TMPE-2: ACCOMMODATION OPERATIONS AND MANAGEMENT

MIDTERM CHAPTER 3 FRONT OFFICE OPERATIONS

Learning Outcome
At the end of this chapter, students will be able to:
 Explain the functions and organization of the front office department.
 Explain the key positions of the front office.
 Explain the day-to-day front of house operations.
 Demonstrate the basic techniques of reservations, registration, room allocation
 Describe the different registration process.
 Define revenue and sales indicators.
 Explain the front office guest cycle and related accounting activities- the FO accounting cycle
 Understand the function of the night audit

Front Office Department

The front office is the nerve center or hub of a hotel. It is the department that makes the first and
last impression on the guests, and the place that guests approach for information and service throughout
their stays.
The three main functions of the front office are as follows:
1. Selling rooms;
2. Maintaining balanced guest accounts; and
3. Providing services and information to guests.

Organization of Front Office Department

The attached image shows an organizational chart for the front office of a large hotel.

This illustrates the structure and lines of communication which operate within the front office department.

Duties of Key Positions

1. Front Office Manager

The front office department is headed by the Front Office Manager (FOM) whose main duty is to enhance guest
services by constantly developing services to meet the needs of guests...
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The front office manager performs the following duties:
 Monitoring reservation status
 Looking over market mix and preparing occupancy forecasts
 Determining rate structures and supervising policies
 Reviewing occupancy and average room rate
 Reviewing arrivals and departures daily
 Making staffing adjustments needed for arrivals and departures
 Reviewing, checking, and meeting VIPs and entertaining them

2. The Assistant Manager represents the management in handling the daily operations and functions of
the hotel and may directly report to the general manager in some hotels.

The main duties of the assistant manager include:

 Responsibility for developing and executing plans developed by the owner, general manager and
other members of the management team
 Checking on operations, providing feedback and offering assistance when needed.
 Completing, reviewing and summarizing statistical reports and sharing them with the general
manager.
 Assuming responsibilities for the daily operations and management of the hotel.

3. The Guest Relations Officer reports directly to the assistant manager. They review the hotel arrivals list
daily and attend to customer inquiries and assist them with their needs.

Duties for the guest relations officer can include:

 Greeting all arriving individual guests, especially those under commercial accounts
 Provide local information for guests
 Promoting in-house functions, facilities and services
 Assisting front desk staff when they are busy and assisting guest to check out

4. The telephone department is headed by the telephone services manager. The telephone supervisor and
telephone operator process all incoming and outgoing calls through the hotel switchboard. Staff in this
department generally possesses good language and communication skills.

In order to provide better service, some hotels have introduced the “one-stop service” with all guest requests
being carried out through the telephone department.

Phone department members need to:

 Provide general information regarding the hotel or local attractions to guests
 Place international calls, morning calls and wake-up calls as required by guests
 Administer the paging system of the hotel, which provides a communication service between
certain hotel staff and management staff
 Administer the in-room movie system of the hotel
 Stay familiar with the names of Very Important Persons (VIPs) in the hotel
 Protect guest privacy by not disclosing room number or guest information
 Communicate with management, engineering, security and guests
 Perform the role of communications center in the event of emergency

5. Reservation
a. The reservations manager takes charge of this section and makes decisions on whether room
reservations/bookings should be accepted when the hotel is fully booked. That is, to stop taking
room reservations or to allow overbooking of rooms.
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 b. The reservations supervisor will monitor closely all the room reservations taken and report to the
reservations manager when abnormal situations happen. For example, there is a larger number of
room cancellations than usual.

c. The reservation clerk will handle all reservations and should be aware of the different sources that
reservations may originate from.

Duties include:
 Handle reservation requests and prepare reservation confirmation slips
 Request guests to confirm or guarantee their room reservations
 Keep records of each reservation and the number of room reservations taken
 Provide the front desk with details of reservations due to arrive the next day
 Prepare VIP lists
 Update guest history records

6. Front Desk (Reception)

The front desk is headed by the front desk manager whose main duty is to ensure that the hotel achieves the highest
possible level of room occupancy and the maximum revenue.
Assisting and reporting to the front desk manager is the front desk clerk.

Duties of the Front Desk Manager may include:

 Overseeing the smooth running of the front desk
 Compiling staff duty roster
 Greeting important guests, VIPs
 Assigning rooms to guests
 Dealing with group arrivals
 Handling guest requests and complaints

Duties of the front desk clerk include:

 Greeting the guest
 Providing information and promoting hotel facilities and services to guests
 Checking in the guest
 Maintaining guest account
 Checking out the guest
 Administering the safe deposit system of the hotel
 Providing foreign currency exchange service to guest

7. Concierge. The concierge comprises of a large group of uniformed staff, including:

 Chief Concierge;
 Airport Representative;
 Driver;
 Parking Attendant;
 Door Attendant;
 Baggage Porter; and
 Baggage Supervisor.

a. Chief Concierge - the overall in charge of this section. He/she normally works at a desk in the main
foyer.

