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Food Plans: Tariff Structure

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A Food Plan is a scheme or package through which we offer accommodation as well as food to the guest against a fixed rate. Following are the food plans commonly available in hotel:

  • European Plan (EP)

The European Plan, sometimes abbreviated as EP in hotel listings, indicates that the quoted rate is strictly for lodging and does not include any meals. Any food provided by the hotel is billed separately. Taxes and tips are usually additional as well.

Food Plans: Tariff Structure 1

  • American Plan (AP)

The American Plan, sometimes abbreviated as AP in listings, means that the accommodation’s quoted rate includes three meals a day, i.e. breakfast, lunch, and dinner. In the American plan, the meals are provided by the establishment’s kitchen and served on site.

Some hotels offer guests the option of being on the American plan or paying a la carte for food consumed in their facility. Travelers choosing a hotel in a remote location where there are not many restaurants — or none at all — are advised to stay at a hotel that offers an American plan.

Cruise Ships are one place you can always count on having an American Plan, since you can’t exactly take a walk around the corner if you don’t like the fare. However, several cruise companies have found a way to extract more money out of each passenger. In addition to their buffet and main dining room, where there is no extra charge, they tempt with additional restaurants where you can dine for a fee. These include the mediocre sushi restaurant aboard Anthem of the Seas, the inventive Qsine restaurant aboard Celebrity Cruises, and the elegant Pinnacle Grills aboard some Holland America ships.

Notes to Consider: In Europe and some other places around the world, the American Plan is referred to as Full Pension or Full Board. The American Plan is not the same as an All-inclusive Plan. The latter includes snacks and alcoholic beverages throughout the day in addition to the three squares.

Food Plans: Tariff Structure 2

  • Modified American Plan (MAP)

The Modified American Plan, sometimes abbreviated as MAP in hotel listings, means that the quoted rate includes two meals a day, including breakfast and either lunch or dinner. In the Modified American plan, these meals are provided on site and in the hotel dining room.

Some hotels offer guests the option of being on the American Plan, a Modified American Plan, or paying a la carte for food consumed in their facility. Travelers choosing a hotel in a remote location where there are not many restaurants — or none at all — are best served by choosing a hotel that offers at least a Modified American plan.

In Europe and some other countries, the Modified American Plan may be referred to as Half Pension or Half Board.

  • Continental Plan (CP)

The Continental Plan, which is sometimes abbreviated as CP in hotel listings, means that the quoted rate includes breakfast on the premises for every guest who occupies a room overnight.

Normally this meal takes place in the hotel’s restaurant or in a dedicated breakfast room with a few tables and chairs. You can also think of this as bed-and-breakfast, regardless of whether you’re staying at a hotel, resort, motel, lodge, inn or even a B&B.

Typically a continental breakfast is set out buffet-style — meaning you have to get up, select what you want, serve yourselves, and bring your food back to your table. You’ll also have to collect and arrange your own plates, cutlery, glasses and napkins. There is no set limit on how much you can eat, as long as you leave enough for the other guests. A continental plan breakfast array is usually only available during a span of several hours in the morning. It’s a good idea to ask about the schedule at the front desk when you check in so that if you snooze, you won’t lose.

  • Bermuda Plan (BP)

Bermuda plan is same as continental plan but instead of continental breakfast, American breakfast is served.

  • Go Plan (GP)

This is not a food plan in true sense, but is a kind of service provided by chain hotels. In this plan a guest is provided with temporary credit facility and they can settle their bills at their last unit (stay) of their tour program. Guests who come through Travel Agents attached to that hotel and Regular guests can avail this facility. 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.

The use of these plans:

Commercial hotels prefer EP/ CP/ BP because:

  • 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 a particular cuisine which the guest likes.
  • 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 hotels prefer AP/ MAP because

  • 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-seeing during the day, an MAP will be more appropriate.
  • The hotel itself benefits from this plan since the hotel relies only on the resident guests for their food and beverage income.
  • EP, CP, BP are the popular plans adopted in Commercial and Transit Hotels. They mostly get businessmen as clients, who normally have their major meals in independent restaurants. The Commercial hotels also get plenty of walk-in guests.

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Syllabus BHM153 (T)

01 Tariff Structure

  1. Basis of charging
  2. Plans, competition, customer’s profile, standards of service & amenities
  3. Hubbart formula
  4. Different types of tariffs
  5. Rack Rate
  6. Discounted Rates for Corporates, Airlines, Groups & Travel Agents

02 Front Office & Guest Handling

  1. Introduction to guest cycle
  2. Pre-arrival
  3. Arrival
  4. During guest stay
  5. Departure
  6. After departure

03 Reservations

  1. Importance of reservation
  2. Modes of reservation
  3. Channels and sources (FITs, Travel Agents, Airlines, GITs)
  4. Types of reservations (Tentative, confirmed, guaranteed etc.)
  5. Systems (non-automatic, semi-automatic fully automatic)
  6. Cancellation
  7. Amendments
  8. Overbooking

04 Room Selling Techniques

  1. Upselling
  2. Discounts

05 Arrivals

  1. Preparing for guest arrivals at Reservation and Front Office
  2. Receiving of guests
  3. Pre-registration
  4. Registration (non-automatic, semi-automatic and automatic)
  5. Relevant records for FITs, Groups, Aircrews & VIPs

06 During The Stay Activities

  1. Information services
  2. Message and Mail Handling
  3. Key Handling
  4. Room selling technique
  5. Hospitality desk
  6. Complaints handling
  7. Guest handling
  8. Guest history

07 Front Office Co-ordination With Other Departments