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surendrasinghbhakuni · 5 years ago

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“Cleaning” in Housekeeping Department of Hotel

THE HOUSEKEEPING DAY

The “housekeeping day” refers to that part of the 24 hours in a day when housekeeping operations are in full swing. The daily routine may differ slightly from one hotel to other, and the shift timings may wary considerably, depending on their location and target clientele.

For systematic management of the daily routine of the housekeeping department, the housekeeping day is divided into different activities which are carried out by the employee in their respective shifts.

Following are the activities:

1. Briefing: The executive housekeeper, being the managerial staff, will hold the briefing session for all employees at the beginning of a work shift. This process facilitates a two-way communication between the management and the staff. Usually this is the time at which grooming standards are checked, before allocating jobs to the staff. The following may be communicated in the course of a briefing session of 10 minutes:

a) Any VIP in the house.

b) Policies and new procedures to be followed by the staff or the hotel in the general.

c) Job allocations

d) Immediate reporting relationships for the shift.

e) Checking of grooming standards and personal hygiene.

f) Appreciation for work well done on the earlier shifts.

g) Rectification required

h) Banquets or other events to be held in the hotel.

2. Room assignments: After briefing, the floor supervisors hand over the room assignment sheet to the GRAs. These GRAs are the ones who will be servicing these rooms in that particular shift.

3. Handover of keys: Once the GRAs have received their room assignment sheets, they are handed the floor master keys for their particular floors by the deputy housekeeper.

4. Readying the cart: The GRAs, armed with the master keys, and then proceed to the floor pantries on their individual floors, where they make additions and alterations to the room attendants cart according to the room occupancy.

5. Room status check: At this stage, one of the most important morning shift activities to be undertaken by the housekeeping staff is the physical checking of the room status.

6. Clean-up, reporting, and handover: The GRAs now send all the soiled linen to the laundry in a linen trolley. The floor supervisor collect and file away all forms and reports the GRAs submit at the control desk. After completing the document submission the GRAs hand over the keys to the control desk, sign the key control and assemble for their debriefing.

7. Debriefing: This session, similar and complementary to the briefing at the start of a shift, may include the following:

a) Discussing problems faced by any staff member.

b) Sharing experiences and inviting ideas or practical solutions to tackle any particular common problem.

c) Handover of any incomplete work to the staff on the next shift.

d) Checking the next day’s duty roster.

Methods of Cleaning/Types of Cleaning procedures in Hotel Housekeeping

The Executive Housekeeper is responsible for seeing that the housekeeping staff follow the standard cleaning procedures and methods. He/She should also oversee that proper tools (mechanized or non-mechanized) are used to carry out their assigned tasks.

Floors and carpets in the hotel require regular cleaning and finishing to retain their appearance and durability. Deciding when and how carpets and floors should be cleaning is an important task and this important task is further complicated by the different available cleaning procedures, machines and solutions.

Cleaning processes in housekeeping can be either manual or mechanical. They may involve different methods like washing (using water as a cleaning and rinsing agent), friction (as in using an abrasive), static electricity (by using a static mop), suction (by using a vacuum cleaner), or by force (by using pressurized water). The various types of cleaning processes are summarized in this section.

A. Manual Cleaning Methods - Which do not require mechanized or electronic equipment:-

1) Sweeping:

What is the process involved in sweeping?

Sweeping is done to collect dust when the floor surface is too rough for a dust mop.

What is the Equipment required for sweeping?

A broom, a dustpan, a trash bag and a stocked pubic-space cleaning cart.

2) Dusting:

What is the process involved in dusting?

· This task requires a systematic and orderly approach for efficiency & ease.

· Room attendants should start dusting articles at the door & work clockwise around the room.

What are the Equipment & agents required for dusting?

Cloth duster, Micro Fiber Cloths, Feather duster & dusting solution if necessary.

3) Damp dusting:

What is the process of damp dusting?

· This is the most preferred way of cleaning in hotels as surfaces can be wiped as well as dusted, removing any sticky or dirty marks at the same time.

· A suitable lint-free cloth at the correct level of dampness should be used so as to avoid leaving any smears.

What are the Equipment & agents required for damp dusting?

Cloth duster, water, plastic bowl, & a neutral detergent if necessary.

4) Dust Mopping / Dry Mopping/ Mop Sweeping:

What is the process of Floor Dust Mopping?

· This is the preferred way to remove dust, sand or grit from the floor.

· If the dust and other substances are not removed from the floor on a daily basis, they will continually scratch the surface finish, diminishing its lustre, & will eventually penetrate down to the floor itself.

What are the Equipment & agents required for Dry Mopping the Floor?

Dust control mop, dust pan, dust- collecting bag, & dustbin.

5) Spot Mopping:

What is the process of Spot Mopping?

· Spot mopping is essential to the preservation of floor surface.

· Liquids & solids that are spilt on the floor, if left for any length of time, may penetrate the finish & stain the floor.

What are the Equipment & agents required for Spot Mopping the Floor?

Mop & bucket or a mop- wringer trolley, cold water, & a very dilute solution of neutral detergent if necessary.

6) Wet mopping / Damp mopping:

What is the process of Wet Mopping?

· A damp mop is used to remove spills & adhered soil that was not removed during the dry removal process.

What are the Equipment & agents required for Damp Mopping?

Caution signs, floor cleaner, wet mop & bucket or mop- wringer trolley, squeegee, & detergent solution.

7) Manual Scrubbing:

What is the process of Manual Scrubbing?

· For modern surfaces, very little hand -scrubbing is required.

· Scrub gently in straight lines away from yourself, working backwards.

What are the Equipment & agents required for Manual Scrubbing?

Long-handled scrubbing brush, mild detergent, bucket, squeegee, water, & mop.

8) Manual polishing:

What is the process of Manual Polishing?

· Apply the polish sparingly.

· Use cotton rags to apply polish & a cloth for buffing.

What are the Equipment & agents required for Manual Polishing?

Use proprietary polish for each type of floor or surface, clean cotton rags.

9) Spot Cleaning:

What is the process of Spot Cleaning?

· This refers to the removal of stains from different kinds of hard & soft surfaces.

· To remove a localized stain, the whole surface need not be treated with stain-removal reagents.

What are the Equipment & agents required for Spot Cleaning?

Cleaning Cloths, solvents, cleaning agents, brushes etc.

B. Mechanised Cleaning Methods - These utilize equipment powered by electricity as well as mechanical equipment:-

1) Suction Cleaning:

What is the process of Suction Cleaning or Vaccum cleaning?

· This is the basic & preparatory step to all other mechanized procedures & should be performed regularly.

· The goal is to remove as much dry soil as possible so that it does not spread, scratch the finish, or damage the surface.

What are the Equipment & agents required for Cleaning or Vaccum cleaning?

Caution signs, a stiff broom, wet/dry vacuum cleaner with attachments & a mild detergent for wet cleaning if necessary.

2) Spray buffing:

What is the process of Spray Buffing?

· This process uses a 175- or 300-rpm (revolutions per minute) floor machine & a soft pad or brush.

· As the machine goes over the area, soil, scuffs, light scratches, & marks are removed & the shine is restored to the surface.

What are the Equipment & agents required for Spray Buffing?

The equipment & agents required are a 175 –or 300-rpm buffing machine with beige pad, spray bottle, detergent, & finishing solution.

3) Polishing:

What is the process of:

· This process uses a 175- 1500-rpm floor machine & a soft pad or brush to remove some soil & brush to remove some soil & put the shine back in the finish.

· Vacuuming or dust- mopping should be carried out as a follow- up step to remove loosened dirt.

What are the Equipment & agents required for Spot Cleaning?

A 1500 – 2500 rpm floor machine.

4) Scrubbing:

What is the process of Scrubbing?

· This process removes embedded dirt, marks, deeper scuffs, & scratches from the floor along with some of the finish.

· The pad or brush, the type of detergent, the water temperature, & the weight & speed of the machine all determine whether the process is considered light or heavy scrubbing.

What are the Equipment & agents required for Scrubbing?

Floor- maintenance machines with a green pad.

5) Stripping:

What is the process of Stripping?

· This is a very aggressive process that requires removing all of the floor finish & sealer, leaving a bare floor ready for refinishing.

What are the Equipment & agents required for Stripping?

A floor-maintenance machine with a black pad.

6) Laundering:

What is the process of Laundry?

· This is the cleaning method used for washable fabrics.

· It is a process in which soil & stains are removed from textiles in an aqueous medium.

What are the Equipment & agents required for Laundering?

Washing Machines, Drying Machines, Steam Cabinets and Tunnels, Flatwork Irons, Folding Machine, Washing Chemicals and Detergents.

7) Dry Cleaning:

What is the process of Dry Cleaning?

This is the method in which soil & stains are removed from textiles in a non-aqueous medium.

Dry cleaning is any cleaning process for clothing and textiles using a chemical solvent other than water.

What are the Equipment & agents required for Dry Cleaning?

Chemical Solvents, Dry Cleaning Machine

Methods of Organizing Cleaning

1. Orthodox/ Traditional cleaning: In this method, the Guest Room attendant completes all the cleaning tasks in one room before proceeding to another room. On average, a GRA may be required to clean about 12-20 room in 8 hours duty.

ADVANTAGES:

Ø Improved security.

Ø More job satisfaction.

Ø Standard of work is higher if the individual is efficient.

Ø Training is simplified.

DISADVANTAGES:

Ø Each area takes longer to get cleaned.

Ø Maybe more expensive.

Ø Each staff will have to be given equipment, hence more equipment required.

Ø May be too rigid.

2. Block cleaning: In this method, GRA moves from one dirty room to another and completes the same task in every room before returning for starting the next task on the list. This involves blocking several rooms at a time and usually, more than 1 GRA are involved in cleaning at a time. Different GRA’s pick up different tasks. (Bed making, Toilet Cleaning, Room cleaning, replenishing supplies).

ADVANTAGES:

Ø Less equipment is required.

Ø Is cheaper to operate.

DISADVANTAGES:

Ø Security is weakened as lots of people enter the room.

Ø More disturbances to the guest if he’s in the room during room cleaning.

Ø May-be monotonous for staff.

3. Team cleaning: This is a combination of the two methods mentioned above. In this method two or more GRA’s work in the same room taking up different tasks so that room is cleaned quickly before moving on to the same room. A team of 3 GRA’s may be assigned 30-35 rooms in a day.

ADVANTAGES:

Ø Equipments can be shared.

Ø Heavy work can be carried with ease.

Ø New staff can be trained easily.

Ø Increased productivity.

DISADVANTAGES:

Ø In case of any damage to the equipment, no one can be held responsible.

Ø Standards can get lowered if proper supervision is missing.

Ø While training, new staff can pick up bad habits.

Ø Due to mis-understanding some work can get left out.

Ø If there are any clashes between staff, working together can be a disadvantage.

FREQUENCY OF CLEANING

Cleaning tasks may be divided according to the frequency of their scheduling, which depends upon the level of soiling, the type of surface, the amount of traffic, the type of hotel and the cleaning standards. Employees should be given the procedures and frequencies for carrying out various tasks outlined in the book or manual. This information may also be displayed in the floor pantries.

1. DAILY CLEANING:

These are routing operations carried out on a day-to-day basis by the staff of the housekeeping department. These include the regular servicing of guestrooms, cleaning of bathrooms and toilets, suction cleaning of floors and the floor coverings and so on.

