Front Office Manual

FRONT OFFICE MANUAL

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Registration

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Reservations

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Revenue Management

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Check-in/Check-out

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Handling Guest Complaints

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Night Audit

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Accounting

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And Others

The Shorter Version

INTRODUCTION

When it comes to hospitality industry every detail is important , from the size of the bed to the color of the carpet and we at ProperSuite‟s Hotel take

things seriously . We treat customers with respect , professionalism and care to make sure that every of their needs are more than satisfied . This manual was made in order to clear things with our Front Office procedures and to summarize the essential of the duties involved in the FO division . The Front Office division is the first to encounter the client , as a consequence they  produce the the first impression impression witch is very very important . Here Here , the staff will find useful information regarding etiquette , behavior , handling guest complaints , protocols , standard procedures and regulations . This manual was made for training purposes only and should not be used as a regular FO manual because it contains only necessary information regarding the subject .

PROPER SUITE’S HOTEL

INTRODUCTION

When it comes to hospitality industry every detail is important , from the size of the bed to the color of the carpet and we at ProperSuite‟s Hotel take

things seriously . We treat customers with respect , professionalism and care to make sure that every of their needs are more than satisfied . This manual was made in order to clear things with our Front Office procedures and to summarize the essential of the duties involved in the FO division . The Front Office division is the first to encounter the client , as a consequence they  produce the the first impression impression witch is very very important . Here Here , the staff will find useful information regarding etiquette , behavior , handling guest complaints , protocols , standard procedures and regulations . This manual was made for training purposes only and should not be used as a regular FO manual because it contains only necessary information regarding the subject .

PROPER SUITE’S HOTEL

Registration REGISTRATION PROCESS

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Preregistration Activities

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Creating the registration record

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Assigning the room and type

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Establishing the method of payment

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Verifying the guest‟s identity

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Issuing the room key

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Fulfilling special requests

WHY GUESTS NEEDS TO REGISTER?

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It satisfies the legal requirements for hotels to keep records of their guests.

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It provides a record of arrivals (as opposed to reservations), which may help to account for residents in the event of a fire or other disaster.

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It provides management information: e.g.. about the proportion of arrivals to reservations;occupancy statistics; the national origin of guests and so on.

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It confirms guests' acceptance of the hotel's terms and conditions (if they are asked to sign the register).

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It occupies the guest while the receptionist checks booking records, allocates rooms, prepares keys etc.

PREREGISTRATION

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Accelerates registration process

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Guests verify registration record/card data

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Activities may include: Room and Rate Assignment Creation of Guest Folio

FIRST IMPRESSION

First impressions are incredibly important. The look, the appearance and manner of the reception and the front house staff: everything will either match, exceed or disappoint guests' expectations - which in turn may influence how they feel about their whole stay at the hotel, how they describe their experience to others - and whether or a not they come back! It doesn't matter how good Your check-in systems and procedures are, or how impressive the public spaces of the hotel: if reception staff don't welcome every guest promptly, courteously and in a friendly manner (as appropriate to the formal or informal style of the hotel), all the effort put into efficiency will be wasted.

7 STEPS FOR A SUCCESSFUL REGISTRATION

1. Always greet each guest with a smile in your voice as well as on your face . Be pleasant and businesslike. Remember that you reflect the image of the hotel so try to behave in a pleasant and professional manner . 2. Establish and maintain eye contact with the guest . 3. Find out the guest name as soon as possible and try to use it at least three times during your conversation . Do not call the guest by his first name and always use courteous titles as “Mr” and “Mrs” . 4. Attempt to identify the needs of the guest since these needs may not have been identified during the reservations process . Match the guest‟s needs to the furnishings and/or amenities from among available rooms . 5. Upsell rooms when possible . Offer an upgraded room by pointing out its features and benefits first , then mention its rate . If the guest has a reservation , describe the differences between the reserved and upgraded room . Walk-in guests provide the best opportunity for

upselling . If two different types of rooms are available , mention the features , benefits and rates of both . Do not risk losing the sale mentioning only the higher-priced room . 6. Complete the registration process . 7. Thank the guest and wish him or her a pleasant stay .

ASSIGNING THE ROOM AND TYPE-ROOM STATUS

● What rooms are available, if no specific room has as yet been allocated to

the guest.

● Whether the room allocated to the guest (where relevant) is in fact ready

for occupancy, that is, not being repaired or cleaned, or not subject to extension of reservation by the previous occupant.

● What rooms are occupied, by whom, for how lo ng (or how much longer) and at what rate

● What rooms will shortly become available (if prospective guests are

prepared to be flexible about arrival dates or times).

● What rooms are unoccupied, but unavailable for letting, due to cleaning,

maintenance or redecoration activity. Each time a guest checks-in or checks-out, each time housekeeping or maintenance are active in a room, each time a confirmed reservation (with room allocation) is made, this record needs to be changed!

ASSIGNING THE ROOM AND TYPE

If a specific room has not yet been allocated, the receptionist may need to check on room status and allocate a room.

Room status documents show which rooms are occupied, which are reserved, which are currently being worked on by housekeeping or maintenance, and which are available for immediate occupation. Available rooms can then be allocated, according to room availability - and guest preference. When allocating rooms: ● Priority (i.e. allocation of the best rooms of a given grade or rate) should be

given to VIPs and major clients, regulars (loyal returning guests), earlier bookings and longer stays.

● Priority should be given to the requests of guests with special needs (e.g..

for accessibility for the disabled).

● Specially requested rooms should be flagged as requested or reserved in

advanced reservation and room status charts, so that they aren't let to someone else by mistake.

● A certain number of the 'better' (preferred) rooms might be 'held back',

where possible, to allow for special requests on check-in.

Early check-ins - If a guest is checking-in earlier than expected, there may be no rooms ready for occupation - or the pre-allocated/requested room may not yet be vacated by an outgoing guest, or cleaned for re-Ietting. In such a case, the reception should: ● Understand that this situation is frustrating for guests, and make every

effort to make them feel welcomed and reassured that they will be given access to a room as soon as possible.

● Offer an alternative room or room type to the guest, if one is ready to

occupy immediately.

● Register the guests, inform them, that their room is not yet available with

an apology. Offer them the opportunity to put their luggage into storage & inform that it will be taken to their room as soon as it is available. Direct guests to places where they can wait comfortably and/or access refreshments and entertainments: give them a time to return to reception to collect their room key, or arrange for them to be informed.

● Contact housekeeping to put a 'rush'/priority on preparation of the

allocated room, if it has been vacated.

DENYING ACCOMMODATIONS

Shortest reservation (e.g.. one-night) first, since these guests will not be as badly affected as guests who had reserved longer stays - and the hotel will not lose the longer-stay revenue to another hotel!

● First-time (i.e. non-repeat, non-regular) guests first, since these guests may

not have a fixed preference, and the hotel will not be risking displeasing a loyal guest in whom it already has an investment.

● Overseas guests before domestic guests, where these are less likely to

represent potential repeat business (i.e. not guests from the overseas office of a major business client!). Every effort should be made to minimise (a) the inconvenience and loss to the guest and (b) the damage to the hotel's reputation, as a result of relocation.

