At this time of the year, when most of us are addressing budgets and forward planning, it’s a good time to check your reservations system.  To deliver and perform successfully, not only the Res system, but the property must be 100% committed to that system and management must be willing to make appropriate changes as often as needed – to be sure that information is up to date and accurate. How do you handle special rate plans and packages?  When do you close-out rooms?  When do you close out dates? 

Reservations’ systems today are highly sophisticated and their use can be integrated with properties’ internal yield management systems.  It’s important to know not only what you are telling the Res system – that the information is timely, accurate and market-responsive – but what the Res system is telling your potential customers.  Don’t let a lack of, or mixed communication cost you business. 
 
KNOW HOW TO WORK THE SYSTEM. 

A recent consulting assignment yielded a report that detailed lost business in excess of $1,500,000 revenues for one year.  There had been no natural disasters; there had been no recession; the area was enjoying one of its best markets in recent years.  This property was an occupancy leader in its competitive set, designated “Property of the Year” within its franchise system. Yet, the property left money on the table. 

Bookings, which total more than $1.5million were turned down by the Reservation System and property management laid blame at the door of the franchisor.  In fact, these very tangible and traceable losses were directly related to the property’s failure to fulfill its obligation to the reservations system – in short, improperly managing rate and occupancy communications with the system.   This 700+ room hotel lost that business in one year due specifically to the following: 

• Unnecessary Close-Outs;
• Untimely Loading Special Rates & Plans; 
• Inflexible Prepay Policy.

Call the franchise company’s 800 number to see how the reservation system is selling your own properties. Today’s sophisticated reservations systems have the potential of drawing a great deal of business through the front door, but only if they are properly used and marketed. Customers can learn as much by calling the 800 number, or by linking into a web site on the internet, as they used to by calling the property. 

A key is the quality of the information that has been programmed in to the system, the web site, and in fact, your chain’s directory. Make sure all basic data have been accurately programmed into the system and then make sure the reservations system is reporting it accurately.  It is equally important that your in-house Res system be shopped regularly.  Do it yourself, or have it professionally done.    Check your reservations!.   Current technology allows for very sophisticated and cost-effective strategies at the touch of a button.  The consumer is also much more sophisticated and “shopping” the systems is easier for everybody. 

MEASURE THE RESULTS. 

Reservations system delivery has to be looked at in a more global context as well.  The contribution of the Res system to room nights sold is only one indicator of performance.  Where do your properties rank system-wide in reservations delivery?  Without looking to system-wide delivery and delivery to other similarly placed properties, how can you measure the system’s performance to you?   Look to the obvious and beyond.  Is the information in the database clear, concise, and accurate? What is the system’s true contribution to RevPAR?  Are you taking advantage of all that today’s technologically advanced systems have to offer? The foregoing illustration of a $1.5million loss directly attributable to the reservations system highlights the importance of knowing how to use the system to your best advantage. 

SOLICIT THE FRANCHISE. 

If you don’t think you’re getting enough from your system, your franchise has trained professionals ready to work with your property to insure maximum performance.  It benefits both you and the system.  However, most often I see two things: the operator blames the franchise system for poor delivery; then, doesn’t follow the programs set up to improve performance.  Use all the resources available. 

RESERVATIONS & BEYOND. 

One final point should be made. The results obtained from the Res system are indicative of your performance as well as that of the system.  By integrating information from the reservations system into a yield-management program, its possible to manage rates appropriately – to make certain that rates are adjusted according to demand, that discounts are controlled and used to raise occupancy as needed.  In fact, some experts advise running yield management three times every day.  As decisions are made, the property information needs to be transmitted to the reservations system and information checks should be completed.  The system is there; it’s up to you to use it. 

Stephen P. Taylor, CHA, is president of TaylorGroup. His 25 years of hospitality experience provide an invaluable background for clients and readers alike.