For hotel operations, these categories help hotel staff to have more control over revenue targets, daily operational aspects, and marketing strategies.

We delve into the details below.

1. The ‘Hotel Room Types And Prices’ section explains how the room clarification links to revenue management.
2. The section, ‘Room Types in Daily Hotel Operation’ discusses on advantages of room categories for hotel staff, managers and owners.
3. The ‘Room Categories in Marketing’ highlights some benefits hotels have with marketing promotions using room categories. 

Hotel Room Types And Prices (Revenue)

Hotels set their room rates based on the room types. So whenever a guest books a room, that reservation has a link to a room type which is the entry point of revenue optimization despite the task involving other factors.

For example, a revenue manager or an RMS (revenue management system) looks at historical bookings and current data, market trends, the city’s event calendar, and other external factors to calculate future demand (demand forecasting). And, based on the above findings, the hotels work on their pricing and upselling strategies while it helps them correct past mistakes.

• The highlight of the above is past and present bookings where the room types are directly liked.
• Also, hotels apply sell controls (restricting room availability based on set criteria such as a room is available only for long stays, advanced booking, etc,) on room types.
• They set channel distribution strategy, and close and open availability is also based on room types (Example: Open, close, reduce, increase the availability of certain room types for certain OTA (Online travel agents).

Let’s dive in to see how hotels categorize their rooms.

Types of Hotel Rooms

There is no set standard on how many or what room types a hotel can have. However, hotels should consider:

1. Does the particular room type have an impact on pricing? For example, creating separate room types for Sea View and City View; do they have different rates because of the view?
2. What is the impact at the hotel user level in PMS when having the room type and not having it? For instance, it is quicker and easier for a PMS user to create a booking when the list is shorter.

How Are Hotel Rooms Classified?

Despite many people having different views on room types with different stories to tell, room types are derived from three standard types. 

What Are The Three Types of Rooms In A Hotel?

The room types are derived from these standard types: Standard, Deluxe, and Suite depending on individual hotel’s decision. Even large hotel chains leave this for their properties to decide.

What Are Standard Hotel Rooms?

Standard hotel rooms are usually the most affordable room types with less spacious compared to other room types. Hotels provide the essentials in these rooms for comfortable stays. However, providing additional amenities such as a coffee maker or hair dryer depends on the hotel or chain standards.

What Is Deluxe Room In Hotel?

Deluxe rooms are larger, having a separate sitting area with better furnishing and views. Hotels offer extra amenities for the occupants such as a coffee maker, iPod dock, and in-room entertainment system, and they may also include a work desk.

What Is Suite Room In Hotel?

The suite rooms of a hotel are pressed in as a luxury element, providing large layouts and the high-quality fittings. They usually have a separate bedroom, a living room and sometimes dining area, or kitchenette furnished with cupboards and utensils. Suite sizes also vary greatly in accordance with a hotel, but they often fall within the 500 to 1,000 sqft range or above

A small suite is designed for up to four people to stay but there are different levels of suite rooms from a regular suite room to a Presidential Suite, which usually every luxury hotel has one such room.

Hotel Room Types And Sizes

Hotel room sizes differ depending on the country, hotel chain, and the hotel classification. Refer below chart as a general reference guide only for room size references below:

Room Types Are Determined by Layout & Bed Size (Small hotel room types, example)

Room Types by Occupancy

In our examples, we don’t consider room types by occupancy. For instance, placing a Queen or Double bed in a standard room doesn’t change the maximum number of persons who can occupy the room. The hotels decide on maximum occupancy by considering the room’s space.

Room types by Amenities and Features

Similarly, in our example, we don’t consider the amenities or features having a valid reason for creating a new room type based on these since they don’t directly influence pricing.

However, when amenities or features affect room pricing, a new room type should be considered since different pricing needs to be attached.

For example, a ‘Breakfast at Club Lounge’ is an amenity offered to all Deluxe rooms. Does it affect the pricing? No. So, there is no point in creating a new room type. And again, what if a guest from a Standard room requests access to it? The hotel will provide it with or without an extra charge. So it is better to deal with a package on room by room basis.

Likewise, a ‘connecting room’ is a room feature where the two adjacent rooms share a door internally. There can be such rooms among Standard and Deluxe also; are we going to have different room types, or will we make a room feature, ‘Connecting Room,’ and attach it with the specific rooms better?

Room Types in Daily Hotel Operation

• It helps the hotel’s revenue department get a clear understanding of how profitable their room types are and correct mistakes to optimize for increased revenue.

• Increased revenue opportunities through upsells and paid-upgrades. Hotel staff can conveniently discuss with the guest and show the difference between different categories to convice the guest for upselling.
• Gain guest loyalty through free membership room category upgrades.
• Room categories help hotels maintain consistent quality standards in the hotel or throughout the hotel chain. 
• Housekeeping cleaning tasks are assigned to rooms. However, the task duration, required amenities, and other cleaning stocks are calculated based on the room types. For instance, a Standard room might take a lesser workforce, amenities and cleaning materials compared to a Deluxe due to their size considerations. It helps the housekeeping department by providing near-perfect forecasts to get ready with their resources for a future date.
• For investors and hotel owners, it is economical to bulk buy room fixtures, furnitures and store them for any repairs. Room categories help them do that.

Room Categories in Marketing

• With room categories, hotels can tailor their marketing efforts to specific guest segments by not only market but also by room category. 
• Room categories can be helpful when gathering guest feedback. Hotels can use them to segment surveys and understand guest satisfaction levels for different room types, allowing them to tailor improvements accordingly.
• Advertise different room types with amenities at different price points according to guest types and needs (From budget guest to luxury-seeking travelers).
• Hotels use their websites, OTA (online travel agent) sites and other meta search engines to showcase their room categories with images and descriptions of benefits to influence potential guests’ booking decisions. 

Frequently Asked Questions (FAQ)

What is a double bed at a hotel?

A hotel bed often equipped with a double bed is a common bed for one or two people staying in a hotel room. It typically is about 54 inches wide and 75 inches long, which will be enough room for a single person or a couple. They are a favorite option among single travelers, couples.

