Computerized Reservation System : In the 1970s, the airline industry started to look an opportunity to change their reservations system to enhance the customer experience and make them so comfortable to book or cancel the tickets or bookings and also to be sold by the online sales agents.
The industry adopted the latest reservation system so called “Central reservations System” which helps to the travel agents in accessing the information about the flight schedules, fares and seat availability for the specific flights for the selected route etc. The Central Reservation system made very easy to book and cancels the tickets online.
Although the Central Reservation System was initially introduced in airlines, it was later used by hotels, railways and other means of transport .Statistics show that around 50% of all reservations in US hotels are made through the central reservation system.
Definition of Computerized Reservation System
A central (or computerized) reservation system helps to several hotels to access the Booking information regarding the availability and prices etc worldwide and also send the same information about the booking etc to required hotel properties in easy and efficient way . It is composed of a central reservation office and member hotels that share room availability information with the central reservation office.
It is widely used as reference manual by the various travel professionals which helps them to refer or access the information pertaining to the fares flights and travel advisories etc. This type of system works in line with Global Distribution System (GDS). GDS also provides the complete, current information on the various airlines, railways, cars, hotels, cruises, and tours.
The travel agents or professionals may book or cancel the bookings or tickets online by using the central reservations system or Global Distribution System etc. The CRS allows to users to search the fights routes or schedule seats availability and other relevant information as per their choice. It is not only helped to user but also to the administer/ managers to modify or make the changes of existing flights or to start the new airlines for the new route etc.
Traditionally, the central reservation system was operated independently of the reservation systems in individual hotels. The reservations made through the central reservation had to be manually transferred to the property-based system periodically. Computerized Reservation System
Hence, the two systems would often not to be in sync with each other. Nowadays, however, automatic real-time postings of reservations that are directly fed into an individual property’s reservation systems are available. In order to clarify the customer queries about the booking etc a 24 hour toll free telephone numbers are provided and a flat fee is generally charged to the customers as per the agreement made.
It could be in percentage also in respect of the potential room revenue, actual room revenue, and/ or a gross profit of the rooms division may also be charged for, a hotel group, a central reservation system has marketing benefits as it act as a valuable channel of distribution. Customers—direct clients or travel agents—have access to room availability and rates from one source. Some companies also use this facility to cross-sell their hotels.
If the hotel requested for is sold out, the central reservation system will automatically suggest the nearer hotel that has rooms available to try and keep the sale within the group. Valuable information that is of use to the management is also provided by the central reservation system (e.g., a detailed breakdown of the rooms sold, the percentage of the cancellations, and no-shows).
The average rate at which bookings are, made by each travel agent can also be found out and thus, with whom it is preferable to do more business.
A central reservation system may be used as inter-property communications network, an accounting transfer system, or a destination information centre. There are two type of central reservation systems—affiliate and non-affiliate.
Affiliate system in Computerized Reservation System
All the hotels properties are generally interlinked and contractually connected through this kind of reservation system.
All the chains of the hotels are connected and link their reservation system operations to perform their functions of bookings or reservations and it also helps in reducing the operational cost as well. Under this Reservation system and reduce overall system costs.
In this system , all the properties are interconnected and works for each other , they attract and promote their business on mutual basis, put all the efforts to promote the business to another hotel of the same chain. The following are the benefits to the hotels properties to use an affiliate reservation system are as follows:-
- Makes easier to make the reservation by simplifying the process of the same.
- helps in reducing the overall cost of the reservations system
- Also helps in attracting the business for other property/hotels of the chain means the hotels are inter connected and works for each other.
in addition to above the following there are other important functions, may be mentioned as follows:-
- It helps in maintaining the Inter-property/hotels/chains communication network.
- it also serve as a very good tool of accounting transfer.
- It also acts as Destination information centre.
- It works in line with a global distribution system (GDS) , which is connected to the various reservation system
Under the Central Reservations system any property may receive the booking for the other chain of hotels/properties located at the same places or different places. The agent who is handling the queries might suggest accommodation at another property of the claim in the same in the geographical area.
Some properties might even acknowledge such reservations through a specially prepared note. The hotels may refer a hotel to the guest, which matches with the need and choice of the guests. Under this type of system independent hotels may also participate and they are also free to represent the whole market.
The requests from the non affiliate properties may be considered only after giving due consideration or priorities to the queries or requests of the booking of the affiliate system.
Non-affiliate system
Non affiliate system refers to that kind of system which is generally used by the independent or non chain properties. This kind of system makes enable to the independent accommodationoperators to utilizemany benefits as the other chains of hotels do.
Under this kind of reservation system network the accommodation managers have the information about the potentials customers or guests, name of the independent hotels etc , it is just exactly opposite to the affiliate reservation system, where the independent hotels or properties take up the responsibility of the promoting and advertising its services etc.
Benefits/Advantages of Using the Central reservations System
The main benefit of the Central Reservation System is that the hotels properties are connected to many travel agents not within any country but also across the globe, who facilitates the reservations and booking to the customers located at the different places.
The online reservations system has transformed the hotel industry. It benefits to the industry in many ways and cannot be measured in few lines. Due to the internet it is very easy to make the reservations or bookings in one click.CRS is the system where the number of hotels are connected through computerized system or CRS to the various network situated at one place.
This system gather store and helps in retrieving the same while doing the bookings or making reservations for the guests. It helps to the Hotel Reservation system to access the GDS Global Distribution System and many others internet distribution systems like Online web portals/pages or websites from one single window.
It also helps to the hotels managers in marketing their products and services online. By using this system the information about the hotels accommodation and facilities, prices of the room etc may be uploaded. And the same may be accessed by the others properties or travel agents for their reference and perform any bookings or reservations etc. it clarify the position of any hotel.
During the early stage the hotels rooms were sold by the sales agent or also called travel agents etc but now these days, there are various online travel agencies or websites which makes the reservation process Hassel free and very easy. It also make easy for the both type of travel agents i.e. traditional or online to access the information about the hotels products and services etc.
As we know that Central Reservation System is composed of various Modules which really helps to the owners in many ways, which are explained as follows:-
- Reservation:It provides a better reservation system to the owners and also helps to the various sales agents, online portals, can access the information and perform the process of bookings and reservations etc. This system updates the information regarding the availability, rates etc and makes so easy for the customers for booking and reservations etc.
- Profiles:The profile of the hotels may be accessed to everyone who connected to the airline reservation system. Profile of the hotel enables the customers and travel agents located at the different places to access the information about the hotels. The various customers may be attracted by the name of the profile of the hotels.
- Groups and Blocks: Creating the profile in the central reservation system helps to the hotels to attract the more and more potential guests/customers. It is rightly remarked and supported that online presence works on the visibility of the hotels profile. It really helps in making a better customer reservation foundation for the hotels. It also helps to the owners/users in maintain and updates the information about the rates and inventory of the hotels room and others relates services in comparison to the available competitors.
- Global distribution System interface: The main advantage to have central reservations system is it connects the respective hotel with the GDS (Global Distribution System) and also makes the hotels visible among the many travel agents spread and located at the different parts of the world. This provides leverage in elevating the hotels sales and Profits. Thus, it acts as economical tool to access the larger people in the hospitality business.
Also read Airline Reservation System (ARS)