● The handling of the booking -out may be referred to the senior receptionist

or duty manager, so that disgruntled guests feel that the matter is being taken seriously (and so that a tricky situation can be handled by the most qualified person). ● Guests should be relocated in a similar grade of hotel, similar grade and

type of room and at a similar rate, ideally, within another hotel in the same group. If better terms or a better grade of accommodation can be found, for the same terms, this may help to 'soften the blow' for the relocated guest.

● The hotel should offer to pay the expenses associated with the relocation:

the cost of telephone calls, transport to the other hotel, excess room charges (if the accommodation found is at a higher rate) and so on. It may also offer assistance with transport, e.g.. if there is a shuttle bus service.

● The hotel may also offer compensation to guests for being booked-out: e.g..

vouchers for a subsequent stay, payment for the first nights stay in the other hotel and so on.

Meanwhile, the arrivals list and other records will have to be amended to show that the guest has been booked-out.

ESTABLISHING THE METHOD OF PAYMENT

The hotel is entitled, under common law, to request that a guest pays a reasonable amount in advance (there is no obligation to offer credit) - and although this needs to be handled tactfully, to avoid offence,most guests will be amenable to complying with hotel policy. In our hotels, it is a standard procedure to request some form of deposit, prepayment or guarantee from 'chance guests' who walk in without a reservation.

Even where a guest has made a reservation, it is standard procedure to request a copy or Imprint of the guest's credit card (if available) for the hotel's records and as a guarantee of payment. The credit card may even be 'swiped' on arrival so that the hotel receives pre-authorisation from the credit card company for the authorised amount: it is effectively 'reserved' by the credit card company for the transaction. If the bill goes over this amount, a new authorisation may be required - while if it is less, the original transaction can be invalidated and the lesser sum put through instead.

GUEST SPECIAL REQUESTS

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Location

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View

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Bed Type

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Smoking/No-Smoking Status

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Amenities

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Special furnishings for disabled guests

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High-speed Internet access

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Entertainment systems

CREATIVE REGISTRATION OPTIONS

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Eliminate the front desk

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Register Group Guests at a special location

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Create a separate registration area for VIPs

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Combine the hotel and meeting registration in a separate area

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Register guests off-site

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Self-Registration

Reservations

RESERVATION FORM What kind of guest‟s information must have: •

Guest‟s Full Name

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Home/Billing Address

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Telephone/Mobile Number

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Company name and number(if appropriate)

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Name of person making the reservation

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Number in party

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Arrival Date and Departure Date (Time)

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Number of nights

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Type of Reservation

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Special Requests

TYPES OF RESERVATIONS

Guaranteed Reservations

 Prepayment , Credit/Debit Card, Advance Deposit, Travel Agent,Voucher,Corporate Non-Guaranteed Reservations

GROUP RESERVATIONS

A Group reservation may include: 

Independent Guests

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Meeting planners

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Convention and Visitors Bureaus

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Tours Groups organized from T.A. or T.O

Group reservations, whether of tourist groups or corporate groups, are often very attractive because they represent 'volume' business for the hotel. ● A sizeable number of rooms may be booked, increasing occupancy.

● Groups are often booked in well in advance, which helps the hotel

manage its occupancy, and gives it a measure of security.

● Groups may be booked on the same room rate - which may increase

the average room rate.

● Groups tend to be booked in and paid for in single transactions

conducted by the tour organizer , operator or agent (rather than requiring individual transactions for each member of the group), which cuts down on administrative time, effort and cost.

● Groups will tend to have uniform arrangements: the hotel can

anticipate their arrival, departure and having meals at broadly the same time.

● Groups tend to be accompanied by a leader or organizer, who can

liaise and help organize some of the administrative tasks of the guest cycle.

● Groups generate added revenue through their spending in other

departments of the hotel (e.g.. in the restaurant).

● Groups often offer the potential for repeat business, thr ough the

company, travel agent or tour operator.

HANDLING GROUP RESERVATIONS

Group bookings require special attention and protocols for several reasons. ● Cancellation or 'no show' by a group represents a serious loss for the hotel.

Reservation clerks must therefore take even stricter steps: to check the reliability and credit-worthiness of the group organiser or agency; to establish firm contracts with the organisers, enabling the hotel to gain compensation from losses suffered as a result of breach of contract; to impose strict cancellation periods and penalties; to 'chase' unconfirmed bookings; and to keep records of unreliable organisers (who may be blacklisted, or subject to payment guarantees).

Cancellation deadlines are generally set in stages. For example: - Cancellation more than 90 days prior to arrival may incur no charge or penalty

- Cancellation less than 60 days before arrival may incur a charge of 25% of the bill - Cancellation less than 30 days before arrival may incur a charge of 50% of the bill - Cancellation less than 14 days before arrival may incur a charge of 75% of the bill - Cancellation less than 7 days before arrival may require full payment.

The long lead time for booking makes it difficult for group organisers to forecast accurately in advance exactly how many rooms they will need: they may reserve too many, resulting in last minute cancellations or non-arrivals. (The hotel should include this likelihood in its planned overbooking.) The hotel should request more accurate updates from the organiser or agency as the arrival date approaches, with final confirmed 'rooming list' supplied seven days before arrival. The rooming list should include: - Names of group members - Types of rooms requested - The organiser's allocation of room shares, single occupancy requests, adjacent room requests etc: if the hotel has reserved a specific block of rooms, the organiser may pre-allocate them - Special food requirements/allergies (if meals are Included in The package) - Nationalities and passport numbers of guests (if available) to facilitate preregistration. The group may be accompanied by a courier or tour leader, and perhaps also a coach driver. These representatives may be accommodated free or at reduced rates, especially if they are co-opted to help with group check-ins, payments, check-outs and so on. Any such arrangements will have to be clearly specified in advance.

Other departments of the hotel need to be notified well in advance of group reservations, to ensure that preparations can be made. Housekeeping may need extra staff or different rosters to ensure that all rooms are available at the same time; porters must be available to distribute luggage; the restaurant will need to know about group meals; and so on.

NEGOTIATE GROUP RESERVATIONS

A group or conference organiser is often in a strong bargaining position, compared to an individual guest, because of the volume of business (and potential repeat business) they represent. Groups are therefore generally offered a discounted rate, by negotiation with the group organiser. Obviously, the group organiser may be aiming for rooms in a peak period at the lowest possible rate while the hotel will be trying to increase occupancy in slack periods at the highest possible rate. This is what negotiation is for to find an agreed solution that is acceptable to both parties. If the group requirement is for a low period when the hotel would otherwise struggle to fill the rooms, the hotel will be prepared to offer lower terms to get the business. How low could it go? It will need to make a profit on the rooms, so the lowest possible price will be what it costs the hotel to let the room: basically, the cost of any extra labour and consumables (e.g.. laundry costs, stationery, and soap used, electricity costs) which would not be incurred if the room was empty. (This is called „marginal cost‟ of letting the room). However, the hotel also has to bear in mind (a) the need to make a profit, and (b) the „opportunity cost‟ of letting a room at a lower ra te, when it might be able to let it at a

higher rate. If the group requirement is for a peak period when the hotel knows it can fill the rooms with customers who will pay the full rack rate, the hotel will be in a strong bargaining positioning to demand a higher group rate. However, it will also bear in mind the attractiveness of the group's business, and may accept a lesser amount for one peak period booking in order to 'win„ repeat

or volume bookings for slacker

periods. The level of discount offered may be attached to the number of rooms booked over a year or in 'off-peak' periods. It may also take into account the total value of the group's business, including expenditure on mea s and other extras: the hotel may try to 'lock in' extra revenue by negotiating an inclusive package rate to Include discounted table d'hote or set price meals.