The following guest services are provided by the concierge:

 Providing information/advice on hotel products/services
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  Confirming airline passages and purchasing airline tickets
 Reserving tables at restaurants and tickets to shows
 Arranging the hire of the hotel limousine or other transportation services
 Handling guest requests and inquiries
b. Airport Representative
Duties include:
 Greeting hotel guests at the airport
 Arranging hotel transportation for guests from the airport to the hotel
 Answering inquiries from guests
 Taking hotel room bookings
 Assisting departing guests at the airport
 Liaising with airlines for special arrangements for guests

c. Hotel Drivers
Duties include:
 Taking guests to and from the airport
 Upon request, acting as a personal driver for a guest

d. Parking Attendant
Duties include:
 Parking cars for guests
 Assisting the door attendant in ensuring that traffic flow at the hotel main entrance is
free flowing

e. Door Attendant (works outside the hotel’s entrance)

Door duties include:
 Greeting all new arrivals
 Providing door service to guests
 Summoning baggage porter to assist arriving guests
 Calling taxis and providing the hotel address card for guests
 Paying taxi fare on behalf of the hotel guests who do not have local currencies
 Directing traffic and parking of vehicles at the main entrance

f. Baggage Supervisor (Bell Captain)

Duties include:
 Answering telephone calls from guests regarding baggage pick up from rooms
 Assigning baggage porters to handle the guest baggage
 Receiving guest deliveries
 Handling guest requests for postal services
g. Baggage Porter (Bell Attendant)
Duties include:
 Handling guest baggage
 Escorting guests from the front desk to their rooms
 Running errands for the executive office and hotel guests
 Delivering mail/messages to guest rooms
 Handling storage of guest baggage/belongings for late check-out

h. The Executive Floor Manager

The executive floor manager oversees the smooth operation of the executive floors and business center.

Many hotels provide a business center to both their business and leisure guests. Business travelers who
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require an environment in which to conduct business with comfort and privacy may choose the executive
floor for an additional fee.

The executive floor is usually the top floor of a hotel. Guests of the executive floor will enjoy a range of
complimentary exclusive privileges and benefits which vary from one hotel to another.

Examples are as follows:

• Express check-in and check-out services on the executive floor
• Complimentary breakfast buffet, afternoon tea, and all-day refreshments in the executive floor’s lounge
• Complimentary in-room local calls and high-speed Internet access
• Garment ironing service
• Complimentary use of the hotel’s fitness center and boardroom
• Personalized business and concierge services

The range of services and facilities provided may include business equipment, presentation supplies,
computers, meeting and function space with wired or wireless Internet access, secretarial and translation
services.

MIDTERM ACTIVITY 1: Role-Based Scenario Analysis (Group Work)

Group Size: 5–7 students
Each group represents a Front Office team in a large hotel.

SCENARIO:
A 4-star business hotel in Makati is experiencing the following problems on the same day:
 Overbooking due to miscommunication between Reservation and Front Desk
 A VIP guest arrives early but the assigned executive room is not yet ready
 The telephone operator mistakenly discloses a guest’s room number
 A group arrival of 40 guests checks in simultaneously
 A guest complains about missing baggage
 Airport pick-up service failed to arrive on time
Each group must:
Identify: Which Front Office section is responsible for each issue
The specific position accountable
Analyze: What caused the problem? (System? Human error? Communication breakdown?)
What risks does this pose to guest satisfaction and hotel revenue?
Propose: Immediate corrective action
Long-term preventive solution
Present: A 5-minute operational action plan

THE GUEST CYCLE

Guest cycle refers to the distinct stages of guest interaction between the hotel and guests. On the basis
of the stage of interaction and activities involved, the Guest Cycle is broadly, classified into four main stages
based on the activity type.

The four different phases of the guest cycle are:

 Pre-arrival - The stage where the guest makes a reservation.
 Arrival - The point when the guest arrives at the hotel.
 Occupancy - The period during which the guest stays in the hotel.
 Departure - The point when the guest checks out and leaves the hotel.

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Pre-arrival
It is the stage when the customer is planning to avail an accommodation in the hotel. In this first stage, the
customer or the prospective guest enquires about the availability of the desired type of accommodation and its
amenities via telephonic call or an e-mail. The customer also tries to find out more information about the hotel by
visiting its website.
At the hotel end, the front office accounting system captures the guest’s information such as name, age, contact
numbers, probable duration of stay for room reservation and so on.

Arrival
The front office reception staff receives the guest in the reception. The porters bring in the guest
luggage. For the guest with confirmed reservation, the front office clerk hands over a Guest Registration Card
(GRC) to the guest and requests the guest to fill in personal information regarding the stay in the hotel. The clerk
then registers the guest in the database thereby creating a guest record and a guest account along with it. Later,
the clerk hands over a welcome kit and keys of the accommodation. After the procedure of registration, the
guest can start occupying the accommodation.

Occupancy
During occupancy, a front office accounting system is responsible for tracking guest charges against
his/her purchases from the hotel restaurants, room service, bar, or any outgoing telephone calls made via the
hotel’s communication systems. The front office staff is responsible to manage and issue the right keys of the
accommodations to the right guests. On guests’ request, the staff also makes arrangement for transportation,
babysitting, or local touring while the guest is staying in the hotel.