2. PERIODIC CLEANING:

A. WEEKLY CLEANING:

These, as term implies, are routine tasks carried out on a weekly basis. Mostly the time consuming tasks are placed under this category which, must be done at least once in a week and cannot be undertaken on a daily basis. Some of the weekly jobs are as follows:

a) Polishing of brass ware, metal work, fitting and fixtures.

b) Scrubbing of bathroom tiles.

c) pest control of the rooms and floors

d) laundering of the shower curtains

B. SPRING CLEANING:

This is a term used for annual cleaning of guestrooms and public areas in offseason periods and low occupancy periods. This involves a complete overhaul of the rooms by undertaking a few steps as:

a) Removal of carpets from the room for shampooing

b) Polishing wooden furniture, shampooing upholstery (sofas)

c) Painting on walls

d) Cleaning air conditioning vents

e) Airing the room Redecoration

C. Deep cleaning:

It refers to the intensive cleaning schedule in which periodic cleaning tasks are scheduled for monthly, quarterly, half-yearly or annual frequency. This is done for areas and surfaces which cannot be cleaned on a daily basis. This kind of cleaning is conducted in close coordination with the maintenance department. Some of the deep cleaning jobs are as follows:

a) carpet shampooing

b) Rotating and cleaning mattresses

c) Cleaning of Ceilings, light fittings, fans, signage boards

d) Laundering of soft furnishings.

Apart from the above cleaning there can be:

1. Evening service (Or Turn- Down Service): This is the service given to room in the evening to prepare the room for the night. This service should be done prior to the guest retiring for the night.

2. Second Service: this is service given to the VIP guest staying in the hotel or on the guest request. This normally happens when a guest has/ had a party or meeting in his room & would like his room to be put in order as a consequence. This may be charged by the hotel.

Hotel Guest Room Cleaning

A.ENTERING THE GUEST ROOM:

Procedure followed in entering the guest room

1. During Hotel Guest Room Cleaning always knock the door announcing Housekeeping.

2. If there is no answer, after 15 seconds knock the door again the second time announcing Housekeeping.

3. If there is still no answer, use the master key to open the door announcing Housekeeping and enter the room while knocking.

B.PREPARE GUEST ROOM FOR CLEANING:

1. Remove room service equipment's from room:

1. Pickup all room service equipment and move it to the floor pantry.

2. Move the room service cart / trolley to the floor pantry.

3. Inform the room service / IRD department to clear the trays / trolley from guest room / floor pantry.

4. Never place the room service trays or trolleys on the guest corridor or the service elevator.

2. Removing rubbish:

1. Collect recyclable items such as (Newspapers / Aluminum cans, glass bottles, News paper bags etc.) and place them either in the bag or on the floor pantry.

2. Empty the waste paper basket and ashtray on to the garbage bag.

3. Pick up all the rubbish and put it in the rubbish bag.

4. All rubbish removed from room upon entering that room, and placed in rubbish bag on trolley.

5. Extra care should be taken with broken glass, razor etc.

6. Remove all disposal items like ash, cigarette buds etc. into the dustbin.

7. Keep ashtrays and glassware under washbasin tap to wash.

8. With lukewarm water and teepol, clean the ashtrays and glassware with the help of sponge.

9. Wash liberally with water.

10. Wipe with a lint free cloth.

11. After drying, place back the items in the appropriate place.

12. Ashtrays and glassware are spotless and clean.

13. Use a dry tissue to collect hair from the vanity, toilet, bath tub and floor.

14. Do not throw away any guest property that may be wrapped in a tissue.

15. Cleaning of ashtrays and glassware.

16. Collect all ashtrays and glassware.

3. Emptying dirty linen:

1. Remove any guest clothing from the bed and neatly lay it across the back of the chair.

2. If there is any personal items on the bed then remove them and place it neatly on the table.

3. If it’s a departure dirty room then if you find any guest items and record the same as lost and found item.

4. Remove all dirty linen from the room and put everything in the space provided for storing soiled linen in the R/A trolley.

5. When the dirty linen is at level with the top of the trolley, empty the linen and collect in the pantry.

6. All the dirty linen removed from room and put in linen bag in the trolley.

7. Do not use guest linen and towels for cleaning the guest rooms.

v SERVICING OF OCCUPIED ROOMS:

1. All occupied rooms are serviced twice daily and as and when requested by the guest.

2. Enter the room according to the procedure of entry to guestrooms.

3. Clear the garbage according to the procedure of removal of garbage from dustbins.

4. Collect the soiled linen and throw in the linen bag.

5. Make the bed, follow the bed making procedure.

6. Perform dusting of the room.

7. Vacuuming of carpet and the upholstery maintenance.

8. Clean Bathroom.

9. All amenities are replenished in bathroom. (Maintain photograph for standard amenity placement)

10. After servicing the room following facilities function to be checked.

11. Television

12. All Telephones

13. All Bulbs.

14. Any in room Entertainment system.

v SERVICING OF VACANT ROOM:

1. Room has to be spic and span at every given time.

2. Knock the door.

3. Switch on all lights.

4. Open heavy and sheer curtains.

5. Remove turn down service.

6. Put bed cover.

7. Do the dusting.

8. Replenish water and ice.

9. Mop bathroom flooring with disinfectant.

10. Vacuum the carpet if necessary.

11. Close sheer curtain.

12. Heavy curtain should be half closed.

13. Put of all the lights.

14. Give final looks and shut the door.

v SERVICING OF VACANT DIRTY ROOM:

1. Vacant dirty rooms cleaned thoroughly and all used items/ amenities are changed with fresh ones. Left guest items to be deposited at Housekeeping control Desk.

2. Knock and enter the room.

3. All drawers and cupboards are checked for any lost and found of guest.

4. All dustbins are cleared of garbage.

5. Soiled linen to be removed.

6. Bed is made according to procedure for bed making.

7. Dusting of room is done.

8. Vacuum upholstery and carpet.

9. All glassware and Ashtrays have to be cleaned.

10. All guest amenities in room have to be replenished.

11. Bathroom is cleaned according to procedure.

12. Replenished amenities in the bathroom.

13. All items used by the previous guest are changed with fresh ones.

14. All maintenance work are noted and given to the Engineering department.

15. Inform room status to the Housekeeping control desk.

v SERVICING OF DEPARTURE ROOM:

When a guest releases a room and leaves the hotel that particular room is known as ‘departure room or check-out room.’ The housekeeping department has to clean the room, get the room ready so that the hotel can sell that particular room to some other guest also.

The following are the steps how to clean a departure room for guest room cleaning;

1. Switch off the room air- conditioner or heating. Remove all the curtains and open the windows for airing the room

2. Remove soiled linens from bed and bath. Shake out the linen to ensure that guest articles are lost in the folds of the linens.

3. Check for maintenance requirements and report the same to the control desk and enter in the room checklist.

4. Contact room service to remove extra trays and glasses.

5. Turn the mattress side –to side on succeeding days followed by end –to end turning. Smooth out the mattress and air it.

6. Clean the carpet with the help of vacuum cleaner or carpet brush.

7. Empty all the ashtrays and waste paper baskets.

8. Clean the bathroom and replenish all the required supplies is also a part of guest room cleaning.

9. Collect all the old news paper and magazines which the guest has left over and keep in chamber maid’s trolley.

10. Use stiff upholstery brush or vacuum cleaner on upholstered furniture arms backs and seats.

11. Replace all the stationery as prescribed by the management. The number of items must exactly be as per standard.

12. Dust and replace each item on the dresser and desk. Special attention must be given to the display of publicity materials as prescribed by the management.

13. Clean lamp shades with a clean duster. Lift lamp and clean under the base.. Replace lamp if damaged and adjust the shade.

14. Disinfect the telephone in the room and bathroom with the Dettol Wipe balance of the telephone with a damp cloth. Then check for dial tone.

15. Clean mirrors with a dry cloth first then with a damp news paper, to make it sparkling.

16. Dust all the closet, shelves hangers and rods. Brush the closet floor. Supply new laundry bags and replace the missing hangers

17. Dust both sides of the room doors, head boards, window sills inside and outside the window rails air conditioning unit.

18. Close all the windows.

19. Change the bed linens and bath linens.

20. Arrange the furniture if necessary.

21. Have a final look at the room.

22. Inform the desk control the room is ready and guest room cleaning is done.

Hotel Public area cleaning

Public areas are the common places and facilitates accessible to in house guest and non-resident guest. Guest requires common areas to meet, sit and carry other activities. The place comes under the are lobby, restaurants, bars, banquets, and other Food and Beverage Outlets. Public area cleaning is the most important and challenging task for hotel / hospitality housekeeping. Since most of the public areas are highly traffic area, housekeeping maintains a deep cleaning schedule for those areas at night and regular cleaning and maintenance during the day time.

Public area cleaning:

1. Entrance:

Guest get their 1st impression of hotel from the entrance lobby. Entrances which arecnot cleaned and maintained daily, it will become unpleasant for the guest due to heavy traffic and exposure. The maintenance and cleaning of the entrance and the door is important . So proper and daily cleaning is required in this areas. Normally cleaning is done at night.

2. Lobbies:

These are the common meeting points of the guest near the reception. Many lobbies are carpeted while others are hard flooring. Floors in the lobbies are need to be cleaned frequently., since these are spaces where guest interact., relax etc. Lobbies may have high ceilings elaborate chandelier which are difficult to clean so it is cleaned at night. The daily cleaning tasks involves

Public area cleaning of waste paper bins and ashtrays at

Flower arrangement should be done daily as a part of Public area cleaning.

Glass surface and windows to be cleaned daily.

Doors and door knobs to be dusters and cleaned daily.

Any stain on the carpets and upholstery should be cleaned immediately.

Hard floor should be mopped regularly.

3. Front office:

Housekeeping department is responsible for this Public area cleaning and maintaining of front office because front office is the face of the hotel. So daily cleaning of the department is required. Mopping of the floor, dusting of the furniture and fixture and vacuuming of carpets are essentials.

4. Elevators:

Elevators must be cleaned at the time of day when it is least used. The necessary boards indicating the cleaning is carried out must be displayed promptly. Elevators doors are made of steel. In steel door shows lots of grease marks from finger easily. Elevators should be cleaned daily and more through cleaning may be done on periodic basic.

5. Stair case:

Stair case should be cleaned when there is less traffic. While cleaning of staircase care should be taken that dart and dust do not fall down words.

6. Guest corridors:

While cleaning of the corridors necessary boards indicating the public area cleaning is carried on must be displayed prominently. Carpets in the corridors should be vacuumed daily. The cleaning tasks of the guest corridors are as follows

Carpets should be vacuumed regularly.

The wall skirting should be cleaned regularly.

Any finger marks on the walls should be cleaned immediately.

All the wall painting should be dusted every day.

7. Banquet hall:

Banquet hall mainly used for conferences, weddings exhibition etc. So proper public area cleaning is required for this department. The cleaning includes mopping of floor, vacuuming of the floor carpets regular dusting of fixture and furniture are required.

8. Health club:

Health club is another hotel facility provided to the guest to exercise and work out. So proper cleaning of machine is required daily because it is the busiest ares. The cleaning tasks of the health club are as follows

Proper dusting of equipments.

Damp dusting of furniture

Cleaning of glass and window panel.

Cleaning of carpet floor

Removing of soil linens and replacing with the fresh linen for future use.

9. Swimming Pool:

Regular Public area cleaning and disinfecting of swimming pool is important for the point of hygiene. If is not regularly cleaned swimming pool may becomes carries of water borne disease.

Maid’s Cart/ Room Attendants’ Trolley

Also called a room attendants’ trolley, maid’s cart, or chambermaids’ trolley, this is perhaps the most significant piece of equipment in the housekeeping department. It is like a giant toolbox, stocked with everything necessary to service a guestroom effectively. Most such carts available now are made of metal, but sometimes wooden cart may be used. The cart should be spacious enough to carry all supplies needed for a GRA to complete half a day’s room assignments. Since the cart is large and may be heavily loaded, it must be easily movable as well. The cart should be well organized so that the GRAs do not have to waste time in searching for supplies or make frequent trips back to the supply room. Also, if the cart is not stacked neatly, it will look very unsightly when in guests view. There is usually one such cart for each room section and it is stored in the floor pantry along with other housekeeping supplies.

Most of these carts have 3 deep shelves-the lower two for linen and the top, portioned shelf for small supplies. The carts also have a sack for soiled linen, detachable trash bags, and storage space for vacuum cleaner and a hand caddy. While arranging the linen on the cart, it should be kept in mind that the heavier linen must be placed on the lowermost shelf and the smaller, lighter ones on the top shelf.

