Hotel Front Office Management, 3rd Edition

132 CHAPTER 5: RESERVATIONSthe costs incurred by an independent property that must generate every single room salewith individual marketing and sales efforts, franchise referral costs seem minimal.Hotel & Motel Management reports that use of the reservation system by franchisesand referral properties involves various fees, such as royalty, marketing, and reservations.For example, a royalty fee could include 50 cents per day per room, or $1,000.00 plus$75.00 per room per year, or 5 percent of the gross room rate. A marketing fee mayinclude $3.00 per room per month or a $480.00 sign fee. A reservations fee could include25 cents per minute for use of a toll-free number or $12.00 per room per year or $5.50per delivered reservation or 5 percent per room night booked. 5Sources of ReservationsGuest reservations come from a variety of market segments. Some of the more commongroups include corporate clients, group travelers, pleasure travelers, and current guestswho want to return to the same hotel. This is only one way of classifying guest reservations.The purpose of analyzing these segments is to understand the needs of each groupand provide reservation systems to meet their needs.Corporate ClientsThe corporate client is a hotel guest who is employed by a business or is a guest ofthat business. Corporate clients provide a hotel with an opportunity to establish a regularflow of business during sales periods that would normally be flat. For example, a hotellocated in an area popular with weekend tourists would operate at a loss if an aggressivemarketing effort were not made to secure corporate clients from Sunday through Thursdaynights. Corporate clients are usually in town to visit corporate headquarters or toattend business meetings or conventions. Visits are usually well structured in advance,with detailed agendas and itineraries. Such structured schedules suggest that the corporateguest will need reservations to ensure a productive business visit.The reservation for the corporate guest may be initiated by a secretary or an administrativeassistant. These office personnel are vital to the marketing efforts of a hotel.Many hotels offer a secretaries club, which is a powerful marketing and public relationseffort aimed at this group. The program encourages the secretary or administrative assistantto make room reservations with the hotel for visiting business clients by providingincentives such as gift certificates for the person who books the most reservations, freemeals for being a member, and free special-interest seminars. This system provides thebasis for a very loyal contingent of secretaries and administrative assistants who think ofthe club’s hotel first. This marketing program helps the front office manager and thereservationist get to know the various leaders in the business community in an indirectway. If such people need a quick reservation on a busy night, they feel they will receivespecial consideration from the hotel’s management.TLFeBOOK