TYPICAL RESERVATION REPORTS

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Reservation transactions report

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Commission agent report

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Regrets and denials report

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Revenue forecast report

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Expected arrival and departure lists

OTHER RESERVATION CONSIDERATIONS

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Legal implications

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Waiting lists

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Promotional Packages

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Potential reservation problems

POTENTIAL RESERVATION PROBLEMS

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Errors in the reservation record

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Misunderstandings due to industry jargon

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Miscommunication with central reservations system.

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On-line reservation failures

Revenue Management

DEFINITION

Revenue management is a technique used to maximize revenues Based on supply and demand The key: To sell the right product, to the right customer, on the right day, for the right price.

REVENUE MANAGEMENT ESSENTIALS

Demand –  Total amount of a good or service consumers want to buy for a specific price ADR –  Average daily rate –  Average selling price of all rooms for a given time period. Total room revenue : Total no. of rooms sold = ADR

HIGH DEMAND TACTICS

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Close or restrict discounts

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Apply minimum length of stay restrictions carefully

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Reduce group room allocations

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Reduce or eliminate 6 pm holds

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Tighten guarantee and cancellations policies

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Raise rates to be consistent with competitors

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Consider a rate raise for packages

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Apply full price to suites and executive rooms

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Select dates that are to be closed-to- arrivals

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Evaluate the benefits of sell-throughs

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Apply deposits and guarantees to last night of stay

LOW DEMAND TACTICS

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Sell value and benefits

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Offer packages

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Keep discount categories open

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Encourage upgrades

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Offer stay-sensitive price incentives

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Remove stay restrictions

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Involve your staff

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Establish relationships with competitors

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Lower rates

Potential Average Single Rate Single Room Revenues at Rack Rate PER Number of Rooms Sold as Singles

Potential Average Double Rate Double Room Revenues at Rack Rate PER

Number of Rooms Sold as Doubles Rate Spread Potential Average Double Rate –  Potential Average Single Rate RevPar RevPar –  Revenue per available room –  average revenue generated by each room during a given time period. Occupancy % x ADR = RevPar Or Total Room Revenue / Number of Available Rooms –  RevPAR Essential goal of the revenue management –  to maximize RevPAR REVPar is affected : 

by the rate

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by the number of rooms sold

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by the Length of Stay (LOS)

RevPAC

Average Rate per Guest = Revenue PER Available Customer (RevPAC) = (Actual Room Revenue) / (Number of Guests)

Yield Statistic

Yield= Actual Rooms Revenue PER

Potential Rooms Revenue

REVENUE MANAGEMENT STRATEGIES

Capacity Management also called selective overbooking Is done by controlling and limiting rooms supply Forms: 

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By accepting more reservations than the actual rooms available By determining how many walk-ins to accept knowing the projected cancellations, non-shows, understays

Discount Allocation means restricting the time period and product mix (rooms) available at reduced or discounted rates. Objectives: To protect rooms at a higher rate that would satisfy the demand at that high rate To encourage upselling

Duration control places time constraints on accepting reservations to protect sufficient space for multi-day requests. Objective: To bring more revenue by multi day stays Mostly used by hotels during peak periods such as Christmas, New Year‟s, Easter.

MANAGING OCCUPANCY

1.Hurdle Rate = the lowest acceptable room rate for a given date. 2.Minimum Length of Stay (MLOS) = A revenue management availability strategy requiring that a reservation must be for at least a specified number of nights in order to be accepted. 3.Close to Arrival = Hotel declines the reservations guests wanting to arrive on that specific date) 4.Sell –  Through = revenue management availability strategy that works like a minimum length of stay requirement, except that the length of the required stay can begin before the date the strategy is applied

MANAGING ADR

The ADR management goal: To achieve an ADR as close as possible to the hotel‟s rack rate. Best way to maximize ADR –  manage room rates in conjunction with anticipated demand. (Demand high –  no discounts) ADR can be increased during time of high demand Reducing ADR does not typically result in increased benefits to the hotel. Rate discounts should be offered: •

When the guest‟s anticipated length of stay is long enough to offset a

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loss in room rate When the dates requested by the guest include one or more days with

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minimal demand for the hotel When the number of room nights to be purchased is large

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When the number of unique stays per year is high

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When the total revenue to be achieved by the hotel is high

EVALUATING EFFECTIVENESS

Tools: •

Occupancy Index

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ADR Index

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RevPar Index

Occupancy Index “How is your Occupancy?”

Occupancy rate of selected hotel = Occupancy Index ADR Index ADR rate of selected hotel = ADR Index ADR rate of that hotel‟s competitive set

RevPar Index RevPar of selected hotel = RevPar Index RevPar of that hotel‟s competitive set

Principles: •

Occupancy and ADR indexes should be close

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Rate integrity is essential

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Revenue management is a daily activity

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It is necessary to gamble at times

Guest Complaints WHY DO GUESTS COMPLAIN?

There is only ONE reason why guests complain. . . Guests complain when they do not receive what they thought they should have received. In other words, their expectations were not met. Guests generally expect friendly service, clean, well-maintained facilities and a level of quality in line with what they paid. Failure to provide these will result in guest dissatisfaction, which may lead to a complaint. If it does, this is a signal that others are probably feeling the same way but NOT telling you.

WHY ARE EXPECTATIONS SOMETIMES GREATER THAN REALITY?

Because of the subjective or unrealistic promises made in advertising material. Because the price is high compared to similar properties. Because the price does not match the level of quality of the product. Because while expectations are realistic, the product is poorly presented. Because the guest develops preconceived high expectations that are formed from other sources of information. For example, the product was „talked up‟

by other users. In most cases complaints are the result of points 1, 2, 3 and 4. And these are factors that are within the control of managers.

WHY DO PEOPLE TRAVEL?

It is important to understand why people travel and what motivates visitors to choose a particular holiday or short break. If you have empathy for what motivates guests, this will assist you to meet their expectations. In general, people travel for the following reasons… 

To celebrate a special occasion with partner, family or friends (celebration).

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

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To experience places that are new and different (exploration). To get away from their normal lives and immerse themselves in some luxury that they cannot have at home. To break the monotony of everyday life (escape). To expand their understanding of the world in which they live (learning).

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To pursue particular interests (self fulfilment).

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For work reasons rather than leisure (corporate travel).

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These „reasons for travel‟ are intangible. They meet emotional needs,

not practical needs. In most cases, the role of an accommodation venue is not to provide a bed and meals, but to enhance an experience and appeal to certain internal needs.

The manager who satisfies the intangible needs of visitors will deliver a better product and have more satisfied guests.

