FRONT OFFICE NOTES

SECTIONS/DIVISIONS OF FRONT OFFICE

• Reservation
• Reception
• Mail and Information Desk
• Front office cashiering or Cash and Bills
• Guest relations
• Night audit
• Telephone
• Uniformed Services
Bell Attendants/Porters
Door Attendants
Valet /Parking Attendant
Concierge
a. Reservation
The reservation section of the front office department of a hotel is responsible for receiving and
processing reservation queries.
The staff include reservations manager and reservation clerks.
The supervision manager or supervisor organizes the staff duty rotas, establish standards of work
and make decision on whether to overbook or not.
Reservation clerks take the books which maybe made by telephone, fax, mail or e-mail.
They also keep reservation records, follow up with guests to confirm or guarantee their bookings
and on daily basis make a list of expected guests to the reception
b. Reception/Front Desk
This section of the front office receives and welcomes guests on their arrival in the hotel. The
personnel of this section procure all the necessary information about the guest to complete the
registration process.
The staff include reception manager or supervisor and receptionists.
The supervisor prepares duty rotas, handles guest complaints and receives VIP guests
Functions of Reception:
 The following functions are performed by the reception section of a hotel:
 Receiving and welcoming guests.
 Completing the registration formalities.
 Assigning the room.
 Sending arrival notification slips to the concerned departments.
 Keeping record of status of each room in the hotel.

c. Mail and Information desk

As the name suggests, the mail and information desk provides information to guests.
In a small hotel, the same function may be performed by the receptionist.
The need of a separate information desk is felt in large hotels where the traffic of guests is
higher.
Some of the functions of the information desk are as under:
Maintaining resident guest rack.
Handling guest room keys.
Co-ordinating guest mails, telegrams, faxes, couriers, parcels, etc.
Dealing with guest visitors
Providing information to guests regarding hotel facilities and services, city information, etc.
Handling guests messages.
d. Cash and Bills Section
This is under the front office cashiering supervisor who is in charge of all the cash and methods
of payment by guests as welll as the supervision of the work of the front office cashiers. In some
hotels may report directly to accounts manager, rather than the front office manager.
The cash and bills section records all the monetary transactions of guests. It maintains guest
folios and prepares the guest bills to be settled by the guest at the time of departure.
Functions of the Cash and Bills Section
• Opening and maintaining of guest folios.
– Posting room charges and recording all credit charges in guest folios.
– Maintaining a record of the cash received from guests.
– Preparing bills at the time of check-out.
 – Receiving cash/TC/demand draft for account settlement.
– Handling credit/debit/charge cards for the settlement of a guest account.
– Organizing foreign currency exchange for the settlement of a guest account.
e. Night Audit
The front desk may have separate team of staff at night performing night audit duties.
In the night the front desk is fairly quiet thus better time to verify guest folios.
Functions of the night audit include:
Checking and Completion of guest and hotel accounts
Balancing the hotel revenue figures and producing statistics and summaries of hotel revenues for
management.
f. Telephone Section/Communication desk
This section is under the telephone supervisor and telephone operator for both day and night
operation.
The communication section maintains the communication network of the hotel, which is
generally quite complex. The hotel may have its own private branch exchange (PBX), along with
post and telegraph lines.
Functions of Communication Desk :
Answering incoming calls.
Directing calls to guest rooms through the switchboard/EPABX
Providing information on guest services
Processing guest wake-up calls
Answering inquiries about hotel facilities and events
Protecting guests’ privacy
Coordinating emergency communication

g. Uniformed Service
 Generally provide the most personalized service in a hotel
 The primary positions within the uniformed service department are:
 Bell Attendants/Porters
 Transport guest luggage to & from guest rooms
 Familiarize guests with the guest room & fill the ice bucket
  Provide a safe place to store guest luggage if the guest
arrives early & cannot get into his or her room, or if the
guest checks outs in the morning but has to stay at the hotel
for an afternoon or evening meeting
 Provide information on hotel services & facilities to guests
& visitors
 Deliver mail, packages, messages, & special amenities to
guest rooms
 Pick up & deliver guest laundry & dry cleaning
 Perform light cleaning in lobby & entry areas
 Help guests load & unload their cars when a door
attendants not present

 Door Attendants
 Opening car doors & assisting guest in &
out of their vehicles
 Helping guests load & unload their car
 Escorting guests to the hotel entrance
 Opening hotel entrance doors for guest &
visitors
 Hailing taxis
 Providing valet parking service when valet
parking attendants are not available
 Performing light cleaning in the motor
vehicle entry area

 Valet Parking Attendants

 Responsible for the security of guest vehicles
 Vehicle keys must be kept in a secure area, & issued only
by qualified personnel
 Cars not issued to guests or visitors without proper
documentation
 Help keep the motor entrance area is running smoothly by
providing quick service to incoming & outgoing guests &
visitors

 Concierge
  Provide security & traveled ahead of the royal party to
make food & lodging arrangements
 Making reservations for dining, obtaining tickets for theater
`& sporting events, arranging for transportation by
limousine, airplane or train & providing information on
cultural events & local points of interest

FRONT OFFICE EQUIPMENT

1. Communication Equipment

 Telephone Systems: Used for both internal communication within the hotel and external
communication with guests, suppliers, and other stakeholders.
 Radios/Walkie-Talkies: Used by bell staff, security, and maintenance for immediate
communication across the hotel premises.

2. Computer Systems and Software

 Property Management System (PMS): Centralized software used for managing

reservations, check-ins and check-outs, room assignments, billing, and guest profiles.
 Customer Relationship Management (CRM) Software: Helps in managing guest
interactions and data throughout the guest lifecycle, enhancing personalized services.
 Booking Engines: Integrated with the hotel’s website, allowing guests to make
reservations online.
 Channel Managers: Manage room inventory and rates across multiple online travel
agencies (OTAs) and booking platforms.

3. Front Desk Equipment

 Check-in Kiosks: Self-service kiosks that allow guests to check in and out, often
reducing wait times and improving efficiency.
 Key Card Systems: Electronic systems for issuing, managing, and disabling key cards
for guest rooms.
 Cash Registers and POS Systems: Used for processing payments, managing
transactions, and maintaining financial records.
 Printers and Scanners: For printing guest bills, receipts, reservation confirmations, and
scanning documents.
 Credit Card Terminals: For processing card payments securely and efficiently.

4. Office Equipment

 Desktop Computers and Laptops: For front office staff to perform various
administrative tasks, manage reservations, and communicate with guests.
 Fax Machines: Though less common now, still used in some hotels for sending and
receiving documents.
  Photocopiers: For copying important documents and guest information.
 Stationery Supplies: Includes items like pens, paper, notepads, and envelopes for
everyday administrative tasks.

5. Guest Service Equipment

 Luggage Trolleys/Carts: For transporting guests' luggage to and from rooms.

 Umbrellas: Provided to guests for use during inclement weather.
 Maps and Brochures: Available at the front desk for guests to explore the local area and
attractions.
 Concierge Desk Tools: Items like city guides, reservation books, and ticketing systems
for booking events, tours, and restaurants.

