Unit 3: Rooms | Types | Factor affecting room rates

This notes is prepared by Respected. Anju Bhujel (Lecturer). “Thank you ma’am for being an important part of my story”.

Table Of Contents

3.1. Introduction
3.2. Layout of Rooms
3.3. Types of Rooms
3.4. Room Symbols and Status Code
3.4. Room History Card
3.4. Guest History Card
3.5. Room Rate
3.6. Types of Rates and codes used in the hotel industry
3.7. Factors affecting Room Rates
3.8. Rooms Keys and Key Controls
3.9. Types of Keys
3.10. Controls of Keys

3.1. Introduction

Room is defined as a part or division of a building enclosed by walls, floor and ceiling. The guest room is the core product of a hotel as it contribute approximately more than 50% of the total hotel sale and 50% more to the hotel revenue. Sale of rooms forms a major components of hotels profit. Therefore, rooms have to kept ready for sale most of the time and cannot allowed to remain non-available for sale.
The sale of the room means leasing the room for 24 hours occupancy at a predetermined cost. Thus, a room sold on a particular day earns revenue for that day and then it can be sold again and again. Rooms are sometimes referred to as a highly perishable commodity as room not sold for a day lose out a revenue of a particular day. Guest may stay in a hotel for pleasure, convenience or from necessity so, they will always except a certain standard of service and comfort. A housekeeping department must be familiar with the rooms and should have knowledge of the rooms of the hotel available for sale. It is essential to have the knowledge for the housekeeping professional because they are responsible for the cleanliness and maintenance of the guest room. The reason room is importance to the guest means comfort, security, privacy, convenience, cleanliness and hygiene, a home away from home.

3.2. Layout of Rooms

Layout is the way in which the part of something are arranged or laid out. It is an arrangement or a plan, especially the schematic arrangement of parts or areas. It will have a big impact on how aesthetically pleasing, comfortable and functional a room will be.

3.3. Types of Rooms

a) Single Room

A room meant for single occupancy having one single bed with two side tables. It is a standard room having a dressing-cum-writing table. The room size or area of single rooms are generally between 37 m² to 45 m².

b) Double Room

A room with one double bed meant for two people but can be sold on single occupancy, if required. It is a standard room having a dressing- cum-writing table. The room size or area of double rooms are generally between 40 m² to 45 m².

c) Twin Room

A room with two single beds with separate headboards meant for two people having only one bed side table between the two beds. It has a dressing-cum-writing table. The room size or area of Twin Rooms are generally between 32 m² to 40 m².

d) Hollywood Twin

A room with two single beds and one single headboard meant for two people. If need arises, the two beds can be bridged together to make it appear as a double room. The room size or area of Hollywood Twin Rooms are generally between 32 m² to 40 m².

e) Studio Room

A parlour set up with a studio bed which acts as a sofa during the day and can be converted to a bed during the night. The room size or area of studio room types are generally between 25 m² to 40 m².

f) Parlour Room

A parlour is a sitting room or a living room not used for sleeping purpose as a bedroom. The guests are allowed to sit and be entertained in the parlour.

g) Triple

A room assigned to three people. May have two or more beds. The room size or area of Triple Rooms are generally between 45 m² to 65 m².

h) Interconnected Room

Two adjacent rooms having an interconnecting door allowing entry from one room to another without having to go into the corridor is known as interconnected room. The interconnecting doors can be opened when required or locked as per the guest’s request.

i) Suite

This is a set of rooms consisting of a parlour connecting one or more bedrooms or a room which contain bed and even a living hall. It has more facilities than a standard room and thus is more expensive. The room size or area of such rooms are generally between 70 m² to 100 m².
Types of Suites can include:
(I). Master Suite:
A parlour or living room connected to one or more bedrooms.
(II) Mini-Suite or Junior Suite:
Junior suite room is a single room with a bed and sitting area. Sometimes the sleeping area is in a bedroom separate from the parlour or living room. Generally, it’s size or area are between 60 m² to 80 m².

j) Penthouse Suite

A suite which has a set of rooms situated on the topmost floors which have at least one room
open to the sky and a balcony with good view.

k) Quad Room

A room assigned to four people which may have two or more beds. The room size or area of Quad Rooms are generally between 70 m² to 85 m².