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To celebrate a special occasion with partner, family or friends (celebration). To experience places that are new and different (exploration).

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To get away from their normal lives and immerse themselves in some luxury that they cannot have at home. To break the monotony of everyday life (escape).

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To expand their understanding of the world in which they live (learning).

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To pursue particular interests (self fulfilment).

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For work reasons rather than leisure (corporate travel).

7 STEPS IN HANDLING CUSTOMER COMPLAINTS 1. Promise only what you can deliver

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Review advertising material for accuracy Avoid the use of words that are ambiguous.

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If you use words that are subjective like „unique‟, „generous‟, „romantic‟ and „luxury‟ remember

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that people have different expectations of what these mean. What you deliver must exceed their expectations or you risk a dissatisfied guest.

2. Determine the market price  

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Review competitors‟ products and prices.

Understand what consumers get for the same amount of money in other properties. Include hotels and motels and B&Bs. Guests want „value‟ from any purchase.

3. Reserve some surprises.  

Give something that the guest was not expecting. Over-deliver.

4. Adopt a „the guest is always right‟ attitude 

Do not dispute or disagree without viewing the issue from the customer‟s perspective.

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Respect the guest‟s opinion.

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Promise to do all you can to rectify. It is better to refund, retreat and restore guest confidence than to have that guest tell all their friends (and others) about their bad experience.

5. Establish a continuous guest feedback system (see The Feedback Loop below) 

Encourage guests to tell you about their stay.

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Do not rely on a „visitors book‟ for this purpose.

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Ask them to help you improve your service for others by completing a survey. Accept what they tell you. Act on their suggestions where practical. It is better to refund, retreat and restore guest confidence than to have that guest tell all their friends (and others) about their bad experience

6. Monitor feedback 

Log and collate the feedback you receive.

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Look for trends and patterns.

7. Respond to feedback positively 

   

It is the feedback that you receive that allows you to improve your business. It‟s the feedback you

do not receive that does damage without you being able to react. Always respond positively and courteously. Do not make excuses. Promise to act. In most cases consumers want to see that their feedback will make a difference and improve the experience for others.

THE FEEDBACK LOOP This is an important tool to ensure that you are meeting all guests‟ expectations. It means providing all guests with the opportunity to tell you how they enjoyed their stay and what, if anything, could have made their stay more enjoyable. A visitors‟ book is not suitable for this purpose. You need to directly e ngage

the guest to provide you with specific information. A regular flow of feedback will: 

Encourage people to tell you what they think

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Highlight all issues, large and small Provide you with the opportunity to improve your service

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Prevent issues that lead to formal complaints

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Improve your business and increase your sales

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The system should be:

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Written and private so that the guest can complete it without any pressure

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Systematically handed out and systematically collected, for example

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given with breakfast on last day of stay or upon check out

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Succinct and simple to complete –  tick boxes

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Easy for you to collate

Suggested questions for a feedback loop: HOW DID YOU HEAR ABOUT US?

WHAT ENCOURAGED YOU TO STAY WITH US?

PLEASE RATE THE FOLLOWING:

YOUR ROOM :

■

OUR SERVICE :

BREAKFAST :

VERY SATISFIED ■ SATISFIED UNSATISFIED

■

■

■

VERY SATISFIED ■ SATISFIED UNSATISFIED

VERY SATISFIED ■ SATISFIED UNSATISFIED

OK

■

■

■

OK

OK

UNSATISFIED

■

■

■

UNSATISFIED

UNSATISFIED

VERY

■VERY

■

VERY

LEGAL RESPONSIBILITIES Consumers are entitled to receive what was promised them. They also have basic rights under consumer protection legislation. This particularly relates to the contract (written or verbal) between you and the guest. If this is breached, the guest can rightly ask the Office of Consumer and Business Affairs to investigate. They

have powers to prosecute when breaches of the Acts, for which they administer, occur.

CUSTOMER RELATIONS

Techniques Customer relations skills are the skills necessary to provide good customer service. Customer relations skills include communication skills and the ability to handle customer complaints.

COMMUNICATION SKILLS

Communication is crucial for every employee at every level in the hospitality industry, 2-24. Communication begins at the top of a business, with managers. Managers must communicate the rules of the company, standards of customer service, and information about the business to their employees. This can be accomplished through regular staff training sessions and employee handbooks. Front-of-the-house employees must communicate effectively with customers. For example, a concierge must be able to give clear directions to a nearby museum. Front-of-the-house employees must also be able to communicate with their coworkers to make sure things run in a quiet and orderly fashion.

Back-of-the-house employees must communicate with each other and outside suppliers to create a smooth and efficient operation. For example, orders for supplies must be correctly given to suppliers, 2-25. Supervisors and staff members must use good communication skills when planning, organizing, and completing work orders and production schedules. Three methods of communication are commonly used in all areas of the hospitality industry. They are verbal, written, and no nverbal communication skills.

VERBAL COMMUNICATION

Verbal communication includes the tone of voice that you use and the way that you speak. Use proper grammar at all times, not slang. Never use profanity in a hospitality business. Profanity shows that a person has a lack of manners, a lack of respect for the business that employs them, as well as an “I don‟t care” attitude toward

the customers. Remember, you represent your hospitality business. Never discuss one customer with another customer or employee.

WRITTEN COMMUNICATION

Hospitality employees must be able to communicate in a written form. For example, food servers must write menu orders clearly so that the kitchen staff can read them. If the orders are unclear, the wrong food may be prepared. Front desk staff in a hotel must be able to enter correct information into the computer system. If the information is incorrect, guests will have problems checking out.

NONVERBAL COMMUNICATION

Nonverbal communication is the message you communicate with your body language. Facial expression, hand gestures, posture, and eye contact are ways that we communicate nonverbally. The way you look when communicating with a customer tells a great deal about how you feel about that person. If you keep looking away from the person, you indicate impatience or annoyance. When you ignore a customer, you send a nonverbal message “you are not important” or “we don‟t care about you.”

As a hospitality worker, you are always on display. Make sure your nonverbal actions communicate warmth and concern for your customers.

Guest Cycle   The guest cycle describes the activities that each guest passes by



from the moment he/she calls to communicate a reservation inquiry till he/she departs from the hotel. In fact, the guest cycle encompasses 4 different stages, which are depicted in the underneath diagram:

PRE-ARRIVAL - ARRIVAL - OCCUPANCY  –  DEPARTURE

 Each stage of the guest cycle is associated guest service, and guest



accounting activity(ies).

