Module 3
Te time of week that the booking is for is also important. Even in the high season, there may be a day or two days when occupancy is significantly lower. For this reason, it is important to check the reservation chart and booking details of previous years extremely carefully.
Net rate Bookings made by travel agents are normally subject to a commission to the agent. When quoting rates for tours, though, most hotels quote a ‘net rate’ on which there is no commission. Te tour operator will receive a net rate and combine the various elements of a package. A mark-up to the final tour package price will ensure that the tour operator makes a profit.
Package If the person buying the accommodation is a tour operator it is possible that they are using the hotel as part of a ‘package’ that they will market at an all-inclusive price through retail travel agents and brochures.
Te tour operator (wholesaler) purchases aircraſt seats, coaches for transfers, hotel accommodation, restaurant meals and other goods and services, sets the price for the package and has a brochure printed.
By buying in large quantities, the agent is able to negotiate prices that are cheaper than those available to the individual travelling alone. Te agent is also able to offer the tour passengers security. Te traveler will not have to negotiate with taxi drivers, hotels, porters and restaurants for each part of his or her holiday. For many people who are not used to travelling, especially in a foreign country, this is an important benefit.
Complimentary rooms are normally offered by the hotel to the courier or tour leader of groups, although there is normally a minimum group size qualification on this facility.
How the tour operator and hotelier reconcile their conflicting aims in handling accommodation sales Te aim of the tour operator is to buy accommodation in the hotel at the cheapest rate possible during peak season.
Te aim of the hotelier is to to sell accommodation in the hotel at the highest prices possible during low season.
To overcome these conflicting aims, the tour operator and the hotelier have agreed upon the following terms:
• Te tour operator has to develop a series of packages and sell them during peak and off-peak season.
• Te hotel offers discounted rates during peak periods provided the tour operator takes an agreed volume off-peak accommodation as well.
• For each room the tour operator books during the off peak season, the tour operator gets one or two rooms at a lower discount in peak season.
• Some hotels offer complimentary rooms to the tour/group leader. 6.7.2 Booking
Because of the long lead time of tour bookings, there is oſten a large difference between the number of rooms originally booked and the number that are finally taken. Te reception manager can use previous records to assess the amount they need to overbook to compensate for this high cancellation figure. Large hotels will oſten specify the percentage of rooms that they will allocate to tours and groups. Tis is particularly useful for luxury hotels that may be worried about their image and consequently only allow 20% of their rooms to be let to tours at any one time. Other hotels will have 80% of their guests on package tours and plan the services to meet this market requirement.
96 FutureManagers
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