What is hotel double bed size?

Standard double bed size given in the hotels commonly is 54 inches in width and 75 inches in length. Nevertheless, note that there may be slight differences observed in bed-sizes across various hotels based on their specific standards and on the region.

Certain hotels provide choices of double bed sets, for example, queen beds, whose largest sizes are 60 inches wide and 80 inches long. Guests should go through the specific bed size specifications of the hotel while booking and it is helpful for having a great sleeping experience.

The post Types of Hotel Rooms Explained first appeared on e360 hospitality.

The size of the housekeeping team depends on the size of the hotel. For example, a tiny hotel can employ a single person to a few staff to maintain the keeping of the property. 

However, in a large hotel with hundreds or thousands of rooms, the housekeeping team has several people to do different tasks. And, it makes the Housekeeping Department the largest among others, headed by an Executive Housekeeper and an Assistant Executive Housekeeper.

Why Is Hotel Housekeeping Important?

The hotel’s housekeeping team is responsible for more than just cleaning rooms and other areas of the property. They are responsible for upholding the brand’s image through:

Hotel Housekeeping Services:

• Guests’ and staff’s health & safety by maintaining the hygienic standard throughout the property and the garden area by keeping every area clean and tidy including day in and day out.
• Prepare every room in perfect condition as per standard, and have a supervisor inspect the rooms to confirm their readiness for guest arrivals.
• Plan, stock, fill, and refill guests’ amenities and linen (bed sheets, pillowcases, towels, tablecloths, napkins).
• Regularly clean and maintain the hotel’s furniture, fixtures, carpets, etc. When needed report damages to the hotel’s repairs/engineering department. This ensures the untimely replacement of such items.
• Report room conditions such as clogged toilets, faulty shower handles, leaking bathroom, air conditioner issues, etc. It helps the Front Office team handle the situation accordingly without affecting guest services (as such they can move the guest to a different room if it is an in-house guest). Similarly, the FO team can change the room status to Out of Service until the repairs department fixes the issue.

• The team is responsible for the laundry services of staff uniforms, guest laundry, and hotel linen cycle (bedsheets, towels, face towels, hand towels, tablecloths, napkins, or any linen, and curtains used in the hotel).
• When necessary, the housekeeping laundry tailor alters, adjusts, and repairs staff uniforms, guest garments, linens, and curtains.
• They check and report on room discrepancies, such as if the checked-in guest is still in-house or has left the property without checking out (‘Skip’ in hotel terms) — Those with scanty baggage. Or, if a guest occupies a room without a booking record in the hotel PMS system (‘Sleep’ in hotel terms).
• They are responsible for storing lost/left-behind belongings of hotel guests and returning them when the guest calls to recollect them. Handling lost items is known as ‘Lost & Found,’ and each hotel has its standard policy on managing such situations.
• While the guests check out, housekeeping staff checks for damages to the room and reports to the Front Desk/HK supervisor. In addition, they check for the room’s minibar and report any consumption to the Front Desk for billing the guests.
• Maintain, and restock guest amenities, cleaning and gardening supplies, and liquids.
• The hotel’s floral arrangements enhance not only the aesthetics and ambiance of the property but also help guests ease off stress and anxiety. Likewise, this is another area where the housekeeping team’s contribution is indispensable.
• Such a large operation around the clock needs careful planning and assignment of resources based on the hotel system’s forecast reports. The Housekeeping manager or executive housekeeper adjusts the staffing and prepares the duty rosters accordingly.

To meet an enormous, highly critical operation, a hotel needs a large team of experienced professionals. Let’s see who they are.

Hotel Housekeeping Department Chart

Duties and Responsibilities of Housekeeping Staff

Based on the chart above, we outline the primary responsibilities of each position. However, tasks, responsibilities, and sometimes reporting structures may vary from one hotel to another or chain to chain.

Duties of Executive Housekeeper in A Hotel

• As the above organizational chart, an Executive Housekeeper takes every responsibility for the hotel’s housekeeping as a person in charge of this large department.

• The Executive Housekeeper reports to the General Manager, Rooms Division Manager, or Executive Assistant Manager (Deputy GM).

• Her primary duty is to ensure the team follows the hotel’s standard operating procedure (SOP) in every task and adheres to proper use of PPE for hotel housekeeping while performing their duties, cleaning hotel rooms, public/private areas, and gardens.

• Planning, hiring, and firing resources, scheduling resources daily, and looking after their well-being and training needs are other crucial areas, including staff performance monitoring and people development.

• She is also responsible for recommending, maintaining, and coordinating repairs of housekeeping equipment and supplies. Additionally, the Executive Housekeeper oversees the inventory of amenities and linen services.

• Finally, an Executive Housekeeper prepares financial reports and departmental budgets.

Housekeeping Secretary / Housekeeping Coordinator

• Unlike an executive secretary whose primary job is to assist her boss, the Executive Housekeeper with secretarial tasks, and also manages other tasks involving her department and assists and coordinates with almost everyone in the department.

• As she is the only one sitting in the department most of the time, she handles telephone calls from external and internal callers and coordinates and assigns tasks to relevant members.

• She drafts letters for her boss and the Assistant Housekeeper and has access to the bosses’ emails to reply when necessary. Additionally, she manages housekeeping-related tasks in the hotel’s property management system, including printing room status reports and updating any discrepancies reported by her colleagues on the guest floors, including ‘Do Not Disturb’ room status in the hotel system.

• She acts as the point of contact for other departments, such as the Front Office; let’s say, for instance, a guest has arrived before his scheduled/expected time of arrival. FO staff calls HK and asks to prioritize preparing that room. Despite this process being systemized in the modern PMS software, traditionally, FO staff calls the HK. So, she passes the information to the relevant supervisor in the area to handle the situation. Likewise, she coordinates with the Repairs/Maintenance department for any room repairs-related issues.

• She also prepares housekeeping task assignments sometimes, prints task sheets in the system, and distributes them among the room attendants in the absence of the bosses.

