Front Office Operation
Front Office Operation
Front Office Operation
Structure
12.0 12.1 12.2 Objectives Introduction Front Office Functions
12.2.1 12.2.2 Front -of-the-House Operations Back -of-the-House Operations
12.3 12.4
Check-in Process Front Office Accounting Check-out Process The Electronic Front Office (EFO) Let Us Sum Up Clues to Check Your Progress Answers
12.0 OBJECTIVES
After studying this Unit you will be able to explain the:
Importance of front desk functions in a hotel, meaning of front-of-the-house and back-of-the-house operations and their role in the hotel, various operations associated with front office, and importance of each of the front-desk operations in context to the smooth running of the hotel.
12.1 INTRODUCTION
Regardless of the class or type of the hotel, front office is the most visible and essential focal -point of a hotel. The focal point of activity within the front office is the reception desk, which is located in the front lobby of a hotel and dispenses all front-of-the-house activities of the hotel. It is the communication centre of the hotel with great amount of guest contact. Guests interact with the hotel for the first time by interacting with the staff of the front office, and they form the first impression about the hotel based on the efficiency, competency and behaviour of the front office staff. The reception desk performs the functions like the sale of rooms, guest registration, room assignments, handling of guest requests, maintenance of the guest accounts, cashiering along with handling mail and providing information. The financial tasks usually handled by the front desk personnel include receiving cash payments, handling guest folios, verifying cheques and handling foreign currency and credit cards. In this Unit, you will be familiarised with all these aspects of the front office management.
guests. The number of interactions and transactions between the guest and the hotel during a guest stay, determine the type and nature of front office operations. The stages of guest stay are: pre-arrival, arrival, occupancy, and departure.
Various trans actions between the guest and the hotel, therefore, depend upon the stage of the guest stay. The transactions can be best understood by going through the guest cycle.
Departure
Pre-arrival
Doormen and Porters
Occupancy
Maintaining Guest Accounts Mail and Information Telephone Calls Transportation
Arrival
Registration Room Assignment Issuing of Keys Baggage Handling
Figure I shows the following transactions and exchange of services between a guest and the hotel: reservations, check-in and registration, mail and information, uniformed service and baggage handling, telephone calls and messages, handling guest accounts, and check-out and bill settlement.
All these services and transactions are handled by the front office department. The functions and services of the front office department can be differentiated depending upon the area where they are being performed. Some of the functions are performed by the reception desk as front-of-the-house operations and rest are performed as back-of-the-house operations. Table 1 gives a brief summary of the functions performed by the front office as described by Michael I. Kasavana.
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FUNCTIONS 1) Sell guest rooms Accept reservations Handle walk-ins Perform the registration process 2) Provide information on hotel services Concerning internal hotel operations About external events and locations 3) Coordinate guest services Liaison between front and back-of-the-house areas Handle guest problems and complaints 4) Chart room status reports Coordinate room sales and housekeeping: occupied status On-change status, out -of-order status 5) Maintaining guest accounts Construction of folio and account Posting to folios (updating) Supervision of credit levels Documentation of guests transactions 6) Settlement of guest accounts Preparation of guest statement Reconciliation of folio Perform the checkout procedure 7) Construct guest history file Record the guests personal data for future references
Even though the organisational structure of a hotel depends on the above stated factors, typically all the hotels follow somewhat similar organisational structure. Figure II gives the uniform structure of the organisation structure followed by a large hotel.
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Assistant managers
Reservations manager
Reception manager
Night manager
Reservations supervisor
Reception supervisor
Telephone supervisor
Cashier supervisor
Senior receptionist
Porters
Mail and information clerks Pages Drivers Telephone Night Reservations Receptionists operators auditors clerks Doorman
Cashiers
N.B.: The dotted line indicates that this function now tends to be performed by the concierge/porter or reception department. Figure II: Organisational Chart of the Front Office
(Source: Principles of Hotel Front Office Operations, Sue Baker, Jerenry Huyton and Pam Bradley)
This figure makes it clear that the department of front office is divided into many sub-divisions or functional/operational areas. In the figure a broken line joins the front office manager to the cashiering section. This is so, as in large hotels the cashiers department reports directly to the accounts department, with the financial controller taking overall responsibility. Thus, the sketch of the front office department remains the same but it takes different structure depending on the hotel or hotel culture.
selling the primary product of the hotel, i.e., lodging or accommodation, building a good first impression on the prospective client,
generating customers for the other departments of the hotel, and generating and providing information to the other departments of the hotel.
