PBX), a private telephone network used within

b) Maintain & settle guest accounts

c) Create guest history records

d) Develop & maintain a comprehensive database of guest information

e) Coordinate Guest Services

• The sole priority of Front Office Department shall be ensuring Guest Satisfaction, which happens when guest expectations match what the

– Well-designed job descriptions

1.3 Operation of Front Office department

1.3.1 Organization 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 sized hotels due to the fact that these hotels don't possess 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 sized 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 sized hotels, one or two Front Office clerk(s) might be responsible for all Front Office activities

Figure 1 - Sample of full-service hotel’s Front Office organizational chart

Source: [9,8]

Front office department manager heads the team of staff working on various activities and responsibilities in the front office department Few prominent activities that the front office staff is involved in are:

• Reservation: It includes handling request of customers for reserving accommodations

• Reception: It includes receiving the guests according to the highest standards and registering them appropriately It also includes bidding the guests off

• Guest Services: They are also known as Uniformed Services It includes personalized guest services such as:

Handling guest luggage o Handling guest mail

o Delivering newspapers in accommodations

o Paging the guest inside the hotel (locating the guest in the hotel)

o Arranging for a doctor in emergency

o Parking guest’s automobiles

o Arranging for reservations at the places of entertainment outside the hotel

• Accounts: It mainly includes a front office cashier and a Night Auditor The cashier is responsible for handling guest payments He typically reports to the accounts manager rather than the front office manager

The night auditor performs the duties of front desk reception as well as accounting partly during the night shift He needs to report to the heads of both departments, front office, and accounting

• Communication: It involves handling communication among various other departments and guests of the hotel [9, 8-9]

Other organizational charts may include different names for those functions, for example

Figure 2 – Sample of full-service hotel’s Front Office organizational chart

Source: [10] Accompanied with this chart are positions:

Figure 3 – Sample of full-service hotel’s Front Office organizational chart

Source: [10]

According to VTOS (VIETNAM TOURISM OCCUPATIONAL

STANDARDS) for Front Office Operations 2015, typical jobs at FO include: Front

Office Manager, Front Desk Supervisor, Night Auditor, Receptionist, Front Office Clerk/ Agent, Guest Services Officer, Telephone Operator, Concierge and Bell Boy

Front Office Manager together with FO assistant manager, FO Supervisor

oversees all front office operations for the hotel They manage staff, arrange work schedules and implement policies or procedures that are administered by hotel management

Reservation Clerks communicate with guests via the telephone and Internet,

scheduling their stays and documenting any special needs they may have

Front Desk Clerks or Guest Service Officers check in guests, assign rooms and

answer any basic questions or requests the guests may have throughout their stay At the end of the guests’ stay, a front desk clerk checks them out In addition, the clerk reports any concerns the guest had to management

Hotel Bellhop/Bellboy or Porter greets guests once they checked into the hotel

This individual carries the guests’ luggage while showing them to their room Ensuring that everything in the room is in order and properly working, the porter checks room equipment, such as lighting and ventilation He may also instruct visitors in the operation of hotel systems, such as the television remote control and telephones

Concierge of a hotel is a front office professional who coordinates guests’

entertainments, travel and other activities In addition, they may make restaurant reservations, order transport and may even arrange personal shopping for the guests [6,14]

Figure 4 - Limited-service hotel’s Front Office organizational chart

1.3.2 Front-House Operations

These operations are visible to the guests of the hotel The guests can interact and see these operations, hence, the name Front-House operations Few of these operations include:

• Interacting with the guests to handle request for an accommodation

• Checking accommodation availability and assigning it to the guest

• Collecting detail information while guest registration

• Creating a guest’s account with the FO accounting system

• Issuing accommodation keys to the guest

Desk clerks Bell men

Front Office Manager

• Settling guest payment at the time of check-out [10, 2]

1.3.3 Back-House Operations

Front Office staff conducts these operations in the absence of the guests or when the guest’s involvement is not required These operations involve activities such as:

• Determining the type of guest (fresh/repeat) by checking the database

• Ensuring preferences of the guest to give a personal touch to the service

• Maintaining guest’s account with the accounting system

• Preparing the guest’s bill

• Collecting the balance amount of guest bills

• Generating reports [10,2-3]

1.4 Interaction of Front Office with other departments in a hotel

Front Office is the nerve center of a hotel property Communication and accounting are the most two important functions of Front Office operations

Effective communications – with guests, employees and other departments

of the hotel – are principal in projecting a hospitable image Answering guest inquiries about hotel services and other guests, marketing and sales departments requests for information on guest room availability and housekeeping department inquiries concerning guest reservations are but a few of the routine tasks performed almost constantly by a hotel Front Office in its role as communication center