6. Security Equipment

 Surveillance Cameras: Installed in public areas for security monitoring and ensuring
guest safety.
 Safes: For securely storing guests’ valuables and important documents.
 Emergency Communication Systems: Equipment for contacting emergency services
and communicating with guests and staff during emergencies.

7. Digital Displays and Signage

 Digital Signage: For displaying information about hotel services, events, promotions,
and local attractions.
 Electronic Directory Boards: Providing guests with information about room locations,
amenities, and hotel services.

FRONT OFFICE STRUCTURE

The front office structure can be viewed in two ways:

a. The physical setup
b. Operational structure of the department.
Physical Setup of Front Office

The physical setup includes key-hanging boards, bell desk and guest-mail handling
register. The front desk is equipped with various compartments, the computerized
property management system, and an in-house communication system.

Positioning the Front Desk

The front desk is where the guests temporarily await to find an accommodation or to clear
their bill. Hence, it needs to be positioned appropriately such that the staff and the guests
can use them conveniently.
The front desk needs to be:
 Positioned at an adequate height and reach.
 An adequately lit-up area.
 Aesthetically furnished.
 Preferably near the hotel lobby and lift.
 Preferably near the sitting area.
 Wide enough to make the staff member communicate with the guests across the
desk.
3. Front Office – Structure
Operational Structure of Front Office
There are lot of staff working under front office manager. The structure of the front office
department changes according to the size of the hotel business, physical size of the hotel,
and the hotel management policies

Front Office Communication

Communication is process of sharing views, ideas, and knowledge between two or more
individuals or between.
Communication means ‘the activity or process of expressing ideas and feelings or of giving
people information’.
It is the transfer of information from one person to another person. It is a way of reaching others
by transmitting ideas, facts, thoughts, feelings, and values
Communication is as a process by which people convey information through the transmission of
written, verbal, or symbolic messages.
The entire communication process may be broken into various stages of communication:
Sender/source
Message
Channel
Receiver/target and Feedback

Types of Communication
1. Internal Communication
o Verbal Communication: This includes face-to-face conversations, intercoms,
and walkie-talkies used among staff for immediate and direct communication. It is
essential for quick responses and real-time coordination.
o Written Communication: This includes emails, memos, logbooks, and notices.
Written communication is important for maintaining records, providing detailed
instructions, and ensuring information is accessible to all relevant staff members.
o Telephone Communication: Internal telephone systems allow for quick and
efficient communication between different departments (e.g., housekeeping,
maintenance, room service) and the front desk.
o Electronic Communication: Internal messaging systems and software like Slack
or Microsoft Teams enable staff to send quick messages, share updates, and
collaborate effectively.
2. External Communication
 o Telephone Communication: Handling calls from potential and current guests,
travel agents, suppliers, and other external entities. This includes managing
reservations, addressing inquiries, and providing information.
o Email Communication: Used for sending booking confirmations, responding to
guest inquiries, handling complaints, and communicating with travel agents and
corporate clients.
o Face-to-Face Communication: Direct interactions with guests during check-in,
check-out, and throughout their stay. This is crucial for building rapport and
ensuring guest satisfaction.
o Online Communication: Managing the hotel's social media channels, online chat
services, and responding to reviews and inquiries on booking platforms and the
hotel's website.
Key Elements of Effective Communication
1. Clarity and Conciseness
o Messages should be clear, concise, and to the point to avoid misunderstandings.
o Front office staff should ensure they understand guest requests and provide
precise information.
2. Active Listening
o Staff should practice active listening to fully understand guest needs and respond
appropriately.
o This involves paying attention, not interrupting, and confirming understanding by
repeating back key points.
3. Professionalism
o Communication should always be polite, respectful, and professional, regardless
of the situation.
o Staff should use appropriate language and tone, especially when dealing with
complaints or difficult guests.
4. Consistency
o Consistent communication ensures that all staff members are on the same page
and that guests receive the same information from different staff members.
o This is particularly important for shift changes and handovers, where detailed logs
and reports are essential.
5. Timeliness
o Prompt communication is crucial in addressing guest requests and resolving
issues quickly.
o Delays in communication can lead to guest dissatisfaction and operational
inefficiencies.
Tools and Technologies
1. Property Management System (PMS)
o The PMS is central to front office operations, integrating reservation
management, guest profiles, billing, and communication logs.
o It allows staff to access and update guest information quickly, facilitating smooth
communication and service delivery.
2. Customer Relationship Management (CRM) Software
o CRM systems help manage guest interactions, preferences, and feedback,
enabling personalized communication and improving guest satisfaction.
 3. Internal Communication Platforms
o Tools like intranets, internal messaging apps, and collaboration platforms
streamline communication among staff and departments.
4. Telephone Systems
o Modern, integrated telephone systems with features like call forwarding,
voicemail, and automated attendants improve efficiency and guest service.
5. Email Management Systems
o These systems help organize and manage incoming and outgoing emails, ensuring
timely responses and efficient handling of guest communications.
6. Social Media and Online Review Management Tools
o Tools like Hootsuite or ReviewPro help monitor and respond to guest feedback on
social media and review platforms, maintaining the hotel’s online reputation.
Best Practices for Front Office Communication
1. Regular Training
o Staff should receive regular training on communication skills, including handling
difficult situations, cultural sensitivity, and using communication tools
effectively.
2. Standard Operating Procedures (SOPs)
o Implementing SOPs for communication ensures consistency and efficiency in
how information is shared and handled.
3. Feedback Mechanisms
o Encouraging feedback from both guests and staff helps identify areas for
improvement in communication practices.
4. Team Meetings and Briefings
o Regular meetings and briefings keep the team informed about hotel operations,
guest arrivals, VIP guests, and any special events or promotions.
5. Use of Technology
o Leveraging modern communication technologies can streamline operations and
enhance guest service.
FRONT OFFICE ORGANIZATIONAL STRUCTURE

Categories of Front Office Staff and their Responsibilities

This is home Here are the roles and responsibilities of the key personnel in the front office
department:

1. Front Office Manager

The Front Office Manager oversees the entire front office operation and ensures that everything
runs smoothly. Responsibilities include:

 Supervising Staff: Managing the front office team, including hiring, training, and
scheduling.
 Guest Satisfaction: Ensuring guests have a positive experience from check-in to check-
out.
 Problem Resolution: Handling guest complaints and resolving issues promptly.
 Coordination: Liaising with other departments to ensure seamless service.
 Budget Management: Managing the budget and financial aspects of the front office.
 Policy Development: Developing and implementing policies and procedures.

2. Assistant Front Office Manager

The Assistant Front Office Manager supports the Front Office Manager in all areas and often
steps in during their absence. Duties include:

 Daily Operations: Supervising daily front office operations.

 Staff Support: Assisting in training and managing staff.
 Issue Resolution: Handling escalated guest issues.
 Scheduling: Organizing staff schedules to ensure adequate coverage.

3. Front Desk Supervisor

The Front Desk Supervisor ensures the efficient operation of the front desk. Key responsibilities
include:

 Staff Oversight: Supervising front desk agents and ensuring they follow procedures.
 Guest Services: Ensuring smooth check-in and check-out processes.
 Room Management: Managing room assignments and availability.
 Training: Providing training and support to front desk staff.