Following is an organized room attendants’ cart:

1. Water tumblers and trays

2. Water bottles/jugs

3. Ashtrays and matchboxes

4. Shoe mitts, Sewing kits, Bible/Gita

5. Service directories, telephone books, business kits

6. Guest stationery, ball point pens and pencils, scribbling pads

7. DND cards, guest house rules, breakfast knob cards, “polish my shoe” cards, room service menu, tent cards, “clean my room” cards, telegraph forms

8. Laundry forms, Laundry bags

9. Cloth hangers

10. Light bulbs

11. Toilet roils, toilet tissues, blade dispensers, shower caps

12. Shampoo Bottles, soap bars, soap buds, foam bath, loofah pads, cotton wool, dental kit, cologne, after shave

13. Toilet strips, sanitary pads

14. Soiled linen bag

15. Trash bag

16. Vacuum cleaner

17. Broom

18. Hand caddy: all purpose cleaner, window cleaner, bowl brush, cloths and sponges, rubber gloves, disinfectants, naphthalene balls, room fresheners, deodoriser, basso, wax polish, scrubber

Linen

19. Face towels-2/room

20. Hand towels-2/room

21. King pillowcases-2/bed(fold in pairs)

22. Standards pillowcases-2/bed(fold in pairs)

23. Bath towels-2/bathroom

24. Standard sheet-2/twin bed(fold in pairs)

25. Double sheets-2/double bed(fold in pairs)

26. King shets-2/king bed(fold in pairs)

27. Mattress protectors

28. Bath mats

29. Bed spreads (a few to replace if necessary)

30. Guest key box

Housekeeping supplies found in a room attendants’ cart:

#hotelmanagement #hospitalitymanagement #hotelmanagementnotes #ihmnotes #ihm #notes

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surendrasinghbhakuni · 5 years ago

Text

Emergency Situations in Hotel

Emergency Situations

Safety and security are the most important aspects that the guest considers while choosing a hotel to stay. Hence hotels now days have raised the security level of the hotels, this in turn builds confidence among the guests and also the employees feel safe to work. The chapter discusses some of the important precautionary measures adapted by the hotels in order to carry on safe business.

A. Theft:-

Theft of articles is a huge threat to the hotel. It may be guest belongings or hotel belongings. The people involved in theft may be the hotel staff, guest staying in the hotel or outside people entering into the hotel.

1. Theft by employee of the hotel:

Great amount of care is taken to see that the staff do not steal anything from the hotel, but it is human tendency to take chance. For the same reason hotels have stepped up security to safeguard the hotel property. Some of the measures taken by the hotels to prevent theft are:

a) Check the credentials of the staff during recruitment.

b) Train the staff towards being loyal and honest.

c) Awarding and rewarding honest employees.

d) Maintain registers and surveillance cameras to record movement of staff in the hotel.

e) Provide safe deposit locker for all the guests in their rooms to secure their valuables.

f) Preventing hotel staff from carrying large amount of cash on them while on duty.

g) Restricting the issue of room key cards to the employees.

h) Check and frisk the hotel staff while they leave the hotel after the duty.

2. Theft by the guests:

It may be the guest staying in a hotel who indulges in theft, a great care and observation on the part of the hotel security is required to prevent such acts by the guest.

Some of the precautions taken by hotel to prevent theft by guests are

a) All the guests staying in the hotel are requested for their personal identity.

b) Any suspicious movements of the house guest are observed and immediate action taken.

c) Any unauthorized movement is severely condemned and auctioned upon.

B. Fire:-

It is very uncertain that high rise buildings and complexes have a threat of fire accidents. Several precautionary measures will be taken to see that fire does not happen, but due to obvious reasons sometimes hotels experience fire accidents. Fire accidents prove fatal if not attended immediately, not only property but also life of guests and staff can be at stake. Ever staff working in the hotel is trained in fire fighting.

The following is the procedure followed during fire accident in a hotel:

a) A soon as a fire is noticed the staff should not panic, he/she should inform the immediate senior.

b) The telephone operator is informed about the fire, so that the operator will inform the required managers and further action on their guidance.

c) The general manager should be in the lobby and very much reachable for all the people required for any guidance.

d) Strictly, elevators should not be used during the fire, as it can be more disastrous if the lift gets stuck with the people inside.

e) If evacuation is ordered, the same should be informed to the guest promptly.

f) The staff should reach the guest and help them in guiding the way during evacuation.

The priority should be in the following manner while saving:

a) The guest in the hotel

b) Staff of the hotel

c) The hotel property.

C. Bomb Threat:-

When faced with a bomb threat, the primary concern must always be the safety of personnel. A comprehensive threat response policy is required to ensure the maximum margin of safety of all persons. This section has been prepared with this most essential criterion in mind.

In the event of a bomb threat, if evacuation is initiated, the exit routes and assembly areas should be searched prior to vacating the premises. Personnel cannot safely re-occupy the building and resume normal activities until a search has been conducted. These processes require a procedure with logical, chronological steps.

Bomb Threat Check List to be followed after receiving a bomb threat call:

Bomb threats are often transmitted by phone. Be courteous, listen, and do not interrupt the caller’s message. Do not hang up. Signal to someone (by a prearranged signal) to call 100 and after caller hangs up, do not put handset back on the receiver. Gather as much information as possible then bring this form with you when you evacuate the building.

The person receiving the call should be prepared to obtain precise information, including.

a) The time the call was received and on which telephone number or extension.

b) The exact words of the person making the threat

c) Indicate whether it was a male or female voice and an approximate age.

d) Note any accent or speech impediment or slurring of speech which could indicate intoxication or an unbalanced condition.

e) Listen for the presence of any background noises such as traffic, music, or other voices indicate if the voice is familiar.

f) The person receiving the threatening call should be prepared to ask the caller certain questions if the information has not been volunteered.

· Where is the bomb?

· When is it going to explode?

· What does it look like?

· What kind of bomb is it?

· Why did you place the bomb?

· What is your name?

The caller may provide specific information by answering these questions.

Often the type of person making a threat of this nature becomes so involved that they will answer questions impulsively. Any additional information obtained will be helpful to police and explosive technicians. The Bomb Threat Checklist Report should be kept near your phone to assist you in recording this information.

Ø Try to Determine the Following

Caller Is: Male Female Adult Juvenile Child (age/years): .................

a) Voice: Loud Soft Low High Raspy Pleasant Intoxicated.

b) Familiar Voice:

c) Accent: Local Regional (describe) :

d) Foreign (country/region):

e) Speech: Fast Slow Distinct Distorted Stutter Nasal Excellent Good Fair Poor Foul

f) Manner :Calm Angry Rational Irrational Coherent Incoherent Deliberate Emotional Righteous Laughing

Other (describe): g) Background Noises: Traffic Trains Planes Street Voices Music Party Animals Office Machines Factory Machines Quiet II. Action to be Taken

The employee receiving the call will notify his/her manager/supervisor immediately and provide a completed Bomb Threat Checklist Report to him/ her, if their manager/supervisor is not available, contact the first available manager.

Senior Management will

a) Proceed to emergency Response Room, or other Designated Area, to co-ordinate emergency efforts

b) Notify the police - Call 102

c) Uniform Police Officer(s) will be dispatched to the scene

d) Initiate the search procedure on direction of police

e) Initiate evacuation on direction of police (evacuation will be in accordance with the Fire Plan)

Notification to police should be prompt, and include as much detail as possible. The person who received the threatening call should be available immediately for police interviewing.

f) Search Procedure

Police cannot conduct a proper search of your premises. Co-ordination of employee’s response is essential. Management staff and volunteer personnel will be designated responsibility for searching a specific area including washrooms and meeting rooms, etc. The Emergency Response Room (General Managers Office) will be specified as the control centre. A printed floor plan should be available to assist the search coordinator. As each area is searched, it must be reported to the designated Emergency Response Room and crossed off the floor plan. Senior Management in the designated Emergency Response Room will then determine if the search has been completed.

Areas that are accessible to the public require special attention during a search, and may be vitally important if an evacuation is to be conducted.

During the search procedure the question often arises, “What am I looking for?” The basic rule is look for something that does not belong, or is out of the ordinary, or out of place. Conduct the search quickly, yet thoroughly, keeping the search time to a maximum of 15 to 20 minutes. Both the interior and exterior of the building should be searched. If an unidentified or suspicious object is found, Do Not Touch it.

D. Accidents:

1. Breathing difficulties -

Breathing difficulties can range from being short of breath, unable to take a deep breath, gasping for air, or feel like you are not getting enough air.

Considerations

Breathing difficulty is almost always a medical emergency (other than feeling slightly winded from normal activity such as exercise).

Causes:

There are many different causes for breathing problems. Common causes include

· Asthma

· Being at a high altitude

· Blood clot in the lung

· Chronic obstructive pulmonary disease (COPD)

· Collapsed lung

· Heart attack

· Heart disease or heart failure

· Injury to the neck, chest wall, or lungs

· Life-threatening allergic reaction

· Respiratory infections, including pneumonia, acute bronchitis, whooping cough, croup, and others

2. First aid for burns-

First aid advice for burns and scalds caused by heat, such as flames, is outlined below.

· Stop the burning process as soon as possible. This may mean removing the person from the area, dousing flames with water or smothering flames with a blanket. Do not put yourself at risk of getting burnt as well.

· Remove any clothing or jewellery near the burnt area of skin, but do not attempt to remove anything that is stuck to the burnt skin because this could cause more damage.

· Cool the burn with cool or lukewarm water for 10-30 minutes, ideally within 20 minutes of the injury occurring. Never use ice, iced water or any creams or greasy substances, such as butter.

· Make sure that the person keeps warm, using a blanket or layers of clothing (avoiding the injured area). This is to prevent hypothermia occurring, when a person’s body temperature drops below 35°C (95°F). This is a risk if you are cooling a large burnt area, particularly in children and the elderly.

· Cover the burn with cling film in a layer over the burn, rather than by wrapping it around a limb. A clean, clear plastic bag can be used for burns on your hand.

· The pain from a burn can be treated with paracetamol or ibuprofen. Always check the manufacturer’s instructions when using over-the- counter (OTC) medication. Children under 16 years of age should not be given aspirin.

· Once you have taken these steps, you will need to decide whether further medical treatment is necessary (see box, right).

· See Recovery for advice about what to do next.

3. Electrical burns-

Electrical burns may not look serious, but they can be very damaging. Someone who has an electrical burn should seek immediate medical attention at an accident and emergency department.

If the person has been injured by a low-voltage source, up to 220-240 volts (such as a domestic electricity supply), safely switch off the power supply or remove the person from the electrical source using a non-conductive material. This is a material that does not conduct electricity, such as a wooden stick or a wooden chair.

Do not approach a person who is connected to a high-voltage source (1,000 volts or more).

4. Chemical burns-

As with electrical burns, chemical burns can be very damaging and immediate medical attention should be sought at a medial department. If possible, find out what chemical caused the burn so that you can inform the healthcare professionals when receiving medical assistance.

If you are assisting someone else, wear appropriate protective clothing, then.

· Remove any affected clothing from the person who has been burnt

· If the chemical is in a dry form, brush it off the skin

· Use running water to remove any traces of the chemical from the burnt area

5. Sunburn-

In cases of sunburn, follow the advice below.

· If you notice any signs of sunburn, such as hot, red and painful skin, move into the shade or preferably inside.

· Take a cool bath or shower to cool down the burnt area of skin.

· Apply after-sun lotion to the affected area to moisturise, cool and soothe it. Do not use greasy or oily products.

· If you experience any pain, paracetamol or ibuprofen should help to relieve it. Always read the manufacturer’s instructions and do not give aspirin to children under 16 years of age.

· Stay hydrated by drinking plenty of water.

· Watch out for signs of heat exhaustion or heatstroke, when the temperature inside your body rises to 37-40°C (98.6-104°F) or above. These include dizziness, a rapid pulse or vomiting.

· Seek medical advice if you experience any of the symptoms of heat exhaustion or heatstroke. See Complications for more information.

6. Scald-

A scald is a burn that is caused by hot liquid or steam. Scalds are managed in the same way as burns.