Accounting procedures, involving charges to registered and nonregistered hotel guest accounts, are also very important in the hospitality field Itemized charge are necessary to show a breakdown of charges if a guest questions a bill

Services for which fees are charged are available 24 hours a day in a hotel Moreover, because guests may want to settle their account at any time of the day; accounts must be current and accurate at all times Keeping this data organized is a top priority of a good Front Office management

Front Office staff interacts with all departments of the hotel, including marketing and sales, housekeeping, food and beverage, banquet, controller, maintenance, security, and human resources These departments view the Front Office as a communication liaison in providing guest services Each of the departments has a unique communication link with Front Office staff

• Marketing and Sales Department

Marketing and Sales department relies on Front Office to provide data on

guest histories, details concerning each guest’s visit Some of the information

gathered is based on zip code, frequency of visits, corporate association, special needs, and reservation for sleeping rooms It is also the Front Office’s job to make a good first impression on the public, to convey messages, and to meet requests of guests who are using the hotel for meetings, seminars, and banquets

• Housekeeping Department

Housekeeping and Front Office communicate with each other about housekeeping room status, the report on the availability of the room for immediate guest occupancy

Housekeepers rely on the room sales projections to plan employees Front Office also relies on housekeeping personnel to report any unusual circumstances that may indicate a violation of security for hotel guests

Guest requests for additional or special amenities and guest room supplies may be initiated at the front desk The prompt relay of requests for extra blankets, towels, soap, and shampoo to housekeeping is essential This following diagram shows the interaction of Front Office with other departments at its best

Figure 5- Interaction of Front Office with other departments

• Food and Beverage Department

Communication between the Food and Beverage department and Front Office is also essential Some of this communication is conveyed by relaying

messages and providing accurate information on vouchers, which are forms used

to communicate a charge to a guest’s account Communication activities also

include reporting predicted house count which Food and Beverage manager

relies on to schedule employees and predict sales

• Banquet Department

Banquet department, which often combines the functions of a Marketing and Sales department and a Food and Beverage department, requires Front Office to relay information to guests about scheduled events

Front Office staff may also provide labor to prepare the daily

announcement board Since the majority of banquet guests may not be registered

guests in the hotel, Front Office provides a logical communication center

• Controller

Controller relies on the Front Office staff to provide a daily summary of

FRONT OFFICE Banquet

Human Resource

Marketing and Sales

Food and Beverage

Housekeeping

Maintenance

Controller

Security

used to measure management ability to meet budget targets Since the Front Office provides the controller with financial data for billing and maintenance of credit card ledgers, these two departments must relay payment and charges through the posting machine or property management system

• Maintenance Department

Maintenance department and Front Office communicate on room status and requests for maintenance service Similarly, the requests from guests for the repair of heating, ventilation and air conditioning units, and other room furnishing are directed to the front desk These requests are then communicated to the maintenance department The front desk agent must keep track of the repair schedules, as guests want to be informed when the repair will be made

• Security Department

Communication between Security department and the Front Office is very important in providing hospitality to guests These departments work together very closely in maintaining guest security

• Human Resources Department

Human Resources department may rely on the Front Office staff to act as

an initial point of contact for potential employees in all departments

They may even ask the Front Office to screen job candidates Some directors of human resources management depend on the front office to distribute application forms and other personnel - related information to job applicants The potential employee may ask for directions to the personnel office

at the front desk

FO contacts the HR department for employee training and induction programs, salaries, leaves, dues, and appraisals

2 Introduction to Front Office Management

2.1 Overview of management functions

The management include 7 specific functions:

• Planning

• Organizing

• Coordinating

• Staffing

• Leading

• Controlling

• Evaluating

These functions can be illustrated as in figure 4

Figure 6 - Overview of management process

2.2 Management functions at Front Office

The process of Front Office Management also consists of 7 management functions:

Planning

Planning is probably the most important management function performed

in any business Without competent planning, the Front Office would be chaotic

No one would know what to do and when to do it Without the direction and the focus that planning provides, the Front Office Manager may become overly involved with tasks that are unrelated or inconsistent with accomplishing the

department’s objectives A Front Office Manager’s first step in planning what the

Front Office will accomplish is to define the department's general objectives as they relate to the hotel's mission

The Front Office Manager should use those general objectives as a guide for planning more specific, measurable objectives Planning also includes determining the strategies and the tactics that will be used to attain the objectives