4. Front Desk Agents/Receptionists

Front Desk Agents are the primary contact for guests. Their duties include:

 Guest Interaction: Greeting guests, performing check-in and check-out, and answering
inquiries.
 Reservations: Handling reservations, cancellations, and modifications.
 Payments: Processing payments and maintaining financial records.
 Information: Providing information about hotel services and local attractions.

5. Concierge

The Concierge provides personalized services to enhance the guest experience. Responsibilities
include:

 Reservations: Making restaurant reservations and booking tours or events.

 Local Information: Providing information about local attractions and activities.
 Special Requests: Assisting with special requests like arranging transportation or
securing tickets.
 Coordination: Coordinating with other departments to fulfill guest needs.

6. Bell Desk Staff (Bellhops/Porters)

Bell Desk Staff assist guests with their luggage and other needs. Their duties include:

 Luggage Handling: Transporting luggage to and from guest rooms.

 Guest Assistance: Providing directions and information within the hotel.
 Errands: Running errands for guests, such as delivering packages or messages.
  Transport: Assisting with transportation arrangements.

7. Night Auditor

The Night Auditor works the overnight shift, performing both front desk and accounting duties.
Key tasks include:

 Financial Reconciliation: Reconciling the day’s financial transactions.

 Reports: Preparing daily financial reports and summaries.
 Guest Services: Handling late check-ins, early check-outs, and guest inquiries overnight.
 Security: Ensuring the security and safety of the hotel during night hours.

8. Reservations Manager

The Reservations Manager oversees the reservations team and ensures efficient handling of
bookings. Duties include:

 Room Inventory: Managing room availability and pricing.

 Coordination: Coordinating with sales and marketing for promotions.
 Group Bookings: Handling group reservations and special arrangements.
 Trend Analysis: Monitoring and analyzing reservation trends to optimize occupancy.

9. Telephone Operators

Telephone Operators manage the hotel's communication systems. Their responsibilities include:

 Call Handling: Answering and routing incoming calls.

 Information: Providing information to callers and assisting with inquiries.
 Wake-Up Calls: Handling wake-up call requests from guests.
 Internal Communication: Facilitating communication between departments.

10. Guest Relations Manager

The Guest Relations Manager focuses on ensuring a high level of guest satisfaction. Their duties
include:

 VIP Handling: Managing services for VIP guests.

 Feedback Management: Collecting and responding to guest feedback and reviews.
 Complaint Resolution: Addressing and resolving guest complaints effectively.
 Experience Enhancement: Creating and implementing strategies to enhance guest
experience.

11. Business Center Staff

In hotels with a business center, staff members assist guests with their business needs.
Responsibilities include:
  Office Services: Providing services like printing, copying, and faxing.
 Technology Assistance: Assisting guests with computer and internet access.
 Administrative Support: Supporting guests with various administrative tasks

FRONT OFFICE GUEST/CLIENT

Refers to the person who consumes the front office products and services

Guest Personality Types

1. The Socializer
Never lose your composure or your sense of humor. Try to ease him & yourself out of an
uncomfortable situation with humor. If any problem gets out of your control, ask the
managers for help.

2. The Dasher
Demands immediate service no matter how busy the place is; oblige if possible, unless
this special treatment is expected every time. In that case, it is not fair to others. Take all
the short cuts you can, but do not short charge on good service.

3. The Chatterer
Can take up a lot of time discussing the weather. Be polite, considerate & courteous, but
make it clear that other guests need you, apologize & excuse yourself.

4. The Grumbler
It seems that the guest is always right, even when he is wrong, when a guest complaints,
listen, then apologize, correct the problem, kill him with kindness, never argue.

5. The Mind Changer

He may change his mind twenty times before he makes his decision. Never lose your
patience or your courtesy. Give him enough time to decide, explain tactfully that his
mind-changing costs him time, be firm but polite.

6. The Timid
If he is not satisfied, you will never know, be alert to this need at all times. Find out how
he feels, give him the best service possible.

7. The Demander
Knows just what he wants & you are probably not giving it to him, try to do exactly as he
wishes, be patient, courteous & never lose your temper, you may learn something new.
8. The Hostile
This one seems to hate the world. He is difficult to please. But you can make the situation
bearable. Be kind, give him the best service possible, go out of your way to serve him.
You just might cheer him up.

9. The Rowdy
 Wants to be the center of attention, because of his antics every guest will be watching as
you try to stop his singing or shouting. Be firm but treat with respect, explain that he is
annoying other guests, talk quietly & try to avoid a confrontation.

10. The Friendly

Is happy to be their & shows it & does not bark at every mistake. Luckily, most
customers fall into this category. This guest deserves the best service.

11. The Particular Patron

Likes a room facing the south, with purple carpet & green wallpaper. You may not be
able to meet all of his demands, but you can try. Be gracious, be attentive, ask him if
everything meets his approval, he is hard to please, but will return if you can handle the
situation well.
The Guest Cycle
Meaning
Refers to the activities a guest undergoes from the time of booking a hotel facility up to the time
of checking-out.

Guest Cycle Stages

Pre-
Arrival

Arrival

Occupanc
y

Departure

Pre-arrival
Arrival
Occupancy
Departure
Pre-Arrival
  The guest chooses a hotel
 The choice can be affected by factors of previous experience with the hotel,
advertisements, recommendations from travel agents, friends or business associates, the
hotel’s location or reputations & preconceptions based upon the hotel’s name or chain
affiliation
 Also may be influenced by the ease of making reservations & how the reservations agent
describes the hotel & its facilities, room rates, & amenities
 May be influenced by the attitude, efficiency & knowledge of the front office staff
 The reservations agent creates a reservation record that enables the hotel to personalize
guest service & appropriately schedule needed staff & facilities
 by confirming a reservation, hotel verifies a guest’s room request & personal information,
& assures the guest that his or her needs will be addressed
 based on the information, the hotel may also be able to perform pre-registration that
include assigning a specific room & rate for guests who have not yet arrived, & creating
guest folios
 a guest folio is a record of the charges incurred & credits acquired by the guest during
occupancy
 an effective reservation system helps maximize room sales by accurately monitoring
room availabilities & forecasting rooms revenue
 data collected during the reservations process become especially useful in subsequent
front office functions

Arrival
 includes registration & rooming functions
 the front desk staff should determine the guest’s reservation status before beginning the
registration process
 guests with reservations may have already undergone pre-registration activities
 guests without reservations or walk-in guests present an opportunity for front office staff
to sell guest rooms
 to sell successfully, the front desk must be very familiar with the hotel’s room types &
guest services & be able to describe them in a positive way
 a registration record should include information about the guest’s intended method of
payment, the planned length of stay, & any special guest needs
 it should also include the guest’s billing address, telephone number & the guest’s
signature
 gathering all these details at registration enhances the front office’s ability to meet special
guest needs, forecast room occupancies & settle accounts properly
 at check out, the guest’s registration card may also become the primary source for
creating a guest history record
 a guest history record is a record of personal & financial information about a hotel guest
which can help the hotel in its marketing & sales efforts & can be helpful in registering &
serving the guest if the guest returns
 the front desk staff uses registration information to assign a room & possibly a room rate
for each guest
  room & rate assignment also depends on reservation information & an effective room
status system which communicates room status of a room must be relayed to the front
desk staff
 the housekeeping status of a room must be relayed to the front desk as soon as possible
for the front desk to maximize room sales
 once the guest decides to rent a room, the front desk staff turns his attention to identifying
the guest’s method of payment
 the hotel guest accounting cycle depends on registration information to determine how
the guest intends to pay for rendered services
 whether the guest uses cash, personal check, credit card or some alternative method of
payment, the front office should take measures at the beginning of the guest cycle to
ensure eventual payment
 registration is complete once the method of payment & the guest’s departure date have
been establishes
 the guest may be given a room key & a map of the property & allowed to proceed to the
room without assistance
 when the guest arrives at the room & accepts it, the occupancy stage of the guest cycle
begins

