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Check-out & Settlement in Front Office
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- 2. INTRODUCTION What is Settlementand three stages of the same.
- 3. •It is thelast 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 whenthe 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 tobe 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 personaland 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 •ReservationIndex 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 toensure 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 withsoftware •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 ispresented 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 CHECKOUT 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 •Checkall 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 •Useguest 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 BILLTO COMPANY (DB/ BTC) PERSONAL CHEQUE CREDIT CARDS LOCAL CURRENCY, FOREIGN CURRENCY, TRAVELERS CHECQUE, DEBIT CARDS CASH PAYMENT MODES OF PAYMENT
- 24. CASH TRANSACTIONS •Full paymentwill 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 •Countthe 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 •ForeignExchange 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 •ForeignCurrency 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 acceptedcheque 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 •Shouldnot 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 •Creditcard 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 beginswith 4 & have 13-16 digits
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- 36. American Express card beginswith 3, followed by 4 or 7, & has 15 digits
- 37. Diners Club begins with3, followed by 0, 6, 8 & have 14 digits
- 38. Discover Card begins with6 & have 16 digits
- 39. Direct Bill orBill to Company Travel Agent Voucher OTHER MODES Personal Cheques Demand Drafts Combined Settlement Methods Online Payments & UPIs
- 41. LATE CHECK OUT •Checkout 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 postedafter 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 byback 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?
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- 45. •Settling the billsin 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 automatedhotels 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
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