The organisational structure of the front office has already been discussed in Sec.12.3. The reservation clerks takes in the reservation bookings. And they are passed on. The reservation procedure differs from hotel to hotel depending on the reservation system used by the hotel. The process of reservation can be indicated through Figure III:
RESERVATION REQUESTS Other Travel Industry Hosts Direct Guest Contacts Contacts from Sales Agents Central Reservation System (Corporate)
Forecasting System
RESERVATION SYSTEM
Operational Procedures
Reservation Policies
Forecasts Lists
Room Availability
Production Scheduling
Labour Scheduling
Registration
It is often said that reservation system is the engine of a lodging property, since everything else operates accordingly. Hotels and mot els depend on the reservation system and can go out of business if the system does not work well.
periods. Copies of the slip, also on racks, may be sent to other departments such as reception or telephones when the guest arrives. This system gave rise to the expression rack rate, which is how hoteliers often refer to the price for rooms (Source: Paul R. Gamble, VNRs Encyclopaedia). Whitney System, though very efficient, generates lots of paperwork. This problem, however, is solved by computerised reservation system. The computerised system can perform all the tasks of Whitney System and organises the guest data more efficiently. The guests record is maintained in the hard disk of the computer. This not only helps in matching the guest information, but also provides information about the importance of the guest which can be judged from the data available on computer. This kind of information compiled on computer based reservation systems not only provides their credit standing and the reliability of the booking done through the agent but it also makes searching for data very easy. The large group/chain of hotels have Central Reservation Systems which handle the reservation of the various properties of a single group atoned to centralised reservation office. For example, a hotel may have central reservation number, i.e., 24-7-365- symbolising availability 24 hours a day 7 days a week and 365 days a year. Nowadays, many single hotels have come together to form their own Central Reservation System serving these individually owned establishments. The use of computers in reservations has simplified check-in and checkout process. The hotel does not need much information during these operations as data is fed simult aneously. Though computerised reservation systems are proved to be of a great help to hoteliers, it is up to a particular hotel to choose and use a system most suitable to their requirements. The most recent and most used way of making reservations accessible at far-flung locations is via internet. In such operations direct bookings and reservations requests can be made over the internet by just a click on the website of the hotels concerned. In some cases the reservation is directly upgraded but mostly the reservation staff reconfirms the request via e -mail or telephone before making official reservations.
Many a times the reception staff overbook to cover contingencies like, guest not turning up even after having confirmed reservation or at times when tour operators make reservations for more than actual number of passengers to get greater discounts on volume. Whether its the season or not also plays important role in making over-bookings. During the main season reservation staff would not like to take chance with over-booking. However, decisions related to the issues of over-booking, etc. depends upon the reservation policy of the hotel, i.e., the way the management of the hotel wishes to position their hotel in the market will usually determine its reservation policy. The reservation policy of many hotels also speak about of the mode and time of payment. Bulk booking of rooms or the booking of some special rooms or a room for a long period of time during main season would require some advance payments. The advance payment can either be full or partial room rent, partially or fully refundable or non-refundable at the time of cancellation, all depending upon the reservation policy. The final job of the reservation section is to send the final list of reservation for a day to the reception desk of the front office along with the essential information like whether the guest is a repeat guest or guest has some particular liking related to the location of the room, dcor of the living room, etc. The message is sent from there to the housekeeping so as to prepare rooms according to the guest needs for the day.
12.4.3
Now as you know that reservation section has a lot of information with them which needs to be properly organised. Once the required data is gathered, guests folio is created which is updated from time to time. Once this is done they need to generate daily/weekly reports based on this information base. These reports may include: 1) Room Availability Report: A list showing the number of rooms sold/available. It can be prepared on the daily or weekly basis. 2) Expected Arrivals and Departure Lists: A list of guests who are due to arrive or to depart on a particular day. 3) Group Status Report: A list of groups to arrive/depart in the week or month, along with information like the group size, whether a guaranteed or non-guaranteed booking, etc. 4) Special Arrivals List: A list of special guests or VIPs arriving. This should contain their special request and additional information about the preferences of the guest. 5) Turn Away Report: A report on number of reservation requests denied and if possible, some information about the one asking for reservation. 6) Revenue Forecast Report: A report on the projected revenue from the future room sales along with or regular upto date report. In most of the hotels, the front office manager supervises the final preparation of the report before it is sent to the management team. Additional guest information, related to walk -in-guests also incorporated in the report.
Guest arrives
Prepare for guest arrival Check: Room status and availability, expected arrivals and departures, special requests, important guests
No
No
Deny request
The minimum information you usually require for manual registration is name of the guest, number of persons in the group, the expected length of stay and mode of payment. The room is assigned to the guests and usually a porter or bellboy carries their luggage and show the guests their assigned rooms. The front desk in the meantime processes the information received and generate the guest account for the mentioned period of stay. However, the process of assigning rooms commences even before the arrival of the guest. After the major check-outs of the day, the front office generates a list/printout regarding number of guests staying with the hotel. Then after comparing the reservation requests for the day with this report, assigns the remaining unoccupied rooms to the walk-in guest. In case of computerised check-in procedure, only th e walk-in guests need to provide their personal information whereas guests with reservation need to confirm the information available in the computers of the reception/front desk. Once the guest is allotted assigned room, the computer automatically updates the information and for the desired length of stay, room(s) will be shown as occupied.
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The help of the front office manager is sought rarely, particularly in the case of over-bookings, i.e., when two or more guests arrive for the same room, the manager can either assign another room to the guest or can try to up scale the room type. However, if the hotel is unable to adjust the extra guest special arrangement for the guest at a different hotel of similar standing should be made. Lately, a guest registration system using Point of System (PoS) to hasten check-in process is gaining popularity. This system enables the guest to register at self-service terminals in the lobby or at selfservice terminals at the airport or en-route to the hotel. New innovations ha ve also helped transfer the credit cards to room keys. According to Tom Van Dyke one popular system asks the guest to insert his or her magnetic stripe credit card into a check-in terminal which calls up the propertys computerised reservations list filed by arrival date and last name. When the reservations match is found, the room selecting function of the hotels Property Management System generates a room assignment and prints a check-in form. The guest removes the completed form, signs it and then is directed to the key pick-up area at or near the front desk. He cites the example of the Sheraton Meadowlands in New Jersey which works with Avis Rent-A-Car so that guests picking up cars at any of the New York areas three major airports can simultaneously check-in to a room at the Sheraton. Whatever may be the method of check-in, the basic idea of check-in is to collect information about the guest and try to keep the operation as simple and convenient as possible while trying to project warmth and friendliness.
Information recorded
Guest signs for the coffee. Signed docket is taken to the front desk
Audit to verify posting, i.e., night auditor checks that all coffee shop vouchers have been posted correctly
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The process of posting keeps the guests billing up to date. The process can be performed either manually or by a computer. Once the posting has been done, it is important to recheck whether the correct amount has been posted on the correct guest folio and also to the account of right department. As a supervisor you are required to check these details regularly because guests check in and out daily and the guests transactions take place regularly. During the day time the front office section is quite busy with a lot of other activities but during night it is comparatively less burdened with work. So this is the night time to match bills and receipts. The staff doing this job is called night auditors. Usually, there night auditors check the posting of bills from other departments but more particularly the credit limit. These credit limits can be that of the hotel or of a credit card or even that of a companys account floor limits. Thus, the accounts of the resident guests are maintained regularly so as to ensure speedy settlement of bills.