Occupancy
 a major objective is to encourage repeat visits
 guest relations depend on clear, constructive communications between the front office,
other hotel departments & divisions & the guest
 the hotel must know of a guest complaint in order to resolve it
 front desk staff should carefully attend to complaints & try to seek a resolution
satisfactory to both the guest & the hotel
 security is also a primary concern during occupancy that include the protection of funds
& valuables & procedures for key control, surveillance, safe deposit boxes, lost & found
articles & emergencies
 a variety of transactions during the occupancy stage affect guest & hotel financial
accounts
 most of these transactions will be processed according to front office account posting &
auditing procedures
 front desk accounting records must be periodically reviewed for accuracy &
completeness

Departure
 at check out, the guest vacates the room, receives an accurate statement for settlement,
returns the room keys & departs from the hotel
 once the guest has checked out, the front office updates the room’s availability status &
notifies the housekeeping departments
 during check out, the front office determines whether the guest was satisfied with the stay
& encourages the guest to return to the hotel
 a guest history file is a collection of guest history records
 information in guest history file allows the hotel to better understand its clientele &
provides a solid base for strategic marketing
  the purpose of account settlement is to collect money due to the hotel
 depending on the guest’s credit arrangements, the guest will pay cash, sign a credit card
voucher, or verify direct billing instructions
 accounts balances should be verified & errors corrected before the guest checks out
 the front office is responsible for providing complete & accurate billing information to
assist the back office accounting division
 once the guest has checked out, the front office can analyze data related to the guest’s
stay
 front office reports can be used to review operations, isolate problem areas, indicate
where corrective action may be needed & point out business trends
 daily reports typically contain information about cash & charge sales, accounts receivable
& front office operating statistics
 operational analysis can help managers establish a standard of performance which can be
used to evaluate the effectiveness of front office operations

Guest Services

As the center of front office activity, the front desk is responsible for coordinating guest services.
Typical guest services involve providing information & special equipment & supplies. Guest
services may also include accommodating guests through special procedures. A guest’s
satisfaction at a hotel hinges in part on the ability of the front desk to respond to a request. A
request that falls beyond the responsibility of the front office should be referred to the
appropriate person or department.

Guest service include the following;

Equipment & Supplies
 Guest may request special equipment & supplies while making a reservation, at the time
of registration, or during occupancy
 Equipment & supplies commonly requested by guests include:
 Rollaway beds & cribs
 Additional linens / pillows
 Irons & ironing boards
 Audiovisual equipment
 Special equipment for blind, physically handicapped or hearing impaired guests

Special Procedures
 Guests may ask for special treatment when making a reservation, registering at the front
desk, checking out, or for that matter, during any point of their stay
 Reservations staff should have a reliable method of recording special requests made
during the reservations process & communicating them to appropriate front office
personnel
 Front desk staff should also have a way to record any procedural requests they handle
 Typical procedural requests include:
 Split account folios
 Master account folios
 Wake up calls
  Transportation arrangements
 Entertainment reservations
 Newspaper delivery
 Secretarial services
 Split folios are most often requested by business travelers
 One folio account may be set up to record room & tax charges; this part of the folio may
be billed to the guest’s company
 Another folio account may be set up to track incidental charges such as telephone calls,
food & beverages
 A convention group meeting in the hotel may request a master folio
 Only the charges incurred by the group are posted to the master folio & billed to the
sponsoring agent
 Each group member is responsible for other charges posted to his or her individual folio
account
 The purpose of a master folio is to collect authorized charges not appropriately posted
elsewhere

Guest Enquiries
Guest’s enquiries can easily be turned into sales. They also give you an opportunity to help
guests & make them feel welcome.

How to Handle Enquiries:

1. Know your product. Anticipate all the question people might ask about the hotel &
locality. Learn as much possible about areas outside your own department.
2. When the guest request you for information, smile & offer to help.
3. If you do not know the answer, find somebody who does. Never say, I don’t know &
leave it at that. Find out the information yourself or direct the guest to the person who can
help.

Guest Relations
Despite staff efficiency & attentiveness, guests will occasionally be disappointed or find fault
with something or someone. Hotels should anticipate guest complaints & devise strategies that
help staff effectively resolve the situation.

The high visibility of the front office means front desk staffs are frequently the first to learn of
guest complaints. Front desk staff should be especially attentive to guests with complaints &
seek a satisfactory resolution to the problem. Employees should also realize that guests who do
not have the opportunity to complain to hotel staff often tell their friends, relatives & business
associates instead.

Complaints
Guest complaints can be divided into four categories of problems:

1. Mechanical Complaints
 Most guest complaints relate to hotel equipment malfunctions. It usually concern
problems with climate control, lighting, electricity, room furnishings, ice machines,
vending machines, door keys, plumbing, television sets, elevators & etc. Effective use of
a front desk log book & maintenance work orders may help reduce the frequency of
mechanical complaints.

2. Attitudinal Complaints
Guest may make complaints when they feel insulted by rude or tactless hotel staff
members. Guests who overhear staff arguments or who receive complaints from staff
members may also make attitudinal complaints.

3. Service-Related Complaints
Guests may make complaints when they experience a problem with service. These
complaints can be wide-ranging & can be made about such things as long waits of
service, lack of assistance with luggage, untidy rooms, phone difficulties, missed wake-
up calls, cold or ill-prepared food, or ignored requests for additional supplies. A hotel
generally receives more service-related complaints when it is operating at near or full
occupancy.

4. Unusual Complaints
Guests may also complain about the absence of a swimming pool, lack of public
transportation, bad weather & etc. Hotels generally have little control over the
circumstances surrounding unusual complaints. Front office managers should alert front
desk staff that some guests will complain about things they can do nothing about. This
way, staff will be prepared to handle the situation through appropriate guest relations
techniques & avoid a potentially difficult encounter.

Identifying Complaints
Guest relations stand to improve when a hotel systematically identifies its most frequent
guest complaints. By reviewing a properly kept front desk log book, management can
often identify & address recurring complaints & problems.

Another way to identify complaints involves the evaluation of guest comment cards or
questionnaires. Guest questionnaires may be distributed at the front desk, placed
conspicuously in the guestroom, or mailed to guests following departure.

