1. GUARANTEED RESERVATION
In the guaranteed reservation the hotel assures the guest that the required rooms shall be blocked after confirmation. Under this, the hotel agrees to hold a room for a specific time of reservation following the scheduled day of arrival. Usually the guaranteed reservation, the advance deposit is sent through the various modes of payments for the anticipated charges for which the booking of the room has been requested. Thus the room revenue is secured even in the case of no show. The following variations in the advance payment for guaranteed reservation are:
• ADVANCE DEPOSIT
An advance deposit guaranteed reservation requires that the guest pay the hotel the anticipated amount of money before arrival. Advance deposit is partially large enough to cover one or two nights' room charge. This type of reservation is more common in resorts and less in city hotels.
This requires full payment prior to the guest arrival. This is normally the most desirable form of guaranteed reservation. This type of reservation is rarely used while booking rooms in any hotel industries.
• CREDIT CARD
Guaranteeing reservations through credit card are most popular method of payment in the business hotel. It is a form of guaranteed reservation and is customary in commercial hotels. Depending on the financial status and money n bank, the credit card is issued to the buyers/ clients.
• TRAVEL AGENTS
Guest pays the travel agents in advance for their tour package and the travel agent guarantees the client's reservation. In lieu, the agent provides the voucher to the guests indicating the required services that are required to be offered by the hotel. In case of no show, the hotel generally bills travel agencies for payment, and according to the agreement the travel agent must make the payment to the hotel.
This is the contractual agreement between corporation/ companies and hotel which state that the corporation will accept financial responsibility for any no show guest. Such contracts are often popular in business hotels and down town hotels.
2. NON- GUARANTEED RESERVATION
Non- guaranteed reservation is a provisional reservation. In this reservation, neither there is any legal process of confirming the room nor is any payment for the advance deposit made. When the reservation is confirmed under the non- guaranteed reservation, the hotel agrees to hold the room until the reservation canellation hour (6 p.m.) on the day of arrival. After the cancellation hour, the room is released and the reservation gets automatically cancelled.