l) Cabana

Room located near to the swimming pool which has sofa-cum bed. Generally it’s room size or area are generally between 30 m² to 45 m².

m) Queen Room

A room with queen size bed which can be occupied by one or two people. The room size or area of Queen Rooms are generally between 32 m² to 50 m².

n) Adjoining Room

Rooms situated side by side or joined together with common walls. It’s room size or area are generally between 30 m² to 45 m².

o) Adjacent Room

Two room opposite to each other in same floor. Generally, it’s room size or area are between 30 m² to 45 m².

p) Duplex / Bi-Level Suite

A set of rooms not on the same level or floor but it is connected by an internal staircase. Generally, the living room is at the lower level and the bedrooms are at the upper level.

q) Lanai Room

Room with balcony facing towards garden and a swimming pool.

r) Executive Room

This is a larger bedroom with a sitting area provided with chairs and usually a sofa. There is a dressing table as well as a writing table. Newspaper and other business related magazines are also provided.

s) Efficiency Room

A room that has some sorts of kitchen facilities found in motels and residential hotels is known as efficiency room. Size may differ from one organization to another.

t) Hospitality Suite

A parlor with a connecting bedroom to be used by guest usually contains a bar and occasional tables as well. Charge of this room is hourly basis.

u) Presidential Suite Room

This type of rooms are generally found in only one quantity in one single hotel property and provides various luxury facilities like grand decoration, top notch amenities and supplies, and tailor-made services (e.g. personal butler). to the guest . With all top notch facilities, this is more expensive room in the entire hotel. The room size or area of Presidential Suites are generally between 80 m² to 350 m².

v) King

A special room with a king-sized bed. May be occupied by one or more people which room size or area are generally between 32 m² to 50 m².

w) Villa

A villa is a type of house that was originally an ancient Roman upper class country house. They are mostly found in resort hotels and is a kind of stand-alone house which gives extra privacy and space to hotel guests. It is preferred by couples, families and group guest. It’s room size or area of are generally between 100 m² to 150 m².

There are more types of rooms like apartments, murphy rooms, accessible/disabled room, etc.

3.4. Room Symbols and Status Code

Deluxe: DLXA	Mountain View: MV
Standard: STD-C	Out of Order: OOO
Suite: SU	Single Lock: SL
Double: DBL	Double Lock: DL
Deluxe room with king size bed: AIK	Standard room with two twin bed: C2K
Single: SGL	Ground Level: GL
Did not Check Out: DNCO	Due Out Room: DO
Pool Side: PS	Vacant & Ready: VR
Make-Up Room: MUR	Vacant Room: V
Blocked: BLO	Slept out: SL
No Show: NS	Newly checked In: NCI
House use: HU	Chain Lock: CL
No Luggage: NL	Light Luggage: LL
Heavy Luggage: HL	Vacant, Cleaned & Inspected: VCI
Lock Out Room: LO	Status Unclear: V/O or O/V
Do Not Disturb: DND	Check Out: CO

Table: Room symbols and status code used in housekeeping department of hotels

3.4. Room History Card

Room history card function enables the user to display the history of activity for a room. It can be used to determine when the guest stayed in which room. Example: Mr. Desai stayed in room 105, it helps to locate the owner of a lost property and to find out which guest was probably responsible for the ruined carpet or broken window of room 105.
Room History may record following things:
Room: Displays the room number.
Name: Name of the guest attached to the reservation for the room number.
Arrival: Date the guest arrived to the property.
Departure: Date the guest departed from the property.
Prs: Number of persons, adults/children, attached to the reservation.
Rate Code: Rate code assigned to the room for the reservation.
Revenue: Total revenue amount gained from that room number for their entire reservation.
Rate: Per night room rate attached to the reservation.

3.4. Guest History Card

Guest history is a record maintained for each guest who has stayed in the hotel with a separate entry for each visit and details of pertinent preferences. Maintaining guest history records helps the hotel to better understand its clientele and determine guest trend when they develop. Moreover, these very records might serve as a source of mailing list or to identify guest characteristics that is important to strategic marketing. In addition, they serve as to develop and place advertisements that appeal to the type of clientele the hotel attempts to attract. Finally, guest history records points out the need for a new supplementary, or enhanced services.