• She maintains the list of Lost and Found items and coordinates with the Front Office team in handling reclaims by the guests along with Exec. Housekeeper, FO manager, and Security department, depending on the item’s category and value.

Assistant Executive Housekeeper or Simply, Assistant Housekeeper

• As an assistant to the Executive Housekeeper, she works alongside the boss and acts as head of the department in the absence of the Exec. Housekeeper. It includes overseeing staff and supervising the cleanliness and standards of guest rooms, public areas, restrooms, offices, and conference rooms.

• She works closely with team members and is easily accessible by any staff in the department. She is responsible for work scheduling, task sheet preparation, and maintaining hotel housekeeping supplies such as cleaning chemicals, linen, and anything involving her.

• Train staff on equipment, chemical usage, and standards. Respond to guest requests, complaints, and any concerns.

• Follow up with inter-departmental communication and follow up with the Repairs department on room damage fixes. And monitor the overall administration of the department with the Executive Housekeeper.

Hotel Housekeeping Laundry Manager

• The Laundry Manager is someone who handles administrative tasks while having a great understanding of the laundry equipment and chemicals used in the hotel housekeeping laundry.

• He is fully responsible for laundry operations in-house and outside laundry if the hotel is catering laundry services to outside customers in line with the brand standards.

• He is responsible for planning resources, including employees, according to the hotel’s occupancy forecast.

• Maintenance/repairs of laundry equipment with the hotel’s Maintenance department (Repairs Dept.), and training staff on the machinery usage in coordination with the hotel’s training department.

• He is also responsible for the hotel staff uniforms, guest garments coming into the laundry, and linen services.

Public Area Supervisor (Housekeeping Supervisor Grade)

• As the title suggests, the Public Area Supervisors are responsible for ensuring public areas such as the hotel lobby, walkways, common toilets, and staff areas are clean and tidy and reflect standard ambiance throughout the hotel and the day. Basically, every area except guestrooms that are directly under Floor Supervisors.

• He is also responsible for carrying out periodic and on-demand training for Public Area Attendants on the hotel’s standard cleaning procedures, including proper chemical equipment usage.

• Most of the time on the roam, he is tasked with scheduling deep cleaning tasks in areas where necessary and handling the hotel’s Lost & Found procedure.

• He reports and works closely with the Assistant Executive Housekeeper. The shifts can change from Public Area to Floor Supervising, so he is also trained on Floor Supervisor tasks.

Floor Supervisor (Housekeeping Supervisor Grade)

• Floor Supervisors work closely with the Assistant Housekeeper, and are responsible for ensuring rooms are cleaned by the room attendants as per the standard and provide housekeeping status reports to the bosses. 

• They carry the master key of the hotel and help the attendants get into the rooms to complete cleaning tasks. When the attendants complete the task, supervisor approves that the room is in perfect condition set by the brand, and ready to be occupied by changing the room status to ‘Inspected’. See the ‘Rooms Statuses’ section for details on this.

• They are also responsible for maintaining inventories of cleaning items at floor-level pantries, coordinating with other operating departments on matters related to them, such as rooms requiring repairs, fulfilling floor guest requests with the FO department or others, or reporting to the Security department of any security hazards.

• Their responsibilities can continue with anything concerning rooms and guests.

Laundry Supervisor (Housekeeping Supervisor Grade)

• The Laundry Supervisor reports to the Laundry Manager/Assistant Executive Housekeeper; he oversees the whole operation of the hotel laundry and makes sure quality standards are always maintained.

• He has a good knowledge of machines and chemicals used in the cleaning procedure and trains the other laundry staff on the skills. And, coordinates with other relevant departments on repairs and ensures enough stock of chemicals is always maintained.

• Checks the hotel’s occupancy status and allocates adequate staff on duty to meet the demand.

Linen Room Supervisor (Housekeeping Supervisor Grade)

A hotel has several linen needs, such as staff uniforms, guests’ garments, bedsheets, pillowcases, towels, tablecloths, napkins, and curtains, to operate smoothly and with the standard.

The Linen Room is the section of the hotel where these needs are processed and managed daily with a linen cycle, such as linen being ready today, being washed for tomorrow, and being stripped from the rooms for washing tomorrow, and the cycle continues.

• The supervisor of the Linen Room is responsible for keeping records of all the items that come into the laundry for processing and delivering them accurately as per the standards with the help of his team.

Florists

• The florists are responsible for creating visually stunning and artistic floral arrangements for all areas, including public areas, guest rooms, restaurants, and banquet function/meeting halls. 

• They are highly knowledgeable about flowers and plants and usually work on different assignments at a time due to various activities a hotel can be busy with, including banquet functions

• Since the hotels usually have one or a couple of such individuals to cover the property’s daily requirements, They are occupied most of the time. 

Head Gardner

• The Head Gardner is responsible for maintaining the best appearance of the ground with the help of his team of gardeners and coordination with outside contractors.

• Ensures to stick to safety compliance standards and trains gardeners on the hotel’s garden maintenance plan and safer use of gardening tools.

Public Area Attendant 

• Public Area Attendants are responsible for maintaining every public area where the in-house and outside guests roam (front of the house) and the private area (staff areas, back of the house) of the property, including the lobby, common toilets, function spaces, offices, furniture, fixtures and just about any area and their moveable and immoveable assets place in there.

• They take orders from Public Area Supervisors for on-demand requirements and follow public area cleaning schedules as well. They stick to the Housekeeping Checklist and complete the task per the hotel standards.

• They are trained to handle the hotel’s Lost and Found procedure and report to the supervisors on such incidents.

• Public Area Attendants are also trained to be Room Attendants so the hotels can interchange them from time to time or on a scheduled basis. 

Housekeeping Room Attendant (Room Boy)

• As one of the most popular job titles in the hotel industry, they play a crucial role in maintaining the hotel’s primary products with the highest standards according to the cleaning standards set by the hotel or the hotel chain. They pay attention to details during the process and follow the standard checklists, including refilling guest amenities and minibar.

• Every attendant receives a Housekeeping Task Assignment sheet from the supervisor or assistant housekeeper containing the listing of the rooms that they need to complete cleaning.

