Pearson New International Edition International pcl tp indd 1

central reservation system (CRS), property-level reservation agents, the sales
department, e-distribution channels, and the property’s own Web site.
FRONT OFFICE SEMANTICS
Central reservation system (CRS):
Entity, operated by a franchisor or independently affiliated, that offers
potential guests the opportunity to make reservations at the entity’s affiliated (branded) hotels by tele-
phone, fax, or the Internet. Used as in, “What percentage of our transient business last month was gen-
erated through the 
CRS ?”
REVENUE MANAGEMENT
During high-demand periods, such as graduations or home football games, hotels near col-
leges and universities may decide to set a minimum length of stay for guests requesting
reservations.
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Each revenue generator is managed by either the FOM (in the case of property-
level reservationists) or by the DOSM (in the case of the sales department). In some
circumstances, the management of one or more revenue generators may be shared.
When different departments within a hotel are responsible for managing revenue
generation, difficulties can arise. Assume the DOSM of a 300-room property won a
group bid for 100 room nights during a slow period for the hotel. The DOSM
offered the group a rate of $100 per night ($10 below the hotel’s normal ADR), and
two comp rooms for every 50 rooms picked up by the group. Assume also that two
days before the group’s arrival, the demand for these rooms was still light, and that
the FOM instructed reservationists to quote a rate of $75 per night to guests calling
the hotel directly for the same arrival and departure dates as group members. Further
instructions were to post this reduced rate on the hotel’s Web site. When this strat-
egy was implemented, group members (who can easily access the hotel’s rates via the
Web site) began to cancel their room reservations within the group block and rebook
the lower-priced rooms on the Web site.