Planning Coordinating Organizing

Staffing

Leading Controlling Evaluating

Change in Procedures Revision in Plans

Initial

Activities Pre-Operating Activities Operating Activities Appraisal Activities

Using the objectives as a guide, a Front Office Manager organizes the department by dividing the work among Front Office staff Work should be distributed so that everyone gets a fair assignment and all work can be completed in a timely manner (on time) Organizing includes determining the order in which tasks are to be performed and establishing completion deadlines for each group of tasks

Coordinating

Coordinating involves bringing together and using the available resources

to attain planned objectives A Front Office Manager must be able to coordinate the efforts of many individuals working in the Rooms Division to ensure that the work is performed efficiently, and on time A manager’s ability to coordinate is closely related to his or her other management skills, such as planning and organizing

Staffing

Staffing involves recruiting applicants and selecting those best qualified for

positions Staffing also involves training and scheduling employees Most Front Office managers develop staffing guidelines to calculate the number of employees required for meeting guest and operational needs

Leading

For a Front Office manager, leadership involves overseeing, motivating, training, disciplining, and setting an example for the Front Office staff For example, to direct the work of others, a Front Office manager must first analyze the work to be done, organize the tasks in a logical order, and consider the environment in which the tasks will be performed

Controlling

Every Front Office has a system of internal control for protecting the assets

of the hotel The control process ensures that the actual results of operations closely match planned results The Front Office manager also exercises a control function when keeping Front Office operations on course in attaining planned objectives

Evaluating

Evaluating determines the degree to which planned objectives are, in fact, attained This task is frequently overlooked in many Front Office operations Evaluating also involves reviewing and, when necessary, revising or helping to revise Front Office objectives

The Front Office manager must have the art of stimulating a Front Office staff member’s interest in a particular job, project, or subject to the extent that he

or she is challenged to be continuously attentive, observant, concerned and committed There are various motivational techniques: training, cross-training, recognition, communication, incentive programmers, performance appraisals, and staff empowerment

3 The job of a Front Office manager

A Front Office Manager needs special competence based on VTOS 2015 as shown in the table below:

Table 1 – List of units of competence for Front Office manager [6,20]

The process of Front Office Management includes 7 functions: planning, organizing, coordinating, staffing, leading, controlling, and evaluating

The Front Office Manager is in charge of the Front Desk The major responsibilities of a Front Office manager includes reviewing the financial draft of the night audit, a daily review of the financial accounting procedures at the Front Office and other guest service areas during the previous 24-hour period and an analysis of operating results; operating and monitoring the reservation system; developing and operating an effective communication system with Front Office staff and other department managers; supervising daily registrations and checkouts; overseeing and developing employees; establishing in-house sales programs at front desk clerks; preparing budgets and cost-control systems; forecasting room sales; and maintaining business relationships with regular corporate and community leaders Apart from these things, a Front Office manager has to complete detailed daily tasks to run Front Office operation smoothly

• EXERCISE

Which of the following statements are objectives, strategies and tactics Which ones fit together?

1 Do more advertising

2 Offer a free meal at the hotel's restaurant for the next stay

3 Reduce the number of guests' complaints by 20%

4 Increase the volume of repeat guest business by 10%

5 Buy one page to advertise in the Magazine "Traveler"

6 Provide a 2-day training workshop on "Satisfying your guest"

7 Give an incentive to come back

8 Increase the occupancy level by 2% above the previous year's level

9 Improve guest service at front desk

Hotel mission statement

“The mission of our hotel is to provide outstanding lodging facilities and personalized service to our guests Our hotel focuses on the leisure travel market, including individual tourists and groups We emphasize high quality

investment for our owners and recognize that our success is built on well-trained and motivated employees.”

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CHAPTER 2 PLANNING AT FRONT OFFICE

Objectives

Ø Explain importance of creating policies, procedures and forms at Front Office

Ø List some policies, procedures and forms at Front Office

Ø Explain some considerations when creating policies, procedures and forms at Front Office

Ø List the importance of budgeting Front Office operations

Ø Explain budgeting at Front Office

Ø Present some considerations when budgeting Front Office operations

Ø Explain importance of forecasting room availability

Ø List information and data needed for forecasting room availability

Ø Calculate data needed for forecasting room availability

Ø Forecast room availability

Ø Present some considerations when forecasting room availability

1 Preparing FO physical set up

FO physical set up often include a Front desk, a bell service counter, a customer service counter or on some hotel it has an area for business center and even a travel desk The travel desk can sometimes be outsourced

In this range, the physical set up for Front Desk or so-called reception counter will be discussed in detailed The front desk is the place where the guests

temporarily await to find a room when checking in or to clear their bill when

checking out Hence, it needs to be positioned appropriately so that the staff and the guests can use them conveniently The front desk needs to be:

• Positioned at an adequate height and reach

• An adequately lit-up area

• Aesthetically furnished

• Preferably near the hotel lobby and lift

• Preferably near the sitting area

• Wide enough to make the staff member communicate with the guests

across the desk

Besides, the front desk should be fancy and at the same time convenient for users, always clean, durable, and elegant

Front desk from the inside includes mass of cabinets and shelves with

documents, necessary electronics, monitoring preview, computers, printers, lockers, money boxes, deposit safe, payment terminal, first aid kit, trays leaflets promoting additional hotel services, maps and guidebooks around the area, description of attractions, and many other things If the hotel uses traditional keys instead of coded magnetic cards, one of the most important elements of the reception equipment is the key cabinet

The reception equipment or machines may vary in different hotels, but it often includes: Computer, copier, fax machine, printer, telephone, webcam, walkie talkie, POS, calculator, currency counter/ note counting machine

Other equipment may consist of safety deposit, lamp, shelves, clock, stand

calendar, reception counter, dustbin etc

Stationery includes a variety of printer paper, notepads and scrap paper as well

as envelopes of all sizes, folders, pens, pencils, correction pens, highlighters, rulers, staplers, notebooks, pen knives, scissors, clear bags, paperclips, tape, hole punch and other miscellaneous supplies

Picture 1 – Illustration of a hotel front desk [11]

2 Calculating number of FO staff

The amount of the staff engaged in hotel activity generally and at Front Office particularly largely depends on the status of the hotel According to the recommendations of the World Tourism Organization, the optimum number of staff per 10 rooms in three star hotel – 8 person, in four star hotel – 12 person, in

5 star hotel – 20 person However, in fact the real number can be much reduced

to save cost in some lodgings

When calculating number of FO staff, FOM has to take in to account several

elements: The average output quota, the total number of days off, and

occupancy rate

The average output quota for FO staff is varied based on the rank of the hotel,

In Vietnam, the total days off based on the national holidays (10 days) and

permitted days off (12 days) excluding maternity leave (6 months), funeral of intimate family members (3 days), marriage (3 days) etc

The formula is:

- Number of FO staff/shift (S)

S = Total room inventory : Output quota per shift

- Number of FO staff/day (D) given that the hotel has 4 shifts

X hotel has 300 rooms The output quota is 30 guests per shift The average occupancy rate is 60% Calculate the FO staff X hotel needs?

3 Creating Standard Operating Procedures (SOPs), policies and forms at Front Office

3.1 The importance of creating policies, procedures and forms at Front Office

A standard operating procedure (SOP) is a set of step-by-step instructions compiled by an organization to help workers carry out complex routine operations SOPs aim to achieve efficiency, quality output and uniformity of performance, while reducing miscommunication and failure to comply with industry regulations

The important task of writing policies and procedures gets the respect it deserves

at Front Office where there are lots of tasks and interactions with guests as well

as with other departments Good procedures and work instructions provide a way

to communicate and apply consistent standards and practices within Front Office

Good policies and procedures: save time and mistakes, reduce training costs, ensure consistent results, empower the workforce, support quality goals While

bad policies and procedures, can be as disastrous as no procedures at all: cause

errors and frustration, increase training costs, waste time and money, detract from quality goals In general, creating policies, procedures and forms at Front

Office are of great importance

3.1.1 Improvement of staff’s performance

Well-written policies, SOPs and forms make it easier for employees at Front Office to do their jobs They don't have to guess how a task is done or what kind

of information they have to ask for when taking reservations for example because they can follow a set policies, procedure and forms Through a standard routine, employees enjoy more predictability in their jobs and can improve their skills on each task to raise their overall performance

3.1.2 Quality control

A hotel’s guest can depend on service to be of a certain minimum quality SOPs, policies and forms help Front Office reduce the errors, or variations, that occur in the duplication of a service

3.1.3 Performance management

Establishing SOPs, policies and forms at Front Office makes it easier to conduct employee performance appraisals, especially SOPs A Front Office manager can write each employee's job description as a collection of key SOPs, then give the employee a target level of outputs for each SOP in her/his job description Although an employee's performance appraisal does not have to include all procedures that she performs, a Front Office manager can select the procedures most crucial to her job or to the hotel’s bottom line It is also easy to compare the performance of employees who perform the same SOP as a component of their jobs

3.1.4 Replication and growth

As a hotel grows, different locations may be set up where employees will replicate the work processes of the original hotel Having clear SOPs, policies

Employees at each location can use the same operating manual to identify how

to perform a standard procedure The manager can also track the productivity of each site based on the levels of performance for each standard operating procedure, which is good information to have when having to scale down the organization

