Check Out & Settlement in Front Office Stages of Settlement of accounts Types of Accounting Systems Check Out Concerns Check Out Process Mode of Payment Self Check Out Express Check Out

1. CHECK OUT
&
SETTLEMENT
By Arpendra Chauhan

2. INTRODUCTION
What is Settlement and three
stages of the same.

3. •It is the last stage of the guest cycle
•Departments involved are Front Desk &
Bell Desk
•Outstanding guest balance is cleared
•Room status information is updated
•Guest history card is created

4. ●Done efficiently when the guest is in the hotel
●Payment can be done by cash, credit card or both
●MOP to be collected at the time of booking
●This quickens the check out process
●Prior information helps in verification of credit card
●Enhances hotel’s ability to collect outstanding balance
SETTLE GUEST ACCOUNT BALANCE

5. ●Information needs to be updated that the guest has
checked out
●Housekeeping department is informed of the departure
●Housekeeping cleans & readies the room for inspection
●Front Office must maintain exact occupancy to maximize
the sale
●Housekeeping status must be updated accurately & quickly
UPDATE ROOM STATUS INFORMATION

6. •Collection of personal and financial data
•Contains data related to the guest who stayed
•Helps to better understand the guest
•Helps to better understand the guest trend
•Provides a base to strategic marketing
•Manually created using Registration Card
•In PMS, stay details are automatically updated
•Preferences need to be updated manually
GUEST HISTORY RECORDS

7. TYPES OF
ACCOUNTING
SYSTEM
Manual, Semi-Automated, Automated
System & process for the same

8. MANUAL SYSTEM
•Handwritten forms
•Reservation Index Cards
•Registration Cards
•Time Stamp
•Room Rack HK status of each room
•Voucher from each POS
•Charges handwritten to folios
•Cross check of folio charges to voucher and
verifying during night audit

9. •Challenge is to ensure that charges reach
front office before check out
•Ask guest to visit again
•Housekeeping & POS informed about the
departure
•Room rack is updated with vacant status
•Arrival register is updated
•Departure register is updated
•Guest history card is updated & stored
MANUAL SYSTEM CHECK OUT PROCESS
•Challenge is to ensure that charges reach
front office before check out
•Timely communication, prompt response
& updating documents is required
•Bell boy is sent to the room for luggage &
room check
•Departure errand card is filled by the bell
boy
•Departure notification slip is sent to all the
Point of Sale
•Last minute expenses to be added to the
account
•Guest comes to the lobby, surrenders key,
verifies bill
•Final bill is settled

13. SEMI-AUTOMATED SYSTEM
•Handwritten & machine produced forms
•National reservation network
•Pre-registration activities
•Density board is blocked with reserved
rooms
•Registration card is printed
•Room rack is updated with housekeeping
status
•Vouchers received from POS
•Posting machines records charges to guest
folio
•Cross check folio charges to voucher &
verify during night audit

15. AUTOMATED SYSTEM
•Equipped with software
•Online credit card authorization terminals
•Electronic guest folios
•Electronic posted guest folios
•Process continuous debit & credit entries in the
guest account
•Automatically produces bills
•Create guest history records

16. •Final bill is presented to the guest for
signature & approval
•Payment received as per the pre-agreed
mode
•Luggage out pass is issued
•Departure is communicated to HK
•Front Office records are updated
automatically
•In house occupancy list
•Room status
•Guest history card
AUTOMATED SYSTEM CHECK OUT PROCESS
•Computers are used in all departments
•All computer are connected to each other
•Automatic transfer of data
•Faster, accurate & efficient system
•Bell boy transfer luggage & inspects room
•Departure is communicated to all POS
through network
•Credit transactions updated automatically

18. ASSIGNMENT
Check-In
Occupied
Complimentary
VIP
Stayover
On-Change
DND
Sleep Out
Skipper
Sleeper
Vacant & Ready
OOO
Lock Out
Due Out
Check Out
Late Check Out