7. Fainting-

Fainting is a medical emergency, till proven otherwise When a person feels faint- Make them sit down or lie down If sitting, position head between knees When a person faints, position him on his back Check to see if airways are clear Restore blood flow by loosening clothing/belts/collars Elevate feet above head level Patient should become normal within a minute If not, seek medical help Check if breathing/pulse is normal If not, perform Cardio- pulmonary resuscitation (CPR).

#hotelmanagement #hospitalitymanagement #ihmnotes #ihm #notes #hotelmanagementnotes

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surendrasinghbhakuni · 5 years ago

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Key and Key Control

A key is a specially shaped piece of instrument that you place in a lock in order to open or lock a door etc. In a hotel Individual heads of departments are responsible for all the keys in their areas. The housekeeper is usually responsible for more keys than any other departmental head.

Types of Keys

The housekeeping department is primarily concerned with the following categories of keys:

1. Emergency Keys/ Grandmaster Key -

An emergency key or grand master key opens all guestrooms even when they are double-locked. These keys should be highly protected and their use should be strictly controlled and recorded. Such a key should never be removed from the premises.

2. Master Keys-

Master key opens all guestrooms that are not double locked. It should be secured in a designated place for safekeeping and should be issued to authorized personnel only and that after a written record is maintained of identity of individual and time taken and returned.

a) Section Master Keys:

These keys open all rooms in one work section of the hotel. A supervisor may be issued more than one key of this type as he or she may be required to inspect the work of more than one GRA.

b) Floor Master Key:

A GRA is given this key to open the rooms he or she is assigned to clean on a floor. The floor key opens all rooms on a particular floor that are not double-locked. If the employee has rooms to clean on more than one floor or area, he or she may need more than one floor key. Floor keys typically open the storeroom for that floor too.

1. Guestroom Keys-

A guestroom key opens a single guestroom if the door is not double locked. This key should be given to a guest after proper identification of the registered guest. Front desk agents should remind guests to return the key at check out. Well- secured key boxes in the lobby and entrance can serve as additional reminders.

2. Supply Keys-

These keys are used within the servicing sector of the hotel by the supervisory-level staff to ensure that stocks and equipment are safety stored away when not in use. Store keys, office keys, and linen room keys and are examples of such keys.

Key Control

Key control is the process of reducing guest and hotel property theft and other security related incidents by careful monitoring and tracking the use of keys in the hospitality operation.

The control of guestroom keys is one of the cornerstones of the hotel security that guests have a right to except under common law. Key control is the process of reducing guest property theft and other security-related incidents by carefully monitoring and tracking the use of keys in hospitality operation.

Key control policies:

Following policies should be considered for key control:

1. Coding-

A few precautions to take while coding are as follows:

i. Room keys must not have any form of tag that identifies the hotel.

ii. Keys must not have the room number on them. Keys must be identified by a numeric or alphanumeric code. That code should not, in any way, directly correspond to the building or room numbers.

2. Issuing Keys-

Apart from the basic precautions for all the keys, there is more stringent security for keys with higher access.

a) Guestroom Keys: These are the keys with minimum access, unlocking just the one room. When keys are given to guests upon registration, the guest’s room no. must not be spoken aloud if there are others within hearing range. Room nos. should be shown to the guests in writing with a reminder that they should note it down if a guest check-in packet is not used. Explain to the guest that the coding system is their protection. GRA’s and others who find keys in unoccupied guestrooms or elsewhere should place them in their pockets or in the locked key boxes provided, not on their carts (where they are accessible to others), and turn them in to their supervisor to be returned to the front desk.

b) Master and Sub-master Keys: All section master keys, room master keys, grand master keys, and emergency master keys (normally kept in a safety box) should be signed out each time they are taken and their return noted in a key control sheet. All the keys should be stamped ‘do not duplicate’.

3. Custody of Keys-

These are the precautions to be taken while the key is with a guest or employee after being issued as per the correct procedure.

a) Employees should not be allowed to loan the keys assigned to them to one another.

b) Employee should hand over keys whenever they leave the property, even the meal breaks.

c) Individual who have been issued master or sub-master keys should be spot-checked from time to time to ensure that they have them on their person.

4. Changing locks and keys-

Whenever a new key is made or a new lock is fitted, certain precautions are necessary.

a) A record must be kept of how many keys are made for each room and when they are made.

The general manager must review this record on weekly basis, installing and dating the key-making log each time she or he reviews it.

b) If required as a result of this review, the general manager must instruct the maintenance staff either to re-key a lock or to exchange room locks around within a housekeeping section.

c) If new room codes are to be used or locks are being switched, the code on the keys must be adjusted accordingly and over stamped until the old code is illegible and the new code should be stamped nearby if locks are swapped within a section. As a standard practice, it is recommended that some locks in a section be moved quarterly.

d) A log must be kept of all lock swaps and re-keying.

5. Loss of Keys:

This is a time when particular vigilance must be exercised.

a) If a section master key is lost under circumstances that may result in a guest being at risk, the entire section should be re-keyed. If a section is being re-keyed, also consider re-keying a new grandmaster and emergency key so that, in effect, a phased re-keying of the entire hotel is accomplished if it has been some time since this was last done.

b) If a master key or emergency key is lost under any circumstances, it must be reported to the owner or the corporate office immediately by the general manager. After the circumstances are discussed, they can decide whether the entire hotel should be re-keyed.

c) As an additional step, the general manager or somebody he or she delegates the responsibility to must cross- index all incidents of theft, missing property, damage, and so on as follows:

i. Room no. or location. Watch out for locks that have been moved.

ii. Names of potentially implicated employees.

It may be discovered that room thefts never occur when so- and-so is odd, or that they occurred, regardless of the room no., when so-and-so was working in maintenance or housekeeping.

6. Electronic Locks:

These are a precaution in themselves. Since the introduction of the recordable electronic door locks in the late 1970’s, the hotel security has been virtually transformed. The focus at the time of its invention was increased guest security. Now there are countries where hotels that do not feature electronic locking mechanisms in guestrooms will be unable to obtain insurance. Even the simplest of key card locks have been found to reduce break-ins by upto 80 per cent. Employee key-cards can even be coded to allow access only to their assigned units of responsibility and only during the hours of their shift.

7. Smart Cards:

The future of security, however, lies in smart cards. ‘Smart card’ is a generic term for a card the size and thickness of a credit or debit card that is embedded with a microprocessor chip. The chip itself has ‘intelligence’ by way of computational power similar to that of early personal computers. These powerful computing capabilities make smart cards much more secure than the other types of cards presently in use. Electronic locks require some form of physical interaction with or proximity to the lock to function. Smart locks integrate with wireless, Bluetooth or similar technologies to enable remote access control, typically through a mobile device.

#hotelmanagement #hospitalitymanagement #ihmnotes #ihm #hotelmanagementnotes

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surendrasinghbhakuni · 5 years ago

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Property Management System (PMS)

Property Management System (PMS):

A PMS is a computer based management system. In the hospitality industry, it is a computerised system used to manage guest bookings, online reservations, points of sale, telephone, and other amenities.

In recent times, hotels have started using PMS in order to manage and respond to guest needs efficiently and effectively. A PMS is a single site version and is need-specific to an individual property.

A PMS is a generic term used to describe the computer applications (computer hardware and software) in managing the interface of various departments in a hotel in order to manage the property effectively.

Property management systems (PMS) interface with stand-alone systems:

A PMS is important and essential to front office operations in modern hotels. It includes the process of reservations, registration, guest accounts, guest check in and checkout, handling discounts and allowances and the night audit. Interfacing, electronic sharing of data of departments such as Front Office, F&B through points of sale, Maintenance through monitoring of energy and heating and cooling systems and Security through control of guest keys are a few of its applications in a hotel, mentioned below:

· Energy Management System (EMS)

· Material Management System (MMS)

· Point of Sale (MICROS)

· Human Resource Information System (HRIS)

· Accounting System

· Call Accounting System (CAS)

· Management Information System (MIS)

Importance/Benefits of a Property Management System (PMS) in the Hotel

The right property management system (PMS) is a key factor in hotel success. Having a system that makes front desk workflows easy, will create a seamless guest experience.

Following are few advantages of PMS in a hotel:

1. Guest’s first impression

Upon arrival, a guest’s first impression is created as they walk through the doors and interact with the first point of contact, your front desk. A property management system should easily display arrivals for the day and have any important information about stay preferences attached to a guest’s booking. This will ensure you make a good and memorable first impression.

2. Easy check-in and check-out

There is nothing more frustrating than waiting a long time to be checked in or out, these processes should be fast and easy to provide a seamless guest experience. Having streamlined and easy check in and checkout processes is important for both the guest experience and hotel efficiency. A property management system will help you perform these tasks with ease, increasing productivity and delivering that exceptional guest experience.

3. Clear communication

Having clear lines of communication between all departments of your property and with the guest is integral to a successful accommodation. With a property management system you can facilitate easy communication, and ensure that all departments are operating effectively and efficiently.

4. No double bookings

A PMS that connects to a channel manager means all your availability is constantly being updated. This means no double bookings, saving you and your team time by eliminating double bookings. When the guest arrives there won’t be any complications with their room or booking, making for a pleasant guest experience.

5. More focus on the guests

The guest experience is such an important aspect of your accommodation, and is the key to returning guests. Using a streamlined and intuitive PMS will save you time on your day-to-day processes. So you’ll have more time and opportunities to interact with your guest and offer them a truly personalized experience.

PMS application for front office department Or “Modules of PMS” in Front Office

There are different modules of PMS to mange individual departments of a hotel, such as front office module, housekeeping module, restaurant management system, and back office module. These PMS solutions can be modified to meet the requirements of the hotel.

The PMS application for the front office has different modules for the efficient functioning of the entire department. Following are the different modules of PMS in front office department of a hotel:

I. Reservation Module:

The reservation module is used to create and manage guest reservation, both for individual as well as groups. The reservation module includes the following features:

1. It can provide status records when the date of arrival, date of departure and the type of guest room are entered in the system.

2. It can colour code the room status by using different colours.

3. It can check the reservation status of a guest quickly as it can search by guest name, company name, or arrival and departure dates.

4. It can display room availability status by simply selecting a date.

5. It can post an advance deposit on a room.

6. It can enter remarks, which are visible upon reservation retrieval.

7. It can attach guest’s messages to relevant reservations, to be delivered to the guest upon arrival.

8. It can create special group rates.

9. It can reserve and track the availability of service items such as rollway beds, cribs, and refrigerators.

II. Registration module:

This is linked by information transferred from the reservations module. Pre-registration, quick guest room assignments and online verification of room status increase the efficiency during the check in process. The information gets updated automatically which further speeds up the process of handling guest check in, issuing of key cards and card keys as well as handling group arrivals.

III. Rooms management (housekeeping):

This module allows for constant updating of room status and maintenance status of all room types in the hotel. This information can also be communicated and made accessible for confirmation to the Front Office. It can display work area allocations of different staff on the floors and can create room occupancy reports and other reports required by housekeeping. It can store statistics related to occupancy with room history records that can help in future planning and in providing better maintenance services to keep rooms in shipshape condition.

IV. Night auditing:

The most important function of daily operations of a hotel is the night audit. This process posts room tariff and taxes automatically on the guest’s folio and helps confirm and reconcile the final balance of the entire day’s transactions. During the night audit procedural rights of front office staff are limited and therefore the PMS needs to have features that can allow other non-accounting tasks to be carried out during the night audit process.

V. Sales & catering ( banquets):

This function of the PMS deals with banquet activities and reservations regarding the booking status for any function space, specific occasions as well as days and time of the booking. More advanced systems also record the number of pax and employee assignment. The most important function is billing or posting of transactions to the Sales ledger which can be handled efficiently by the F&B staff.

VI. Guest accounting & check out:

This provides accurate online posting of guest charges when interfaced with the POS. Split charges and multiple folios with specific billing instructions that have been set for each guest speeds up the accounting process. Master and Incidental folios can be monitored easily and effectively. Foreign exchange vouchers control flow of foreign currency and helps in handling settlement of guest folios with different payment methods. Guest check outs can be handled more efficiently and smoothly.