• The Housekeeping Task Assignment sheet contains not only a rooming list, but also mentions any special instructions, attention, or a request from other departments for a specific guest room. 

• They strictly follow the Tasksheets and detailed Checklists to perform the task and are also responsible for refilling minibar items and taking note of guest consumption.

• Occasionally, they might perform simple maintenance-related tasks in rooms, such as changing bulbs, fixing loosened taps, etc.

• When the task for a room is completed, they change the room status from Dirty to Clean or Pickup as per the standards so that the Floor Supervisor knows that the room needs his inspection.

Laundry Washer / Ironer / Attendants

• Carefully sort items such as hotel staff uniforms, linens, and guest laundry by material and color as per the set standards, and wash, dry, and fold using high-end industrial equipment. And, prepare the laundered items for pickup and delivery with proper wrapping.

Linen Room Attendant

• Linen Room Attendants are responsible for receiving, recording, and segregating linen based on color, type, and potential to stain and send them to laundry for washing. 

• Then, when laundry finishes processing, they receive, run standard checks, and keep them on the shelves for pickup or delivery to the guests and other departments.

Tailor

• Responsible for minor repairs and alterations on guest garments, staff uniforms, And other linen used throughout the hotel.

Gardner

• Takes care of all gardening-related tasks assigned by the immediate supervisor, Head Gardner.

Hotel Housekeeping Management Software

There are housekeeping software solutions providers on the market to assist hotels with managing housekeeping operations. These are great alternatives for hotels using property management systems without the extended features to help support comprehensive housekeeping operations.

However, an advanced property management system (PMS) such as Opera has the required modules built-in to cover the housekeeping operations in detail.

Which Areas Can a Software System or Hotel Housekeeping Apps Help Simplify the Operations?

Housekeeping Task Assignment

An Executive Housekeeper or the assistant, if not the Floor Supervisor, assigns guest room cleaning tasks among the Room Attendants and prints a housekeeping task sheet containing a list of rooms for each attendant.

The workload is distributed equally among all the Room Attendants on duty on that date.

In a hotel, every room is not equal by size such as a suite room is bigger than a standard room. Similarly, every room doesn’t need the same amount of time to clean, even among the same room type; for example, a checked-out standard room takes more time to clean than a stay-over standard room, and likewise for every other room type.

To help this work distribution, they use a mechanism Housekeeping Credits, which is like the time it takes to complete a room cleaning. Let’s see it a bit deeper:

In the above example, both attendants, Alan and Kumar, have the same number of credits to handle even though Alan is handling more rooms than Kumar.

They list the rooms in the housekeeping task sheet by floors and sections, which includes adjacent and nearby rooms in the same sheet to speed up cleaning so that the attendant doesn’t have to move too far to clean his next room. 

Check out the Task Sheets in Oracle Opera

Housekeeping Inventory Management (Task, Linen, and amenities management.)

Some hotels maintain daily changing of bed sheets as standard. In contrast, others might go for an environmentally and economically friendly approach where they change the bed sheets every other day or a few days. Check below to see how software can help these eco-friendly hotels effectively manage their inventory.

These hotels have different task codes where the linen and other amenities are attached to the task codes. For example, where it takes 100 fresh bed sheets daily, it might be reduced to 50 bedsheets based on the hotel guests’ movements.

Obviously, it cuts operating costs to the hotel and reduces the workforce required to handle the operation. Likewise, the hotel can target other tasks and amenities as well.

To effectively manage such environments, hotels require software capable of accurately handling complex details.

Lost and Found

Items left behind, whether in the guest rooms or public areas, are kept in allocated areas in the housekeeping department. Traditional hotel systems, including Opera PMS, don’t provide a comprehensive module to handle Lost and Found items of the hotels. 

Inter-departmental Communication

The housekeeping team is in constant touch with other departments, especially the hotel’s Maintenance department for any repairs in the guest rooms, machinery, and other equipment. 

Likewise, they are in touch with the Front Office department for any guest needs, informing room discrepancies, placing a room in the priority queue for cleaning if a guest arrives earlier than the expected time, or any other. 

And, for Lost and Found handling of high-value items, some hotels’ have a policy that involves their Security department.

Having a mobile app that housekeeping staff can utilize to record a room repair, HK discrepancy, add room conditions, or handle guests’ requests and Lost & Found can improve the quality of the service. At the same time, it can reduce phone/mobile calls that are inefficient for logging and user-friendliness purposes.

They cannot be integrated with hotels’ PMS software, where every detail of guests is recorded. Any hotel housekeeping software or housekeeping app depends on getting up-to-date hotel guest data and forecasts.

And any communication among the colleagues within the department, considering, as said earlier in the post, housekeeping team members are always roaming around the property for supervision, overseeing, or cleaning tasks.

Housekeeping Room Status vs Front Office Room Status

Hotels must maintain room status between Housekeeping and Front Office the same for every room. Housekeeping’s status comes from physical checks while Front Office status gets updated as the guests check in and check out.

However, when there is a difference between these two, hotel management needs to interfere and investigate to resolve the root cause and avoid possible revenue losses.

Regular room statuses when no discrepancy is marked.

Housekeeping / Front Office Room Discrepancy

The post Hotel Housekeeping Duties and Responsibilities: Essential Guide first appeared on e360 hospitality.

In the bustling world of hospitality, the front office serves as the nerve center of any hotel operation. It’s the first point of contact for guests and plays a crucial role in shaping their experience.

From check-in to check-out and everything in between, the front office team is responsible for ensuring smooth operations and delivering exceptional customer service. In this post, we’ll delve into the intricacies of hotel front office duties and responsibilities, exploring the structure, functions, and essential skills required for success in this dynamic role.

Introduction to Hotel Front Office Department

The front office department is the face of the hotel, representing the first and last impressions guests have during their stay. It encompasses various functions, including guest interaction, reservation management, and administrative tasks.

A well-run front office is essential for guest satisfaction and the overall success of the hotel. Hotels can ensure consistency, efficiency, and exceptional service delivery by outlining the duties and responsibilities of front office staff.

Front Office Structure and Organization

In a large hotel, the Front Office department is a subsection but still a department of itself of the Rooms Division headed by the Room Division Director or Executive Assistance Manager (usually like the Deputy General Manager).

The front office department typically follows a hierarchical structure, with various roles and positions contributing to its smooth operation. At the helm is the Front Office Manager, responsible for overseeing the entire department and ensuring seamless coordination with other hotel departments. 

Reporting to the Front Office Manager are Assistant Front Office Managers and Front Desk Supervisors, who provide supervision and support to Front Office Agents, Guest Service Agents — the frontline staff are responsible for greeting guests, processing check-ins and check-outs, printing guest folios, and addressing guest inquiries and concerns.

Generally, front office agents are cashiers too. Take post charges and take payments from the guests. 

Guest service agents don’t handle cashiering tasks and they are primarily looking into guest relations and needs.

The Bell Desk is a subsection of the Front Office consisting of ‘bell boys’ or porters who handle guest luggage and accompany guests to their rooms after check-in.

The Concierge serves as a valuable resource for guests, offering recommendations, arranging transportation, and facilitating various services to enhance their stay.

The Night Auditor is an interesting designation because he works with the hotel accounting department while most of the time, he comes under the Front Office. He plays a vital role in reconciling daily transactions and ensuring accurate financial records, especially during late-night shifts. 

Similarly, there is a General Cashier who works with hotel’s accounting department but he is also the head of Front Office agents when it comes to cashiering related (cashiers).

Guest Interaction and Customer Service

Central to the front office role is the delivery of exceptional customer service. From the moment guests arrive until they depart, front office staff must ensure that every interaction is warm, welcoming, and professional. Greeting guests with a smile and personalized attention sets the tone for their stay and creates a lasting impression.

Whether assisting with check-in procedures, providing information about hotel amenities, or addressing guest concerns, maintaining a courteous and helpful demeanor is paramount.

Reservation Management

Efficient reservation management is critical to maximizing occupancy and revenue for the hotel. Front office staff are responsible for receiving and processing guest reservations through various channels, including phone, email, and online platforms.

Accuracy is key, ensuring that reservation details and special requests are recorded correctly to meet guests’ expectations upon arrival. Additionally, effective inventory management allows the hotel to optimize room availability and accommodate last-minute bookings or changes in demand.

Front Desk Operations

The front desk serves as the hub of activity within the front office department, handling a myriad of tasks to facilitate smooth operations. From issuing room keys and processing payments to providing information about local attractions and dining options, front desk staff are multitasking experts.

Attention to detail is crucial, as they must ensure the accuracy of guest information, room assignments, and billing procedures. Moreover, efficiency and professionalism are paramount, especially during peak check-in and check-out times when guest traffic is highest.

Communication and Coordination

Effective communication is essential for seamless collaboration between the front office department and other departments in the hotel for liaising with housekeeping to ensure timely room turnover or coordinating with the sales and marketing team for upselling opportunities. 

By maintaining open lines of communication and fostering a spirit of teamwork, hotels can enhance operational efficiency and deliver a cohesive guest experience.

Safety and Security

Ensuring the safety and security of guests and staff is a top priority for the front office department. Front desk staff are trained to handle emergencies and follow established protocols to mitigate risks and ensure guest welfare.

Monitoring surveillance systems, maintaining vigilance at the front desk, and implementing security measures contribute to a safe and secure environment for all stakeholders.

Technology and Software Proficiency

In today’s digital age, technology plays a central role in front office operations. Hotel management software facilitates reservation management, check-in/check-out procedures, and guest profile management.

Front office staff must be proficient in using these systems to streamline processes and enhance the guest experience. Additionally, familiarity with point-of-sale systems for processing payments and transactions is essential for efficient financial management.

Training and Development

Continuous training and development are vital for front office staff to stay abreast of industry trends and best practices. By investing in ongoing training programs, hotels can empower their staff with the knowledge and skills needed to excel in their roles.

Performance evaluations and constructive feedback provide opportunities for growth and improvement, fostering a culture of excellence within the front office department.

Conclusion

The front office serves as the heartbeat of the hotel, driving guest satisfaction and operational efficiency. By understanding the duties and responsibilities outlined in this guide, front office staff can excel in their roles and contribute to the overall success of the hotel. With a focus on customer service, efficiency, and continuous improvement, the front office department will continue to serve as a cornerstone of hospitality excellence in the years to come.

In conclusion, the front office department plays a pivotal role in shaping the guest experience and ensuring the success of the hotel. By understanding the duties and responsibilities outlined in this guide, front office staff can excel in their roles and contribute to the overall success of the hotel. With a focus on customer service, efficiency, and continuous improvement, the front office department will continue to serve as a cornerstone of hospitality excellence in the years to come.

The post Hotel Front Office Duties and Responsibilities: A Comprehensive Guide first appeared on e360 hospitality.

When a guest makes a payment before he checks in, or in other words, before he consumes any of the hotel’s products or services, the payment is an advanced deposit. Deposits sit in a guest’s bill as a credit, meaning the hotel always owes the guest this money, if it is not used against charges to settle the bill.

What does it mean when a hotel asks for a deposit?

It can mean one of the below two:

1. To guarantee your booking

When booking, the reservations agent asks for a deposit to confirm your booking. The hotel guarantees the booking if credit card details are provided, or the booking is coming from a trusted source, such as the guest’s company. The hotel won’t charge the credit card and keep it in the file in case, of cancellation or no-show, where the charges or penalty might apply

Can you pay hotel deposit with cash to guarantee the booking? Yes, you can pay the deposit through other ways like bank transfer if you are not willing to provide your credit card to the hotel agent.

With a guaranteed reservation, you can late check in, however, with a non-guaranteed reservation, the hotel has the right to cancel the reservation on or after the specified hold time (such as 2PM Release, 6PM Release, etc)on the arrival date.

2. As a security deposit

Usually, at check-in, hotels take a deposit to cover the total stay’s room charges, a fixed amount for incidentals per day during the stay. This ensures covering any incidental charges and (in the case of) damages to the room.