It is a valuable reference tool for marketing, reservation and credit department. Guest histories are now more readily available through the increased utilization of computers and technology. Guest history card plays a vital role in guest-hotel interactions and provides quick information on the previous visits of a guest during check-in. The guest history card is categorized into three heads based on the type of guests as In-house guests, Checkout guests, and Reservation guests.
It can be accessed by providing any one of the following as inputs such as guest name, mobile number, e-mail ID, customer ID or reservation number, date of birth, passport details, weeding anniversary, types of rooms, types of cuisine they prefer. Moreover, even though guest history records are stored in the front office department, they are handled to marketing department whenever needed. In fact, marketing department might get use of guest history records as to create program to reward frequent guests with a free stay after certain number of visits, or as an indicator to watch out for the future repeat guest reservations in order to increase the hotel’s repeat business market share.

Guest History Card

Name of the Guest: Mr. Karki Company :Nabil Bank
Designation: AVP Address: Jhapa, Nepal
Credit: Allowed Date of Birth: 5th March, 1985
Marriage Anniversary: 5th March 2000

S. No.	C/I	Room No.	Room No.	C/O	Amt.	Special Instruction	Remarks
1.	26/11/2001	201	NRS. 5,000	30/11/2001	NRS. 50,289	Room Facing Pool	Non-Smoking Zone
2.	11/12/2002	516	NRS. 5,600	15/12/2002	INR. 30,219	King Room

Figure: Sample of Guest History Card

3.5. Room Rate

A hotel has different types of rooms on the basis of room size, location, view, décor, furnishings, amenities, etc. The room rate, is the daily rate charged for the usage of a hotel room and its services for choosing a particular hotel for stay. Therefore , the front office generally has more than one room rate category depending on the types of rooms. The basis of room rate charge differs from one hotel to another. Different room rate had been identified on the basis of different types of guests that the hotel seeks to attract, the potential repeat or on-going business, and the level of occupancy (current and advance booking).

3.6. Types of Rates and codes used in the hotel industry

Hotel always have more than one rate code category for each room type .Room rate category generally correspond to types of room s available to sell in the hotel.( E.g.:- suite, deluxe, premier, studio, penthouse etc.).
Room rates and rate codes may also vary according to the available room features such as room size, location, views, furnishing, décor and also with competitor’s pricing.

1. Rack Rate

It is the Standard rate or Published rate for each category of rooms offered for accommodation to the guests. The standard rate of a particular type of room before any discount is called rack rate. This is generally printed on the tariff sheet of the hotel and these details are also submitted to the local government authorities for hotel licensing and in some countries for Gov. Tax compliance. In other words, these rates are always without any sorts of discounts.

2. Corporate or Commercial Rate

These are rates offered to companies that provide frequent business for the hotel or its chain. This rate may vary according to the volume of business guaranteed by the companies. E.g. : NEG1, COR1 etc. The corporate rate is generally 10-20 percent lower than the rack rate. This is a promotional rate to attract the corporate market segment and business houses like Tata, Reliance, Birla group etc.

3. ADHOC Rate Code:

These are normally non-standard rates which are offered as special one-time rates for
first time corporate.

4. Group Rate

These are rates which are offered to groups, meetings and conventions using the hotel for their functions. The group rate depends on the number of persons in the group and the frequency of their visits. Hotel that frequently accept bookings from groups can offer reservations at a specially negotiated rate by sales team of a hotel and the representative of the group. Normally, a group should book 10-15 rooms to get any discount. It is quiet rare that a hotel will accept a group booking or reduced group rate for less than five rooms

5. Promotional Rate Code

These rates are special rates which are less than standard rate and generally offered during low occupancy periods to any guest at a special events to promote occupancy. Early Bird Rates, Stay for 3 and pay for 1 etc. are some examples. These rates may also include certain add-ons to attract the customers like free Wi-Fi for 24 Hrs, free buffet dinner etc.

6. Incentive Rate Code

The rate offered to individuals who belong to an association or holders of special membership cards or Credit cards. E.g.: Amex / VISA / Master card holders get 5% discount on Rack Rate . Spice jet
frequently coming members get a 25% discount etc. For hotels, these rates always give potential referral business.

7. Early-bird Rate

This type of rates are only open X days before arrival. E.g.: Open only when 7 Days before arrival, 14 Days Before Arrival, 30 Days Before arrival Etc.

8. Family Rate

A rate reserved for families with children. Usually, these rates include Extra Bed charges and may also include some free add-on activities for children.