Handling Complaints
The front desk may receive complaints about food & beverage operations in the hotel,
regardless of whether those operations are managed by the hotel. Unless the hotel & the
food & beverage operators establish procedures for referring complaints, guests may
continue to be upset & the hotel will continue to receive the blame. The hotel & its
revenue outlets should maintain close communications & develop procedures designed to
satisfactorily resolve guest complaints.

Managers & employees should keep these points in mind when handling guest
complaints:
  Guests may be quite angry. Staff members should never go alone to a guestroom to
investigate a problem or otherwise risk potential danger.
 Staff members should never make a promise that exceeds their authority
 If a problem cannot be solved, staff members should admit this early on. Honesty is the
best policy
 Some guests complain as part of their nature, & may never be satisfied. The front office
should develop an approach for dealing with such guests
Learning to deal effectively with complaints requires experience. Front office staff
members can practice by thinking about how they might resolve some of the hotel’s most
common complaints.

Role playing can also be an effective method in learning to deal with complaints. By
anticipating complaints, planning & practicing responses, & receiving constructive
feedback, staff members should be better prepared to deal with guest complaints.

Guidelines for Handling Complaints

1. Listen with concern & empathy.
2. Isolate the guest if possible, so that other guests won’t overhear.
3. Stay calm. Avoid responding with hostility or defensiveness. Don’t argue with the guest.
4. Be aware of the guest’s self-esteem. Show a personal interest in the problem. Use the
guest’s name frequently. Take the complaint seriously.
5. Give the guest your undivided attention. Concentrate on the problem, not on placing
blame. DO NOT insult the guest.
6. Take notes. Writing down the key facts saves time if someone else must get involved.
Also, guests will slow down when they are speaking faster than you can write. More
important, the fact that a hotel staff member is concerned enough to write down what
they’re saying is reassuring to guests.
7. Tell the guest what can be done. Offer choices. Don’t promise the impossible & don’t
exceed your authority.
8. Set an approximate time for the hotel’s actions. Be specific, but do not underestimate the
amount of time it will take to solve the problem.
9. Monitor the progress of the corrective action.
10. Follow up. Even if the complaint was resolves by someone else, contact the guest to see
if the problem was satisfactorily solved. Report the entire event, the actions taken, & the
conclusion of the incident.

Follow-Up Procedures
Management may use the front desk log book to initiate corrective action, verify that
complaints have been resolved, & identify recurring problems. This comprehensive
written record may also enable management to contact guests who are still dissatisfied at
check out. A letter from the front office manager expressing regret about the incident is
usually sufficient to promote goodwill & demonstrate concern for guest satisfaction.

Reservation
Reservation Function
Reservations are a contract of sorts between the hotel & the guest. In accepting a reservation, the
hotel agrees to provide a room for a specific length of stay at a predetermined rate. In turn, the
guest arrives on the chosen date & purchase the hotel room as per request in the reservation.

The reservation area is critical to the success of a hotel. It is the area involved in selling rooms to
future guest. In this sales capacity, reservation must work very closely with the marketing &
sales department.

The reservation department also cooperates with front office or as a division of the room
function department. In large hotel, the reservation staff usually specialized in the telephone
skills & a good sales person.

The agreed-on terms are simple & generally include the following:
 Rate
 Date
 Room type
 Method of payment & guarantee
 Guest name & address
 Number of guests
 Number of rooms
 Applicable discounts
 Special needs or requests

The Reservation System

Reservation : A request for room accommodations.
Reservation process : Consists of receiving, documenting & analyzing requests.
Reservation system : Are staff, space, equipment & procedure used to handle
the process.
Selling rooms : Is the act of taking reservation.

Methods of Reservation
1) In person
 Known as “walk ins”
 Less common for obvious reason

2) Letter
 Done several months ahead
 Out of date method
 Advantage of being clear
 Acts as a confirmation (both parties)

3) Telephone
 Majority of reservations are received through this method
  Fast & efficient
 Does not provide a permanent record

4) Toll-Free WATS (wide area telephone service)

 Use extensively by large properties as well as chain hotels

5) Facsimile machines
 Fax machine utilize telephone lines to communicate reservation request
 No operator required, communication is machine to machine
 Receiving machine prints information sent
 Due fast change of technology, the usage of fax machine is getting less popular

6) Personal computer subscription services

 Provide a direct link through website of the hotel

7) Computerized communication
 E-mail

Standard Procedures of Taking Reservation Through Telephone

A. GREETINGS
Good Morning/Afternoon/Evening, room reservation, __________ speaking, may I help
you?

B. OBTAIN ARRIVAL & DEPARTURE DATE

May I have the arrival & departure date sir/madam?

C. ROOM TYPE
May I know the type of room you require?

D. CHECK THE ROOM AVAILABILITY

Refer to the room availability report printed daily. Management Information system.

E. CONFIRM THE RESERVATION

Sir/Madam, your reservation for the required dates is confirmed.

F. GUEST NAMES
May I have the guest names, please?

G. FLIGHT INFORMATION
May I have the flight details please?

H. REQUEST FOR CALLER’S COMPANY NAME & CONTACT

May I have your name & contact number?
(Address caller by name once you have establish it).
 I. MODE OF PAYMENT
Mr/Ms__________, how would you like to settle the accounts on the day of departure?

J. OFFER ROOM RATES

Refer to computer for corporate rate. Do not reveal contract rates.

K. Complete the booking by repeating all the information received.

L. Initial & time stamp on the reservation form.

Reservation Forms
Advantages of using reservation forms:
 To provide a permanent record
 Summarize information in a standard format
 Act as “prompt” sheet/complete information
 Enable management to find out who handled the booking
 Can provide a running check on progress
 Can include information about the sources of booking, how they are made, for marketing
analysis

Determining Room Availability

 Essential to keep close check on the number of reservation taken so as to avoid
excessive booking
 Can be accomplished through the use of:
A. Forecast boards
B. Reservation charts
C. Computerized system
 Having checked that a room is available, the reservation clerk will either accept or deny
the booking

Documenting Reservation Details

 Once the request for reservation is accepted, the reservation clerk will then complete a
reservation form according to the details of the guest
 The form will be used as a document which contents all the relevant information about
the prospective guest & their accommodation request
 When obtaining the reservation details from the guest, the reservation clerk should
explain the difference between a guaranteed & non guaranteed booking

In Date
 The check in date
 The date on which the client actually intends to check into the hotel
 The room charges & tax take effect
Out Date
  The check out date
 The date on which the client anticipates checking out
 No room charges or tax are charged (except in the event of a late check out time,
or half-day usage charge)

Optional Requests
The room reservation may include the following optional requests which may be required by
the reservationists to determine room availability:
 Preferred location – the client may indicate a preference for a poolside
location, an ocean-view room, a specific floor, handicapped facilities or
proximity to parking facilities
 Preferred bedding type – some couples traveling together request
separate beds, such as two double beds or twin beds. Other clients will
specifically request queen or king size bed
 Additional bedding – besides the type of bedding normally provided
with the room, the client may also request a rollaway bed for either an
adult or a child, or a rib for an infant

Confirming Reservation
 Is a written acknowledgement sent either by the hotel to the guest or vice versa
 It confirms that a request for a room has been made with the hotel & is written evidence
that a contract has made between a hotel & a prospective guest
 If the client agrees to the rate, the reservation is confirmed by the reservationist, & a
confirmation number is given to the client
 If for some reason, the client’s reservation cannot be located on arrival, the hotel will
accept the confirmation number as proof that a reservation was made
 The room type & rate should be repeated to the client by the reservationist when the
reservation is confirmed