Here is an example deposit rule:

The post How Do Hotel Deposits Work? first appeared on e360 hospitality.

Quick Link: Can you get a refund from a hotel after check-in?

Understanding the Necessity of Hotel Cancellation Policies

Hotel Cancellation Policies help hotels as businesses to minimize losses due to thoughtless bookings and cancellations. And, it offers guests a legitimate way out when there is a real need to cancel a booking. 

Impact on Hotel Revenue

Hotels sell rooms as their primary business. And, the rooms are perishable inventory, meaning if a hotel cannot sell a room today, it can never sell the room again once the day has passed.

A cancellation policy or a strategy increases commitment on the guests’ side to avoid guests taking this agreement for granted such as making ‘backup bookings’ to cancel at the last hour.

Importance of Guest Commitment

When you make a booking with a hotel, you enter into a contract with the hotel where the hotel promises to provide you with a room on a specific date for a specific price. And, you agree to the terms set by the hotel.

Why Do Hotels Charge Cancellation Fees?

The Scenario: Mr. Alan’s Dilemma

Imagine, Mr. Alan has a tiny hotel with 5 rooms. Mr Smith has made a booking for next week for a room, because of this Mrs Adele’s booking request was denied as there was no room available. Mr. Alan prepares everything and gets ready to welcome Mr. Smith. However, Mr. Smith cancels his booking at the eleventh hour. 

• Now Mr Alan is faced with a loss of income (including any potential revenue from the guest)
• Low room revenue (direct hit on the room revenue) affects his ADR (Average Daily Rate), a primary performance indicator for hotels.
• Mr Alan could have scheduled more housekeeping staff to help prepare more rooms.
• There is a lost opportunity since Mrs. Adele’s booking was denied.
• Distressed Mr Alan is left to search for a guest to fill the room at any rate to cover the cost.

 Now, the same situation applies to hotels of any size and type.

Mitigating Losses with Effective Cancellation Strategies

Let’s see how this could have been changed with an effective cancellation strategy in place:

• Had Mr Alan had an effective mechanism to predict cancellations, he could have accepted Mrs Adele’s booking and overbooked the hotel. He could have filled up the room without much effort when one booking was cancelled or walked one of the guests into another hotel if both bookings had been converted.
• A cancellation policy of 24 hours before arrival with a night room charge (or a full stay) could have made Mr Smith think twice before cancelling his booking unless there was a valid reason.
• Even if has a valid reason to cancel, the hotel would have made revenue through the cancellation penalty charges. 
• It would have given more time for the hotel to find a guest who would pay a reasonable rate for the room. And, avoid leaving room unsold or sold at the lowest price at the last hour.

A cancellation policy ensures that the guests are committed, and helps hotels to make a revenue if the guests have to cancel. Because of these reasons, hotels consider the best cancellation policy to protect their revenue loss, and at the same time, it doesn’t negatively impact their room sales.

hotel Cancellation Policy – Key Factors

Note: Below are some typical cancellation rules that may change from hotel to hotel as each hotel revenue manager will decide what works best for them.

Refundable vs. Non-refundable Bookings

Hotels offer refundable and non-refundable bookings (non-cancelable bookings) with a steep discount (usually at a 5% to 10% discount rate compared to a refundable rate). Also, hotels want guests to pay upfront for a non-cancelable booking.

Cancellation Windows and Policy Variations

Cancellation window: It is the time frame of commonly 24 hours, 48 hours, 72 hours, or many days before the scheduled arrival. If you can cancel a cancelable booking before this policy, the hotel will refund you or the cancellation fee is not applicable. Typically, a 24-hour, but hotels have different time frames based on their ability to rebook the cancelled reservation, and it depends on the hotel’s location, market demand, and the number of walk-ins they usually get. 

Early Bird and Promotional Bookings

Early bird and promotional bookings: During the off-season, hotels try to fill their rooms with early bird and/or promotional offers. These rates also come with discounts and bookings need to be made well in advance from weeks to months. These are usually non-cancelable or cancellation penalties apply.

Free Booking Cancellations

Free cancellation: Applicable if you’re cancelling outside of the specified number of hours before arrival. Some hotels charge a processing fee even if you cancel before specified hours (cancellation window).

Cancellation fee on change of booking dates: If not for this rule, a guest can advance the arrival date quite simply and cancel the booking outside of the cancellation window.

Understanding Hotel Cancellation Policies in Operations

Demonstrates Commitments

Shows commitments: A cancellation policy ensures commitments on the hotel’s side and guests. The hotels as businesses demonstrate that they offer their potential guests to cancel their booking at will. Similarly, it ensures that the guests’ cancellations do not incur business losses. 

Protects Business Interests

Business protection: Imagine the hotel industry without a cancellation policy. Cancellations alone can put the business at risk. Depending on the hotel’s demand, cancelling a booking before 24 hours, 48 hours, or 72 hours (or many days) as set by the management, gives the hotel enough time to sell the room to another guest. Or, make revenue for the hotel.

Covers Legal & Accountability Aspects

Legal & Accountability: When a hotel presents its cancellation policy as part of the reservation contract, it not only protects the hotel from a legal perspective, but it strengthens the agreement by ensuring the guest is accountable and responsible with the agreement.

Guest Perspectives on Cancellation Policies

Potential guests like the cancellation policy: A cancellation policy offers guests an option to book when the rooms are available at their destination, giving them peace of mind knowing that they can change the hotel or plans until the cancellation penalty period is reached.

Unveiling the Logic Behind Hotel Cancellation Fees

• For non-cancelable bookings, it is the entire cost of the booking. The hotels have limits on number of nights with these types of bookings.
• Usually, a percentage of the first night’s room plus taxes as stated in the confirmation letter.
• X number of days as stated in the confirmation letter.

How Is A Hotel Cancellation Fee Handled by Properties?

Once the hotel charges a cancellation penalty and/or fee, the agent posts the charges to the guest billing/folio or moves the charge from the guest’s deposit account to the hotel’s ledger account. It is when the cancellation-related charges become the hotel’s revenue and usually, it is considered part of ‘room revenue’.