SELECTION OF A PMS

Hotels often make the mistake of choosing a lower end PMS solution that doesn’t fulfil their basic requirements or else, they opt for a high end solution that comes with a lot of features which may not be of much use to the hotel.

Since the PMS is a capital investment, great thought goes into the decision for the shift of a manual working system to a fully automated one. Following are some factors to be kept in mind while selecting a PMS for a hotel.

I. NEEDS ANALYSIS

Needs analysis enables to know what is needed and what is not needed and will help choose from the many PMS available in the market. It includes such issues as analysing the ease with which the telephone system can be used; the availability of room status; the length of time taken to complete a reservation request; analysis of needs includes such issues as how do the F&B report guest charges? How does Engineering monitor and control energy usage in guestrooms?

II. SOFTWARE SELECTION

Today, software is available in modules to cater for different areas in a hotel.

Based on requirements based on the conclusion of the need analysis in step 1, a hotel may go in for the entire PMS or parts of it, i.e. certain modules. Many hotels combine modules for different departments from various PMS available. A hotel may have the rooms’ module of Fidelio, the payroll and accounting module of Shawman, and so on.

a. Proper software selection is important as it involves heavy investment.

b. It should be configured or customised as per the need of the hotel.

c. Other features of a software that should be considered are:

i. Growth and flexibility:

It should be able to handle present needs and grow with the hotel; i.e. can be added on with increased number of services.

ii. User friendliness:

Should be well designed with clear menu prompts, self-explanatory input screens, simple error correction, should require minimum training, etc.

iii. Operating system:

Should be carefully selected and compatible with the hardware.

iv. Multi-user capability:

Several users can have access to and enter data at the same time.

v. Report generator:

To meet special requirements of the hotel those are meaningful to management.

vi. Stability:

PMS should be able to operate without crashing and causing loss of information.

vii. Secure:

The PMS should be able to incorporate security needs of the property- establishing user rights, tracking changes with user ID, etc. in order to establish accountability of actions of the users.

III. HARDWARE SELECTION:

Hardware selected should be appropriate to run the selected software with the basic concept to:

a) Processor speed:

How fast a CPU makes calculations per second

b) Disk drive:

In megabytes is the access time- the time taken by the processor to retrieve information from the hard drive in milli- seconds.

c) I-O ports (Input and out put devices):

Keyboards, printers, monitors, mouse, modem, CD drives, etc.

d) Other supplies:

Paper, ink, toner, CDs, DVDs, etc.

IV. OTHER CONSIDERATIONS:

a) Vendor claims:

(Claims made by the supplier) One may inquire about the product from current users whether they are satisfied using their system.

b) Installation plans:

Proper planning of installation is essential for maintaining guest satisfaction and employee morale. One must have a complete plan laid out for hardware and questions such as who would be installing the hardware and cables, etc. should be clearly identified.

c) Training:

Is classroom and on-the-job training provided by the vendor or not? If yes, is it charged for separately or is inclusive in the price quoted? Whether a training module is included or not?

d) Documentation of procedures:

Clear-cut procedures and instructions, guides and manuals provided- yes/no?

e) Back-up power supply:

Provision of UPS sources- yes/no?

f) Maintenance agreement:

The cost of repair and replacement of hardware and software; provision of emergency services should be considered. Annual Maintenance Contracts- AMC- may be a good idea to keep the system functioning smoothly.

V. FINANCIAL CONSIDERATIONS

The following should be considered:

a. The decision regarding option of purchase or rental of a PMS since it is a heavy investment it can tie up cash flow of an organisation.

b. If cost benefits are not realistically projected, profit may be difficult to come by.

c. Analyse the savings in terms of overtime paid to employees, losses due to late charges, cost of marketing, database collection, etc.

BACK OFFICE SYSTEMS OF THE PMS

Other modules used by the hotel management for operating efficient hotel operations usually include:

I. MATERIAL MANAGEMENT SYSTEM-MMS- (Stores & Purchase):

This covers the entire material management operations such as requirement planning, purchase, receiving of stock, costing, etc. The system also provides information for effective decision making and budgeting.

a) Purchase requirement is effectively managed helping in better management.

b) It stores the history of purchase vendors in order to efficiently study cost analysis for lower purchase costs.

c) It gives automatic reminders on pending purchases which is helpful during high occupancy this ensures orders for timely supplies.

d) Easy monitoring of stock.

e) Assists management in making effective purchase in relation to proper storage area.

f) Provide for automatic stock accounting details.

g) Facilitates on the spot checking of stock.

h) Facilitates comparison of market trends for analysis and decision making.

II. MANAGEMENT INFORMATION SYSTEM (MIS):

The MIS should provide statistical information to the management to assist in decision making and revenue control.

a) MIS provides the database regarding forecasts and budgets which helps management in establishing room rates.

b) Comparison of budgeted figures along with actual figures established by sales & marketing department in relation with front office helps the management to address the problem in case of losses.

c) An MIS should provide data which is comprehensive, accurate and detailed with business and sales analysis to ensure increased revenue and higher occupancy.

III. FINANCIAL ACCOUNTING SYSTEM:

This module provides information required for basic accounting as well as financial management of the hotel. Its main features are:

a) Integration of account receivable, account payable, material management, ledgers, and payroll in the financial accounting system.

b) An accounting system facilitates the administration in audit reconciliation on a daily basis, comparing of cash with raised vouchers, etc.

c) Monthly information regarding balances, profit and loss statements is also prepared.

d) Provides timely updated and accurate financial information to accounts receivable for future financial control.

e) Forecasts daily cash flow for better cash management.

f) Comparison of budgeted to actual revenue and related expenditure is efficiently managed.

g) Timely financial statement of account is made available.

IV. F&B CONTROL SYSTEM

This is the most important area of concern as a major POS which can raise revenue and create a lot of savings through control of F&B by minimising wastage of material.

a) An efficient control system should establish standards of raw material usage in order to minimise wastage.

b) This should highlight raw material consumption reports in case consumption is exceptionally high.

c) It should automatically pick up sales details for the POS system.

d) This should also control and check beverage consumption through the POS.

V. HUMAN RESOURCE INFORMATION SYSTEM (HRIS):

The human resource of the hotel is the most important and the most expensive asset. A good HRIS should integrate the requirement for effective career planning, personnel administration, and payroll information.

a) The system should include comprehensive data regarding personnel career development as well as future manpower requirements.

b) Should facilitate extensive reporting on appraisals.

c) Should facilitate a complete database on leave and attendance.

d) Should facilitate comprehensive and detailed payroll system with automatic salary calculation and printing of payslips.

MISCELLANEOUS FUNCTIONS OF A PMS

I. HOTEL SECURITY:

This includes electronic locks and computerised card systems.

a) Other locking systems such as recording signatures, fingerprints (for biometric scanners and access), and attendance of employees are all a result of technology.

b) This also facilitates guest room video check in and checks out in some hotel properties.

II. ENERGY MANAGEMENT SYSTEM- EMS- (Engineering &Maintenance):

An EMS is used to keep track of energy consumption as this provides a more effective control by highlighting excessive consumption an important application of this is in monitoring and adjusting lighting and temperature requirements in guestrooms and public areas of the hotel.

III. TV INTERACTIVITY

Through this interactive system guests can view and have access to their favourite programmes at their convenience. The tv can also be interfaced with the telephone and front office for viewing their folios and even settlement. The TV can also be used for accessing local or city information in many hotels.

IV. E-CONCIERGE (Electronic Concierge):

This facility helps the guest to make a multimedia graphic and sound assisted virtual tour of the hotel. This also provides and facilitates a virtual tour of the city, local areas and attractions, restaurants and shopping centres in addition to guest rooms. This may even assist a guest in making reservations at local restaurants and theatres, etc.

V. POINT- OF- SALE (POS) SYSTEM:

A POS system is made up of a number of terminals located at various outlets or points of sale in the hotel. Each POS terminal contains its own input and output components which are interfaced with a remote central processing unit. The interface allows the electronic data to be processed, and transferred to guest folios when required, thus reducing the time required to post a charge in the appropriate guest folio and recording of the F&B sale at the same time.

VI. CENTRALISED RESERVATION SYSTEM (CRS):

A CRS is used for a chain or group of hotels to enable the sale of their rooms more effectively.

a) The CROs (Central Reservation Offices) are linked for an effective and real time management

b) It primarily works on WAN- Wide Area Network

Examples are:

i. MARSHA, TAJ, Leading Hotels of the World,

ii. WELCOMNET, Holiday Inn World Wide,

iii. OCC (Oberoi Call Centre), and more

a) The CRS can operate in two ways. One, it can be a CRS for one group of hotels in different locations (affiliate members). Second, it can sell rooms belonging to different hotels which are not connected or linked to each other but use the services of the CRS to sell their rooms on a wider scale thus reducing their investment and reaching a greater market which may not have been possible on their own.

b) Repeat guest history data for each hotel can be stored in the CRS. The past stay information on each guest history is updated at the time of the last departure. When the guest wants to return to the same hotel, this data can guide the reservationist to offer appropriate rooms.

Amadeus

Amadeus is a computer reservation system (or global distribution system, since it sells tickets for multiple airlines) owned by the Amadeus IT Group with headquarters in Madrid, Spain. The central database is located at Erding, Germany. In addition to airlines, the CRS is also used to book train travel, cruises, car rental, ferry reservations, and hotel rooms. Amadeus also provides New Generation departure control systems to airlines. The company is structured around two key related areas – its global distribution system and its IT Solutions business area.

Various Modules/ Customer Solutions offered by Amadeus:

1. Amadeus Air

2. Amadeus Rail

3. Amadeus Traveler

4. Amadeus Office

5. Amadeus Cars

6. Amadeus Hotels

7. Amadeus Tours

8. Amadeus Cruise

ADVANTAGES OF AMADEUS

1. Increased revenue: Travel industry-leading solutions help customers to maximize their revenue from existing channels and explore new ones, thus keeping their businesses successful, both now and in the future.

2. Reduced costs: Amadeus solutions are designed to maximize productivity through ease of use.

3. Continuous innovation and enhancements to the solutions include the incorporation of state-of the-art graphical interfaces, making it easier to book travel while Business Management solutions include value added features that increase efficiency saving time and cost.

4. Service Differentiation: Amadeus designs solutions may be customized and personalized so that travel providers and sellers can deliver the most effective customer service and benefit from increased adoption and customer loyalty.

5. Easy system migration/connectivity: The combination of Amadeus robust leading–edge technology and inside knowledge of the travel industry allows seamless integration of solutions.

AMADEUS HOTELS (PMS)

With the integration of Optimism, the leading hotel IT provider fully owned by Amadeus since 2005, Amadeus has added to its hotel distribution technology a sample of portfolios of IT solutions for the hotel industry. In 2010, Amadeus is reported to have sold its PMS division to SoftBrands, a provider of business software.

Features of Amadeus-Hotels

1. Technology to distribute hotels in both online and travel traditional environments.

2. PMS for individual hotels.

3. Centrally managed PMS for hotel chains and hotel groups.

4. Revenue Management System both for hotels and central reservation offices.

5. Direct connection to GDS to streamline the distribution.

6. Central Reservation System to connect individual properties and hotel groups to the GDS and online distribution.

7. Amadeus Property Management System (PMS) is a fully integrated solution for hotel chains that offers a single view of rates, inventory, content, guest information and reservations for all properties within the chain.

Benefits/Advantages of Amadeus-Hotels

1. Time saving as it provides all travel, client and agency information through single screen access to travelers round the clock.

2. Easy to find and understand information.

3. Better control as the entire travel agency business can be integrated and hence increase profitability.

4. Possibility of cross selling the products and larger offers to clients is possible.

5. Amadeus caters to all hotel needs from hotel management software to distribution to all sales channels.

6. Amadeus can anticipate the needs of the guests in advance and be ahead of the competition in delivering them.

Fidelio

Fidelio is a complete integrated system package designed to achieve maximum efficiency of the hotel. This PMS was produced in Munich, Germany.