19. CHECK OUT- CONCERNS, PROCESS,
MODE OF PAYMENTS

20. CONCERNS AT CHECK OUT
UPDATED & ACCURATE ACCOUNTS ARE IMPORTANT
Guest’s point of view
•Need accurate & latest information anytime during stay
•Need quick & speedy service; less waiting time at check out
•To avoid disputes & discrepancies at check out
Hotel’s point of view
•Provide accurate information anytime during stay
•Avoid misunderstanding, disputes & losses to hotel
•Ensure speedy check out & less waiting
•Reassure guests of efficiency & accuracy in accounts
•Minimize losses or inconvenience of late charges to follow
up

21. PRIORITIZE AND ORGANIZE
WORK
•Check all expected departures to
manage staff accordingly
•Prepare documentation in advance
helps in identifying account errors &
rectification before check out
•Know names and room numbers for
personal touch
•Deal with one account at a time
•Ask for assistance if there is too
many people lined up
•Secure storage of all accounting
information
•Secure PMS accounts applications
•Avoid inaccurate transactions
•Do not make mistakes in billing
•Keep guest information confidential
•Always sign out while leaving the work
desk
SECURITY CONCERNS
(FO STAFF)

22. CHECK OUT PROCESS
•Use guest name & greet with smile
•Confirm name & room number
•Ask about how the stay was
•Check departure date
•Other departments to be informed
about early departure
•Check if any LCO charges to be
applied
•Check for any last minutes
consumption charge
•Handover the guest folio/ master
folio to the guest
•Complete the settlement of accounts
•Collect the room keys, empty safe deposit
locker
•Check if any HK items have been returned
•Offer assistance of bell desk for luggage
•Ask if they would like to make any future
reservation
•Update the room status in PMS
•Own accounts/ Individual accounts are
settled by guest directly- Currency notes,
travelers cheque, credit card etc.
•Company accounts are settled by
companies & TA’s city ledger (voucher email
for guarantee)

23. TRAVEL
AGENT
VOUCHER
DIRECT BILLING
OR BILL TO
COMPANY (DB/
BTC)
PERSONAL
CHEQUE
CREDIT
CARDS
LOCAL CURRENCY, FOREIGN
CURRENCY, TRAVELERS
CHECQUE, DEBIT CARDS
CASH PAYMENT
MODES OF
PAYMENT

24. CASH TRANSACTIONS
•Full payment will zero out the balance at check out
•Balance will be refunded if there is credit balance
•Balance will be collected if there is debit/ outstanding
balance
•Guests whose MOP is cash need to provide advance
deposit
•Guest goes on NO POST if no deposit is provided
•POS cannot post charges in the guest account id the room
is on No Post

25. Local Currency Procedure
•Count the cash in front of the guest
•Take time to ensure accuracy
•Keep the amount given, outside cash drawer until
transaction is complete
•Keep cash with bills separated by denominations
•Count the change out loud
•Change, receipt or voucher to be given to the guest
•Follow one transaction at a time procedure

26. Foreign Currency Procedure
•Foreign Exchange Management Act
(FEMA)
•Hotel has to get authorized from RBI
•Only Front Office department is
authorized to accept foreign currency
•Accepted only for in house guest
•For NR guest, approval/ authorization
need to be obtained
•License is required to sell foreign
currency
•Balance can be returned in foreign
currency only if the hotel has a license
•To exchange, confirm room number &
passport details
•DM to be contact for NR guest foreign
exchange
•Mostly notes are accepted, not coins
•Check the current exchange rate in the
system
•Calculate bill or folio charges in foreign
currency then accept the same
•Calculate amount to be returned in
local currency

28. Foreign Currency Procedure
•Foreign Currency Encashment Certificate to be filled with details like
•Amount received, exchange rate, local currency amount returned,
passport etc.
•Original copy to be given to the guest
•Second copy to be attached with notes
•Third copy left in the books for records
•Cashier report/ cash sheet to be updated
•Guest to sign the transaction folio for proof
•Foreign Currency Control Sheet to be filled

30. Travelers’ Cheque
•Internationally accepted cheque in specific
currency
•Can be exchanged elsewhere for local
currency
•Issued by various banks in various
denominations
•It is as good as cash
•Safe & avoid risk of carrying cash in large
amounts
•Bank charges commission/ handling charges
•Only the travelers cheque holder can get in
encashed
•Could be time bound or without expiry date
•Buyer has to sign the travelers cheque in
presence of the bank manager
•Counterfoil- Serial number, date issued,
amount, signature of bank authority etc.
•Loss or theft- file a FIR and inform the bank
with counterfoil
•If not encashed, bank will payback the
money
•Receipt issued while buying the cheque
should be kept safely