3.2 Some policies, procedures and forms at Front Office

3.2.1 Policies at Front Office

A Front Office manager needs to be able to create suitable policies at Front Office in accordance with that of the hotel In some hotels, all of the polices will

be made by the general manager However, in most situations, the Front Office manager is the one who has to create those policies at the department level or in the former condition, he or she has to adjust them to make them suitable with the real condition of the department There are several policies at Front Office which can be listed as follow:

Example of some policies at Front Office

HOTEL POLICY- HOTEL NIKKO SAIGON Check-in time: 14:00

Check-out time: 12:00

Guarantee: Credit Cards are used to guarantee reservations If not cancelled within

cancellation period or the guest did not show up, a charge of one night plus service charge and tax will apply Advance purchased reservations are charged at the time of

confirmation and are non-refundable (full stay), non-cancellable and non-changeable Actual credit card used to charge advance purchased bookings are required to be presented upon

Deposit: Upon check in, guest will be required to pay room deposit covering the entire stay

as well as incidental deposit of US$50 per day to cover miscellaneous expense Any

unexpended amount will be refunded at check-out

Payment Types: Credit card accepted at the hotel: American Express, Diners Club, JCB International, MasterCard, Visa

Transportation: To guarantee safety, the hotel recommends its own hotel transfers to and from the airport (additional charge US $50++ for Sedan and 60++ for Minivan per way will apply)

City Shuttle Service: Hotel Nikko Saigon offers complimentary shuttle van with 7 trips daily providing guests drop off service to main city landmarks: Ben Thanh Market –

Takashimaya – Renunification Palace – Notre Dame Catheral – City Opera House Schedule are available at our Concierge Desk and reservation must be made in advance

Additional Details:

Please be advised that according to hotel policy, Vietnamese lady and a foreigner gentleman sharing a room is requested to present a copy of marriage certificate prior or upon check-in We seek your kind understanding on this matter

Extra-person charges may apply and vary depending on hotel policy Connecting/adjoining rooms may be available, subject to availability Guests can request connecting/adjoining rooms by contacting the property directly, using the contact information on the booking confirmation No pets and no service animals are allowed at the hotel

Children Policy:

Age 11 years and below are free of charge if sharing room with parents on existing bedding Extra bed (maximum 1 per room) fee for adult or child USD27.00 Additional fee for child buffet breakfast 0-5 years free / 6-11 years USD11.25 / 12 years and up USD22.50 Additional fee for child access at Club Lounge 0-5 years free / 6-11 years USD17.50 / 12 years and up USD35.00 All fees are subject to 5% service charge & 10 % taxes

Source: https://www.hotelnikkosaigon.com.vn/about_us.php

HILTON HOTELS AND RESORTS Reservation Rules and Restrictions Check-in/Check-out Policy: Rates quoted are based on check-in date and length of stay

shown Should you depart early prior to the departure date confirmed for any reason, hotels may impose an early departure fee

Arrival Time: Your reservations will be held until local hotel hold time To hold the room

beyond the local hotel hold time, a credit card guarantee of payment must be received at the hotel prior to designated hold time For reservations confirmed from countries where local regulations prohibit guarantees to a credit card, payment by check in the currency of

be available until after the reserved hotel's designated check-in time Occupancy prior to check-in time on the date of the reservation cannot be confirmed unless the hotel has availability and payment for the previous night is received by the hotel prior to arrival either by credit card accepted by the hotel or a deposit by check

Rate Rules/Restrictions: Rates are confirmed in the currency of the country in which the

hotel is located unless otherwise specified in your e-mail confirmation details Rates

confirmed are for the number of occupants listed in your e-mail confirmation, per room, per night and do not include additional charges for rollaway beds or extra people and will apply only to rooms booked as part of this reservation Tour and package rates vary

according to the features of the specific package or program offered at each hotel The applicable charges for the packages confirmed are indicated in your e-mail confirmation details Applicable taxes, service charges, and value added tax (VAT), if applicable, will be added to the hotel bill unless indicated as a package feature The taxes, service charges and value added tax shown on your e-mail confirmation are those currently in effect Taxes, service charges, etc are subject to change without notice according to local law

Revision/Cancellation: Should you need to cancel, please do so before the local hotel hold

time to avoid cancellation fees Cancellation of reservations for which payment was

guaranteed or for which a deposit has been sent must reach the destination hotel by the local hotel hold time on the cancellation date indicated to avoid your credit card being charged or the forfeiture of your deposit Cancellation numbers are issued at the time of cancellation provided the reservation is cancelled by the date and time specified in your e- mail confirmation details Please make a note of the cancellation number for your records

in the event of questions regarding cancellation of guaranteed reservations A new deposit

is required for revisions to reservations received after the cancellation refund due date Any changes to the arrival date, departure date, or room type of this reservation is

subject to the hotel's availability at the time the change is requested and may result in a possible rate change and/or service fee

We reserve the right to cancel or modify reservations where it appears that a customer has engaged in fraudulent or inappropriate activity or under other circumstances where it appears that the reservations contain or resulted from a mistake or error

Thank you for choosing Hilton We look forward to having you as our guest

Source: www.hilton.com/en/hi/info/reservation_rules.jhtml

3.2.2 Procedures at Front Office

Procedures or are normally called standard operating procedures (SOP) are essential at Front Office These are the golden guidelines for the staff to follow and also for the FOM to establish a benchmark for quality of services

At Front Office, there should be different sets of SOPs for Bell, Concierge, Reservation and Reception staff

• Grooming and hygiene

• Bell staff: Guest luggage handling procedure

Ø On Guest arrival

Ø On Guest Departure

Ø Luggage Storage Room

• Concierge:

Ø Handling booking requests and procedure at Concierge

- Transportation booking requests

- Excursion or tour booking procedure

- In-house facilities or restaurant booking procedure

- Outside restaurant booking procedure

Ø Directing guests

• Reception staff:

Ø Check in for walk-ins

Ø Check in for guests with reservations

Ø Handle group pre-arrival

Ø Handle group check-in

Ø Check in guest with a voucher: Hotel accepts Travel Agent/ Tour Operator vouchers according to the Hotel Voucher Acceptance Program, as well as the local contracts negotiated by the Sales

Ø Check in day use room: Day use room check-ins must be efficient and accurate and follow the same standard as a normal check in

Ø Handle guest rebates or allowances

Ø Control guest room keys

- When guest request for room key

Ø Handle wake-up calls for guests

- Taking down wakeup call from guests (manual process)

- Performing wake-up calls

Ø Walk guests to another hotel

Ø Handle physically-challenged guests

Ø Upgrade guest rooms

Ø Handle medical assistance

Ø Prepare group arrivals

Ø Change guest room: A room change must be carried out with the

guest’s knowledge and consent, and at the convenience of the guest

SOP: HANDLING BOOKING REQUESTS AND PROCEDURE AT CONCIERGE SOP Number: FO – 36

Department: Front Office – Concierge

Date Issued: 04-October-20xx

Transportation Booking requests:

• Be intimately familiar with and able to arrange for a wide variety of services for the guest, at the minimum including:

• Reservations for airlines, hotels, restaurants, and rental cars

• Tickets for theaters and sporting events

• Limousines, tours, and other transportation

Excursion or Tour Booking procedure:

• Call the ticketing service

• If booking can be organized in advance, make the booking and reconfirm all the information with the guest

• If no booking is required, explain it to the guest

• Give directions and a map if needed

In-House Facilities or Restaurant Booking procedure:

Check availability with FNB or other outlets eg: SPA, Recreation center etc

• Concierge must call all outlets every morning to ensure the Concierge quota

of bookings of the day When they have reached the quota check with outlet

to increase it

• Note the name of the guest, number of pax, room number and time on the reservation log book

• Ensure that all bookings are confirmed by F&B

Outside Restaurant Booking procedure:

• Always try to sell our own restaurants before talking about outside restaurants

• Guest books via phone (from their room) Note all the guest information

• Explain to the guest that you will get back to him after calling the restaurant and booking the table

• Fill up a booking voucher and offer the guest to bring it to their room If the guest doesn’t want to be bothered offer to keep the voucher at the concierge desk for him to pick it up later

• Guest books at the Concierge desk

When Guest has time:

• Call the restaurant while the guest is at the desk Confirm name, number of pax and time

• Note the name of the restaurant, time, address and phone number for the guest and offer direction if needed

When Guest is in a hurry:

• Note all the information and explain to the guest that you will book the table for him and send him a confirmation in his room with all the details

• Take a phone number to be able to contact him if needed

• Note all the bookings in the concierge log book

3.2.3 Forms at Front Office

To conduct daily operation, Front Office requires to have many different kinds of forms This is one of tasks that a Front Office manager has to do

Different hotel may have different types of forms based on the requirement of the management board or due to the factual condition On the other hand, the information included in these forms probably varies due to the real condition of the hotel and the target of the hotel There are several forms at Front Office being listed as follow:

• Reservation:

- Reservation form

- Change of room slip

- Key control sheet

- Safety deposit box record card

- Front Office cash sheet

- Express check out voucher

- Daily special request form

In order to help you

get speedily on your

way, may we offer

you our express

If you would prefer your bill mailed

to a different location, please note

the mailing address below Name: Company: Address:

2 Fill out the information opposite

3 Leave this form, together with your key, in one of the express check-out boxes in the lobby

4 Within 24 hours, a finalized copy of your bill will be in the mail to you

Thank you for choosing ABC Hotel

We look forward to serving you again!