FRONT OFFICE MODULE

The main modules of Fidelio used are:

1. Reservation

2. Rooms management

3. Front desk

4. Cashier

5. Options

6. Menu

1. RESERVATIONS MODULE

The creation of booking is possible for an unlimited number of rooms, guests and for unlimited time unless that period has free capacities. If you do not have the available capacity, the rooms can be added to the waiting list. Booking entry module includes reservations for individuals as well as group reservations and block (allotment) reservation. There are different options to post charges (individual, group, etc.).

2. FRONT DESK

Automated system to check in guests by reservation. At any moment you can check the expected arrivals, expected departures, and the view of guests in the hotel. This module allows you to enter messages for guests with printing option, and to track the status: delivered or undelivered.

3. CASHIERING

Using module cashiering you will have access to the balance of each guest, as well as invoicing in a user-defined format invoice in multiple languages. There are different styles of the standard invoices. There are no restrictions on combinations of payment: credit cards, cash, invoices, check.

4. ROOMS MANAGEMENT

A complete overview of the rooms’ status with the possibility of changing their status. Graphical display makes it easy to access floors to the status of the room, and in the availability of capacity also. In addition to monitoring the status of basic rooms, you can change the room status to “out of use” with a defined reason.

5. OPTIONS

Contains various functions of which report creation and printing is a major task. The various functions contained here are:

· Reports

· Word processing

· Printer

· Users log file

· Batch Folios

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surendrasinghbhakuni · 5 years ago

Text

Pest

A pest is any organism that:

· Competes with humans, domestic animals, or desirable plants for food or water.

· Injures humans, domestic animals, desirable plants, structures, or possessions.

· Transmits diseases to humans, domestic animals, wildlife, or desirable plants.

· Annoys humans or domestic animals.

Categories of Pests:

1. Continuous-Always present and require regular control

2. Cyclical– Which require control occasionally

3. Potential-Do not requires control under normal conditions but may require control in certain circumstances.

Types of Pests:

1. Insects-cockroach, termite, beetle, fleas

2. Arthropods (eight-legged insect-like organisms)-such as mites, ticks, and some spiders.

3. Vertebrates-such as mice, and other rodents.

4. Molluscus-such as snails, slugs, and ship-worms.

5. Microbial organisms – bacteria

6. Weeds-that is, any plants growing where they are not wanted.

Pest Control

Pest control is the process of regulation, suppression or eradication of a species defined as a pest.

PEST CONTROL GOALS:

1. Prevention – keeping a pest from becoming a problem.

2. Suppression – reducing pest numbers or damage to an acceptable level.

3. Eradication – destroying an entire pest population.

1. Prevention: This may be a goal when the pest‘s presence or abundance can be predicted in advance. Continuous pets, by definition, are usually very predictable. Sporadic and potential pests may be predictable if you know the circumstances or conditions that favour their presence as pests.

2. Suppression: This is a common goal in many pest situations. The intent is to reduce the number of pests to a level where the harm they cause is just about acceptable. Once a pest‘s presence is detected and control is deemed necessary, suppression and prevention are often joint goals. The right combination of control measures can often suppress the pests already present and prevent hem from building up again to a level where hey are causing unacceptable harm.

3. Eradication: This is a rare goal for outdoor pest situations in particular, because it is difficult to achieve. Usually the goal is prevention and/or suppression. Eradication is occasionally attempted when a foreign pest has been accidentally introduced into a local environment, but is not yet established in an area. Such eradication strategies are often supported by the government.

Eradication is a more common goal indoors. Enclosed environments are usually smaller, less complex, and more easily controlled than outdoor areas. In many enclosed areas, such as dwellings, schools, office buildings, and healthcare, food-processing, and food-preparation facilities, certain pests cannot be tolerated.

METHODS OF PEST CONTROL:

Methods of pest control can be classified into following 2 broad categories:

1. Natural controls

2. Applied Controls

1. Natural controls:

These are the natural forces which cause the population of pests to fall and control the population of pests. Some of such forces are as follows:

a) Climate: Weather conditions like temperature, humidity etc affect the pests and their reproduction. Pests are killed or suppressed by rain, snow, drought or other adverse weather conditions.

b) Natural Enemies: Many predatory and parasitic insect and insect-like species feed on other organisms, some of which are pests. Example of such enemies is birds, fish and mammals.

c) Geographical barriers: Features such as mountains and large bodies of water resist the spread of many pests.

d) Shelter and food & water supply: Pest can thrive only as long as they have a shelter to live and their food & water supply lasts. In this control method these factors are removed to control the pest population.

2. Applied controls:

These are the control measures which are applied manually to control the population of pests, natural controls often do not control pests quickly or completely. Some of the applied controls are as follows:

a) Mechanical/Physical controls:

These control measures involve the use of machines, devices and other mechanical methods to control the pest population. Examples of such control measures are traps, barriers, fences, radiation etc.

b) Sanitation: Good sanitation practices help to prevent pest infestation. Example garbage disposal

c) Chemical control: Pesticides and chemicals are used to destroy pests, control their activity or prevent them from causing damage.

Areas of Pest infestation in Hotel

Round-the-clock room service, fresh linens, beautiful landscaping and outdoor amenities all make hotels and motels hospitable to paying guests. But these same conditions can also facilitate pest infestations. Fortunately, regular inspections and maintenance of a few common "hot spots" in and around your property will help keep out flies, mice, cockroaches, bed bugs and other unwelcome guests.

Below is the list of eight places where you're likely to find pests and the types of pest.

1. Lobby & Other Entrances

Common pests: Flies; ants; cockroaches; mosquitoes

Where you'll find them: In the lobby or near entryway plants; under doors; near cracks and gaps

2. Guest Rooms

Common pests: Cockroaches; ants; bed bugs

Where you'll find them: Bathrooms; ceiling fixtures; mattresses; headboards; under carpet

3. Kitchen

Common pests: Cockroaches; flies; stored-product pests; rodents

Where you'll find them: Inside incoming shipments; in drains; storage and waste disposal areas; underneath or inside kitchen equipment; in ceilings

4. Vending Areas

Common pests: Cockroaches; ants

Where you'll find them: Under vending machines and leaky ice machines; near trash cans

5. Pool

Common pests: Cockroaches; wasps; bees; mosquitoes

Where you'll find them: In and around pool deck, especially near bushes and other foliage; locker room areas.

6. Laundry

Common pests: Rodents; cockroaches

Where you'll find them: Underneath and behind laundry machines; in towel/linen storage

7. Loading Dock

Common pests: Rodents; flies; birds

Where you'll find them: In and around the loading dock

8. Waste Disposal Area

Common pests: Rodents; cockroaches; flies; ants

Where you'll find them: In and around dumpsters

#hotelmanagement #hospitalitymanagement #ihm #ihmnotes #hotelmanagementnotes

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surendrasinghbhakuni · 5 years ago

Text

Tariff

TARIFF

BASIS OF CHARGING

Different hotels follow different policies while charging tariff from their customers. Following are the common basis on which tariff is charged:

1. 12 noon / Check-in, check out basis-

It is the most common & convenient for both hotel and guest to fix a check-in and check- out time.

Most commonly hotels fix 12 noon as the check-in & check-out time.

If a guest checks in at the check-in time decided by the hotel and checks out next day at the same time, then he will be charged for one day. But if he exceeds the check- out time, he may be charged for two days.

2. 24 Hour Basis –

There are some hotels that charge according to 24 hour basis. The time when the guest checks-in becomes the check-out time for guest.

The guests are charged one day rent only when they have spent 24 hours or a part of 24 hours in the hotel.

3. Number of Night basis –

There are some hotels that charge the room rent on the basis of nights spent in the hotel.

If a guest spends one night, then he is charged for a day and if he spends two nights, then he is charged for two days.

4. Day Use –

Sometimes a guest wants to stay in a hotel for few hours only (maximum 6 hours). These guests are charged room rent on day basis irrespective of the check-in and check-out time.

ESTABLISHING ROOM RATES or ROOM TARIFF FIXATION

1. Market Based Pricing –

Market based pricing is setting a price based on the value of the product in the perception of the customer. The concept is based on an idea of what the ultimate consumer /guest is prepared to pay and then use it as a starting point. In this case, a hotel work backwards as it first makes an accommodation product available at a price that a guest is willing to pay, then it tries to cut down on the cost to achieve a reasonable rate of return on that basis.

Some common methods of market-based pricing are:

a) As per competition: Arriving at a price based on competing hotel’s rates.

b) Market tolerance: Checking competing hotels’ Best Available Rates (BAR) for a room. These rates can be found out by hotels by calling up the competing hotels without disclosing their identity.

c) Rate cutting: Lowering of rates to increase occupancy levels, specially during off-seasons.

d) Inclusive and non-inclusive rates: Charging room rates on the basis of meals, provided on CP/ MAP/ AP basis.

2. Cost Based Pricing –

Cost based pricing is a room rate/rent determination technique that covers the basic cost of operations at a given level of service, plus the predetermined percentage of return on investment. It involves the determination of total costs (fixed costs + variable costs) associated with a hotel. Managers add a desired profit margin to each unit, such as 5 or 10 percent mark-up. The goal of the cost-oriented approach is to cover all costs incurred in producing or delivering the products or services and to achieve a targeted level of profit.

Selling Price = Total cost + Fixed profit percentage Merits –

· Simple method

· Does not involve examining the market or considering the competition and other factors that might have an impact on pricing.

· Popular method as it uses internal information that managers can easily obtain.

The following are the two widely used cost-based pricing technique –

A. Rule of Thumb Approach

B. Hubbart Formula

A. Rule of Thumb Approach –

· Oldest/Traditional method of determining room rate of a hotel.

· The Rule of Thumb Approach sets the rate of room at $ 1 for each

· $1000 of construction and furnishing costs per room, assuming a 70% occupancy.

· For example – Hotel ABC incurs a total expenditure of Rs.15,00,000 on a room, the room rate will be Rs. 15,000.

· This approach fails to consider the effects of inflation.

· It also fails to consider the contribution of other facilities and services towards the hotel’s desired profitability.

Consumer’s Profile:

· It is important to keep in mind the social & financial status of the guest ie. paying capacity of the guest in mind.

Standards of service:

· While deciding the tariff of the room, standards of service should be kept in mind as the standards of service is the USP of the hotel and contributes towards the profitability of the hotel.

· Higher the standards of service, higher is the room rate.

B. Hubbart’s Formula –

This is a scientific way of determining the room rent, was developed by Roy Hubbart in America in the 1940s. it resolves all the problems of the Rule of Thumb Approach, as Rule of Thumb Approach is an old traditional and unscientific way of determining the room rate of a hotel.

The steps involved in calculating the room rent/rate according to Hubbart formula:

Step 1:

· Calculate total investment.

Total investment = Owner’s capital + Loans

· Calculate return on investment. Return on Investment is the percentage of return that would have been generated had the amount been invested in the open market.

ROI = Total investment x Return percentage

Step 2:

Calculate total expenses.

Total expenses = Operating expenses + Taxes and Insurance + Interest paid on loans + Depreciation on book value

Step 3:

Calculate gross operating revenue.

Gross Operating Revenue = Total expenses + ROI

Step 4:

Find revenue generation from room sales only, by subtracting revenue generated by all sources other than rooms from the gross operating revenue.

Revenue to be generated by room sales to cover cost and fair ROI = Gross Operating Revenue – Revenue generated from other sources

Step 5:

· Calculate total number of rooms available during the year.

Total no. of rooms available during the year =

Total no. of rooms in the hotel x Number of days in the year

· Make the provision for expected average occupancy that is expected during the year. This step will provide the total number of rooms available for sale.

Total no. of rooms available after making the provision for average occupancy =

Total no. of rooms in the year x Occupancy percentage

Step 6:

Calculate Average Daily Rate (ADR). This will cover the cost of operations and fair return on investments.