Departure
During guest departure, the front office accounting system ensures payment for goods and services
provided. If a guest’s bill is not completely paid, the balance is transferred from guest to non-guest records.
When this occurs, collection becomes the responsibility of the back-office accounting division.
At the time of guest departure, the front office staff thanks the guest for giving an opportunity to serve
and arrange for handling luggage. In addition, if the guest requires airport or other drop service, the front office
bell desk fulfils it.

FRONT OFFICE - RESERVATION

Reservation of the hotel accommodation is one of the important responsibilities of the front office department.
A potential guest contacts a hotel for availability of the desired type of accommodation and any allied services
that the hotel offers. The front office department needs to react to the enquiry of the guests.
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For a guest, reservation increases the chances of a better deal for assured accommodation on arrival. For a
hotel, reservation can enable a better management of guest experience during usual as well as peak seasons.
Reservation procedure varies depending on the size and brand of the hotel and the reservation system
employed.

The Type Of Reservation Are As Follows:

1. Guaranteed Reservations
For guaranteed reservations, the hotel will hold the room for the guest overnight or during the guaranteed
period as the guest has prepaid for the room but no refund will be given if the guest does not show up.
In order to guarantee a reservation, guests might opt for one of the following methods:
a. Prepayment Guaranteed Reservation – the hotel request the prospective guest to either send
the complete deposit or a partial deposit and on receiving, makes the booking for the
prospective guest.
b. Credit Card Guaranteed Reservation – in this case the prospective guest gives his credit card
number and details to the hotel. The hotel confirms the room from the credit card guarantee and
then claims from the credit card company, if the guest does not occupy the room on the said
date.
c. Travel Agent Guaranteed Reservation – some travel agents have arrangement with hotel chains to
book room for their clients and executives travelling to various destination. The travel agents are
solely responsible for the reservation; they are billed after the guest’s stay is completed.
d. Voucher or Miscellaneous Charge Order [MCO ] - this is a special arrangement designed to
attract return guest or new business. This is usually provided by the hotels themselves for their
prospective guests.
e. Corporate Guaranteed Reservation – in this case the corporation or company takes the
responsibility for booking for their executives, visitors etc.
2. Non-Guaranteed Reservations
A non-guaranteed reservation means that the hotel will hold the room until a stated cancellation time,
normally up to 6 p.m. on the arrival date and then release the room for sale if the guest does not arrive.

Reservations may originate from different sources, including:

1. Travel and Tour Organization 7. Ministries and Government offices

2. Airlines 8. UN organization and Banks
3. Companies and Commercial Business role 9. Free Individual travelers (FIT)
uses 10. Chain Hotel and Referable from other hotels
4. NGOs and INGOs 11. Global Distribution System (GDS)
5. Embassy and consulate offices 12. Central Reservation System (CRS)
6. Universities and other Educational 13. Meeting planners
Institutions 14. Walk-in.

Note: Walk in guest are also regarded as wind flow business or chance guest. Because hotel don’t have any
prior information about such guest due to which they can process or forecast. Normally in walk in condition all
the activities of registration and reservation are conducted on the spot where as the guest is only taken in if
he/she is in a fit condition to be taken and is ready to pay advance deposit.

Mode of Reservation

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 Mode of reservation generally refers to the ways of receiving the accommodation booking through
various communication system. The following modes of reservation are encircled in front office operation.

1. Fax/ Facsimile:
The word facsimile derived from Latin facsimile, “Make similar” i.e. “Make a copy.” is a tele-
communications technology used to transfer copies of documents especially using affordable devise
operating over the telephone network.
2. E-Mail:
It is most commonly abbreviated email is a method of exchange digital messages across the internet that is
very essential to operate input/ output operation for reservation of rooms.
3. Telephone:
The telephone is a telecommunication device that transits speech by means of electric signals. It is one of
the most common mode of reservation which is very easy to handle.

4. Internet:
Hotel industries offer online reservation services through their internet sites. The variety of potential guests
accessing internet sites to place reservation has prompted travel and hotel to simple reservation
procedure.

Reservation Process and Procedure

Within the Front office the reservations section is responsible for taking guest enquiries and turning them
into reservations. A person working in this section needs a sound knowledge of the room types, room rates and
packages the hotel has available. The reservations staff member will constantly be referring to availability for
every reservation enquiry they take.

1. Take reservation and enter the appropriate information:

 Determine the guest's arrival and departure dates
 Confirm room type and room rate
 Obtain the guest name and related details
 Identify how many guests will be staying
 Determine how guest will pay for room
 Describe related house policies (cancellation policy, check-in, check-out times, late arrivals
etc.)
 Process payment
 Send reservation confirmation.
 Pick up details.
 Any other Details or special remarks.

2. Determining the room availability:

The second most important step in reservation is determining the room availability. In this process one can
check the
demand of guest encoded during the first
step. The availability can be checked by
referring to forecast chart, conventional
chart or density chart. In fully automated
system you can begin checking the same
availability by computerized system or
software.