Types of Hotel Cancellation Policies (Cancelation fee vs penalty, and refunds) 

1. Non-cancelable: booking is non-refundable if cancelled.
2. Cancelable: Booking can be cancelled if confirmed outside of the cancellation window. A processing fee may be charged as mentioned in the confirmation letter.
3. Free cancelable: Booking can be cancelled if confirmed outside of the cancellation window without a processing fee.

Efficient Handling of Hotel Room Cancellations and Rebookings

Whenever a guest calls to cancel the booking, modern systems can set up rules to post a cancellation penalty automatically depending on the date/time a cancellation number of generated (when the agent cancels). 

In case of guests request an extension or refund, the agent might consult the FO manager before taking a decision, in which case, the agent will get back to the guest.

In case of a cancellation of a non-cancelable booking, the hotel has already charged the guest for the entire stay and that amount is lying under the deposit of the guest’s reservation. The hotel agent will first transfer the amount from the deposit account to the front office ledger, to retain the amount as the hotel’s revenue and continue to cancel the booking and provide the guest with a cancellation number.

When the guest receives the cancellation number, it confirms that the guest is relieved from the reservation contract with the hotel.

Rebookings of Canceled Rooms

For a busy city hotel filling up the cancelled rooms is not a challenge, unlike remote hotels that require bookings well in advance.

Hotels do expect cancellations and use a mechanism to predict their cancellations. With the assistance of this prediction, they follow an overbooking strategy. So, if the number of rooms is 100, they overlook by 5%, which is to take in 105 reservations. If they have 4 cancellations, they would happily walk that one guest into a different hotel.

Hotels do waitlist guests when a suitable room type or rate is not available if the guests are willing to be considered later. Hotels revisit the waitlist queue to see if a potential guest is still available to take up the booking. 

Walk-in guests, as a last option, hotels can accommodate walk-in guests. There are also advantages and disadvantages to accepting walk-ins; hotels sell the highest available room rate to these guests, and on the other side, these guys usually book for a night.

Strategically Navigating Hotel Cancellation Fees

Hotels do want to see you arrive at the hotels. And, they do expect cancellations and they respect force majeure. They would prefer an early cancellation to a late cancellation as they would be in a better position to resell the room. However, the least they would expect is a no-show.

So careful planning with a commitment to the hotel reservation agreement is advisable.

Hotel Cancellation Policy After Check-in

There are times you might want to cancel your check-in immediately after the check-in process has been completed due to personal circumstances or the room the hotel blocked is not up to your expectations. We have a page that explains how you can deal with this exact situation: How to cancel your reservation after check-in.

Tips for Successfully Waiving Hotel Cancellation Fees

Note: Even though we often refer to hotels, remember, if you are making the reservation at an OTA (online travel agency), the cancellation policy might be determined by them.

Read the confirmation letter carefully and understand the hotel’s policy on cancellations. If you know you have to cancel the booking, do it as early as possible. Even if you happen to cancel your booking just around 24 hours prior, be aware of the hotel’s check-in time and time-zone differences between your home and the hotel. 

If you happen to cancel a non-cancelable booking or a regular booking within the cancellation window, your best option would be to email them any supporting documents followed by calling the hotel and speaking to a manager.

Remember, here the hotel is legally covered by the confirmation letter clauses on their policies. Offering you a full or partial refund is at the sole discretion of the hotel management.

Look for force majeure clauses in the confirmation letters that allow for more flexible cancellation policies when there is an unavoidable circumstance such as a natural disaster due to which one of the parties or both parties cannot go by the booking agreement.

Dealing with Non-Refundable Bookings: Tips and Options

A non-refundable reservation is a non-cancelable reservation; an option, hotels offer the potential guests to book as early as 30 to 60 days in advance for a discount. The trade-off against this discount is that the guests cannot cancel these bookings and pay the entire stay’s cost upfront, no matter if the guests show up or not.

Avoid booking these rates as you never know what might happen at the last moment with our travel plan and the hotels aren’t obliged to offer a refund even if you have a valid reason to cancel the booking. However, having travel insurance, you will be able to get your refund, at least a portion of it.

Change Your Reservation Dates

If you are with a non-refundable reservation, try changing the date. Changes on a booking date are also considered a cancellation. Therefore, advisable to talk to the hotel about changes in dates.

Reasons For Cancelling Hotel Reservation And Appropriate Instances to Engage with Hotel Management

When you have a valid reason for your last-minute cancellation or cancellation of your non-refundable booking, it is advisable to email the hotel any supporting doc soon after you cancel the booking. Give them enough time and call them, especially speak to the manager.

Leveraging Credit Card Protections and Travel Insurance for Hotel Bookings

Another best move is to avoid a non-refundable room is to buy travel insurance. This way at least you can cancel your trip and get at least 75% of your money back.

Navigating Hotel Cancellation Fee Disputes: Legal Insights and Consumer Rights

Hotels come under the jurisdiction where they are located; therefore the regional legal regulations apply to their business activities, including their cancellation & refund policy.

Some jurisdictions prohibit unfair contract terms, so if the hotel’s cancellation policy is deemed one-sided or unfair to guests, it may be challenged legally.

For any additional information related to legal and jurisdiction, your best bet would be to get in touch with a qualified lawyer or a legal firm — If the dispute is worth that effort. 

Helpful pages:

• Booking.com cancellation page
• Expedia cancellation page

The post Understanding Hotel Cancellation Policies first appeared on e360 hospitality.

Hoteliers set room rates in hotels to sell their inventory; that is the number of rooms they have. They set a ‘per night’ price for each room based on what room type (also called room category) such as standard, deluxe, suite, etc., it belongs to; it is the room rate.

Note: Hotel inventory is perishable, meaning the rate is set ‘per night’, a room that was left unsold yesterday cannot be sold again. The hotel lost the opportunity to convert that room night.