ADR = Revenue to be generated by room sales (Step 4) Total no. of #s available (Step 5)

Cost Based Pricing versus Market Based Pricing

As compared to market-based pricing, cost-based pricing is more scientific and practical as it takes into account factors like the rate of return on investment, operating cost, overheads, fair profit, etc. In market-based pricing, one can get the advantage of selling the same product over a range of prices.

TYPES OF RATE

Room Tariff Card –

It is a document published by the hotel for use by prospective guests. It includes prices of various rooms and meal plans.

Different rates for a hotel guestrooms include –

1. Rack Rate:

This is the rate printed on the room tariff card. This rate is usually negotiable as it is the highest published rate of rooms. It is a rate before any discount.

2. Crib Rate:

It is a special rate charged for children above 5 years and below 12 years of age who are accompanying their parents. The hotel provides a crib (baby bed) in room for infants.

3. Corporate Rate:

This is a promotional rate to attract the corporate market segment. This rate is generally 10 to 20 percent lower than the rack rate.

4. Seasonal Rate:

Hotels may offer different rates for different seasons. Destinations may have high, low, and shoulder seasons. The duration when the tourist traffic at a particular place is high is known as the peak season; when the demand for hotel rooms drops down, it is known as off-season rate. Hotels in these locations mention their seasonal rate and off-season (discounted) rate.

5. Advance Purchase Rate:

Though popular in the airlines industry, it is a new concept in the hospitality industry. It entails heavy discounts on room rates when room bookings are done in advance. The rate of discount depends upon the advance period and the number of rooms available for the time of booking. For instance, a hotel may offer more discount for a room that is booked two months in advance as compared to a room that is booked fifteen days in advance.

6. Week Day/ Weekend Rate:

The demand for hotel rooms may be more on certain days in a week. Hotels analyse their demand levels over a period of time and fix a higher rate during high demand periods and a lower room rate during low demand periods.

7. Day and Half Day Rate:

The day rate, charged from guests not staying overnight at a hotel, is lower than the rack rate. Sometimes, a guest may wish to stay for a very short duration of time, not exceeding six hours. In these cases, the half day rate, which is a bit higher than the numerical half of the rack rate, is charged from guests.

8. Group Rate:

As a large group (15 and more than 15 persons) provide bulk business to a hotel, hotels offer discounted rates to groups.

9. Travel Agent Rate:

Travel agents sell travel products like hotel rooms,airlinesbookings, etc., on a commission basis to the guests. They provide a substantial amount of business to hotels, hence hotels offer them special discounts.

E.g. Of travel agencies – Thomas Cook, Cox & King, SITA Travels etc.

10. Company Volume Guaranteed Rate: (CVGR/CGVR)

Hotels may offer a special rate (lower than the rack rate) in order to attract high volume of business from special market segments like Companies. A hotel may have a contractual agreement with a company, according to which the company’s representatives are entitled to a special discounted rate when they reserve a room in the hotel. The percentage of discount will depend upon the volume of business promised and the mutual understanding between the hotel and the company at the time of making agreement.

11. Airlines and Crew Rate:

A special discounted rate for the crew of one or more airlines that offer certain volume of business throughout the year on a consistent and continuous basis.

12. Government Rate:

Some hotels offer special discounted rates to Government Officials when they are on an official tour and staying in a hotel.

13. Educational Rate:

These are special rates offered by hotels to students and educationists, as they are a significant source of business because of their large numbers and frequency of travel.

14. Membership Rate:

These rates are offered to guests who are members of influential organizations like FHRAI, United Nations etc. The rates are much

lower than the rack rate and may also include discounts on food and beverage.

15. Introductory Rate:

This rate is offered by the hotel on the opening of a new property in the town. This rate is generally offered to attract guests and is offered till the hotel is established in the market.

16. Complimentary Rate:

When a hotel does not charge the room rent from a guest, it is called complimentary rate or Comp. rate/ room rate. Hotels generally offer such rates to tour/group leader, tour operators, travel agencies, and local dignitaries who are vital to the public relations programme of the hotel.

17. Package Rate:

A package rate is quoted for the bouquet of products or services. The rate is generally lower than the sum total of the prices of individual products or services offered in the bouquet. It is a market strategy to sell the slow moving items along with hot selling products.

Hotels may offer the following packages-

a. Meeting package

(May include residential arrangement of delegates, meeting room, meals, tea/coffee, snacks, audio visual equipment etc.)

b. Meal package

(Includes room rent and meals)

c. Marriage package

(Includes all the necessary arrangements for marriage, like mandap, priest, party hall/lawn, accommodation for the marriage party, arrangement of reception buffet, and even a complimentary room/suite for the newly wedded couple)

d. Holiday package

(Includes transportation, accommodation, meals, guide, and sight- seeing at the destination)

18. Tour Group (Series Group) Wholesale Rate:

These are heavily discounted rates for wholesalers who operate a series of tours for groups arriving and departing together.

For example, a tour operator may conduct a week’s tour of the Golden Triangle (Delhi-Agra-Jaipur-Delhi) on the 2nd, 12th, and 22nd of every month for group of 20 persons.

The tour operator guarantees the hotel that it would provide this series of business every month for a period of one year. In return, the hotel offers a heavy discount to the operator and allocates or ‘blocks’ rooms for the series for the entire year.

#hotelmanagement #hospitalitymanagement #ihm #notes #hmnotes #hotelmanagementnotes

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surendrasinghbhakuni · 5 years ago

Text

Front office Accounting

Front office Accounting System

Accounting is an art as well as science of recording, classifying and summarizing of business transactions which are of a financial character.

From the above definition, it can be summarized that it is having mainly four elements:

1. Recording of transactions and events in terms of money.

2. Classification, which means preparation of accounts.

3. To make summary, which means to the preparation of profit and loss account and balance sheet.

4. To make interpretation of accounts means driving conclusions from accountancy records.

Front office accounting system Creates and maintains an accurate accounting record for each guest or non guest account. Front office accounting system tracks ﬁnancial transactions through the guest cycle.

Front office accounting system ensures internal control over cash and non cash transactions. Front office accounting system records settlement for all goods and services provided.

Types of accounts in front office department

A. Guest Account

A guest account in front office accounting system is to record of ﬁnancial transaction between a resident guest and the hotel. It is created when the guests guarantee their reservations or during registration. The front office usually seeks payment for charges during the departure and settlement stage of the guest cycle.

B. Non-Guest Account

A non-guest account in front office accounting system is to record of ﬁnancial transaction between a non-resident guest and the hotel. This is also known as a city account. The front desk cashier maintains the records of financial transactions between the hotel and a local resident to whom the hotel has extended the credit facility for the use of hotel facilities and services. The front office creates non-guest accounts to track these transactions which may also be called house accounts or city accounts. Besides local guests, the front desk cashier also maintains other types of non-guest accounts, which include the following:

a) Skipper guest- Guest who leave the hotel without the settlement of their accounts.

b) Bill to company guest, where the payment is collected by the accounts department after the guets check-outs form the hotel.

c) Advance payment received for a guaranteed reservation, but it becomes a no-show.

Distinguish between Guest Account & Non guest Account Guest Account Non Guest Account

· Record of all financial transactions that occur between the guest and the hotel when they guarantee a reservation or they are registered at the Front Office.

· Refers to all in-house charge privileges extended to local businesses or agencies eg. Banquets & conferencing facilities. These are also created when a former guest fails to settle his bill at the time of departure & the responsibility of recovering the balance amount shifts from Front Office to Accounts Dept. Or back office accounting.

· These are compiled on a daily basis.

· Billed on a monthly basis.

· Front Office is responsible for its maintenance.

· Back office or Accounts Dept takes the responsibility of account settlement.

1. FOLIOS

A folio is a statement of all transactions affecting the balance of a single account. A folio is a statement of all transactions (debits and credits) affecting the balance of a single account. Front office transactions are typically recorded on folios. When an account is created, it is assigned a folio with a balance of zero. The front office records on the folio all transactions which increase or decrease the balance of the account.

There are basically 5 types of folios used in front office accounting and maintained with front office accounting system:

a) Guest Folios – Accounts assigned to individual guests or guestrooms.

b) Master Folios – Accounts assigned to more than one guest or guestroom, usually applicable for group accounts.

c) Non-Guest or Semi-Permanent Folios – Accounts assigned to non-guest business or agencies with hotel charge purchase privileges.

d) Employee Folios – Accounts assigned to employees with charge purchase privileges.

e) Split Folios – Accounts assigned to a guest on his/her request to split his/her charges and payments between two personal folios – one to record expenses to be paid by the sponsoring business company and the other to record personal expenses to be paid by the guest. In this case two folios are created for the same guest.

2. VOUCHERS

A voucher details a transaction to be posted to a front office account. It is a supporting document maintained for all financial transactions recorded in the guest folio. It is a written statement or a documentary evidence of a financial transaction.

There are several types of vouchers used in front office accounting system:

a) Cash Voucher – A voucher used to support a cash payment transaction at the front desk.

b) Charge Voucher – A voucher used to support a charge purchase transaction that takes place somewhere other than the front office.

c) Allowance Voucher – A voucher used to support an account allowance.

d) Cash Advance Voucher – A voucher used to support cash ﬂow out of the hotel, either directly to or on behalf of the guest.

e) Correction Voucher – A voucher used to support the correction of a posting error which is rectiﬁed before the close of business on the day the error was made.

f) Paid-Out Voucher – A voucher used to support the cash paid by the hotel on behalf of a guest. Example are

· Payment for taxi

· Florist charges

· Postage and courier charges.

g) Transfer Voucher – A voucher used to support a reduction in balance on one folio and an equal increase in balance on another. Transfer vouchers are used for transfers between guest accounts and for transfers from guest accounts to non-guest accounts when they are settled by credit cards.

h) Travel Agency Voucher – In travel agent guaranteed reservation, the travel agent forwards a voucher to the hotel as proof of payment and guarantees that the prepaid amount will be sent to the hotel when the voucher is returned to the travel agency for payment.

Distinguish between Voucher & Folio

Voucher

Folio

· It gives details of a single transaction to be posted at the Front Office.

For E.g. A florist or a gift shop might not have provision of posting a particular transaction into a registered guest account. They can send the voucher to notify the FO of guest charge privileges that need posting.

· Refers to the statement of all transactions (debits & credits) affecting the balance of a single account.

This may include all non guest or guest accounts.

· It gives all the information about one transaction documented at the source of transaction (POS).

· This gives details of all the transactions under a particular account; contains all transactions that increase or decrease the balance.

· The voucher accounts for a single posting.

· Whereas a folio lists out all the postings in an account.

· Created at POS

· Created and maintained at front office cashier/accounting.

· Types of Vouchers are cash vouchers, charge vouchers, transfer vouchers, allowance vouchers & paid-out vouchers.

· Some of the types of Folios are Guest folios, Master folios & Incidental folios, Non-guest or Semi Permanent Folios, Employee Folios.

3. POINTS OF SALE (POS)

The term ‘point of sale’ denotes the location at which goods or services are purchased. Any hotel department that collects revenue for its goods and services is considered a point of sale. The front office accounting system must ensure that all charge purchases at these points of sale are posted to the proper guest or non-guest account. A computerized POS system allows terminals at the points of sale to communicate directly with a front office computer system, and helps front office staff to create a well documented folio statement with a minimum number of errors. Some basic information to be provided by the POS includes the amount of the charge, name of the POS outlet, room number, name of the guest and a brief description of the charge.

4. LEDGERS

A ledger is a summary grouping of same types of accounts. A front office ledger is a collection of front office account folios.

There are two types of ledgers in front office accounting system:

a) Guest Ledger – It refers to the set of accounts related to the resident hotel guests. It is also known as Front office ledger or Rooms ledger.

b) City Ledger – Also called the non-guest ledger, it is the collection of non-guest accounts. These are the accounts of non-resident guests.

Distinguish between Guest Ledger & City Ledger

Guest Ledger

City Ledger

· Is the set of guest accounts for registered guests or guests who have sent advance deposits.

· Refers to the set of non guest accounts. For e.g., if a guest account is not settled in full on check out, the balance is transferred to the back office accounting division for collection.