Room-Forecast-Chart
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3. Reservation Acceptance
A reservation can either be accepted or denied or turned away based on the availability of rooms in the
day(s) in question. An acceptance would lead the receptionist into the confirmation phase, while a denial or
turn away could cause a series of other options to be exercised like for example recording the turn away
reason etc.
When a reservation request is accepted, the details of the room reservation will be recorded on a
reservation form and in the computer. Reservation information details include the following:
• Guest name
• Length of stay
• Room type and rate
• Method of payment
• Guest contact information and special requests.

4. Reservation confirmations
All reservations require confirmation to the person making the reservation. Confirmation is usually made using
the same method as the reservation. This means that if the reservation is made by phone try if possible to confirm
the reservation to the guest while the guest is on the line. Whatever method is used, reservations should be
confirmed within 24 hours of the booking request.

When confirming a reservation, it is important to reiterate the following:

 The arrival and departure dates
 The room type booked
 The rate
 Any special requests of the guest
 Your property's guaranteed check-in time, i.e. The time the room should be ready for the guest
 Your property's check-in and check-out time

Change or Cancel Reservations

 Locate original reservation
 Verify original information with the guest
 Identify required changes adding suggestions if necessary
 Check availability and/or make cancellation
 Confirm changes or offer alternatives
 Identify any charges for cancellation according to house policy and inform the caller (if
applicable)
 Thank caller.
Reservation Record
Each reservation department shall prepare a reservation record, which depicts the various personal and
financial data of guests, for each reservation transaction. The aim is to identify guests and their occupancy
needs before guest’s arrival. Moreover, the hotel can personalize or customize guest services and better
schedule staff accordingly.

In order to create a reservation record, the following details are needed:

a. Guest name (and group name, if applicable)
b. Guest’s home or billing address
c. Guest’s telephone number, including area code
d. Name, address, and telephone number of guest’s company, if appropriate
e. Name and other pertinent information about the person making the reservation, if not the
guest
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 f. Number of people in the group, and perhaps ages of children, if any.
g. Arrival date and time
h. Number of nights required or expected departure date,
i. Reservation type [Guaranteed versus Non-guaranteed]
j. Special requirements [i.e. infant, disabled guest, or no smoking accommodation]
k. Additional information, if needed [i.e. late arrival, method of transportation, flight number,
room preferences, etc.]

At the reservation process, reservation agents shall keep in mind that a rate quoted and confirmed must be
honored. Moreover, reservation clerks should be aware of the following:
a. Supplementary charges for extra services or amenities
b. Minimum stay requirements, if any, for dates requested
c. Special promotions in effect for dates requested, if any
d. Applicable currency exchange rates, if quoting rates to an international tourist
e. Applicable room tax percentages
f. Applicable service charges or gratuities

CRS – Central Reservations System

CRS stands for: Central Reservations System. It is a computerized reservation software used to maintain
the hotel information, room inventory and rates, to manage the reservation and process. A CRS provides hotel
room rates and availability for many different distribution channels such as the GDS, IBE, OTA, 3rd party
websites etc.
Essentially speaking it is an application with various functionalities to manage a hotel’s distribution /
bookings. It can also be called a database distribution system, since the CRS of a hotel transfers data to the
distribution channels. This way hotels are able to reach travelers and travel managers on a global scale.
Bookings are made via multiple sources (OTA, travel agencies, the IBE on the hotel’s own website), and all
reservations sources will appear in the system via interfaces.
Major hotel brands view the CRS as their core technology - providing the core hotel distribution and channel
management infrastructure to succeed in a hyper-competitive industry. One of the top reasons to use a CRS is
to gain better exposure on distribution channels. A CRS links your rates and availability to a multitude of online
and offline channels. These channels include online travel agencies like [Link] and Expedia, brick-and-
mortar travel agencies, independent travel agents, the booking engine on your own website, your reservations
call center, metasearch sites like Kayak and Trivago, and global distribution systems (GDS). With a CRS, you can
easily sell rooms on many different channels, which increases your exposure to potential bookers.
Its main functions are: Administration of room allocations (of single properties and hotel chains) as well
as control and monitoring of rates and availability in the distribution channels.
A CRS is beneficial for a hotel because it allows reservations to be checked and booked with a simple
search. It also allows revenue managers or front office managers to easy adjust the prices corresponding to
demand for multiple distribution channels and platforms at the same time. It is kind of a mission control
software for hotel distribution.

Information commonly stored in a CRS:

 Room Rates  Geocode information
 Room Allotments  Nearby IATA cities and airports
 Room availability  Room and hotel features
 Reservation information  On-site or nearby restaurants, bars,
 Room Types attractions, and recreational activities
 Generic hotel information (address, phone  Hotel cancellation, deposit, and minimum
number, fax number) stay information

Property Management System

PMS stands for: Property Management System. It is a local hotel administration system used for
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reservation, availability and occupancy management, check-in/out, images, guest profiles, report generation
etc. This application is used in-house (in an individual hotel) to control the onsite property activities.
The PMS can be connected with other applications such as the hotel point-of-sale (POS) or the CRS.
The interface to a CRS is an additional option in order to transfer availability, reservations and guest profile
information.
Additionally, various interfaces are available to create further links to internal and external systems
such as room key systems, restaurant and banquet cash registers, minibar, telephone and call centers, revenue
management etc.
PMS is also known as Hotel Operating System (Hotel OS).

