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The term "Reservation" in hotels refers to advance booking of not just hotel rooms but also other services like banquets, meeting rooms, and restaurant tables. Today's discussion covers the three main types of reservation: tentative, confirmed, and waitlisted. Tentative reservations are initially held until the hotel receives confirmation from the guest, usually by a cutoff date that ranges from 12 to 48 hours before arrival. All reservations start as tentative until this confirmation is obtained. For a deeper understanding of the functions and hierarchy within the hotel reservation department, refer to the previous video.