Local currency Foreign currency Travellers cheques Bank credit cards Personal cheques Cash settlements Payment received on the day of departure
Charge cards
Cheques
As the above illustration suggests, bill settlement is the next important component of check out process. Usually the bills are updated during the night so as to provide the bills for guests checking out early in the day. It is advisable to ask the guest before time when he or she would be checking out to ensure that the staff has some idea when the guest would be checking out and have a bill ready at
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check-out. The bill would include the room service charges as well as any other unpaid bills for services rendered by different departments of the hotel. Yet the settlement of the bill can take some time, as the guest would like to recheck the bill before making the payment or may the payment be credited to the account of the company whom the guest is representing. The actual guest departure, however, takes place only when the guest returns the keys and leaves the premises. The guest is provided with transportation if required and paid for. The guest folio created is updated for future use.
9) Audit
8) Check-out
4) Keys
5) Energy management
Figure VII: Jobs and Tasks Served by the Electronic Front Office
Let us now discuss the significance of computerisation and consequent inter-dependence of the front office with the other departments. 1) Reservation: Reservation bookings are instantly taken in and matched against the existing data in the computer. Thus, immediately you can come to know whether the particular type of room requested is available or not along with other facts like the other type of rooms available on that date, rooms location, facilities, room rates and also whether the guest is a repeat guest. The reservation booking along with guest information is forwarded to front office people. Thus, front office knows about advance bookings and receives client information very quickly. CRS of the hotel helps a guest to book and know the status of his/her booking in any of the group hotel(s). The group hotel can be national or international but CRS gives quick and reliable information on room availability to the guest. 2) Yield Management: The purpose of the yield management system is to maximise room occupancy while at the same time realising the best average room rate. Yield management needs to consider a variety of reports and what if ? situations, since the room rate is adjusted keeping in mind the occupancy rate of the hotel during the same period in previous years. The front office manager takes the yield management decisions and the reports generated by the computerisation are very helpful for making these decisions.
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3) Registration: As you know that the required guest information is taken in during reservation and thus, the guest only needs to sign-in and checkout. Remote check-in facilities at airports are also becoming popular. The use of plastic or paper key is also becoming very popular. Once the guest is assigned a room the key is automatically printed. Simultaneously the lock configuration of the allocated room is changed to suit the unique key. This means that upon check-out or should the guest inadvertently lose their key, the lock is reprogrammed, and that any lost keys or keys belonging to previous guests will not be able to be used. (Source: Principles of Hotel Front Office
Operations, Sue Baker, Jerenry Huyton and Pam Bradley)
4) Energy Management System (EMS): This ensures the regulated use of energy. Once the guest inserts their key into a special socket located next to door, the EMS activates the power to the room which includes the room lights and ventilation. As the guest leaves the room, after a short delay the power supply is switched off. The front office needs to notify the guest upon arrival about the EMS. 5) Telephone Call Accounting: The guests can make direct calls from their room without going through an operator. This means privacy and better service for the guest and less work for the hotel staff. The calls details are recorded and call charges are posted to the guest bill. 6) Posting: The charges from the various departments of the hotel, let it be restaurant, bar, room service, laundry or business centre, are posted directly on to the guest bill. Guest name, room number and account details are updated on the guest account. This ensures less paper work for the staff involved. 7) Check Out: A fully automatic check-out system allows the guest to review his/her account on the rooms TV set. The guest can check and verify the bill and their check out from the room. The actual settlement of the bill takes place on the reception when the client pays for the visit. As a result a lot of time will be saved and there wont be long queues of guests waiting to check out especially during early morning hours of the day. 8) Auditing: Computer checks and rechecks the various postings of changes. It also crosschecks balance with the amounts paid on the reception. The function of the night auditors is greatly reduced. 9) Reporting: The various reports needed by the front office manager are efficiently produced. Even hourly status of the room from the front desk and housekeeping are made available for ready reference. The managerial functions like forecasting becomes easier with such up-to-date reports supported by data.
Check Your Progress 1) Discuss the components of Guest Cycle. . . . 2) Prepare a list of front of the house operations of a hotel. . . . 3) Define Reservation System. What are its various types? . . .
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Activities
1) Visit one medium sized travel agency and one large size agency. Visualise differences in the departmentalisation method adopted by both of them. 2) Collect advertisements of leading travel agencies promoting tourist destinations. Prepare a list of tourist attractions at some of the leading tourist destinations and try to rate them according to interest generated by each advertisement.
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