Check-out & settlement procedure in hotel front office

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 final\4th stage of Guest Cycle. The services and activities of the departure stage are performed mainly by Front Office Cashier & Bell Boy.

3. 4 Stages of Guest Cycle

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 LAN\WAN\MAN.

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

8. Adding Machine Tape

9. 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

10. 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

11. 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.

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

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

14. 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

15. 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

16. 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

17. 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 Balance: Rs 00.00

18. 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.

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

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

21. 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.

22. 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

23. Modes of Payment

24. Cash Mode

25. 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

26. 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)

27. 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

28. 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.

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

30. 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 (100\500\1000) 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.

31. Specimen of Travellers’Cheque

32. Travellers’ Cheque are not popular any more!

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

34. Personal Cheque

35. 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.

36. 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.

37. 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-in\check-out. Any personal expense (incidentals) has to be paid by executive herself.

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

39. Latest Methods of Payment in India Banking Cards (Debit / Credit / Cash / Travel / Others) Banks Pre-paid Cards Point Of Sale Machine (EFTPOS) Internet Banking Mobile Banking Micro ATM

40. Modes of Digital transactions- India

41. 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.

42. 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.

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

44. 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/

45. 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.

46. 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.  

47. Self Check-Out Terminal

48. 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!

49. 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

50. 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

51. 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 survey\feedback form Update guest history file

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

53. 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

54. 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

55. 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)

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