Guaranteeing the Reservation

 Many hotels require a form of guarantee to hold a room for a confirmed reservation
 A deposit or credit card number may be required to hold the reservation for late arrival
 Some properties do not require any guarantee at all, except for group reservations
 The following types of guarantee are widely:
1. Advance deposit
 Equal to one-night room charge plus tax may be accepted to guarantee
a reservation
 Credit card guarantees have become much more common

2. Credit card
 A credit card number & expiration date may be accepted to guarantee
a reservation
 By agreeing to a credit card guarantee, the client authorizes the hotel
to charge a one-night advance deposit if the client should fail to show
up within a certain time to use the reservation or does not cancel the
reservation
  Each hotel maintains its own list of approved credit cards
 The following are commonly honored by hotels;
a. American Express
b. MasterCard
c. Visa
d. Diners Club
 Depending on the policy of the individual credit card company, it may
be necessary to obtain authorization for an amount equal to one night’s
room charge plus tax, before accepting the card to guarantee a
reservation

3. Guarantee to Client Address

 A client address may be accepted in lieu of an advance deposit or an
approved credit card
 The client must have established credit with the hotel

4. Travel Agency Guarantees

 The agency’s address may be accepted as a travel agency guarantee
 If the client default by not utilizing the reservation, the hotel bills the
agency for the amount of the deposit
5. Corporate Guarantees
 A client traveling on behalf of a participating or qualifying company
may guarantee a reservation to the company’s address
 Generally, only companies with corporate discount arrangements or
preapproved credit with the hotel qualify for a corporate guarantee by
address

6. Six PM Hold
 Are those held only until 6.00PM & then released
 In a manual system, the clerk is required to go through the records to
cancel these reservations
 With the computerized system, all Six PM Hold Reservations may be
canceled at once
 There is also the option that allows the clerks to review them
individually & cancel only those chosen
 Another advantage is that even after the reservation is canceled, the
information for the reservation is not deleted when canceled, but the
room is put back in the available inventory of rooms to be sold

Maintaining Reservation Records

 Consists of two main types of activity:
A. Filing booking
 Uses of reservation form or card & relevant correspondence are usually
filed in chronological order, that is by arrival date, surname & how many
person
B. Modification of the booking
  Uses the amendment reservation form

Modifying a Reservation
 Occasionally, a client or travel agent will request a modification after a reservation has
been booked
 In this eventuality, the reservationist must locate the reservation & make the necessary
modifications
 Reservations may be filed by client name, date &/or confirmation number
 The following are examples of modifications that might be received by the reservations
department prior to a guest’s arrival:
 New in date or out date
 Different number of adults in the party
 Addition or deletion of room options or extras
 Change in location, bedding or rate
 Addition or deletion of guarantee

Cancellation Policy of Guaranteed Reservation

 From time to time, a client or travel agent will contact the reservations department to
cancel a confirmed reservation
 If a cancellation is not received, a “no show” charge of one night will be posted to the
reservation
 The following events occur when a cancellation is received;
1. a cancellation number may be issued to the client as proof that the reservation was
canceled
2. the room type is returned to the availability pool so that it ,may be offered for sale
again
3. the guest reservation file is deleted from the reservations system

Group Reservations
 group sales require special handling & are usually the responsibility of the sales
department
 the estimated number of rooms that will be required is called a room block
 individual reservations requested by group members are accompanied by deposits set by
the sales department
 a cutoff date is set for the receipt of deposits
 on the cutoff date, any rooms for which deposits have not been received are released from
the block
 when a reservation is taken for a group function, the group name is entered as the second
name in the guest record, in lieu of the employer
 monitoring the status of each group reservation, collecting deposits & managing room
blocks are responsibilities of sales department

Controlling Reservations
 the total of rooms that the hotel has to sell is called the room inventory
 the percentage of the hotel’s total room inventory that is occupied by guests is referred to
as the occupancy rate
  the objective of reservation control is to maintain the highest possible occupancy rate
without turning away clients
 to achieve this objective, a certain amount of overbooking; means selling more rooms
than are actually available, is unavoidable
 without overbooking, the hotel would be continually underbooked, thus sacrificing
revenues the hotel might otherwise have earned
 the hotel must do more than sell the number of rooms that are actually available
 it must also maintain the proper level of overbooking
 every hotel has a certain number of cancellations & ‘no show’
 with experience, the hotel can calculate the percentage of reservations that will probably
not be used
 this percentage can be used to determine the proper level of overbooking
 effective reservation control requires accurate information about the number of rooms
that are booked for any given date
 a room count is a simple analysis of the rooms that have been reserved for a selected date
range
The Role of Internet in Reservations
The Internet has brought a momentum in the hospitality business as well. It facilitates
seamless management of a hotel’s offices located at various places and their various
departments.
The hotel businesses are actively working on the Internet 24 hours a day, seven days a
week.
The Internet has simplified complex system of reservations.
It enables Online Hotel Management Systems (OHMS) such as Hotelogix to help guests reserve
accommodation of their choice fast and conveniently.
The guests of the hotel can access rate charts, accommodation availability, check-in and check-
out timings, details about the restaurants, and so on, at their own convenience.
Managing Reservations
The first step in reserving an accommodation is to check if the requested kind of
accommodation is available for selling for a specific period of time.
It is done by checking forecast boards or computerized systems.

Accepting Reservation of Accommodation

Reservation of an accommodation is accepted if the desired type of accommodation is
available in the hotel for selling. If it is not available during a rush season

Front Office Management

is in urgent need, the staff member suggests for almost similar alternative accommodation
by stating its amenities and facilities.
Reservation is accepted in the following cases in conjunction with the availability of the
accommodation:
 Is the guest new to the hotel?
 Does the guest have good credentials with the hotel regarding payment and
behavior?
 Is the guest a VIP?

Denying Reservation of Accommodation

Denial of reservation directly means loss of revenue. But there are certain situations when
the reservation staff turns down the reservation for the guests or agents. The potential
causes of denying reservation are:
 All accommodations in hotel booked: In such case, the reservation staff refuses
the reservation politely and suggests an alternative hotel in the same area or
different property of the same owner in a nearby area.
 Requested type of accommodation not available: In such case, the
reservation staff suggests an alternate accommodation.
 Guest/Agent blacklisted: Some guests or agents are blacklisted due to their
history of payment dues against the hotel. In such case, the reservation clerk seeks
for reservation manager’s advice.
Finally, the reservation section of the front office prepares the list of the reservations for
the day and sends it to the front desk. The list also contains vital information such as if
the guest is new or repeat, guest preferences about room location or décor. The rooms
are then prepared by housekeeping.

Cancelling a Reservation of Accommodation

This is yet another event when the hotel loses business with a guest. Though the fact is
overt loss of revenue, the front office staff must react to it politely and gracefully. The
staff member also needs to convey any cancellation charges the guest must pay while
cancelling the reservation.
Cancellation is done in the following steps:
 Finding out details of the guest and respective reserved accommodation.
 Verifying charges of cancellation, if any.
 Notifying the guest about cancellation charges.
 Cancelling the reservation in the system.
 Updating the system for accommodation availability.
 Confirming the guest about the cancellation.