[Link]

ACTIVITY #2

Identification: Guest Cycle and Reservation

Direction: Identify the concept, stage, or term being described in each situation. Write your answer on the blank
provided. No erasure.

1. A tourist searches a hotel website to check room availability, amenities, and prices
before deciding to book a room.
2. A guest arrives at the hotel lobby, fills out a registration form, and receives the
room key from the receptionist.
3. During the stay, the guest orders food through room service, uses the hotel
restaurant, and makes phone calls using the hotel telephone.
4. A guest settles the hotel bill, returns the room key, and requests assistance with
luggage before leaving the hotel.
5. A traveler gives his credit card details to ensure that the hotel will keep the room
reserved even if he arrives late.
6. A guest books a room but the hotel will only hold the reservation until 6:00 PM if
the guest does not guarantee the booking.
7. A tourist arrives at the hotel without any prior booking and asks the front desk if a
room is available.
8. The reservation clerk checks a computerized system that shows room availability,
rates, and reservations from different booking channels.
9. A front desk employee uses a hotel system to check in guests, manage room
status, and prepare guest bills.
10. A guest calls the hotel to change the arrival date of the reservation and the
reservation clerk verifies the original booking before making the change.

1. Pre-arrival Stage
2. Arrival Stage
3. Occupancy Stage
4. Departure Stage
5. Credit Card Guaranteed Reservation
6. Non-Guaranteed Reservation
7. Walk-in Guest
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 8. Central Reservation System (CRS)
9. Property Management System (PMS)
10. Change or Cancel Reservation
FRONT OFFICE – GUEST REGISTRATION
Most hotels allow their guests to check-in at 2 p.m. or after. The registration procedures performed by
receptionists should be efficient and accurate. These contribute to a positive first impression to guests upon
their arrival.

Greet the Guest

Receptionists should always be attentive to the
presence of guests at the front door and lobby areas. They
should give warm greetings to the guests when they
approach the front desk.

1. Verify the Guest’s Identity

Ask if the guest would like to check-in.
Verify the guest’s identity by checking his/her passport, booking voucher and confirmation number
2. Present the Registration Form to the Guest
Confirm booking information printed in the registration form with the guest. For example, room type,
room rate, length of stay and special requests if any. Ask the guest to complete and sign the registration
form if he/she agrees with the terms of accommodation arrangement.
3. Confirm the Method of Payment
If a credit card is used, check the guest’s name, the card’s validity and its date of expiry. For guests who
prefer paying cash, make sure they have paid in advance with cash deposit. Guests should also be
reminded that they will not be allowed to post any charges to their guest accounts if no credit card is
provided at the time of checking-in. Procedures of handling other types of payment, e.g. personal checks
or direct billings should also be handled with extra care.
4. Check and Update the Guest’s Information
Check if any mail, message or article is received before the guest’s arrival. Select and assign a suitable
room to the guest according to his/her booking information.
5. Issue Room Key and Give Further Information
While issuing the room key and giving directions to the guest, staff should also take the chance to provide
more information on the hotel. For example, the breakfast arrangements; the operation hours of the
hotel’s outlets and facilities and; how to contact the hotel’s staff for assistance during the stay, etc.
6. Escort Guest to the Room
Ask if the guest needs assistance from the baggage attendant who can take the guest’s baggage and escort
the guest to their room.

Variations of Registration
The registration procedures of group guests (e.g. tours and event attendees) are different from the
general procedures of checking-in an individual guest.
In order to speed up the service process and prevent guests from waiting too long in the lobby, the
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following procedures are usually performed by staff at the hotel reception desk.

Pre-registration
• Some preparation works can be performed by receptionists before group guests’ arrivals, including
the confirmation of room numbers and number of rooms available for groups.
• Key cards are always prepared by receptionists in advance according to the room lists provided by
travel agents or event organizers.

Group Registration
• Some hotels have group check-in counters which specifically serve group guests. Tour escorts or event
organizers check-in at the group check-in counter without the need of checking-in each guest
individually.
• Some hotels would also set up a tour assembly point for large groups by using meeting rooms if
necessary. Such a practice can control the traffic of hotel lobby and enhance the comfort of guests
upon their arrivals.

During the process of registration, the front desk clerk will request to see the guest’s identity card or passport,
for verification purposes. When all formalities are completed, the front desk clerk will issue the room key to
the guest. The baggage porter will then take the guest’s baggage and escort the guest to the guest room.

It is also common practice for hotel staff to obtain a deposit or credit card before checking a guest into the
hotel.

Figure shows a sample registration

form. During the process of
registration, the front desk clerk will
request to see the guest’s identity
card or passport to check if the guest
is an alien, for verification purpose.
When all formalities are completed,
the front desk clerk will issue the
room key to the guest. The baggage
porter will then take the guest’s
baggage and escort the guest to the
guest room.

Note: Guests who arrive at the hotel

without having made a reservation
are known as walk-ins. It is a common
practice for hotel staff to obtain from
the guest a substantial deposit or
credit card imprint before checking
the guest into the hotel.

