the procedure to handle check-outs and settlements. Contains forms and documents.

1. Welcome to a
new learning
session!
Knowledge is Money.

2. Check-out and settlement are, part of
the final4th stage of Guest Cycle.
The services and activities of the
departure stage are performed
mainly by Front Office Cashier & Bell
Boy.

3. • Stay• Departure
• Arrival• Pre-Arrival
1 2
34

4. The Front Office performs at least
3 important functions during the
check-out and settlement process.
- It resolves outstanding guest
account balances.
-It updates room status
information.
-It creates Guest History Cards.

5. Account Balance
General ledger account. In accounting, the account
balance is the current residual balance in
an account. Under this definition, an account is
the record, in a system of accounting, in which a
business records debits and credits, as evidence
of accounting transactions.
Thus, if the sum total of all debits in an asset
account is $1,000 and the sum total of all credits
in the same account is $200, then the account
balance is $800. An account balance can be
found for any type of account, such as a
revenue, expense, asset, liability, or equity
account.

6. Types of Accounting System
Manual- Procedure done with pen &
paper & manpower.
Semi-Automatic- a computer &
electro-mechanical devices like cash
register.
Automatic- computers networked
through LANWANMAN.

7. Non-Automated Front Office Systems
 Handwritten forms
 Reservation index cards
 Density board blocked (reserved) rooms
 Registration cards
 Time stamp
 Room rack- housekeeping status of each room
 Vouchers received from point-of-sale areas
 Charges handwritten to folios
 Adding machine tape attached at check-out
 Night audit cross-checks folio charges to voucher
and, verified settlement

10. Semi-Automated Front Office Systems
 Handwritten and machine-produced forms
 National reservation network
 Pre-registration activities
 Density board blocked reserved rooms
 Registration cards -preprinted and multiple copies
 Room rack -housekeeping status of each room
 Vouchers received from point-of-sale areas
 Posting machines record charges to guest folios
 Night audit cross-checks folio charges to vouchers
and verifies settlement

11. Fully Automated Systems
 Equipped with a software package (PMS)
 Online credit authorization terminals
 Electronics guest folios
 Electronically posted guest accounts
 Process continuous trial balance
 Automatically produce bills
 Create guest history records

12. Check-Out: Manual System
Here, the challenge is to ensure that all
charges, from all revenue departments,
reaches FO before guest leaves the
hotel.
Timely communication, prompt response
and accurate up-dating of necessary
documents is the key to an efficient
check-out process.

13. Manual Check-Out: Steps
1. Check-Out Request received from guest.
2. Bell Boy sent to room for luggage & room
check.
3. Departure Errand Card filled by Bell Boy.
4. Departure Notification Slip sent to all P-O-S.
5. Last minute expenses of guest added to their
account.
6. Guest comes down, surrenders room key and
verifies accuracy of bill.
7. Final bill is paid (settled) by the guest.

14. Manual Check-Out: Steps
8. Luggage-Out Pass (No Dues Pending) issued
to permit guest to leave the hotel.
9. Marketing activity is done including future
booking.
10.All departments, especially HK & P-O-S, are
informed about the guest departure.
11.Room Rack is up-dated with vacant status.
12.ArrivalDeparture register is up-dated.
13.Guest History Card is created and stored for
future use.

15. HOTEL IHM
Departure Errand Card
Reception Cashier Information Departure date
& time
Room no.
Bell boy name: Call time:
Name of the guest: Room no.:
Articles Count
Suitcase Hand bag package briefcase Overcoat
others
Baggage brought down by Baggage loaded by
signature signature

16. Hotel IHM
Departure Notification Slip
Department (Point-of-Sale):………………………
Reception:…………………
This is to inform you that the following guest is departing from the hotel. Kindly rush
the credit charges to the front desk.
Name of the guest:………………….
Room no..…………………………..
Date of departure:…………………..
Time:……..………………….
Authorized signatory

17. HOTEL IHM
Luggage out pass
No. 0024500786
Name of the Guest:…………………………………….. Room
no.:…………………………
Date of departure:……………….........
Time:……………………….
Bill no.:…………………………….
Billing settlement
Complete Partial Corporate Settlement
other…………………………………
…………………………………………………………………………………………………………………………………
……………….
Authorized signatory Date

18. Hotel IHM
Guest Folio
Name of the guest : Mr. Aditya Roy
Date of arrival: 25 April 2018
Date of departure: 26 April 2018
Number of Pax: one
Room no.: 210
Rate: Rs 5,000
Folio no.: 21786
Date Item Description Debit Credit
25/04/2011 1 Cash 6,500
25/04/2011 2 Room 5,000
25/04/2011 3 Dinner 500
25/04/2011 4 Gazal bar 800
25/04/2011 5 Breakfast 300
25/04/2011 6 cash 100
Amount to be settled by the guest: Nil

19. Departure Procedure: Automatic
Automated systems have computers in all
departments, all computers are connected
to each other, and data flows between all
computers with the click of a button.
Because of automatic transfer of data, this
system is faster, accurate and efficient.