9. Package Rate

Rates that includes a guest room in combination with other available events or activities. ( E.g.: Best of London package which includes room rental, all meals, site seeing, airport transfers etc. ) It is used during off-season to combine more than one product in one package and sell at lower price. This rate is also used during peak season to bundle less popular product with fast selling products. This system generally generate higher sales volume. Package rate can be also a simple room and meal package like American plan(AP), Continental plan(CP), Modified American Plan(MAP), European plan (EP) etc.

10. Complimentary Rate

It is a polite expression of praise or admiration in which hotels provides free stay and food etc. to VIP’S and CIP’S clients, celebrities and other in- house executives. It helps to build better public relation. Hotels maintain an accurate record of money spent on complimentary services and also check its effect on profitability.

11. Seasonal Rate

During peak season none of the hotel offer any discount rather they charge higher room rate is known as seasonal rate. Depending on the desirability of a location at a particular time of the year, destination have high, low, and shoulder seasons. In order to attract tourist or guest during low demand period, hotel offers a discounted rate known as off-season rate. Usually, shoulder period is when the demand is coming down from peak or going up to the peak, the rate are medium.
For example: rainy season is off-season in Shimla, whereas winters and summers are season time, as visitors go there to see snow in winters and to escape the heat during summers.

12. Advance Purchase Rate

It is the rate usually popular in airlines industry and is relatively new concept in the hospitality industry. Hotel gives heavy discounts on rooms rates when booked in advance. The rate of discount depends on the advance period and the number of rooms available at the time of booking which guarantees a certain amount of revenue at a given time and thus, helps the management in planning a revenue management strategy. Hotel will offer more discount for a room that is booked two months in advance compared to a room that is booked 15 days in advance .

13. Week Day/ Weekend Rate

The demand for rooms in a hotel may be more on certain days in a week. Business hotels will be full during week days and leisure hotels will see more booking on weekends. Hotels analyze their demand levels over a period of time and fix higher rate during high demand periods and a lower room ate during low demand period.

14. Airlines/ Crew rate

It is a special discounted rate for the crew of one or more airlines that offer certain volume of
business throughout the year on a consistent and continuous basis.

15. Crib Rate

This rate is the special rate charged for all children above five years and below 12 years of age
accompanying their parents. The hotel provides a crib bed in the room for an infants( very young), for the convenience of the parents. It usually offers in resorts hotels.

16. Travel Agent Rate

Travel agents sell travel products such as hotel rooms or airlines bookings on a commission basis to
the guests. They provide a substantial volume of business to hotels hence, hotels offers them special
discounts and commissions. They may also charge a service fee direct from the client. Some of the major travel agencies are Cox & Kings, Thomas Cook.

17. Day and Half-day Rate

The day rate charged from the guests not staying overnight at a hotel, is lower than the rack rate. For instance, if a guest check-in at 10a.m. and check-out the same evening at around 5p.m., he/she may be charged the day rate. However, all hotels may not have day rates.

18. House use Rate

A Room rate with zero room charge which is used for rooms stays for hotel purpose. E.g.: Manager or duty room, In-house General / Resident manager room etc.

19. Government Rate

When government officials travel for official work, they are given travel allowances to cover their hotel, meals and other out-of-pocket expenses. The hotel may ask for proof of identity from guests before they can avail the government rates.

20. Educational Rate

It is the special rates offered by hotels to students and educationists who have a limited travel budget. They are a significant source of business because of their large numbers and frequent visits.
They provide a large chunk of repeat business to hotels.

22. Membership rate

The rates offered to guests who are members of influential organization that provide high volume of business to hotels. The membership rates are much lower than the rack rates and may also include discounts on food and beverage. Special discounted rates are given to UN employees, travel writers etc.

3.7. Factors affecting Room Rates

The room tariff of a hotel must generate optimum revenue for the hotel and provide the hotel proprietors a return on their investment. The rate of a hotel room is decided by several factors which are illustrated below:

Cost

Cost is the total expenditure that is incurred in providing services and products to the ultimate consumer of the hotel services. The total cost can be divided into fixed cost, material cost, labor cost. The higher
the investment that has been made in a hotel property, the higher would be the room rent

Level of Services

The level of services offered by a hotel determines the room rate to a large extent. Hotels offers services such as spa, gym, banquet halls, and specialty restaurant which will charge a higher room rate in comparison with other hotels offering limited services. Based on the classification of star hotels, normally five
star hotels provides excellent services in comparison to non- star hotel. The staff ratio is much higher in 5-star
hotels as they provide more personalized guests services.