Check-out Procedures
The standard hotel check-out time is usually set at 12 p.m. or before, although this can vary by hotel
and location. The check-out procedures are as important as check-in since guests would expect they can leave
with no troubles on their bills.
Important issues that the reception staff should put into focus are payment collection, customer
assistance and to create a positive parting impression to guests.
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 The standard check-out procedures that should be followed by reception staff at the front desk, include
the following:

1. Greet the Guest

Same as the check-in procedure, through
greeting, reception staff can take the chance to
ask the guest for his/her comments on their
stay.

2. Check Guest Details

It is important to check guest’s details, e.g. the
guest’s name and room number. Double check with
the guest so to make sure satisfactory services
were provided to the guest during their stay. Also
ask the guest to return the room key.

3. Check for Late Check-out Charges

Normally, hotels would request their guests to
check-out before 12pm. Receptionists should follow
the hotel’s policy for handling the cases of late check-
out. Some hotels would charge 50% of the daily room rate for those who check-out before 6pm and a full
rate is charged after 6pm.

4. Double-Check the Hotel Charges

Produce guest folios (guest bills) for guest inspection and master folios (master bills) for tour escort’s
inspection. The receptionist should print and present the bill to the guest for his/her checking before
settlement. It is the responsibility of the receptionist to explain the charges to the guest and if he/she has
any queries, make corrections if necessary.

5. Settle the Guest Account

Re-confirm the method of payment. Some guests, especially business travelers and tours would like to
split their bill into two different bills:

 Master folios (master bills), include room and breakfast charges only, which should be paid by
enterprises to cover the necessary expenses of their travelling staff or; by travel agents which have
already received the payments from tourists included in packaged prices beforehand.
 Incidental folios contain personal expenses, such as telephone, spa, and in-room movies, would
be put into the incidental bills as guests’ own responsibilities.

6. Offer Assistance
Ask if the guest needs any assistance with bell service, shuttle bus or arrangement of other
transportation. Some may request the front desk to keep their baggage for a certain period before their
departure. Staff should also take the chance to help guests in making future reservations upon request.

7. Update Room and Guest History Record

After checking out the guest, make sure to update the room status ((i.e. from OD to VD) to facilitate
room cleaning and make the room available for sale as efficiently as possible. Through the help of new
information technology, guest-history profiles can be automatically created and updated upon check-out
by the property management system (PMS).

Handling Overbooking
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 Overbooking occurs when a hotel takes more reservations than the number of rooms available. It is a
common practice of hotels which contributes to a higher chance of full house while reducing the loss of no-
shows and last minute cancellations. Major problems of overbooking should be noted, which include the loss
of reputation, increase in guest dissatisfaction and complaints, etc.
Generally, receptionists should be able to anticipate overbooking and take appropriate actions prior to
the guests’ arrivals. Sometimes, it is possible to find additional rooms available for sale in the hotel property.
For example, check whether OOO rooms can be fixed immediately by the engineering department and any
‘double up’ reservations have been made, i.e. two reservations under the same person are made by mistake.
If no rooms are available, prioritize expected arrivals for room assignment according to hotel policy, e.g.
put VIPs, guests with guaranteed reservation and frequent guests at top priorities. Contact and reserve rooms
in sister hotels or hotels nearby before guests’ arrivals.
For those who cannot get a room upon arrival, the hotel will have no choice but ‘walking the guests’. It
means that the hotel has to reject guests even they have made reservations. By
turning a guest away who is supposed to get his/her room reserved, the hotel has breached the contract which
can lead to legal actions of guests. Therefore, ‘walking the guests’ should only be handled by experienced
receptionists or front desk managers.

The proper procedures include the followings:

a. Apologize to the Guest
As it is the hotel’s own fault of overbooking, hotel staff should apologize to the guest with no excuse.
b. Provide Alternatives
Compensations are always provided by the hotel to please the unhappy guests which generally involve:
 Free room for the 1st night of stay in an alternate hotel;
 Free transportation to the alternate hotel;
 Free long distance calls;
 Fruit plates;
 Free room upgrade for future purchase; or
 Discount coupons for food and beverage consumptions, etc.
In case the guest has reserved more than one night in the hotel, try to invite him/her to come back in the
remaining nights during the conversation if rooms are known to be available.

c. Provide Baggage Assistance and Transportation

Once the guest agrees with the hotel’s arrangements, receptionist should ask the bell person to take
care of the guest’s baggage and arrange transportation to the designated hotel.

d. Follow-up Services
Call the designated hotels to pay special attention to the unhappy guests. Some hotels would request
their duty managers or front desk managers to give personal calls to the unhappy guests so to make
sure that they have no problems with their rooms in the alternate hotels.
ACTIVITY #3
Essay Questions: Front Office Guest Registration
Direction: Answer the following questions clearly and concisely. Support your answers with explanations or
examples when necessary.
1. Explain the importance of guest registration in hotel front office operations. How does an efficient
check-in process create a positive first impression for guests?
2. Why is it important for receptionists to verify a guest’s identity and payment method during
registration?
3. If a hotel cannot provide a room to a guest due to overbooking, what procedures should the
receptionist follow?