20. Check-Out Steps: Automatic System
1. Check-Out request received.
2. Bell Boy to transfer luggage and inspect room.
3. Departure communicated to all P-O-S through
network.
4. Credit transactions up-dated to guest account
automatically.
5. Final bill, with supporting documents presented
to guest for approval and signature.

21. Check-Out Steps: Automatic System
6. Payment received as per the pre-agreed mode.
7. Luggage-Out Pass issued.
8. Departure communicated to all departments.
9. Front Office records are automatically up-dated:
Occupancy List of in-house guests
Room status
GHC

22. HOTEL IHM
Guest History Card
Sl. no. 000786
Name:………………………………………………
Company:…………………………………………
Designation:…………………………………….
Address:..………………………………………..
Credit:……………………………………………..
Date of Birth:..………………………………….
Marriage Anniversary:…………………….
S.No Arrived Room Rate Departed Amount Special
Instructions
Remarks
1.
2.
3.
4.
5.

23. Room Status Terms
 Check-in
 Occupied
 Complimentary
 VIP
 Stay-over
 On-change
 Do-not-disturb
 Sleep-out
 Skipper
 Sleeper
 Vacant and ready
 Out-of-order
 Lock-out
 Did-Not-Check-Out
 Due out
 Check-out
 Late check-out

24. Modes of Payment
Currency
Notes
Travellers'
Cheque
Personal
Cheque
Demand
Draft
Debit
Card

25. Local Currency
•India
Foreign Currency
•World

26. Credit Mode of Payment
Credit
Card &
Charge
Card
Travel Agent
Voucher
& MAO
PSO
Corporate
BillingBill to
Company
Letter

27. Top 10 Credit Card Companies (2018)
1. Visa — 323M Cardholders
2. MasterCard — 191M Cardholders
3. Chase — 93M Cardholders
4. American Express — 58M Cardholders
5. Discover — 57M Cardholders
6. Citibank — 48M Cardholders
7. Capital One — 45M Cardholders
8. Bank of America — 32M Cardholders
9. Wells Fargo — 24M Cardholders
10. US Bank — 18.5M Cardholders

28. How Charge Cards Work?
“Charge Cards are not Credit Cards, but they do
offer another form of Card payment. They have
no pre-set spending limit, but that does not mean
unlimited spending. Your purchases are approved
based on a variety of factors, and as we get to
know your spending patterns, we’ll adjust how
much you can spend on your Card.”
“you to pay the amount you have charged to the
Card, in full, every month.” (American Express)

29. Here Are The Best Charge Cards In 2018:
Best For... Card Name
No 1st Year Fee -Premier Rewards Gold Card
from American Express
Luxury Travel -The Platinum Card®
from American Express
Business -The Business Gold
Rewards Card from American Express OPEN
Low Annual Fee -American Express®
Green Card

30. Payment by Foreign Currency
All foreigners have to pay in foreign currency.
Passport is asked for, to confirm identity.
Currencies are accepted as per RBI guidelines
and daily exchange rates.
A Currency Encashment Certificate is issued
as proof.
All exchange transactions are recorded on
Control Sheet.
There are two types of licenses; Buy & Sell.

31. Hotel IHM
Foreign Currency Control Sheet
S.
No
Date Name
Of
Guest
Nationality Passport
No.
Foreign Currency Rate Value in
Rupee
TermsPound
Sterling
US
Dollar
Euro Other

34. Travellers’ Cheque
Traveller's cheques are special cheques that
you can exchange for local currency when
you are abroad.
a cheque in any of various denominations
(1005001000) sold for use abroad by
a bank, etc, to the bearer, who signs it
on purchase, and can encash it by signing
it again.
Can not be stolen and misused.

37. Common Cash Modes
• Personal Cheque- not generally
accepted, except from frequent
guests.
• Demand Draft
• Debit Cards

41. Credit Mode
A credit card is a plastic card that you use
to buy goods on credit.
There are expenditure limits called Floor Limit.
Credit card purchase, if not paid to the bank
within 30 days, will incur an interest of 2% per
month.
Do not accept stolen, damaged or expired card.
Swipe through EFTPOS for authorization.

