Front Office

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Forecasting rooms revenue

Hotels and resorts must set prices in an environment with highly perishable inventory which varies dramatically, and customers whose value may need to be carefully measured.

There are two approaches to forecasting rooms revenue available to hotel management. One of the simplest methods of forecasting rooms revenue involves an analysis of rooms revenue from past periods. Dollar and percentage differences are noted and the amount of rooms revenue for the budget year is predicted.

Forecasting rooms availability

The hotel’s reservations department is charged with two primary tasks: setting rates and selling rooms. Before successfully accomplishing either of these tasks, the reservations department needs an accurate count of the number of rooms available for sale. Knowing how many rooms are available for sale on a given date is a logical first step for the task of selling rooms. After all, how can any reservations department sell rooms if they don’t first know how many are left available?

Express check-out

To ease front desk volume during the peak periods of check out, a hotel might initiate check out activities before the guest actually ready to leave. A common pre departure activity involves producing and distributing guest folios to guests expected to check out. Front office staff, housekeeping staff, or even hotel security staff may quietly slip printed folios under the guest room doors of expected check outs before 6 a.m., making sure that the guest’s folio cannot be seen or reached from outside the room.

Daily operations report

The night auditor prepares the daily operations report, a summary of the day’s business from which the General Manager and different department heads can review revenues, receivables, operating statistics, and front office cash receipts and disbursements; departmental reports on revenue and expenditures; and a credit report, which lists guest accounts remaining unpaid 3 days after billing, and any unusually large guest charges or balances. This report contains a summary of a hotel’s financial activities during a 24 hour period.

Credit card guarantee

All guaranteed reservations are assured a room and the charge for the room is credit card guaranteed, by which the payment for the room is guaranteed should the guest not check in. Credit card guaranteed reservations are the most common form of guaranteed reservation, especially for city center hotels. Credit card guarantee is an assurance to the guest that the hotel will hold a hotel room reservation until a specific time of the day, usually 6:00 pm 7:00 pm for city center hotels.

Confirmed reservation

A confirmed reservation is that which is made by a guest prior to their arrival at the hotel and is made with enough time for the hotel to respond to the request. Prospective guests who have a reservation for accommodations that is honored until a specified time, represent the critical element in no shows. Confirmations can be given over the telephone but this is not as good a method as putting the response in writing. The letter of confirmation has certain advantages, i.e.

Check out

This is the last stage of the guest cycle and is one of the last contacts that a guest has with the hotel. The main objective here is to settle the guest account, to update room status information, and to create a guest history record. It is also important here to establish if the guest has enjoyed his/her stay. Due to changes in technology there are other check out options available, namely, express check out and self check out.