Generating Reservation Report

Reservation reports are generated for the sake of helping the management find trends
and making forecast about business.
The reports typically are of the following types:
 Occupancy report
 Special arrival report
 Revenue forecast report
 Turn away report

GUEST CHECK IN AND CHECK OUT ACTIVITIES

Refers to the process a guest is taken through before being allowed to occupy the hotel rooms.
Basic Check in Activities
1. Preparation of guest arrival
2. Room assignment and determination of room rate.
3. Registration
4. Checking the methods of payment
5. Issuing the room key and escorting the visitor.

1. PREPARATION FOR GUEST ARRIVAL

Before registering a guest or assigning a room, receptionists need to have at hand certain
information which is an essential in their work.
Such information include:
-Room status and availability
-Expected arrivals and departures.
-Arrivals with special requests.
-VIPS and frequent stay guest
NB. Much of this information is determined the night before that day’s arrival. In
computerized hotels, the information is updated with every room transaction. It is also
permanently at hand and can be easily accessed through the keyboard.
2. Room Assignments and Determination of room rate
Room assignments refers to allocation of different rooms to guests while determination of room
is to put a charge/cost to be paid by the customer.
3. Registration
This is to record a guest arrival and confirm their details. Hotel proprietor are legally required to
keep a written record of certain information about their guests for at least 12 months (according
to the immigration hotel record order of 1972)
According to this order, the following details must be recorded for all guest over the age of 16
years:
- Full name
- Nationality
- Date of arrival
For foreign citizens, the following extra details must also be recorded:
-The passport number and place of issue,
-Next destination if known,
-Date of departure
4. Checking the method of payment
When a guest makes a reservation, their intended method of payment is recorded.
However, it is important to confirm the method of payment at the time of guest’s arrival,
especially so for walk-in guests.
The main reason for doing so, is to ensure that the hotel can know in advance if the guest needs
to make special arrangement for settling their bills.eg waiting to pay by cheque or to un
uncommon foreign currency.
This precaution helps to prevent embarrassment to the guest at check-out ,as well as preventing
walkout.( a workout occurs when a guest leaves without checking out and paying their bills).
5. Issuing the key and escorting the guest
After registration and room assignment, a guest is issued a key to the room. It is common
practice to give key card, together with the key, to the guest. The key-card is a personal record of
the guest’s room number and the room and a statement of hotel’s policies. It’s also serves as
proof of the guest’s identity to hotel staff. This may be necessary when the guest wants to collect
the room keys from the reception or sign for a drink or meal.
The practice of escorting guest to their rooms depends on the standard of services offered by a
hotel. In most budget hotels and motels, guests are not normally escorted to their rooms. Instead,
they are given directions and they carry their own bags. On the other hand, full service hotels
usually offer bell service. The bell boys frequently escort guests to their rooms and at the same
time handle their baggage

CHECK-OUT OF GUEST
-Refers to the process which a guest undergoes after completing their stay in the hotel rooms.

Check-out procedures
The process of check out is usually performed by the front office cashier. It involves the
settlement of guests account and updating of front office records.
The main duties of front office at check out include:
1. Settlement of guest accounts
2. Updating front office records after guest departures
3. Creating good, lasting impressions.

Below are the basic check-out procedures:

1. Greet guest with a smile and always try to use their names.
2. Confirm guest details (name and room number against the guest account)
3. Check departure date. If the guest is leaving earlier than expected, other departments will
need to be informed.
4. Check whether late checkout charges should be applied. If the guest is leaving after the 12
noon checkout time, and is not a frequent guest, add the relevant late checkout charges to the
account.
5. Check for late charges. Examine current entries on a guest’s account and in particular
checkout any mini-bar. Breakfast or telephone charges.
6. Give the guest the master or guest folio for checking (guest inspection)
7. Provide front office services upon guest departure such as receiving the guest’s key and
checking if they have a safe deposit box which now needs to be emptied.
8. Offer the assistance of bell staff to collect the luggage.
9. See if the guest would like to make a future reservation or an onward reservation in another
hotel in the same chain.
10. Update front office records. The most important record to update are the room status list and
residents list. It is important to do this so that other departments can accurately know the
room and guest status.

Late checkouts
Most hotels have a stated check out time at which guests must vacate their rooms. In general,
check out time is between 10.00 AM and noon. If guest do not vacate their room by check out
time, a late charge may be imposed.
Checkout time can sometimes be a problem for tour groups. If their coach does not leave the
hotel until 4 PM, they dislike being asked to vacate their rooms at 12 noon. Hotels usually
arrange for the guest luggage to be stored by the concierge and reserves one room at no extra
cost. These arrangement allow the group rooms to be vacated for subsequent guests, while the
hospitality rooms are still available for the comfort of tour groups.

Late charges
A late charge is a charge for a service or facility which is sent to the cashier too late to be added
to the guest’s account for settlement.eg laundry charges may arrive at the front office cashier
after the guest has already settled the bill and possibly left the hotel.

Express check-out
In most hotels, guest tends to check out at approximate the same time making the cashier desk
very busy during that period. Hotels therefore, offer an express check out service which allows
the guest to check out without having to queue at the cashier’s desk. Special forms are placed in
guest rooms. By signing the express check out forms, the guest agrees to have the account
finalized by front office cashier after they have left the room. On the morning of the departure
date, a copy of the guest’s account indicating the approximate amount may be sent to the guest
account. The guest may leave the hotel at their convenience without having to call at the
cashier’s desk. After the guest has left, the cashier will finalize the account. Including the late
charges and complete the imprinted credit card voucher.

FRONT OFFICE ACCOUNTING

Definition
It is a systematic process in which the front office accounting staff identifies, records,
measures, classifies, verifies, summarizes, interprets, organizes, and communicates
financial information for a hotel business.
Objectives of Front Office Accounting System
 To handle transactions between the guests and the hotel accurately.
 To track the transactions throughout the guest’s occupancy.
 To monitor the guest’s credit limit.
 To avoid possibility of any fraud.
 To organize and report the transactional information.
Types of Accounts
There are following typical accounts in hotel business dealing with customers:
 Guest Account; Record of financial transactions between the guest and the hotel
 Non-guest or City Account; Record of financial transactions between non guest and the hotel
 Management Account; Record of financial transactions between the management expenses and
the hotel

Folios and Types

A folio is a statement of all transaction that has taken place in a single account.
The front office staff records all the transactions between the guest and the hotel on the
folio. The folio is opened with zero initial balance.

The balance in the folio then increases or decreases depending upon the transactions.

At the time of check-out, the folio balance must return to zero on settlement of payment.

Types of Folios
There are following major types of folios:
 Guest: Assigned to charge for individual guests.
 Master: Assigned charge for group/organization.
 Non-guest: Assigned for non-resident guest.
 Employee: Assigned for hotel employee to charge against coffee shop privileges.