1.Guest services:

Reservation

 Registration



 Occupancy services



 Check-out and



history

2. Guest Accounting:

Establishment of credits

  Posting charges



  Night auditing





settlement of accounts   Below is a description of the activities undertaken at each stage of



the guest cycle:

PRE-ARRIVAL   At the pre-arrival stage, the hotel must create for every potential



guest a reservation Record. Doing this initiates the hotel guest cycle. Moreover, reservation records help personalize guest services and appropriately schedule needed staff and facilities    The reservation department should, then, complete all the pre-



registration activities and prepare guest folios (applicable only for automated systems). Doing so will eventually maximize room sales by accurately  monitoring room availability and forecasting room revenues

ARRIVAL   At the arrival stage, registration and rooming functions takes place



and the hotel establishes a business relation-ship with the guest.   The check-in clerk should determine the guest‟s reservation status



(i.e. pre-registered guests versus   walk-ins). Later, he/she shall prepare a registration record or make the guest sign the already-printed pre-

registration record (under some of the semi-automated and all fully automated systems).   The registration records shall include the following  personal   and



financial  items:

a) Personal information: 1. Name and Surname of the guest along with billing address, telephone number, and any other coordinates 2. Passport number, birth certificate, and/or driving license number (whatever applicable) 3. Any special needs or requests 4. Guest Signature b) Financial information: 1. Date of arrival 2. Expected date of departure or length of stay depending on how the system in the hotel is designed 3. Assigned room number 4. Assigned room rate 5. Guest's intended method of payment  Registration records can be used for various purposes: a) b) c) d)

Satisfy guest needs Forecast room occupancies Settle properly  guest accounts Establish guest history records at check-out [personal & financial information] e) Assign a room type and a room rate for each guest f) Determine long-run availability [i.e. reservation information] versus short-run availability [i.e. room status] g) Satisfy special categories of guests such as disabled people through barrier-free designs

OCCUPANCY  At the occupancy stage, the front office department shall coordinate guest services in a timely and accurate manner . Moreover, front office 

clerks should encourage repeat guests by paying a great attention  to guest complaints. This is ensured by placing complaint and/or suggestion cards in every public place and revenue centers in the hotel. Moreover, the hotel shall, at least on a daily basis, collect comment cards, proceed with their analysis, and provide positive feedback to guest as soon as possible.  In addition, shall design effective procedures in order to protect the



funds and valuables of guests. This might be ensured through guest key control, property surveillance, safe deposit boxes, and well designed emergency panels and exits…

 Another activity at occupancy is to process posting of guest charges



[i.e. post room rates, F&B charges, additional expenses, and taxes…] to various guest folios, master Folios… While doing so, front office

clerks shall continuously check for deviations from the house limit, and take corrective measures as to change the status of the guest to Paid-in-advance. Finally, front office clerks shall  periodically   review Account Balances in coordination with the night auditor.

DEPARTURE   At the departure stage, the guest shall be walked out of the hotel.



Moreover, front office clerks shall create guest history record. Finally, cashiers shall settle guest account outstanding balances [i.e.: balance the Guest account to 0]  In general, a proper checkout occurs when the guest:



a) Vacates the room b) Receives an accurate  settlement of the guest account c) Returns room keys d) Leaves the hotel departure, checkout personnel should encourage guests to   At consider returning to the hotel on any future date. That's why cashiers should act like a true sales person, and might eventually accept guest

future reservations. That way, the stages of the guest cycle become really a cycle (i.e. start from where it ends).   If at departure, the guest account is not fully settled, then late



charges accumulates. In such an undesired case, the responsibility of collection lies within the accounting department, however the front office department shall provide all necessary types of information to make this collection easier, quicker, and feasible.

FRONT OFFICE SYSTEM

Fully automated [computer based] system: That's the best system ever used in the hotel industry. In fact, it is characterized by the excessive use of departmental software package programs integrated and connected to a main frame or terminal situated at the front office department.

A- Pre-arrival activities:   Under this stage, the reservation department is equipped with a



software package, which is interfaced and connected   with one or more

central

department

reservation

can

office(s).

automatically

Moreover,

generate

letters

the of

reservation confirmation,

produce requests for guest deposits and handle pre-registration activities for all types of guests and generate daily expected arrival lists, occupancy and revenue forecast lists…

B- Arrival activities:  At this stage, various reservation records can be transferred to front



office department. Moreover, the hotel is equipped with an on-line credit authorization terminal for timely Credit Card Approval , self

check-in / check-out terminals. Lastly, all guest charges and payments are saved in electronic guest folios.  As far as walk-ins are concerned, all registration activities should be



initiated from the very beginning.

C- Occupancy activities:  Under this very stage, guest purchases at different revenue outlets are electronically transferred and posted to appropriate guest 

accounts. Moreover, the front office department can run and process continuous trial balances and, therefore, eliminate the tedious work for the Night Auditor.

D- Departure activities: 

At this very stage, cashiers can automatically produce bills to be sent to various guests with direct billing privileges and create electronic guest history records.

IV- Front Office Forms:   At different stages of the guest cycle different forms are used



depending on which operating system a hotel chooses. Below are some of the common forms used:

1. Pre-arrival activities: a) Reservation record or a reservation file b) Letter of confirmation c) Reservation rack and reservation rack slips

2. Arrival activities: a) Registration card (or record) or registration file b) Room rack and room rack slips

3. Occupancy activities: a) Guest folio: shall be of duplicate forms and pre-numbered for crossindexing control purposes b) Vouchers: support documents detailing facts of a transaction, but does not replace the source document (i.e. the invoice). Examples of vouchers might include charge vouchers, allowance vouchers, paid-out voucher, and correction vouchers… c) Information rack slips

4. Departure activities: a) b) c) d)

Credit card vouchers Cash vouchers Personal check vouchers Transfer vouchers e) Guest history records

V- Front Office Functional Organization:  Whatsoever system and setting the hotel might use, it should reflect



easy access to the equipment, forms, and supplies necessary. Moreover, the setting shall reflect position flexibility. Moreover, nowadays trend shows that traditional mail, message, and key racks are unnecessary at the Front Desk. Rather, they shall be stored in drawers or slots located under or away from the Front Desk. For, this would ensure security and safety of guests.

FRONT OFFICE EQUIPMENT

1. Room rack 2. Mail, message, and key racks 3. Reservation racks 4. Information racks 5. Folio trays or folio buckets 6. Account posting machine 7. Voucher racks 8. Cash registers 9. Telephone equipment

Accounting Fundamentals Settlement of Accounts

While front office accounting may seem intimidating at first, it is actually grounded in straightforward logic and requires only basic math skills. A front office accounting system monitors and charts the transactions of guests and businesses, agencies, and other non-guests using the hotel's services and facilities. The front office's ability to perform accounting tasks in an accurate and complete manner will directly affect the hotel's ability to collect outstanding balances. This chapter examines the fundamentals of front office accounting, including creating and maintaining accounts, tracking transactions, following internal control procedures, and settling accounts. Accounting Fundamentals An effective front office accounting system captures and records guest data during each stage of the guest cycle. During the pre-arrival stage, a front office accounting system captures data related to the type of reservation guarantee and tracks prepayments and advance deposits. When a guest arrives at the front desk, the front office accounting system documents the application of room rate and tax at registration. During occupancy, the system tracks authorized guest purchases. Finally, the system helps ensure payment for outstanding goods and services at the time of check-out. The financial transactions of non-guests may also be processed within the parameters of front office accounting. By allowing authorized nonguest transactions, a hotel can promote its services and facilities to local businesses, or track transactions related to conference business. The area of non-guest accounts also includes the accounts of former guests that were not settled at check-out. The responsibility for collecting on non-guest accounts shifts from the front office to the back office accounting division.

