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A reservation clerk is ready to process a guest’s request for a room reservation. Photo courtesy of the author.

Importance of a Reservation System

Profitable business ventures rely on effective marketing, which includes reviewing people who require hotel products and services, determining their specific needs, developing products and services that meet those needs, and making a profit on the sale of those products and services.

A well-organized reservation system allows hotels to ensure a steady flow of guests into their properties. Hotel chains, through their central reservation system, enable member establishments to fill 30 percent or more of available rooms nightly. Independent hoteliers, in contrast, must create exciting marketing programs to capture room business. Easy access to a chain hotel’s data bank of rooms helps hotels meet customers’ needs as well as reach a targeted daily occupancy rate, average daily rate, yield percentage, and RevPAR. A reservation system is the primary means of producing positive cash flow and a favorable income statement. Social media applications are a recent emphasis:

There appears to be little doubt that the social media networking tidal wave has hit the hotel industry. To varying degrees, many hotels and hotel companies are attempting to implement some active level of social media marketing. Whether it is Facebook,