They set multiple room rates for the same room as said-above to sell on different market segments such as transient, group, corporate, etc. And of course, the room rates can go up or down based on demand, like in any business, when the demand increases, the room rates go high, and when the demand decreases the rates get lower.

How do hotels calculate a room rate? 

A hotel’s room rate is determined by operating costs, investments involved, annual target revenue, customer segment, and supply and demand. The hotel should attract and increase bookings without affecting room sales.

Calculating room rates in hotel

To make things look easy, a new hotel uses one of the below methods to calculate its room charges:

Market-based pricing

A Market-based pricing approach is focused on consumers, so market segmentation becomes crucial as we discussed below. Here, hotels determine what the end customer is willing to pay for a room type and work backward on that price to achieve a reasonable but profitable return by cutting costs.

Research on competitor pricing becomes a major part of it. For instance, check on competitors from the same location on what their rates are during peak and off-peak seasons.

Cost-based pricing

In this approach, hotels decide on the room rates based on the construction and running costs involved and then add the profit margins to meet the desired return on investment.

For instance, Selling Price = Total cost (construction & running costs) + Fixed profit percentage expected at the end of the year.

There are two formula-based calculations for this: 

Rack rate in hotel

Every room type has its default rate, which is the Rack rate or standard rate. The rack rates are the highest room charge for any room type a hotel charges. This is also called the published rate and in certain jurisdictions, the hotel has to submit rack rates of each room type to get a hotel operation license from tourism or relevant authority.

It is also important to note that rack rates are not discounted and can be with or without the breakfast included. These rates are primarily targeted for walk-in guests and transient (individual travelers with short notice). And, hotels price other rates based on this rate as the ceiling.

Room rates example

The pricing of rooms is one of the major factors in hotel revenue management, so the room rates often change mainly due to the supply-demand factors, just like your air ticket. 

Hotels, before starting their operations, set a crucial rate by calculating the standard room rate (rack rate) for each room type (see section, “How do hotels calculate a room rate?”).

Hotels have the standard room rates set, while the front office/reservations agent will try their best to sell rack rates for any walk-in guest, hotels do offer discounts on rack rates depending on demand — These rates are called BAR or Best Available Rates, for instance, BAR1–10% discount on days when the occupancy is less than 70%. BAR2–15% discount on days when occupancy is less than 65%, and so on. 

1. Rack rate

The hotels’ standard rate for each room type is discussed above in detail.

2. BAR — Best available rates

This is the best rate for transient/individual guests who don’t qualify for discounted or corporate rates. BAR rates fluctuate from Rack rate based on demand. For instance, a hotel can sell a room for a 10% discount on occupancy between 70% and 80%, and so on. The next day, this rate can be higher by 5% when the occupancy reaches 90% plus. The rate amounts and discount percentages are completely up to the hotel’s rate strategy.

3. Negotiated rates

The term, Negotiated Rate is generic. It basically means that there is a negotiated agreement between the sources and the hotel. Sources can be companies, travel agents when sending large groups, government, and sometimes even individual regular guests. So a corporate rate also comes under a negotiated rate in that sense.

4. Member rates

These are discounted rates with sometimes other facilities such as WiFi for members, who have signed up for the hotel’s or the chain’s loyalty program.

5. Group rates

These are often negotiated, discounted rates but for groups, allotments, etc., based on the number of rooms the booker requests. This rate can be further broken down into wholesalers such as tour operators, corporate groups, offline travel agents, or transient groups.

6. Complimentary rate

When a room is not charged, hotels use this rate rather than putting a 100% discount on other rates for statistics and accuracy on room revenue calculations without affecting segment-based tracking (ADR, RevPar calculations). Usually, hotels offer complimentary rates for suppliers who work on short-term hotel projects, tour group leaders, travel agents, or for marketing purposes.

7. House rate

Similar to Complimentary rooms, but for hotel employees, chain staff such as trainers and pre-opening staff, etc. ADR and RevPAR are also not calculated.

8. Day-use rates

Special rates when the guest’s check-in and check-out dates are the same — same-day checkouts.

9. Package rates

These are not separate rates though they can be. Normally, it can be any rate that has packages inclusive such as breakfast (Bed & Breakfast), half-board, full-board, golf course, and spa treatment included. These other products are charged at a single discounted rate which would otherwise be more expensive to buy them separately. However, internal departmental revenue tracking happens without guests noticing.

10. Promotional rates

These rates discounted or come with additional products included, are often non-cancelable, meaning hotels can nearly guarantee occupancy. Then it helps hotels increase revenue during peak or off-peak seasons.

What are the market segments in hotel industry?

Because a market segment is a major factor affecting room rates, we want to give you a brief idea.

In any business, you want to understand what type of customers bring you business and line up your sales and marketing efforts. 

In hotels, they classify guests into market segments where each group of guests has its own behavioral patterns. This segmentation helps hotels offer guests products and services that match their profile, preference, and financial ability to satisfy guests and maximize the hotels’ profitability.

For instance, Transient (individual traveler) segmentation can bring in more room rates compared to Group segmentation, but it can be less profitable to hotels considering distribution costs such as travel agent commissions, credit card commissions, marketing, etc. This helps hotels with their rate strategies.

There are no set rules, predefined metrics, or limitations on what market segments a hotel can have since every hotel has its own business strategy. However, below are a few popular segmentations:

Hotel market segmentation example

Nowadays, hotel rates are often linked to market segmentation, meaning hotels plan their room rates based on guest types which helps hotels increase their revenue while providing the best product and the rate for the right guests.

5 Core market segmentations

Below are a few of the common market segments. However, a hotel can have fewer or more depending on their requirements. Again, each of these main market segmentation can subdivided into several other market segments depending on the need.

Relationship between room rates and market segments example

Customer-focused rate structure is a modern and widely used approach that allows hotels to consider customers’ ability and willingness to pay for their booking. This helps hoteliers to be on par with the competition.

So, the rates are designed and created for segments that directly target customers. And, this helps hotels to track and compare their revenue by segments to fine-tune and improve potential areas accordingly to impact overall revenue.

The post Room Rates in Hotel: 10 Seed Rate Types first appeared on e360 hospitality.