Lesson:7 RATES AND PLANS

Room tariff:- Hotel tariff or room rates are determined upon no. of factors like.

  1. Establishment cost.
  2. Maintaining cost.
  3. Loans.
  4. Advertisement.

Plan:- Plan is a term that indicates food facilities provided by the authority for the guest which is adjusted within the room tariff.

There are six types of plan- The first five deals with the types of food facilities. The sixth plan is not deals with the food facilities. It provides extra facility to the guest.

  1. 1. European Plan (EP):

This plan includes only the room charges and morning tea in some cases. All other charges are charged extra. Most commercial hotels run on this plan.

  1. Continental Plan (CP.):

This plan includes room charges and a continental breakfast. All additional charges are considered extra. [A continental b/f consists of juices, toast or rolls, butter, cheese, jam, tea or coffee but no eggs.]

  1. Bermuda Plan (BP):

This plan includes room charges optional early morning tea and an American breakfast. [American b/fis a buffet breakfast not served in the room]

  1. American Plan (AP):

This plan includes all principal meals. It includes room charges with optional morning tea, English B/F, lunch, afternoon tea and dinner. It is mostly found in resort hotels and in commercial hotels catering to groups sent by airlines and companies or travel agents. This plan is also known as ‘all inclusive plan’ or ‘full board’ or ‘en pension’ [English breakfast has all courses like American B/F and ham, beacon, meat is also included].

  1. Modified American Plan (MAP):

This planhas evolved out of the American plan. It includes room charges with optional morning tea, English B/Fand an option of lunch or dinner. It is also called as ‘demi pension’ or ‘half board’. This facilitates the guests to eat out for one meal. It is usually used for groups where meal coupons are provided to the guests (coupon is valid only for a day) and the coupon cost is included in the room rent.

The use of these plans:

Commercial hotels prefer EP because:

  1. Commercial hotels are situated in the urban areas, there are bound to be numerous restaurants in the vicinity. Hence the guest will prefer to keep his option open as far as meals are concerned. Moreover the hotel may not have aparticular cuisine which the guest likes.
  2. On the other hand hotel being situated in an urban area would get plenty of chance guests in their restaurants. Thus their F&B income is not restricted to only hotel residents. They do offer meal inclusive plans but only to groups sent by travel agents and company bookings for conventions, seminars, etc.

Resort hotelsprefer AP/ MAP because

  1. They may be situated in an isolated area with hardly any restaurant in the vicinity. Guests therefore prefer to have meals in the hotel. For the tourists wishing to go sight seeingduring the day, an MAP will be more appropriate.
  2. The hotel itself benefits from this plan sincethe hotel relies only on the resident guests for their food and beverage income.

The CP. & BP lie between EP & AP So they can be offered by any hotel.

Above five are food plans.

There is another plan called ‘GO PLAN

It is not a food plan. It is an adjustment made in the settlement of accounts.

If a guest stays in different hotels of the same chain in the course of his tour, his bills will be forwarded to his next destination every time he changes the place of stay. The guest can make the payment at the last hotel he visits belonging to the same chain.

 

SPECIAL RATES

Very often a room may not be sold at the tariff quoted on the tariff sheet. The rooms may be discounted or special rates may be applied under certain conditions, or as a special case.

COMPANY VOLUME GUARANTEED RATE (CVGR)

Based on the room night potential of different companies, certain hotels give a special rate to those companies which contribute a large volume of room nights. This special rate offered came to be called as the ‘Company Volume Guaranteed Rate’ (C.V.G.R) or ‘Company Guaranteed Rate’ (C.G.R.). The higher the volume of business, the higher was the percentage of discount given. For this purpose, all those companies which offer a large quantum of business could be ‘A’ rated. As the contribution figure dipped, the company rating would also drop to ‘B’ or even ‘C’ for those with a relatively poor volume of business.

Many hotels today, in order to accommodate all category of employees from one particular organisation, have gone ahead and offered very low rates to the lower down officers, and higher rates to the top brass of the company, based on their entitlements and expenditure capabilities. A record of the room night contribution (R.N.C.) of individual companies are maintained either on a computerized system or manually by an alphabetically indented register. Periodically, the companies are informed of their volume contribution. If the expected room night contribution was not maintained by any one company, they would fall to a lower rating or even be left out of the C.G.R. list after the total period of assessment.

PACKAGE RATES

Many resort hotels (especially during lean/Off season periods) and some commercial hotels from time to time coin seasonal packages for different durations (e.g: two nights three days/three nights four days), which may include besides the room and meal, a complimentary airport transfer, sightseeing, entertainment etc.

OFF-SEASON RATES  

Most resorts and other seasonal hotels have separate tariffs for peak and off-seasons. The off-season rates are much lower than regular or peak-season rates.

EMPLOYEE RATE

Employees of major hotel chains have a special employee rate for all employees at their member hotels within the chain. This is however based on the availability of space and policy of the individual hotel.

F.H.R.A.I DISCOUNT

The Federation of Hotel and Restaurants Association of India (F.H.R.A.I) is a major association of hotels and restaurants in India. As a gesture of goodwill for members of the same fraternity, the association issues membership cards to the Proprietor / Partners / Chairman / M.Ds of these establishments, which entitles them to a special discount( presently 30% on room rent, food and beverage (excluding liquor), if paid by cash and 25% if settled through a credit card. The percentage of discount and other conditions are subject to change).

AIRLINE CREW

Most airlines enter into a contract with hotels in different cities where its flights commute, wherein staff of the airline (crew) are given a very special rate for a fixed period. Their duration of stay may be a few hours upto a maximum of 24 hours. There is also another special rate negotiated for the lay-over passengers. The food-plan applied would be based on the requirement, but the food element computed is also on a discounted basis.

GROUPS

Groups (G.I.T – Guest in Transit) are given special rates due to the number of rooms taken by them at a time. A group under standard stipulation, comprises of 15 guests or more. Based on the discretion of the Management, the group leader may be given a complimentary room for a minimum of 15 paying customers.

Guests who do not come into any of the above groups are called as ‘F.I.Ts’ or Free Individual Travellers. i.e., they are not part of any group or company enjoying special rates. When these are Indians or Domestic clientele, they are referred to as ‘D.F.I.T’. or ‘Domestic Free Individual Traveller’. Similarly, if the guest is not a domestic traveler i.e., if he is a foreigner, then he is called as ‘F.F.I.T’. or ‘Foreign Free Individual Traveller’.

CRIB RATE

This is a special rate applicable in some hotels to children. Most Indian hotels prefer to compliment upto a maximum of two children below the age of twelve.

EXTRA BED / EXTRA PERSON CHARGES

As most five star hotels today do not have single rooms, but have only double rooms which could accommodate a minimum of two guests, a third person if present, is given an extra bed and charged. This charge is in most hotels levied even if an extra bed is not given. The rate charged could be approximately 20 to 25% of the room rate.

Besides the above, special rates may also be given to a hoard of other category of people based on the discounting policies of the management. Some of these might be commercially important persons (C.I.Ps) for publicity and promotion purposes, influential persons like company directors, decision makers, top executives, travel writers, etc. Such discounts have to be authorised by a senior member of the Management

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