Revenue from Room Sales and Sales Indicators 15

 1. Revenue from Room Sales

Room sales normally contribute to the majority of a hotel’s revenue, followed by sales in the food &
beverage sections.
Variations on revenue contribution of different units occur in different types of hotels. Small- scaled
hotels with no restaurant outlets mainly depend on their revenue in room sales for survival.

Example:

The revenue of casino hotels are mainly from the

gambling units, while charges in rooms and catering
services are relatively cheap or even subsidized in
order to attract more guests.
Convention hotels and those which target events
would also have higher income from banqueting and
meeting facilities when compared with other hotels

2. Sales Indicators

Sales indicators refer to how hotels count and measure their business performances. Some basic
indicators which are applied by hotels include the following:
 Occupancy Rate

The Occupancy rate is a common sales indicator which tells how well the hotel has fully utilized the room
resources to maximize profit. It is always the objective of hotels to achieve full-house, i.e.100% occupancy,
when all the rooms are sold out for the night.

The formula for occupancy rate is shown below:

Occupancy Rate = Number of Rooms Sold ÷ Total Number of Rooms in a Hotel x 100%

 Guests per Occupied Room

This gives the ratio between guests staying in the hotel and the quantity of occupied rooms. Regardless of the
room types available in the hotel, it gives a general idea of how many guests are being staying in each room.
The information is useful for different departments, e.g. housekeeping can refer to the guest ratio to estimate
the consumption rate of guest supplies.

The formula of guest per occupied room is shown as below:

While occupancy rate tells the ‘quantity’ of businesses, top management are also interested to know about the ‘quality’,
i.e. how much they charge for a hotel room. The ‘average daily room rate’ is calculated which gives a general estimate of
the average room charge received by a hotel, regardless of the differences in room types and rates.

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The formula of average daily room rate is shown as below:

 Revenue per Available Room (REVPAR)

This is similar to the Average daily room rate in indicating the hotel’s performance. The only difference between
REVPAR and ADR is the denominator. Instead of just considering the actual number of rooms sold, hotels tend
to use all rooms available in calculating the REVPAR, i.e. to include all vacant rooms, out-of-order rooms and
rooms for ‘house use’ in the calculation. The value is always smaller than the ADR which serves as a good means
to check the ability of management in utilizing all room resources to maximize the hotel revenue.

The formula of REVPAR is shown as below:

Front Office – Accounting

A front office accounting system is an essential process designed to monitor and chart the financial
transactions of guests and non-guest at the hotel during each stage of the guest cycle. An effective guest
accounting system includes tasks performed during each stage of the guest cycle:

 During the pre-arrival stage of the guest cycle, a guest accounting system captures data related to the
form of guarantee for a reservation, and tracks pre- payment and advance deposits.
 When the guest arrives at the hotel, a guest accounting system documents the application of
room rate and tax at registration.
 During occupancy, a guest accounting system is responsible for tracking guest charge purchase.
 During guest checkout, a guest accounting system ensures payment for goods and services
provided.
 After guest check out- if a guest’s bill is not fully paid at checkout, the balance is transferred from guest
to non –guest records. When this occurs, collection becomes the responsibility of the back-office
accounting division.

So, the specific functions of a front office accounting system (FOAS) are to:

 Create and maintain an accurate accounting file for each guest or non-guest account
 Track financial transactions throughout the guest cycle
 Ensure internal control over cash and non-cash transaction
 Obtain settlement for all goods and services provided

The front office’s ability to monitor and chart guest and non-guest transaction will directly affect its ability to
collect outstanding balances. Incomplete of inaccurate monitoring may lead to difficulties in settlement.

Accounts

An account is a form on which financial data are summarized. An account may be imagined as a bin or a
container which stores the results of various business transactions. The increases and decreases in an account
are calculated and resulting monetary amount is the account balance. Any financial transaction that occurs in a
hotel may affect several accounts. Front Office accounts are recordkeeping devices to store about guest and
non-guest financial transactions.

In its simplest written form, an account resembles the letter T:

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In the domain of front office accounting, the charges are entered on the left side of the ‘T’. They increase the
account balance. The payments are entered on the right side of the ‘T’. They decrease the account balance.

Basic Front Office Accounting Formula:

Net Outstanding Balance = Previous Balance + Debit – Credit

Where debit increases the outstanding balance and credit decreases it.
Most of the contemporary hotel businesses employ automated accounting system.

Types of Accounts
There are following typical accounts in hotel business dealing with customers −

 Guest Account
 Non-guest or City Account
 Management Account

GUEST ACCOUNT *CITY ACCOUNT

It is the record of financial transactions It is the record of financial transactions
between the guests and the hotel. between the non-guests and the hotel.
It is created at the time of reservation or It is created when a guest fails to settle the
registration. bill completely at the time of check-out.
It is maintained by the front office It is maintained by the Accounts section in
completely. back office.
It records all financial transactions of a guest It records financial dues not paid or partially paid
from check-in till check-out. by the guests at the time of check-out
from the front office to the back office.
Guest account is compiled on a daily basis. City account is compiled on a monthly basis.