Competition

The competition between similar hotels in the market also plays an important role in determining the rack rate of the hotel. The higher the competition, the lower will be the room rate. Hotels with similar standards have a competitive rates.

Target market

The target market also govern the rack rate of a hotel room. Hotels, while selecting the room rates , finds out the disposable income of their target segment. Thus, a budget or limited service hotel quotes lower prices to attract guests with less disposable income and an up market hotel quotes higher prices for its
products.

Location

The location of the hotel also plays an important role in determining the room tariff. Hotels in a city center or business center , near places of tourist interest, or on scenic locales would have a higher tariff. The location of the room also determines the room rate. Rooms with better view would have higher charges compared to rooms facing a parking lot or a noisy commercial street.

3.8. Rooms Keys and Key Controls

A room key is a device which is used to open a lock of room. There are two types of keys which are used in hotels. They are:

a. Metal Keys

The traditional locks which open with metal keys and heavy key tags are attached to them with hotel name and room number printed on the tags.

b. Computerized key cards

In modern days, computerized key cards have replaced traditional metal keys. These keys are
programmed by computers and look like credit cards and are also known as card key. They can have magnetic strips at the back of the key card, or some have punched holes which are programmed.
There are different keys for each room given to a guest and need to be taken back from the guest when checking out. Normally, guest keys have a heavy tag to stop the guest from removing them from the hotel.

3.9. Types of Keys

There are a few different types of keys that are used in hotels, but the most common types of keys are:

a. Individual guest room key

The hotel guest room keys is normally issued to open only one room for which it was intended, individualized key for each lock. The key is generally kept in reception and is given to the guest at the time of check-in and used by guest during their stay in the hotel to access to their room.

b. Emergency keys

The emergency key opens all guestroom doors, even when they are double locked. The emergency key should be highly protected and its use should be strictly controlled and recorded. These keys open all the doors of the entire hotel even they are doubled locked. These key are also indicated by ‘E’ key. These keys can be assessed by the chief security officer or general manager and stored in a secure place such as safe deposit locker. The log book should be dated and signed by the individual taking the key. It can be used only in emergency situations such as to enter a room when the guest needs help and is unable to reach or open the door.

c. Master Keys

A master key is designed to open a set of several locks. A master key opens all guest rooms that
are not double locked and even double locked. The master key is handled by lobby manager or executive housekeeper in a hotel. Some hotels may have one master key for best control purposes.

d. Grand Master Keys

Grand master key operates all locks in the hotel including laundry, linen rooms, public areas, back of the house, all guest rooms, restaurants, offices and other outlets. The EHK and Lobby Manager
handle this key. The public area supervisor and night supervisor are also given this key for smooth operation. The use of grand master key should be notified to the GM and is kept in the safe deposit box in front office.

e. Floor Section Key or Sub Master Keys

This key opens all the room in that floor. This is given to the maid when she starts cleaning the room and handover to the HK when the shift is over. It is attached to a belt and tied over the maid’s waist. It should not be left anywhere and not to be given to any guest or other staff of the hotel. After every shift the control room supervisor should check the key and is handover to the proper staff or not.

f. Padlock Keys

This key is of office store, lockers, racks and other outlets in the back areas and are also response to as miscellaneous keys. This keys are controlled by the respective department or security office.

3.10. Controls of Keys

Security of keys is essential from the moment they arrive on hotel. The following points are some guiding principles in key control system:

Keys should be stored separately and securely.
No authorized person should be allowed access to any key, either to examine or handle it, since a photograph or impression can be taken in few seconds and duplicate subsequently made.
Keep a log book of all keys signed out.
Establish protocol for distribution of keys.
Perform an annual key audit.
When keys are lost or stolen, the locks should changed or rotated to another part of the property.
Authorized employees should remained guests to return keys at check-out.
The loss or suspected compromise of a key should be reported immediately and after due investigation, a decision be made as to whether or not the lock should be changed.
Place well- secured key return boxes in the lobby, at exit points of the property, and in courtesy vehicles.