32. Travelers’ Cheque Procedure
•Should not be changed or damaged in any way
•Identity should be confirmed and cross checked
•Counter sign to be taken on travelers cheque and match with the
original one
•If it is already signed, ask the guest to sign again
•Always check the exchange rate
•Encashment certificate to be signed by the guest

33. Credit Card Transactions
•Credit card and debit cards are also called as plastic money
•Credit cards came into existence in 1930
•Issuing institution gets commission & fee from shops, hotels
and cardholders
•Front side contains credit card holder’s details, credit card
number, expiry date
•Back side contains magnetic strip
•EDC (Electronic Data Capture) and EFTPOS (Electronic Fund
Transfer at Point of Sale)
•Credit card have charging limit called Floor Limit
•Bills are settled on monthly basis
•If not paid on time, it can be paid later with higher rate of
interest

34. Visa Card begins with
4 & have 13-16 digits

35. Mastercardbegins
with5&have16digits

36. American Express
card begins with 3,
followed by 4 or 7, &
has 15 digits

37. Diners Club begins
with 3, followed by 0,
6, 8 & have 14 digits

38. Discover Card begins
with 6 & have 16 digits

39. Direct Bill or Bill to
Company
Travel Agent Voucher
OTHER
MODES
Personal
Cheques
Demand
Drafts
Combined
Settlement
Methods
Online
Payments &
UPIs

41. LATE CHECK OUT
•Check out time should be confirmed
with the guest at check in
•Standard check out time should be
conveyed at check in
•Check out time should also be written
on RC & room key
•Hotels charge late check out charges
•LCO should be confirmed at check in
stage
•Standard time is set so that the room
get ready on time
•Guest can keep luggage in the luggage
room
•Front Office staff also confirm the LCO
charges, if any
•It’s a loss of revenue if the guest does
not pay LCO charges
•Rooms don’t get ready on time for
arrivals
•Arrivals have to wait for check in

42. LATE CHARGES
•Charges posted after the guest has checked out
•Individual department did not post it or forgot about it
•Restaurant, telephone, room service, minibar, etc.
•Doesn’t usually happen when PMS & POS are interconnected
•Majorly happens with manual postings
•Front Office usually follows up with the guest
•Transactions to be posted at the same time of consumption
•Front Office should check their area & PMS for any unposted charges
•Ask the guest for any last minute consumption
WHAT IS A PM ACCOUNT?

43. CITY LEDGER
•Handled by back of the house accounts/ finance team
•Also called as house ledger
•Accounting method for tracking non-guest transactions
•Companies or travel agents who have credit facility with the hotel
•Skippers
•Disputed bills
•No show retention
•Late check out charges for the guest who left before the charges could get posted
•Any pre-payment or advance deposits
WHAT IS A BILLING POLICY?

44. SELF
CHECK
OUT &
EXPRESS
CHECK
OUT

45. •Settling the bills in prior to the actual check
out date
•Mostly done a night prior to the actual check
out date
•The final bills can be slipped under the door
•The guest can also directly approach the
front desk to settle
•Early Check Out saves time and avoids delay
•Guest just signs the early check out forms &
authorizes the front desk to charge his credit
card
•Front office will charge the credit card, take
signature on the slip
WHAT IS EXPRESS CHECK OUT
PROCEDURE?
EXPRESS
CHECK OUT

46. •Only fully automated hotels have this facility
•Check out machines are interfaced with
the PMS
•The machine is usually like a ATM
•Some hotels also have a audit & video
facility
•Only credit card transactions are
allowed
•Guest checks the folio & inserts the
credit card
•Credit card gets charged for the specific
amount
•Account statement is printed and
dispersed
•Room status gets updated
automatically in PMS
•Guest history records is created
automatically
https://youtu.be/HniXEyMGESI
SELF
CHECK OUT

48. QUESTIONS?