*Non-Guest Account.
A hotel may extend in-house charge privileges to local businesses or agencies as a means of promotion, or to
groups sponsoring meetings at the hotel. The front office creates non-guest account to track such transactions.
These accounts may also be called house accounts or city accounts.

Management Account
Some hotels allow the managers to entertain the guests’ queries or grievances, or any possibility of
acquiring a business deal over a brief interaction with the guests. For example, if a guest has some problem
about the hotel policy, the manager calls the guest for interaction over a coffee or a drink and tries to resolve
the same. The expenses towards this interaction are then recorded on the management account.

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 basically four types of folios used in front office accounting. They are:

1. Guest folios:- accounts assigned to individual persons or guest rooms

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 2. Master folios: accounts assigned to more than one person or guest room; usually reserved for
group accounts.
3. Non-guest or semi-permanent folios: accounts assigned to non-guest businesses or agencies with
hotel charge purchase privileges.
4. Employee folios: accounts assigned to employees with charge purchase privileges. Executives like
Sales and Marketing Director, Front Office Manager may charge the hotel for travel and
entertainment to promote the business

Postings and Types

The process of recording the entries on the folio is called ‘Posting’ of transactions. There are two basic
types of postings −
1. Credit − they reduce the guest’s outstanding balance. These entries include complete or partial
payment, or adjustments against tokens.

2. 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.

Front Office Management - Night Audit What is Night Audit?

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.

Basic Activities during Night Audit

The night auditor performs the following steps during night audit activity −
 Posting accommodation and tax charge
 Accumulating guest service charges and payments
 Settling financial activities of various departments
 Settling the account receivables
 Running the trial balance for the day
 Preparing the night audit report

The Need for Night Audit

The objective of night audit is to evaluate the hotel’s financial activities. Night audit not only reviews
guest accounts by checking credits and debits but also tracks the credit limits of the guests and tallies
projected and actual sales from various departments. Night audit reviews daily cash flow into and out of the
hotel’s account.
Night audit has a large significance in hotel business operations. The management body refers night
audit report to plan future goals and control the expenses. The managers can react immediately on the
acquired information.

Responsibilities of a Night Auditor

Apart from the basic audit activities listed above, the night auditor carries out the following responsibilities −
 Taking over from the last shift.
 Checking-in or checking-out the guests after 11:00 pm at night.
 Registering the guests.
 Allocating accommodations to the newly checked-in guests.
 Settling transactions in the newly created guest accounts.
 Verifying guest folios.
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  Verifying room status report.
 Balancing all paperwork with the accounts in the PMS.
 Remaining liable for security of the premises.
 Handling guest accommodation keys.
 Taking backup of the PMS generated reports.
 Preparing lists of expected guest arrivals for the next
day.
 Closing financial activities for a day.
 Starting financial activities for the next day.
 Receiving and recording bank deposits.

Front Office Management - Communication

The front office is the center of guest transactions in a

hotel and so often acts as the center for collection and
distribution of guest information.

Such information may help other departments in

providing the best service to guests throughout the
different stages of the guest cycle.

1. Front Office and Housekeeping

The housekeeping department requires the following information from the front desk:

• Check-in, occupied and check-out rooms in order to organize room cleaning

• Special requests from guests, such as baby cot or extra blanket, etc., so that extra amenities and
services can be provided to guests
In return, the housekeeping department will provide the actual room status to the front desk for
comparison with the computer record which ensures that the front desk has the correct room status. Any
discrepancy found will be double checked by the Assistant Manager.

2. Front Office and Engineering

The engineering department is responsible for maintaining properly the hotel facilities under the care of
the front office department such as the proper of functioning of the guest lift.

3. Front Office and Security

The front office needs to provide guest information to the security department in the event of emergency;
such as fire alarm, power failure and so on. When guest reports loss of property to the front office, security
department will be informed to handle the case together with front office’s assistant manager.

Other departments who benefit from information provided by the front office also include the following:

4. Front Office and Human Resources

The human resources department provides staff training and recruitment service to the front office. It also sets
up the staff grooming and discipline standard for staff to follow.

5. Front Office and Food and Beverage Department

The front desk will provide the food and beverage department with a guest room special amenities request
form. The food & beverage department then arranges for item such as welcome fruit baskets, chocolates and
wine to be placed in the guest room.
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 For groups, the food & beverage department will need the front desk to provide information on meal
arrangements so as to reserve seats in the outlets or conference rooms for guest meals.

6. Front Office and the sales and marketing department

The sales and marketing needs to work closely with the front desk and reservations department when
dealing with corporate bookings or for the reservations of groups/tours.
The front desk will also provide the sales and marketing department an updated rooming list, with guest
room numbers upon the arrival of large tours or groups.

7. Front Office and Accounts Department

Information concerning advance deposits received by the reservations department and payments received
by the front desk must be recorded and passed to the accounts department which is responsible for monitoring
guest accounts, checking credit limits and seeking settlements of guest accounts.
The accounts department is responsible for compiling a list of credit-approved enterprises, which is needed
by reservations and front desk when receiving bookings.

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