Front office is the focal point
of a hotel. It’s the first point of contact between the guest and the hotel,
and it plays a vital role in shaping the guest's experience. From reservations
to guest check-out, front office management involves various tasks that ensure
smooth operations and guest satisfaction. The primary job of a front office is that
of a facilitator between the guest and other departments of the hotel, and it helps
provide services to the guests. This article explores the key functions of
front office management and the related IT systems pivotal for effectively
managing the hotel’s front office. These systems help streamline operations and
enhance overall efficiency.
The crucial functions the front
office of a hotel deals with can be listed as follows: Sale of Rooms, Guest Registration, Room Assignment, Handling of guest requests, Maintenance of guest accounts, Cashiering, Handling mail, and providing information.
The number and type of
interactions and/or transactions between hotel and guest determine the nature
of front office operations, which depend on the stages of the guest's stay. The
diagram below illustrates the stage of the customer's stay and the customer's possible transaction and service request. Different guest phases are: Pre-arrival, Arrival, Occupancy, Departure
The front office organizes itself
into many subdivisions or functional/operational areas to carry out different
transactions (part of different guest life cycle phases) between the guest and
hotel effectively. A typical ODS (Organizational Design & Structure) in a
hotel includes: Reservation Supervisor, Reception Supervisor, Information Supervisor, Night Manager, Guest Relation Officer, Cashier Supervisor
All these roles &
responsibilities are under the umbrella of a front office manager apart from
the cashier who is also aligned with the finance department of a hotel.
In the modern era, the different
activities and workflows performed by different front office personnel are
digitalized through multiple integrated IT systems, converting the front office
to an Electronic Front Office (EFO). The central IT system for the EFO is PMS (Property Management System) which
integrates the functions of different departments of a hotel or property. The
figure below illustrates the interdependencies of EFO with other departments
and the integration of multiple IT systems with PMS.
Figure 1: EFO Ecosystem
Let us now discuss the significance of digitalization and the consequent
interdependence of the front office with the other departments to perform the
above-outlined functions.
Reservations Management
One of the core functions of
front office management is handling reservations. This process involves
receiving and confirming bookings made by guests either directly through the
hotel’s website, over the phone, or via third-party booking platforms like online
travel agencies (OTAs). Front office staff must ensure that reservations are
accurately logged in the property management system (PMS), with details such as
guest preferences, room type, arrival and departure dates, and any special
requests. Efficient reservation management is crucial for optimizing room
occupancy and ensuring that the hotel meets revenue targets. Overbooking and
mismanagement of bookings can lead to guest dissatisfaction and revenue loss,
making it essential for the front office to maintain an organized and updated
system. Big hotel chains often strategically integrate PMS and CRS (Central
Reservation System) to optimize hotel operations, especially reservations
management. CRS is the central hub for managing reservations, allowing hotels
to handle bookings from various sources efficiently. The integration enhances real-time
data accuracy, streamlines processes, and elevates guest experiences by data
sharing between PMS and CRS. Room availability across multiple distribution
channels (e.g., hotel website, Online Travel Agencies (OTAs), Global
Distribution Systems (GDS)) is updated in real-time. Whenever a room is booked
or cancelled, the CRS automatically reflects the updated inventory in the PMS,
ensuring no room is double-booked or oversold.
Figure 2: Reservation
Data Sync in PMS with multiple channels
Yield Management:
Also known as revenue management,
helps maximize room occupancy while at the same time realizing the best average
room rate. Yield management combines a variety of data points like demand,
availability, market trend, etc. with “what if …?” situations to suggest
optimized room rates. Several software solutions i.e. Revenue Management
Systems (RMS) are designed specifically for yield management in hotels
e.g. IDeaS Revenue Solutions, Duetto, etc. The front office manager exploits
one of these tools to make yield management decisions. Many of these yield
management software integrates (through APIs) with PMS and CRS facilitating
room price adjustment across different channels based on real-time market and
availability data avoiding manual batch sync process which is error prone.
Figure 3: Yield
Management System with the integration of PMS, CRS, and Demand 360
Registration
As the required guest information
is taken in during reservation, modern hotels use integrated systems like PMS,
self-service kiosks, mobile check-in
platforms, online booking platforms, and CRS to automate the process of guest
registrations avoiding manual form filling. Mobile check-in platforms via Web
or App interfaces can facilitate registration and verification of identity pre-arrival.
Some hotels also install self-service kiosks for self-registration and
verification. The PMS plays a central role in automating guest registration. Mobile
check-in, kiosk check-in, or online registration system all share their data
automatically with the PMS through integration. Thus, the guest only needs to
sign-in and check out.