IN BRIEF, A FRONT OFFICE ACCOUNTING SYSTEM •

Creates and maintains an accurate accounting record for each guest

or non-guest account. •

Tracks financial transactions throughout the guest cycle.

•

Ensures internal control over cash and non-cash transactions.

•

Records settlement for all goods and services provided.

While there are generally accepted accounting principles for the lodging industry, front office accounting procedures are often uniquely tailored to each hotel operation. Accounting terminology and report formats often differ from hotel to hotel or chain to chain. The following sections provide a brief review of some general concepts of front office accounting.

ACCOUNTS

An account is a form on which financial data are accumulated and summarized. An account may be imagined as a bin or container that stores the results of various business transactions. The increases and decreases in an account are calculated and the resulting monetary amount is the account balance. Any financial transaction that occurs in a hotel may affect several accounts. Front office accounts are recordkeeping devices to store information about guest and non-guest financial transactions.

Guest Accounts. A guest account is a record of financial transactions that occur between a guest and thehotel. Guest accounts are created when guests guarantee their reservations or when they register at the front desk. During occupancy, the front office is responsible for and

records all transactions affecting the balance of a guest account. The front office usually seeks payment for any outstanding guest account balance during the settlement stage of the guest cycle. Certain circumstances may require the guest to make a partial or full payment at other times during the guest cycle. For example, if the front office is to enforce the hotel's house limit, guests who exceed that limit may be asked to settle part or all of the outstanding balance. When there is a house limit, account settlement action is initiated when the account balance exceeds a predetermined limit, not at the time of check-out. Non-Guest Accounts. A hotel may extend in-house charge privileges to local businesses or agencies as a way to promote business. Management may also offer in-house charge privileges to groups sponsoring meetings at the hotel. In each of these cases, the front office will create a non-guest account to track deferred transactions. Non-guest accounts set up for local businesses and agencies are usually called house accounts or city accounts . Such accounts set up for groups are

termed master accounts . A non-guest account can also be created when a guest fails to settle his or her account at the time of departure. Whenever a guest's status changes from in-house to nonguest, the responsibility for account settlement shifts correspondingly from the front office to the back office accounting division. The hotel's

accounting department normally bills non-guest accounts on a weekly or monthly basis, unlike guest accounts, which the hotel compiles daily.

FOLIOS

Front office transactions are typically charted on account statements called folios. A folio is a statement of all transactions (debits and credits) affecting the balance of a single account. When an account is created, it is assigned a folio with a starting balance of zero. All transactions that increase (debits) or decrease (credits) the balance of the account are recorded on the folio. At settlement, a guest folio should be returned to a zero balance by cash payment or by transfer to an approved credit or debit card or direct billing account. The process of recording transactions on a folio is called posting. A transaction is posted when it has been recorded on the proper folio in the proper location, and a new balance has been determined. When posting transactions, the front office may rely on handwritten folios (if it uses a non-automated system), machineposted folios (with a semi-automated system), or computer-based electronic folios (with the accounting module of the hotel's fully automated property management system). Regardless of the posting technique

or system used, the basic accounting information recorded on a folio remains the same. There are basically four types of folios used in front office accounting: •

Guest folios: accounts assigned to individual persons or guestrooms

•

Master folios: accounts assigned to more than one person or

guestroom; usually reserved for group accounts Non-guest folios (also called semi-permanent folios): accounts assigned to non-guest businesses or •

agencies with charge privileges at the hotel •

Employee folios: accounts assigned to employees with charge

privileges Additional types of folios are frequently created by front office management to accommodate special circumstances or requests. For example, a business guest may request that his or her charges and payments be split between two personal folios: one to record expenses to be paid by the sponsoring business, and one to record personal expenses to be paid by the guest. In this situation, two folios are created for one guest. If the room and tax portion are to be separated from other charges, the room and tax is posted to the room folio. This is sometimes called the A folio. Food, beverage,

telephone, and other charges are posted to the incidental folio or B folio. Every folio should have a unique identifier (e.g., serial number or code number). Folio identifiers are

necessary for the following reasons. First, they serve as labels that help ensure that all folios are accounted for during an audit of front office transactions. Second, folio identifiers may be used to index information in automated systems. Automated systems frequently create folio identifiers when a reservation record is created. The reservation record is assigned an identifier that is carried forward to the front office system as the folio identifier. Finally, folio identifiers help provide a chain of documentation. Most hotels restrict the use of employee folios to those individuals who have been granted charge privileges for business reasons. For example, a sales manager may have charge privileges in the hotel's dining room to entertain clients.

VOUCHERS

A voucher details a transaction to be posted to a front office account. This document lists detailed transaction information gathered at the source of the transaction, such as the hotel dining room or gift shop. The voucher is then sent to the front office for posting. For example, hotel revenue outlets use vouchers to notify the front office of guest charge purchases that require posting. Several types of vouchers are used in front office accounting, including cash vouchers, charge vouchers, transfer vouchers,

allowance vouchers, and paid-out vouchers. Most automated front office systems require few vouchers, since revenue-outlet terminals interfaced with a front office computer are capable of electronically transmitting transaction information directly to electronic folios. In most hotels, the use of vouchers has been significantly reduced by the use of point-of-sale workstations that record the purchase transactions and transmit electronic information directly to folios.

POINTS OF SALE

The term point of sale describes the physical location at which goods or services are purchased. Any hotel department that collects revenues for its goods or services is considered a revenue center and, thus, a point of sale. Large hotels typically support many points of sale, including restaurants, lounges, room service, laundry and valet service, parking garages, telephone service, fitness centers, athletic facilities, and shops. The front office accounting system must ensure that all charge purchases at these points of sale are posted to the proper guest or non-guest account whenever the point-of-sale systems are not interfaced with the hotel's property management system. Some hotels offer guest-operated devices that also function as points of sale. Similar to an actual revenue

outlet, these devices result in charges that must be posted to guest folios. Three such devices are in-room movies, high-speed Internet systems, and in-room vending systems. The volume of goods and services purchased at scattered points of sale within the hotel requires a complex internal accounting system to ensure proper posting and documentation of sales transactions. Exhibit 1 charts the flow of information that results when a guest charges a restaurant purchase to his or her guest account. An automated point-of-sale (POS) system may allow remote terminals at the points of purchase to communicate directly with a front office system. Automated POS systems significantly reduce the amount of time required to post charge purchases to guest folios, the number of times each piece of data must be handled, and the number of posting errors and after-departure (late) charges. Overall, automation helps front office staff create a well-documented, legible folio statement with a minimum number of errors. No matter the location, points of sale must provide some basic information when posting a charge through a remote terminal or submitting a voucher to the front desk. The information includes the voucher or transaction number, the amount of the charge, name of the point-ofsale outlet, room number and name of the guest, and brief description of the charge. If the charge is being submitted by voucher, the signature of

the guest and the identity of the employee submitting the charge are also required. If the charge is posted through a remote terminal, the employee identification is captured by the automated system and forwarded to the folio, along with the time of the posting. Posting through an automated terminal may require a guest signature on a sales slip or voucher for audit purposes or in case there is a dispute regarding the transaction or amount. Some POS systems allow the swipe of a guestroom key as sufficient verification for posting a charge.

