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The term "Reservation" in hotels primarily refers to the advance booking of rooms and other facilities like banquet halls and restaurant tables. The previous video discussed the functions and hierarchy of the hotel reservation department. Today's focus is on the types of reservations: Tentative, Confirmed, and Waitlisted. Initially, all reservations are tentative until the hotel receives confirmation from the guest by a specified cutoff date, which can range from 12 to 48 hours before arrival. During this period, the hotel holds the reservation pending confirmation.