Figure 4: Digital
guest registration and verification system
Guest Check-in and Check-out
The check-in and check-out
processes are key aspects of front-office management and involve significant
guest interaction. During check-in, front desk staff confirm the reservation,
assign rooms, and provide information about the hotel’s services, policies, and
amenities. The way a guest is welcomed at this stage sets the tone for their
stay. A smooth and efficient check-in process, combined with warm hospitality,
makes a positive first impression on the guest.
Similarly, the check-out process
is important for leaving guests with a lasting positive experience. Front
office staff handle the final billing, settle any outstanding payments, and
ensure that feedback is collected. Delays or errors during check-out can lead
to guest dissatisfaction, so speed, accuracy, and friendliness are crucial.
Computerized systems like Mobile
check-in and self-service kiosks integrated with the PMS facilitate auto
allocation of rooms according to the customer preferences (fetched from guest
profile data). The guest receives their room number and instructions for
accessing the room along with the information on policies and a list of
amenities the guest can access. Thus, reducing human interaction and time for
check-in formalities and increasing guest satisfaction levels. These
integrated systems also automate the check-out process. PMS integrated
with the mobile checkout system, self-service kiosks, in-room
entertainment system, and payment gateways enable the hotels to automate bill
processing, and room status updates. The guests can review the bills and
check out of the hotel with a smartphone, kiosk, or in-room entertainment
system without visiting the front desk.
These automated systems, enable hotels
to streamline the check-in and check-out process, reducing manual intervention.
This improves the operational efficiency of the hotels and boosts guest
satisfaction.
Figure 5: Digital
ecosystem for auto check-in, check-out and bill posting
Posting
Posting refers to the process by
which various charges for the different services (e.g. dining, laundry, etc.)
consumed by a guest are recorded against his or her account during the
stay. POS (Point of Sale) systems
installed in the hotel’s restaurant, bar, spa, and retail outlet when
integrated with PMS post the charge directly onto the guest bill. PMS when
integrated with the in-room entertainment system and guest service system
can post the room service charges directly. By automating the posting
mechanism, these computerized systems significantly reduce manual errors,
enhance operational efficiency, and ensure that all guest charges are
accurately captured and reflected in the final bill.
Auditing and Reporting
Auditing by the front office refers
to the checks and rechecks of various posting of charges. Also known as
the Night Auditing process, is the review and reconciliation of all the
financial and non-financial transactions at night that have taken place during
the day. PMS plays a crucial role in the night auditing process of a hotel by
automating many of the tasks involved, reducing manual errors, and ensuring
that the financial and operational data for the day is accurate and balanced. The
PMS automatically tracks all transactions related to guest accounts (or folios),
such as room charges, dining, spa services, and incidentals. At the end of the
day, the PMS helps reconcile these transactions by ensuring that every guest's
charges and payments are properly posted and that no discrepancies remain in
the system.
The reporting function of the
front office generates various reports (e.g. daily revenue report, Occupancy
Report, etc.) that provide valuable data
and insights to hotel management. These reports help in decision-making,
tracking performance metrics, and analysing trends. Reporting can be both
operational (daily) and analytical (longer-term performance analysis). The
reporting module of PMS and CRS helps auto-generate these reports in minutes by
the front office which are further shared with the management to help them
strategize the decision-making process.
Customer Service and Guest Relations
Customer service is a critical
aspect of front office management. The front desk acts as a central point of
contact for all guest inquiries, issues, and requests. Whether it’s arranging
transportation, providing local recommendations, or resolving issues such as
room complaints or billing errors, front office staff must be prepared to offer
prompt and helpful solutions. GMS and CRS are two systems aim to enhance the
guest experience and customer service. GMS focuses on in-stay interactions and
operational efficiency, ensuring that guests receive the services they request
during their stay. On the other hand, CRM focuses on building long-term guest
relationships by managing loyalty programs, driving personalized marketing
efforts, and ensuring guest retention through tailored post-stay communication.
Conclusion
Front office management is a
multifaceted role that is crucial to the smooth functioning of a hotel. From
handling reservations and guest interactions to managing billing and
coordinating with other departments, the front office serves as the hub of
hotel operations. By providing excellent customer service, ensuring accuracy in
financial transactions, and fostering strong communication across departments
through digitalization (by integrating multiple IT systems like PMS, CRS, GMS,
CRM RMS, etc. ) the front office plays a pivotal role in creating a positive
guest experience and driving the hotel’s success. As the hospitality industry
continues to evolve, the integration of technology with PMS at its centre and a
focus on guest-centric service will remain key to effective front-office
management.