2.2.4 Some considerations when creating policies, procedures and forms

at Front Office

When creating forms, policies and procedures, the FOM needs to take many things into consideration First of all, those policies and procedures must be suitable with the condition of the hotel, the target market of the hotel and also the staff Those policies and procedures must match with the vision or mission of the whole hotel so as not to go off the right track of the whole organization Furthermore, all of them, especially the forms must be cost-effective Finally, they need to be practical and can be applied in reality

4 Budgeting Front Office operations

4.1 The importance of budgeting Front Office operations

The most important long-term planning function performed by Front Office is

budgeting Front Office operations The hotel's annual budget is a profit plan that concerns all the revenue sources and expense items Annual budgets are often divided into monthly plans which, in turn, are divided into weekly plans These budget plans become standards against which management can evaluate the actual results of operations

The budget planning process requires the closely coordinated efforts of all management personnel While the Front Office manager is responsible for room revenue forecasts, the accounting division will be counted on to supply department managers with statistical information essential to the budget preparation process The accounting division is also responsible for coordinating the budget plans of individual department managers into a comprehensive hotel operations budget for top management’s review The hotel general manager & controller typically review departmental budget plans & prepare a budget report for approval by the property’s owners If the budget is not satisfactory, elements requiring change are returned to the appropriate division managers for review

The two primary responsibilities of Front Office manager in budget planning are:

- Forecasting room revenue

- Estimating expenses

Room revenue is forecasted with input from the Reservation manager while expenses are estimated with input from all department managers in Rooms Division

A hotel annual operation budget is a profit plan that addresses all revenue sources & expense items Budgets are important tools for managing cash flow, controlling costs, and making effective management decisions The ability to accurately predict future profits requires a firm understanding of operating costs

4.2 Budgeting at Front Office

4.2.1 Forecasting rooms revenue

a Analysis of room revenue from past periods

Historical financial information often serves as the foundation on which Front Office managers build their room revenue forecasts One method of room revenue forecasting involves an analysis of room revenue from past periods Amounts and percentages are noted and the amount of room revenue for the budget year is predicted

Let’s consider the following example:

Year Rooms revenue Increase in $ Increase in %

b Analysis of past room sales and average daily rates

Another approach to forecast room revenue bases the revenue projection

on past room sales and average daily rates

Let’s consider the following example of B hotel:

Year Rooms Average Net Rooms Occupancy

Sold Daily Rate Revenue Percentage

Given these projections, the following formula can be used to forecast room revenue for the year 200x The hotel's room inventory is 120 rooms

Formula:

Forecasted = Rooms X Occupancy X Average Rooms revenue Available Percentage Daily Rate

4.2.2 Estimating expense per occupied room

Most expenses for Front Office are direct expenses in that they vary in direct proportions to room revenue

Typical Rooms Division expenses are:

Let’s consider the following example of B hotel:

Estimate the expense per occupied room with the given information

4.3 Some considerations when budgeting Front Office operations

Budgeting Front Office operations is not an easy task for anyone, especially to a new FOM When doing this task, these things should be taken into considerations:

• Budget for income first: This is to create a realistic projection of reliable income and make sure budgeted expenses are less

• Understand revenue source(s): FOM needs to know clearly the diverse revenue streams which help to bring an effective and stable revenue for the department and also for the hotel

• Understand the budget’s relationship to the organization’s short and long range goals: the budget should be consistent with the hotel’s stated goals and missions

• Include notes when appropriate: FOM sometimes needs to perform or show the budget plan for other stakeholders Those stakeholders may not fully understand underlying budget assumptions, so it is a good piece of advice to include notes for further explanations and be as concise as possible

• Review and revise: The budget may need to change due to unforeseen circumstances, so the FOM has to continuingly review and revise to make

timely modification

5 Forecasting room availability

5.1 Importance of forecasting room availability

A small business must adjust constantly to a changing market In order to make those adjustments, its management needs to predict what may happen in the marketplace Accuracy in making forecasts can mean the difference between being ready and being left behind

Forecasting future demand in the lodging industry is crucial because it leads to an efficient planning for, and decision making to all the departments, and most importantly it is one of the drivers of pricing