LEDGERS

A ledger is ledger  is a summary grouping of accounts. The front office ledger is a collection of front office account folios. The folios represented in the front office are a part of the front office accounts receivable ledger. An account receivable represents money owed to the hotel. Front office accounting commonly separates accounts receivable into two subsidiary groups: the guest ledger (for ledger (for guest receivables) and the city ledger (for ledger (for non-guest receivables). Guest Ledger. The guest ledger refers to the set of guest accounts that corresponds to registered hotel guests or guests who have sent advance deposits. Guests who make appropriate credit arrangements at

registration may be extended privileges to charge purchases to their individual account folios during their stay. Guests may also make payments against their outstanding balance at any time during occupancy. Guests' financial transactions are recorded onto guest ledger accounts to assist in tracking guest account balances. In some front office operations, the guest ledger may be called the transient ledger, front office ledger, or rooms ledger. When an advance deposit is received, it is

posted to the guest ledger as a credit balance. When the guest arrives, the amount of the credit balance is diminished throughout the stay by the charges posted to the account. In hotels that have a lot of advance deposit activity (resorts, for example), the guest ledger is further divided into advance deposit and in-house guest ledgers. This makes recordkeeping for large amounts easier. In hotels that have few deposits, posting the deposits to the guest ledger usually provides sufficient financial control. For non-automated and semi-automated hotels, the credit may be posted to the guest's folio immediately or on an advance deposit ledger card. When the guest arrives, the deposit on the ledger card is transferred to the guest's folio. City Ledger. The city ledger, also called the non-guest ledger, is the collection of non-guest accounts. If a guest account is not settled in full by cash payment at check-out, the guest's folio balance is transferred

from the guest ledger in the front office to the city ledger in the accounting division for collection. At the time of account transfer, the responsibility for account collection shifts from the front office to the accounting division (back office). The city ledger can contain credit card payment accounts, direct billing accounts, and accounts of past guests due for collection by the hotel.

The Check-Out and Settlement Process The front office performs at least three important functions during the check-out and settlement process: •

Resolution of outstanding guest account balances

•

Updating of room status information

•

Creation of guest history records

Guest account settlement depends on an effective front office accounting system that maintains accurate guest folios, verifies and authorizes a method of settlement, and resolves discrepancies in account balances. Generally, the front office finds it most effective to settle a guest's account while the guest is still in the hotel. A guest can settle an account by paying cash, charging the balance to a credit or debit card, deferring payment to an approved direct billing entity, applying a gift card, or using a combination of payment methods.

Front office policy usually requires guests to specify an eventual method of settlement during registration. This procedure enables the front office to verify or confirm the status of the guest's credit or debit card or direct billing information before he or she arrives at the desk for check-out and account settlement. Presettlement verification activities help minimize the guest's check-out time and may significantly improve the front office's ability to collect outstanding account balances. Despite the fact that a guest may later change his or her mind and settle by another form of payment, presettlement verification activities ensure that the hotel will be paid for the accommodations and services it provides during the guest's stay. Effective front office operations depend on accurate room status information. When a guest checks out and settles his or her account, the front desk agent performs several important tasks. First, the agent changes the guestroom's status from occupied to on-change in the room status file. On-change is a housekeeping term that means that the guest has checked out of the hotel and the guestroom he or she occupied needs to be cleaned and readied for the next guest. When the room status is changed, the front office system may automatically notify the housekeeping department system that the guest has departed. Some front office systems will also remind housekeeping of any extra equipment to be removed from a

guestroom, such as a crib, iron and board, or rollaway bed. In the past, the front desk communicated information to the housekeeping department by telephone or through an electronic room status board or a telewriter. Today, information is more commonly relayed automatically by the front office system to the housekeeping department when the front desk agent completes the check-out process. Once housekeeping receives the information, a housekeeper is dispatched to clean and ready the room for inspection and resale. To maximize room sales, the front office system must maintain a current occupancy and housekeeping status for all rooms and must exchange room status information with the housekeeping department quickly and accurately. Check-out and settlement also involves the creation of a guest history record that will become part of the guest history file. Since a hotel can gain a valuable competitive

advantage in the hospitality marketplace through the proper analysis of guest history data, guest history files can provide a powerful database for strategic marketing.

DEPARTURE PROCEDURES

Check-out and account settlement can be an efficient process when the front office staff is well-prepared and organized. The departure stage of the guest cycle involves several procedures designed to simplify

check-out and account settlement. These procedures include: •

Inquiring about additional recent charges.

•

Posting outstanding charges.

•

Verifying account information.

•

Presenting the guest folio.

•

Verifying the method of payment.

•

Processing the account payment.

•

Checking for mail, messages, and faxes.

•

Checking for safe deposit box or in-room safe keys.

•

Securing the room key.

•

Updating the room's status.

•

Inquiring about the guest's stay and experience.

•

Requesting the guest to complete a guest satisfaction survey.

•

Updating the guest history file.

The procedures used vary among front office operations, depending upon the hotel's level of service and degree of automation. The amount of personal contact between the guest and front desk staff may also vary, since most front offices offer automated or express check-out services and many guests elect self check-out. Check-out affords the front office staff yet another chance to make a positive impression on guests. A guest approaching the front desk should be greeted promptly and courteously. The front desk agent should

check for any messages, faxes, or mail awaiting guest pickup. The front desk agent should also verify that the guest has cleared his or her safe deposit box or in-room safe and returned the guestroom key. In many systems, the guest's electronic folio can be flagged so that the front desk agent can be notified if the guest has an outstanding message, mail, fax, or items in a safe deposit box. This simplifies recordkeeping and also minimizes the chances of overlooking these matters during check-out. To ensure that the guest's folio is accurate and complete, the front desk agent should process any outstanding charges that need posting. In addition, the front desk agent should ask the guest if he or she incurred any recent charges and update the necessary postings to the guest's folio. Before front office automation, guests used to phone the front office before coming to the front desk to check out. This notice allowed the cashier to find any unposted charges and prepare the folio so the guests would not have to stand and wait while the charges were identified and posted. Since most hotels are now automated, guests expect a final folio to be accurate and ready for them when they approach the front desk to check out. No matter what degree of automation at a hotel, the guest may leave with a poor impression of the property if the bill is not complete and accurate at check-out.

Traditionally, at check-out the guest is presented a final copy of his or her account folio for review and settlement. During this time, the front desk agent should confirm how the guest intends to settle the account, regardless of which method of settlement the guest specified during the registration process. This request is necessary, because front office policy may require the guest to establish credit at check-in, regardless of how the guest eventually plans to settle the account. A guest may establish credit by presenting a credit card at check-in, and then decide to settle his or her account balance by cash, debit card, gift card, or check. VIP guests or special guests of a group or corporate account should not be asked for settlement if their account is marked as a direct billing account. After determining how the guest will pay, the front desk agent should then bring the guest's account balance to zero. This is typically called zeroing out the account. A guest's account balance must be settled in full for an account to be considered zeroed out. As long as the hotel has received full payment or is assured full payment, the account will be settled with a zero balance. For example, if the guest pays cash, the account is brought to a zero balance immediately. If the guest settles using a credit card, the hotel will get an approval from the credit card company for the amount due. Approval of a transaction by the credit

card company guarantees payment to the hotel for the amount approved, so the account can also be brought to zero. Hotels are usually paid amounts due from payment card companies within a day or two of the settlement transaction. Upon receiving a payment guarantee, the hotel assumes that payment in full will follow, and closes the folio. If the account is to be paid through direct billing by the hotel, however, the account is not brought to a zero balance but instead is transferred to the non-guest ledger and billed through the back office accounts receivable system.

