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Module 3: Front Office Operations

Learning Objectives
  • Outline the guest cycle from reservation to departure
  • Understand the role of a Property Management System (PMS)
  • Apply basic hotel performance metrics like occupancy and ADR

The front office manages the guest cycle in four stages: pre-arrival (reservation), arrival (check-in), occupancy (the stay), and departure (check-out and billing), usually tracked through a Property Management System (PMS) that stores guest profiles, room status, and billing in one place. Three metrics are central to judging how a property is performing: occupancy rate (rooms sold divided by rooms available), Average Daily Rate or ADR (room revenue divided by rooms sold), and RevPAR, or revenue per available room, which multiplies ADR by occupancy rate to show overall room revenue performance. A hotel can raise occupancy by lowering price, but RevPAR reveals whether that trade-off actually increased total revenue.

Module Quiz

1. If a hotel has 100 rooms and sells 70 of them in a night, its occupancy rate is:

2. What does a Property Management System (PMS) primarily help front office staff do?

3. RevPAR is calculated by: