Guest Cycle and Reservations in the Hospitality Industry

A key idea in the hospitality sector is the "guest cycle," which describes a visitor's path from the time they arrive at a hotel until they depart. Comprehending every phase of this cycle guarantees outstanding visitor experiences and operational effectiveness. Additionally, in order to increase occupancy, maximize income, and improve visitor pleasure, reservation management is essential. The visitor cycle, reservation methods, procedures, and handling changes, cancellations, and overbooking are all covered in detail in this chapter.

5.1 Importance of Guest Cycle

The guest cycle is a cornerstone of hotel operations, reflecting the dynamic interactions between the guest and the property throughout their journey. Its importance lies in ensuring operational efficiency, enhancing guest satisfaction, and fostering loyalty. Below are some key reasons why understanding the guest cycle is vital:

Optimized Guest Experience: Understanding the specific requirements of guests at each stage allows hotels to adapt their services to provide outstanding experiences. For instance, personalized welcomes during check-in and timely responses to requests during their stay can significantly elevate guest satisfaction.

Operational Efficiency: Comprehending the guest cycle aids in allocating resources effectively, such as scheduling staff during busy check-in periods and organizing housekeeping during guest stays. This approach reduces service delays and enhances overall efficiency.

Revenue Management: Monitoring guest activities throughout their journey creates opportunities for revenue growth, such as promoting room upgrades or additional services. Recognizing patterns in guest departures also assists in improving room turnover and maximizing occupancy.

Guest Retention and Loyalty: Positive interactions during all stages of the cycle foster loyalty and encourage repeat visits. Soliciting feedback during check-out, for example, can strengthen guest relationships and lead to favorable reviews.

Crisis Management: Identifying and resolving issues at any stage of the cycle, like delays during check-in or service disruptions during a stay, minimizes dissatisfaction and protects the hotel’s reputation.

By mastering the nuances of the guest cycle, hospitality professionals can ensure seamless, memorable experiences while driving operational and financial success.

The guest cycle represents the entire journey of a guest, typically divided into four key stages:

1. Pre-Arrival:

   • Description: This stage involves a guest’s first interaction with the property, usually through marketing or reservation inquiries.

   • Staff in Contact: Reservation agents, front office personnel, and sales teams.

   • Importance: A well-managed pre-arrival stage ensures accurate bookings and positive first impressions.
     

2. Arrival:

   • Description: The guest arrives at the property and completes check-in procedures.

   • Staff in Contact: Front desk personnel, concierge, and bell staff.

   • Importance: A seamless arrival process sets the tone for the guest’s stay.
     

3. Stay:

   • Description: This stage includes the guest’s experience during their time at the property.

   • Staff in Contact: Housekeeping, food and beverage teams, maintenance staff, and front desk.

   • Importance: Providing excellent service and promptly addressing guest needs enhances satisfaction and loyalty.
     

4. Departure:

   • Description: The guest completes check-out procedures and leaves the property.

   • Staff in Contact: Front desk personnel, concierge, and bell staff.

   • Importance: A smooth departure process leaves a lasting positive impression and encourages repeat business.

5.2 Modes and Sources of Reservation

In the hospitality sector, reservations are essential since they facilitate easy guest planning and accommodations. They provide flexibility and convenience and can be produced using a range of methods and resources. The system is made to meet a variety of needs, including those of visitors who would rather communicate directly with the property, through third-party platforms, or through corporate channels. Furthermore, resources like walk-ins, travel agencies, and centralized systems guarantee that booking choices are effective and available to all kinds of tourists.

Reservations can be made through different methods and channels, allowing guests to select the most suitable option:

1. Modes of Reservation:

   • Direct Reservations: Guests reach out to the property directly via phone, email, or the official website.

   • Third-Party Platforms: This includes Online Travel Agents (OTAs) such as Booking.com, Expedia, and Agoda.

   • Corporate Channels: Reservations facilitated through corporate accounts or travel agencies.
     

2. Sources of Reservation:

   • Walk-Ins: Guests arrive at the property without a prior booking.

   • Travel Agents: Bookings arranged by agents on behalf of guests.

   • CRS (Central Reservation System): A centralized booking system used for managing reservations across multiple properties within a chain.

   • GDS (Global Distribution System): A platform that links travel agencies with hotels for streamlined bookings.

Reservations can be handled using either traditional methods or advanced computerized systems. Key tools and their functions include:

1. Traditional Methods:

   • Reservation Form: Collects guest information, including stay dates, room preferences, and payment details.

   • Conventional Chart: A manually maintained chart showing room availability for specific dates.

   • Density Chart: Highlights occupancy trends over a set period to monitor room usage.

   • Booking Diary: Keeps daily records of reservations.
     

2. Computerized Systems:

   • CRS (Central Reservation System): Simplifies the booking process for multiple properties.

   • Instant Reservations: Online systems offering immediate booking confirmation.

5.4 Types of Reservation

Depending on the type of booking and the degree of confirmation, hotel reservations are divided into many categories. These divisions assist to control expectations and simplify operations by providing clarity for both the visitor and the property. Every kind of reservation serves various visitor demands and situations, whether it be for groups, solo travelers, or special arrival guarantees.

Reservations are categorized based on their confirmation status and booking type:

1. Guaranteed Reservation: Ensures the room is held for the guest, even for late arrivals, with payment as security.

2. Confirmed Reservation: The hotel agrees to hold the room until a specified time.

3. Group Reservation: Bookings made for large groups, often related to events or conferences.

4. FIT (Free Independent Traveler): Reservations for individual travelers booking independently rather than with a group.

5.5 Procedure for Amendments, Cancellations, and Overbooking

1. Amendments:

• Procedure: Verify the guest's request, check room availability, make the necessary updates in the reservation system, and inform the guest about the changes.

• Importance: Maintains accurate booking records and enhances guest satisfaction.
  

2. Cancellations:

Procedure: Confirm the cancellation request, implement the relevant cancellation policies (such as processing refunds or applying penalties), and update the reservation system.

• Importance: Reduces the likelihood of no-shows and facilitates efficient rebooking of the room.
  

3. Overbooking:

• Procedure: Identify potential overbooking situations in advance, prioritize relocating affected guests, and arrange alternative accommodations when necessary.

• Importance: Optimizes room occupancy while minimizing inconvenience to guests.
  

Key Terms

1. Guest Cycle: The stages of a guest’s journey from pre-arrival to departure.

2. CRS (Central Reservation System): A centralized booking system for hotel chains.

3. GDS (Global Distribution System): A network linking travel agents to hotel reservation systems.

4. Guaranteed Reservation: A booking secured by payment.

5. FIT (Free Independent Traveler): A traveler booking independently.

6. Overbooking: Accepting more reservations than available rooms to maximize occupancy.
   

FRONT OFFICE

Hotel Housekeeping: Operations and Management
Paperback
July 2015 Edition
Author:
G. Raghubalan & S. Raghubalan

Hotel, Hostel and Hospital
Housekeeping
Paperback
January 2019 Edition
Author:
Joan C. Branson, Margaret Lennox

5.1 Importance of guest cycle (Various stages, sections, staff in contact during each stage)
5.2 Modes and sources of reservation
5.3 Procedure for taking reservations (Reservation form, conventional chart, density chart, booking diary with their detailed working and formats) Computerized system (CRS, Instant reservations)
5.4 Types of reservation (guaranteed, confirmed, groups, FIT
5.5 Procedure for amendments, cancellation and overbooking.

GUEST CYCLE AND RESERVATIONS IN THE HOSPITALITY INDUSTRY