Professional Documents
Culture Documents
Front Office Department is the face and as well as the voice of a business. ... For a business such as hospitality, the
front office department comes with an aspect of elevating customer experience with the business. Front Office
department is a common link between the customers and the business.
At hotels, front office refers to the front desk or reception area or the core operations department of the hotel.
This would include the reception and front desk, as well as reservations, sales and marketing, housekeeping and
concierge. This is the place where guests go when they arrive at the hotel.
A High balance report / Credit limit report is used to find out all guest who had exceeded the normal credit limit of
the hotel.
This report is prepared on a daily basis by the Night Auditor and circulated to the management.
The different modes of payment through which guest can settle or pay their bills are: Cash or debit card. Cheques.
Credit card. Direct billing. Combined settlement methods.
A cash payment in full at check-out is the most direct way to bring a guest account balance to zero.
If the guest had a credit card accepted and verified at registration, but pays the bill with cash, the funds
being held for the hotel by the card company should be released.
Debit card payments are similar to cash payments, in that funds are drawn directly from the guest’s
personal checking or savings account.
If a guest wants to pay using a debit card, there must be sufficient funds in his or her account at the time
of settlement.
Guests desiring to settle their account in foreign currency should first convert their money to the local
currency (hotels may charge a fee for this conversion).
Cash payments are the most likely to be involved in fraud by front desk agents; therefore, hotels should
have procedures in place for recording cash transactions.
Front desk agents should be trained to identify counterfeit currency.
Credit card settlement brings a guest account to zero, but the amount of the charge must be tracked until
payment is actually received from the credit card company.
Credit card settlement creates a transfer credit on the guest’s folio and moves the account balance from
the guest ledger to a credit card account in the city or non-guest ledger.
After the front desk agent processes the transaction, the guest may be asked to sign a copy of the folio,
agreeing to the credit card balance.
When an international guest presents a credit card for payment, the credit card company will apply
payment in local currency (any currency exchange fees are charged to the cardholder).
Direct billing transfers a guest’s account balance from the guest ledger to the city ledger.
The hotel is responsible for billing and collecting a direct billing account.
Direct billing must be prearranged and approved by the hotel’s back office credit department.
To complete a direct billing settlement, the front desk agent has the guest sign the folio to verify its
contents and signify that the guest will pay the bill if the direct billing agent (if applicable) refuses
payment.
A copy of the final guest folio is sent to the direct billing agency.
A guest may choose more than one settlement method to bring the guest folio balance to zero.
For example, a guest may make partial cash payment and then charge the remainder of the account to a
payment card.
Front desk agents must accurately record the combined settlement methods and exercise care that
required paperwork is properly completed.
The guest registration procedure involves several steps that, if followed accurately, will allow management to
ensure a pleasant, efficient, and safe visit. The guest registration process involves the following steps and will be
discussed generally as these steps relate to effective front office management. Later in this chapter, use of a PMS
(property management system) method of registration is discussed.