43. Travel Agent Voucher
A pre-paid travel arrangement, made by a
licensed travel agent, for a client in that city.
The details of services is mentioned on the
voucher.
Guest presents it to the hotel to redeem
(claim) his entitlement.
Hotel sends the bill to TA.
TA sends the payment, after taking his pre-
fixed commission.

45. Bill-to-Company Letter (BTC)
Just like TA voucher, a company issues a letter,
authorizing the executive to avail room, food etc.
at a hotel.
Bill is sent to the company for payment, after the
executive has verified and signed it at check-Out.
Identity of the executive is established at check-
incheck-out.
Any personal expense (incidentals) has to be paid
by executive herself.

48. Advance Modes of Settlement
1. Real Time Gross Settlement (RTGS)
2. National Electronic Funds Transfer (NEFT)
3. Unstructured Supplementary Service
Data (USSD)
4. “Aadhaar” Enabled Payment System
(AEPS)
5. Unified Payments Interface (UPI)
6. Mobile Wallets

49. Latest Methods of Payment in India
7. Banking Cards
(Debit / Credit / Cash / Travel / Others)
8. Banks Pre-paid Cards
9. Point Of Sale Machine (EFTPOS)
10.Internet Banking
11.Mobile Banking
12.Micro ATM

51. Common Check-Out Problems
Late Check-Out: Guest leaves after
check-Out time i.e. 12 Midday.
Long Queue at Check-Out: Delay in
settlement
Improper Charges being posted:
Disputed entry in guest account.

52. Solutions to common Problems
Late Check-Out:
 Remind guest at check-In about timings.
 Display check-out time on Key Card & at the back
of the door in guest room.
 Charge Late Check-Out Fee.
 Offer to keep luggage in safe custody for free.
(Left Luggage Room)
 For Groups, offer free Hospitality Rooms.

53. Solutions to common Problems
Long Queue at Cash Counter:
Express Check-Out.
Self Check-Out.

54. Express Check-Out allows you to checkout of
your Disney Resort hotel without having to
return to the Front Desk. The credit card you
used at check-in is billed for your charges or
purchases during your stay, and a copy of your
bill appears under your door on the morning of
your departure.
Hotel Express Checkout | FAQ | Disneyland
Resort
https://disneyland.disney.go.com/faq/
hotels/express-check-out/

55. Self Check-Out:
In some hotels guests can check
themselves out of the hotel by
accessing self check-out terminals in
the lobby area or by using an in
room system.

57. To use self check-out terminal, the
guest access the proper folio and
reviews its contents.
Guest may require to enter a credit
card number by using keypad, or by
passing credit card through a
magnetic strip reader attached to the
terminal.

59. Disputed Charges
This should not occur in the first place.
If the amount is small, then cashier may pass
an allowance voucher, to quickly adjust.
For bigger charges, approval from higher
authority and Financial Controller may be
needed.
All is well that ends well!

61. Check-Out/Settlement Process Recap
Resolves outstanding guest account balances
Verifies/authorizes method of payment
Resolves discrepancies in account balances
Updates room status information
(from occupied to on-change)
Creates guest history records
Creates database for strategic marketing

62. Departure Procedures
Inquire about additional, recent charges
Post outstanding charges in account
Verify account information
Present guest folio (account summary)
Verify method of payment
Process payment
Check for mail, messages, faxes

63. Departure Procedures
• Check for safe deposit box or in-room safe keys
• Secure room key/keycard
• Update room’s status
• Inquire about guest’s stay and experience
• Request that guest complete a guest satisfaction
surveyfeedback form
• Update guest history file

64. Methods of Settlement
• Cash payment in full
• Credit card transfer
• Direct billing transfer
• Combined methods

65. Delayed Payment Accounts go to City
Ledger Accounts
• Credit/debit card billings
• Direct billings
• Travel agency accounts
• Bad check accounts
• Skipper accounts
• Disputed bills
• Guaranteed reservations “No-Show”
accounts
• Late charges accounts
• House accounts

66. Guest History File
• Helps managers understand guests needs
• Helps managers determine guest trends
• One of last steps in check-out and account
settlement process
• Helps hotel provide personalized guest service
• Marketing and sales division uses them to
create mailing lists
• Helps managers determine the geographic
distribution of guest addresses, which helps in
targetted advertising efforts

67. Marketing Follow-Through at Check-
out (Post Departure)
• Tracking guest stays for frequent-guest/
traveler programs
• Verifying guest’s club membership
status
• Providing guest comment cards
• Making reservations for departing
guests (for the next stop, or for future
trips)

70. Compilation & Presentation
Praveen Jha
Senior Faculty
IHM Hajipur
Vaishali, Bihar