METHODS OF SETTLEMENT

A guest account can be brought to a zero balance in several ways. Methods of settlement include cash or debit card payment, credit or direct billing transfer, or a combined settlement method. Cash Payment in Full. A cash payment in full at check-out will bring a guest account balance to zero. The front desk agent should mark the folio paid. As mentioned previously, front office policy may sometimes require the guest to present a credit card at check-in to gain charge privileges. A guest may have had a credit card imprinted at registration, even though he or she intended to settle the account using cash. The front desk agent should destroy the guest's credit card voucher created at registration when the

guest pays the account in full with cash. When the guest registers and the front desk agent establishes credit by obtaining a credit card authorization, in effect the credit card processing company commits to reserving projected funds for potential payment to the hotel. This practice reduces the amount of funds available to the credit card holder for other purchases. If the guest settles his or her account with another form of payment, it is essential that the funds being held for the hotel be released at check-out. Otherwise, the credit card processing company may reserve the funds for up to 30 days. This can be a burden to guests, and will result in complaints and dissatisfaction after the guest has departed the hotel. Debit card settlements are considered cash payments because the funds are drawn directly from the guest's checking or savings account. Banks issuing debit cards will not process a withdrawal transaction against the card unless there are sufficient funds in the account at the time of the transaction. Therefore, the hotel is assured of payment by the bank. Even though the guest's folio is brought to a zero balance, the amount due the hotel is normally transferred from the guest ledger to the city ledger until final payment is received. Guests desiring to pay in foreign currency should first convert their money to local currency. Settlements

are customarily handled in local currency only. Hotels often charge a fee to convert currencies, since banks charge hotels fees for currency conversion. Most front desk areas of major hotels display currency conversion rates for major countries, or have the rates readily available, based on information found in the financial section of a newspaper or through an online resource. Cash payments are the most likely to be involved in fraud by front desk agents. It is important that the hotel have procedures in place to record every cash transaction. Some hotels require that supervisors approve all cash settlements. This is to verify that the cash paid by the guest is actually put into the agent's cash bank. However, in most cases the folio indicates the cash payment, and guests verify the entry before they leave the front desk area. In addition, front desk agents should be trained on how to identify counterfeit currency, especially $20 and $50 bills, which are among the most common counterfeited. Credit Card Transfer. Even though credit card settlement brings a guest account to zero, the amount of the charge must be tracked until payment is actually received from the credit card company. Therefore, credit card settlement creates a transfer credit on the guest's folio and moves the account balance from the guest ledger to a credit card account in the city (or non-guest) ledger. After the front desk agent swipes the

card through a credit card reader, a payment slip is printed showing the transaction amount. The completed credit card slip is then presented to the guest for signature. In many hotels, the guest may be asked to sign a copy of the folio, acknowledging and agreeing to the credit card balance instead of receiving a payment slip to sign. In either case, the guest's signature completes this transaction. In many locations, imprinting vouchers is no longer necessary because the front office system sends the settlement transaction directly to the credit card company. When international guests present credit cards for payment, the credit card company always provides payment in local currency. Hotels do not have to worry about currency exchange rates or fees, since these rates are computed and processed by the credit card company. Direct Billing Transfer. Like credit card settlement, direct billing transfers a guest's account balance from the guest ledger to the city ledger. Unlike credit card settlement, responsibility for billing and collecting a direct billing lies with the hotel rather than an outside agency. Direct billings are not normally an acceptable method of settlement unless the billing has been prearranged and approved by the hotel's credit department before or during guest registration. To complete a direct billing settlement, the front

desk agent should have the guest sign the folio to verify that its contents are correct and that the guest will accept responsibility for all charges contained on the folio, should the direct billing account refuse payment. Then the hotel sends a bill to the direct billing account. Combined Settlement Methods. A guest may elect to use more than one settlement method to bring the folio balance to zero. For example, the guest may make a partial cash payment and charge the remainder of the account balance to a credit card. Front desk agents must accurately record the combined settlement methods and take care that all required paperwork is properly completed. Properly completed paperwork helps facilitate a front office audit. Once the guest has settled the account, the front desk agent should provide the guest with a copy of the folio and continue to be a goodwill ambassador for the hotel. Checkout and account settlement are among the last opportunities the front office staff has to convey hospitality. The front desk agent should take full advantage of this opportunity. For example, the agent should ask if everything at the property met the guest's expectations, especially the guestroom, facilities, and service areas. Check-out and account settlement is an excellent time for the agent to let the guest know that the hotel cares about the quality of the guest's hotel experience. Many front offices provide guests with comment

cards at check-out, hoping that guests will provide an evaluation of the hotel's effectiveness. The front desk agent should always thank guests for staying at the hotel and wish guests a safe trip. The front desk agent should also ask guests to consider returning to the property during a return trip to the area. Sometimes guests may settle their account before check-out time and not leave the hotel. For example, a guest may go through the check-out process at 8

A.M.

but will be in a

meeting at the hotel until noon. Such a guest will not be able to post additional charges to his or her account, since the account was closed at check-out. This can be an inconvenience or embarrassment for some guests. For this reason, front desk agents should verify that guests are actually leaving the hotel upon completion of check-out, and, if they are not, let them know that they will not be able to post additional charges to their account.

LATE CHECK-OUT

Guests do not always check out by the hotel's posted check-out time. To minimize late check-outs, the front office should post check-out time notices in conspicuous places, such as on the back of all guestroom doors and in a prominent location at the front desk. A reminder of the check-out time can also be included

in any pre-departure materials distributed to guests expected to depart on the current day. Late check-outs can be a problem for some hotels and resorts. Guests may wish to stay the full day on their last day and use the meeting and recreational facilities of the property, including their room. It is important to properly communicate and tactfully enforce the check-out time in order to give the housekeeping staff enough time to prepare the room for arriving guests. Some hotels authorize the front desk to charge late check-out fees. A guest will probably be surprised to find such a fee on the folio, especially if he or she is not familiar with the hotel's check-out policy. Whenever a guest inquires about a late check-out, the front desk agent should inform the guest of the hotel's policy regarding late check-out charges. Some guests may resent being charged an additional expense and refuse to pay. Front desk agents should approach such situations calmly, offering a well-reasoned explanation for the late check-out fee policy. A front office manager may need to be summoned to discuss and resolve the matter with the guest. Front office staff should not be apologetic about the late check-out fee. The hotel's check-out time is carefully selected, not arbitrarily set. It is not intended to inconvenience guests. As just mentioned, management establishes a check-out time so that the housekeeping department will have sufficient time to