Accurate forecasting is one of the ways to increase the predictability of duration of use In hotels, duration is defined as length of stay; in airlines, as time

in flight (known as origin-destination); in restaurant, as length of meal; and in rental cars, as length of keep To help increase the predictability of duration, hotels forecast demand by length of stay for different rate categories; airlines try

to forecast demand by origin-destination city pairs; restaurants forecast demand

by length of meal depending on the number of persons per table; and rental-car companies predict demand by rate category and length of keep

The accuracy of the forecast is essential because the forecast is the main driver of the pricing/room allocation decisions; inaccurate forecasts or predictions will diminish the hotel's revenues and profit margin

The most important short term planning performed by the Front Office Manager is forecasting the number of rooms available for sale on any future date Room availability forecasts are especially important on nights when 100% occupancy is possible, because it is a time when the hotel has the opportunity to maximize room revenue by charging higher rates The forecasted availability and occupancy numbers are very important to the daily operations of the hotel Forecasts can help in determining operating costs since the number of guests has an impact on costs such as salaries, energy, etc For example, room availability forecasts can be useful:

• To the Front Office manager to schedule the right number of

employees for an expected number of guests

• To the housekeeping department to know how many rooms are

• To the chef to determine how much food to order for the restaurant

5.2 Forecasting room availability at Front Office

5.2.1 Information and data needed for forecasting room availability

Obviously, a forecast is only as reliable as the information on which it is based Since forecasts can serve as a guide in determining operating costs, every effort should be made to ensure forecasting accuracy

Forecasting is a difficult skill to develop The skill is acquired through experience, effective recordkeeping, and accurate counting methods Experienced front office managers have found that several types of information can be helpful in room availability forecasting:

The following types of information can be helpful to forecast room availability:

ü Good knowledge of the hotel and its surrounding area (attractions, competitors, etc.)

ü Occupancy data for the past months and for the same period the previous years

ü Reservations trends, and how far in advance reservations are made

ü Profiles of specific groups booked for the forecast dates

ü Number of non-guaranteed and guaranteed reservations and an estimate of the number of expected no-shows

ü Construction or renovating plans for competitive hotels in the area Furthermore, the process of forecasting room availability generally relies

on historical occupancy data as well as business already committed Historical data is used to take some of the guesswork out of forecasting To facilitate forecasting, the following data should be collected:

ü Number of expected room arrivals

ü Number of expected check-outs

ü Number of expected no-shows

ü Number of expected walk-ins

ü Number of expected stayovers

ü Number of expected overstays

ü Number of expected understays

to accept the corresponding number of walk-in guests However, by making this type of decision, the manager runs the risk of overbooking some rooms This risk is not necessarily a bad thing as long as the Front Office manager plans and calculates it, as well as the corrective actions that should be done in the case of a problematic situation

Some hotels calculate the percentage of no-shows according to the number of guaranteed and non-guaranteed reservations Non-guaranteed

reservations have a higher no-show percentage than guaranteed ones because the potential guests have no obligation to pay if they don't register

The percentage of no-shows depends also on the hotel's market segments A hotel with an important corporate market will have a lower no-show percentage than a hotel with a lot of individual tourists

Number of No-shows Percentage of No-Shows = - X 100%

Number of Reservations

• Percentage of Walk-Ins

The percentage of walk-ins is calculated by dividing the number of rooms occupied by walk-ins for a specific period by the total number of room arrivals for the same period Walk-in guests occupy available rooms that are not held for guests with reservations Often, hotels can sell rooms to walk-in guests at a higher rate since these guests may have fewer opportunities to go to other hotels

Walk-in guest sales help improve both occupancy and room revenues However, from a planning perspective, it is often considered better to have reservations in advance than to count on walk-in traffic

the total number of expected room check-outs equals the number of actual

check-outs on the books minus understays plus overstays

Overstays may be problematic when specific rooms have been blocked for

arriving guests and when the hotel is near or at full occupancy and there are no provisions for overstay guests

Number of Overstay Percentage of Overstays= - x 100%

Number of Expected check-outs

Number of Understay Percentage of Understays = - x 100%

Number of Expected check-outs

Guests leaving before their stated departure date create empty rooms that are typically difficult to fill Thus, understays tend to represent lost room revenue Overstays, on the other hand, are guests staying after their stated departure date and may represent additional room revenue when the hotel is not operating at full capacity

To regulate understays and overstays, Front Office staff should:

ü Confirm each guest's departure date at check-in

ü Present a notice of prior room reservation to the guest explaining that

an arriving guest holds a reservation for his or her room

ü Contact guests who have not left the hotel by check-out time and ask

about their departure intentions