Postings and Types

The process of recording the entries on the folio is called ‘Posting’ of transactions. There
are two basic types of postings:
 Credit: They reduce the guest’s outstanding balance. These entries include
complete or partial payment, or adjustments against tokens.
 Debit: They increase the outstanding balance in the guest account. Debit entries
include charges under restaurant, room-service, health center/spa, laundry,
telephone, and transportation.

Ledgers
 is a grouping of accounts
 a front office ledger is a collection of front office account folios
 the folio used in the front office form 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:
1) Guest ledger
 Is the set of guest accounts that correspond to registered hotel guests
 Guests’ financial transactions are recorded onto guest ledger accounts to
assist in tracking guest account balances
2) 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 accounting division for collection
 The city ledger can contain credit card payment accounts, direct billing
accounts, and accounts of past guest due for collection by the hotel

Account Settlement
Refers to clearing of any pending bill by the guests
A guest account can be zeroed out in several ways

Modes of Payment/ settlement of Guest Account include:

1. Cash Payment
• A cash payment in full at check-out will bring guest account balance to zero
• The front desk staff should mark the folio paid
• The front office sometimes requires 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

2. Credit Card Transfer

• Creates a transfer credit on the guest’s folio & moves the account balance from the guest
ledger to the credit card account in the city ledger
• The front desk staff should imprint the credit card onto a credit card voucher if it was not
imprinted at registration
• The staff should then enter the amount due the hotel onto the credit card voucher before
presenting it to the guest for signature
3. Mobile money transfer e.g mpesa
4 Use of Cheque
5. Direct Billing Transfer
• Like credit card settlement, direct billing transfers the account balance from the guest
ledger to the city ledger
• It is not normally an acceptable method of settlement unless the billing has been arranged
& approved by the hotel before or during guest registration
• To complete a direct billing settlement, the front desk staff should have the guest sign the
folio to verify that the postings are correct & that he or she accepts all charges listed on the folio
for collection

6. Combined Settlement Methods

• A guest may use more than one settlement method to zero out a folio balance
• Front desk staff must accurately record the combined settlement methods & ensure that
all required paperwork is properly completed

Night Audit
Definition
It is the process of auditing where the night auditor reviews all financial activities of the
hotel that has taken place in one day.
The auditing process for the day is generally conducted at the end of the day during the
following night, hence the name ‘Night Audit’.
It can be performed by the conventional method of using papers, receipts, vouchers, coupons,
and files.
But performing audit using modern PMS systems is easy, fast, and efficient.

Needs of the Night Audit

The main purpose of the night audit is to verify the accuracy & completeness of guest & non-
guest accounts against departmental transaction reports. Specifically, the night audit is concerned
with the following functions:
 Verifying posted entries to guest & non-guest accounts
 Balancing all front office accounts
 Resolving room status discrepancies
 Monitoring guest credit limitations
 Producing operational & managerial reports

The Role of the Night Auditor

 Requires attention to accounting detail, procedural controls & guest credit
restrictions
 Should be familiar with the nature of cash transactions affecting the front
office accounting system
 Tracks room revenues, occupancy percentages & other standard operating
statistics
 Prepares a daily summary of the cash, check & credit card activities that
took place at the front desk
 Summarizes & reports the results of operations to management

Types of Night Audit Reports
Today, the PMS helps night auditors to a great extent in auditing and generating accurate
reports. Here are some typical reports generated during night audit:

 Night Audit Accommodation Report: It gives a snapshot of the days when

accommodations are occupied, the days when the accommodations are available,
check-ins, check-outs, no-shows, and cancellations. This report can show further
details for any of the items listed above.
 Night Audit Counter Report: It gives details on cash and credit card receipts and
withdrawals.
 Night Audit Revenue Report: It delivers information on accommodation
revenue, cancellation and no show revenue, and other POS revenue. Revenue
generated through various agencies and bodies such as travel agents, corporate
organizations, internet booking. etc., is also listed in this report.

 Night Audit Tax Report: Contains all the tax information on reservation revenue
and other POS revenues such as VAT, luxury tax, and service tax.

 Cashier’s report: It is the detailed list of cashier activity of cash influx and out
flux, credit cards, and PMS totals. Cashier’s report is very important part of the
financial control system of a hotel. The front office manager reviews the night audit
and looks for any divergences between the actual amount received and the PMS
total.
 Manager’s Report: It is a statistical list of previous day’s occupancy. It includes
details about available accommodations, occupied accommodations, sold and
vacated accommodations, rack-rate, number of guests in the hotel, number of noshows, and so
on.
 General Manager’s Report: Each department in the hotel is required to send
daily sales report to the front office. Using their information, a departmental total
report is generated for the general manager’s assessment. The General Manager
determines the profit-generating departments and evaluates the success of sales
and marketing.
 High Balance Report: This is a detailed report about the guests who have
exceeded the credit limit set by the hotel management.
Front Office Management
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 Ledger Balance Summary Report: It displays the opening and closing balances
for the Advance Deposit Ledger, Guest Ledger, and City Ledger.
 Room Rate Audit Report: It lists all rates that are applied to each guest and the
difference from the rack rate with the predetermined rack code.

FRONT OFFICE SOPS

In any business organization, common procedures occur in sequence. They are linear. In
addition, some procedures also repeat over a time.
The organization needs to find out such linear and repeating procedures to compile them into sets
of Standard Operating Procedures (SOPs).
These procedures when compiled step by step, can prove to be an excellent learning
material for training the newly joined staff in a short period of time.
SOPs are the guidelines involved when performing a particular task. E.g SOP for receiving a
telephone in the front office

INFORMATION SYSTEM IN FRONT OFFICE

Refers to the computerized systems used in the day to day operations of the hotel

Property Management System (PMS)

Meaning

A Property Management System (PMS) is a software system employed to handle basic

activities of all the departments in the hotel business and coordinate functions between
them for optimum business outcomes.

Need for PMS

A PMS is required for the hotel staff for the following reasons:
 It integrates all critical operations of the hotel on one platform.
 It provides real-time information on accommodations, reservations, restaurants,
spas, bars, and about every working arm of the hotel.
 It provides highly accurate information which is helpful for the management to plan
new goals and handle the investments in a better way.
 It boosts the efficiency of the front office staff and in turn maximizes the
performance of the hotel business.
 It simplifies the time-taking or complex operations otherwise done manually.
 It works for the convenience of the hotel staff, managing body, as well as the
guests.

Common Software Options in a PMS:

They include the following;
PMS for Front desk
 Reservation
 Registration
 Accommodation status
 Guest and non-guest accounts
 Cash handling
 Night auditing
 Reports
PMS for Sales and Marketing
 Guest database for market segmentation
 Guest history
 Yield management
 Travel agents information as clients
 Reports for goals
 Performance evaluation by comparative analysis
PMS for Housekeeping
 Lost and found
 Accommodation status
 Laundry charges
PMS for Food and Beverage
 POS sales
 Material inventory
 Periodic sales reports
 Standard recipes
PMS for HRM Department
Individual staff member’s records regarding shifts, attendance, and appraisals.
PMS for Accounts
 Account payables and receivables
 Payroll
 Balance sheet
 Profit/Loss reports
PMS for Communication
Outgoing and incoming call records with date, time, place, duration, and charges