· Corresponds to registered guests or guests reserved for future dates.

· May or may not account to registered guests alone

· Records all financial transactions of an in-house guest.

· Contains Credit Card payment accounts, Company accounts, direct billing accounts, outstanding accounts of guests stayed earlier and are due for collection.

· Also referred to as transient ledger, front office ledger or room’s ledger.

· It is also called Non-guest ledger.

· Maintained at front office

· Maintained by accounting division (back office accounts)

Front Office Accounting

Accounting defined as the process of collecting, recording, summarizing, and analyzing financial transactions of a business. According to the American Institute of Certified Public Accountants (AICPA), ‘Accounting is an art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions, and events which are, in part at least, of a financial character, and interpreting the results thereof.’

The major functions of front office accounting system are as under:

Creation and maintenance of guest and non-guest accounts accurately

Tracking financial transactions of guests throughout the guest cycle

Monitoring the credit limit of guests, and asking for a deposit from guests in case of high outstanding balance

Preparing a high balance report for collection and informing the management about the same

Providing an efficient management information system (MIS) to the management for departmental revenue generation

Maintaining effective control over cash and credit transactions

Front office accounting system records settlement for all goods and services provided.

Front Office Accounting System

The automated and/or manual data collection and reporting system that summarizes and documents the financial activities of a front office. The front desk maintains two types of accounts:

· Guest accounts

· Non-guest accounts

1. Guest Accounts

A guest account is the record of financial transactions between and a resident guest and the hotel. This account is created either during the registration of the guest (at the time of check-in) or during reservation, if the guest makes an advance payment.

2. Non-guest Accounts

A non-guest account is the record of the financial transactions that take place between a non-resident guest and the hotel. This is also known as a city account.

The front desk cashier also maintains other types of non-guest accounts, which include:

Guests who leave the hotel without the settlement of their accounts are known as skippers; their accounts are also treated as non-resident guest accounts. The account is transferred to the city ledger awaiting eventual payment, and after a stipulated wait time, the same is written off as a bad debt.

The status of guests, whose accounts are not settled by them (in case of bills to company), changes from resident to non-resident guests when they leave the hotel. The front desk cashier transfers the balance to the city ledger and the payment is collected by the accounts department.

When advance payment has been received for a guaranteed reservation and it is subsequently a no-show, the account is normally recorded in the city sales ledger

1. Folios

A folio is a statement of all the transactions that take place between a hotel and a guest. A folios is a statement of all transactions (debit & credit) affecting the balance of a single account. When an account created, a folio is assigned with a starting balance zero. All transactions, which increase (debits) or decrease (credits) the balance of the account is recorded on the folio. At settlement a guest folio should be returned to a zero balance by cash payment or by transfer to an approved credit card or direct billing account. The process of recording transactions on to a folio is called posting.

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

a) Guest folios: To record transactions made by an individual or independent guest with the hotel.

b) Master folios: Accounts assigned to more than one person or guestroom: usually reserved for group accounts.

c) Non-guest folios: Also known as semi-permanent folio. Accounts assigned to non-guest business or agencies with hotel charge purchase privileges.

d) Employee folios: Accounts assigned to employees with charge purchase privileges.

Split Folios – Accounts assigned to a guest on his/her request to split his/her charges and payments between two personal folios – one to record expenses to be paid by the sponsoring business company and the other to record personal expenses to be paid by the guest. In this case two folios are created for the same guest.

Every folio should have a unique serial number. Folio serial numbers are needed for many reasons. First, they serve as identification numbers that help ensure that all folios are accounted for during an audit of front office transactions. Second folio numbers may used to index information in automated systems. Automated systems frequently create folio numbers when reservations are made. Finally folio numbers can provide a chain of documentation.

2. Vouchers

A voucher details a single transaction to be posted to a front office account. This document lists detailed transaction information gathered at the source of the transaction. The voucher is then sent to the front office for posting onto the guest folio. Voucher is a supporting documents used only for internal control purposes. Usually any service or goods brought on credit by the guest has to be supported by a voucher. Most automated front office systems require few paper vouchers.

Types of voucher:

a) Cash vouchers

b) Travel agent voucher

c) Commission voucher

d) Charge vouchers

e) Transfer vouchers

f) Paid-out vouchers

g) Correction vouchers

h) Allowance vouchers

Visitors Paid-out Voucher: The money paid by the hotel on behalf of guests is known as visitors paid-out (VPO). A VPO is generally made for the following charges:

· Payment for taxi, travel agency services

· Porter charges

· Florist charges

· Postage and courier charges

· Emergency medical expenses

Travel Agent Voucher: In travel agent guaranteed reservation, the travel agent forwards a voucher to the hotel as proof of payment and guarantees that the prepaid amount will be sent to the hotel when the voucher is returned to the travel agency for payment.

Most tour operators and travel agencies receive advance payment from their clients for making travel arrangements like accommodation, food and beverage, and other services. The travel agency then makes the reservation in a hotel on behalf of the guest. It sends a voucher, known as a travel agent voucher, containing the details of the billing procedure and services to be provided to the guest. Airlines that have contracts with hotels also send meals and accommodation order (MAO) or passenger service order (PSO) for layover passengers due to delay or cancellation of flights. In these cases, the hotel obtains payments from the travel agency or airline.

Telephone Call Voucher : In small hotels, where outgoing calls are routed through the operator, the responsibility of billing the call charges lies with the telephone operator, who puts down the call details on a telephone charge voucher and sends it to the front desk cashier for posting into the guest account. Nowadays a lot of hotels use computerized systems, where, whenever a guest makes a call, the call accounting module automatically transfers the call charges to the guest folio.

Miscellaneous Charge Voucher: A miscellaneous charge voucher is prepared for the payment of miscellaneous services and facilities, like laundry, health club, fitness centre, beauty salon, etc. The guest verifies and signs the miscellaneous charge voucher, which is sent to the front desk cashier for posting the charges into the guest folio.

Cash Receipt Voucher: A receipt is an acknowledgment that a payment has been made. A cash receipt voucher is prepared and issued to the person depositing cash as a proof of remittance of the deposited cash.

Commission Voucher: Hotels offer commission to persons who provide regular business to them. Whenever a commission is paid by the cashier, a commission voucher is made. The commission voucher should be authorized by a competent authority of the hotel. Generally, it is authorized by the lobby manager. More commonly, commission vouchers are made for the following:

· A taxi driver who brings a walk-in guest to the hotel. In case the guest stays at the hotel, the hotel pays a commission to the taxi driver. A travel agent/tour operator working on commission basis

· Any agency working on a commission basis.

Guest Allowances : An allowance is an amount deducted from an invoice to compensate the buyer for an expense or mistake. The guest allowance is the cash paid to the guest by the hotel, especially in the following circumstances:

· If there is a wrong posting of a charge in the guest folio, an allowance is given and the voucher is made to nullify the guest folio balance due to the wrong posting.

· If a guest has deposited a large sum as advance and that amount exceeds the hotel bill.

· If an airline or a tour operator sends a crew or a group and guarantees the reimbursement of their bills.

Restaurant/Bar Check: Resident guests may enjoy their meals in any of the food and beverage outlets in a hotel. Whenever a guest consumes food or beverage in a restaurant, a bill is raised; in case a resident guest wishes to utilize the credit facility offered by the hotel, he should sign the bill. The signed bills serve as the proof of financial transactions at the food and beverage outlets and are treated as vouchers for posting the charges to the guest folio.

3. Ledgers

The front ledger is a collection of front office account folios. The folios represented in the front office are a 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- the guest ledger (for guest receivables) and the city ledger (for non-guest receivables).

Guest Ledger: A guest ledger contains the details of all the financial transactions between a resident guest and the hotel, including charge purchases and the payments received from the guest. It has two parts—debit and credit. In a manual system, the financial transactions are recorded in a tabular ledger, or tab ledger, which is of two types:

· Horizontal tabular ledger

· Vertical tabular ledger

In a horizontal tabular ledger, all the credit expenses of the guest are recorded in one horizontal row, and at the end of the row, the guests’ credit or debit balance is shown.

The vertical row of the table contains the room numbers. At the end of vertical column, the daily sales balance can be seen. A vertical tabular ledger is a variation of the horizontal tabular ledger. It is also called visitors tabular ledger. The rows depict the room numbers, and in the columns, the details of the guests and their credit expenses as well as payments are recorded. At the end of every column, one can find the account balance of individual guests staying in a particular room. It is a loose sheet and is prepared on a daily basis by the front desk cashier.

City ledger: The city ledger also called the non-guest ledger is the collection of non-guest accounts. A city ledger contains the collective accounts of all the non-resident individuals/agencies to whom the hotel extends credit facility. It is also called non-guest account.

· City ledgers also contain the accounts of resident guests who have left the hotel without settling their accounts, which would be settled at a later date by a third party (may be a credit card company, an airline, a travel agency, or a corporate house).

· This account would be closed at the time of receiving the complete payment.

· The account of skippers is also maintained in the city ledger for a specific period (as per the hotel policy); at the expiry of this period the same is written off as bad debt and the account is closed.

· This ledger also includes bad cheque accounts (cheques that have bounced), disputed bills account (bills that are in dispute), late charges accounts (bills that could not be posted in the guest bill at the time of check-out), and retention charges accounts (reservation was guaranteed but the same was cancelled or guest did not show up).

Front Office Accounting Cycle

An important function of the front office accounting system is to maintain an accurate and up-to-date record of all the financial transactions (credit and debit) between the hotel and each guest, so that all the outstanding accounts are settled and the hotel does not lose any revenue. The front office accounting cycle has three distinct phases:

Creation of accounts

Maintenance of accounts

Settlement of accounts

Creation of Accounts : A guest account is created when the first financial transaction between the hotel and a guest takes place. It may happen at one of the following stages:

· At the time of reservation, if the guest pays an advance amount

· At the time the hotel receives the advance payment for a booking after the reservation has been made and before the arrival of the guest.

· At the time of guest registration, when a room is allotted to the guest.

· A guest folio is created on the day the hotel receives a payment from the guest and the transactions are recorded in the order of their occurrence.

· The hotel sets a credit limit, known as floor limit, for each guest, which is the maximum amount of credit that the hotel will extend to the guest.

Maintenance of Accounts: All the monetary transactions that take place between the hotel and a guest are recorded in the guest folio in the order of their occurrence. An entry in the guest folio may be either debit or credit.

The most common debit entries in a guest account include the following:

· Room charges

· Food and beverage charges (restaurant, bar, coffee shop, room service, etc.)

· Telephone and fax charges

· Health centre, business centre, fitness centre charges

· Laundry charges

· Postage charges

· Transportation charges

· Visitors paid-out

Credit entries in a guest account may include the following:

· Pre-payment, in part or in full (at the time of reservation or between reservation and arrival).

· Part payment during the stay.

· Allowances given to the guest.

· Adjustments made in case of any error in posting in the guest folio.

· Final payment for the settlement of accounts at the time of check-out.

Settlement of Accounts: This is the final and concluding phase of the front office accounting cycle. The settlement of account means zeroing the balance in a guest folio. The formula for calculating the outstanding balance is:

Opening balance + Debit entries – Credit entries = Outstanding amount

At the time of departure, the final bill of the guest is prepared and settled in such a way that the outstanding balance is brought to zero. The settlement of the guest account may be by cash or credit. In case of credit settlement, the account balance is transferred to the city ledger and the responsibility of collecting the balance is transferred to the accounts department.

Tracking Transactions

Charge purchase transactions must be correctly documented in order for the front office to properly maintain accounts. A major concern of the front office accounting process involves the communication of transactional information from remote point-of-sale to the front office.

A transaction initiates activity within the front office accounting system. The front office accounting system can be described as a transactional accounting system. Proper posting procedures depend on the nature of the transaction and its monetary value. A transaction can be classified as:

· Cash payment

· Charge purchase

· Account correction

· Account allowance

· Account transfer

· Cash advance

Each type of transactions will have a different effect on the front office accounting system. Each may be communicated to the front office through the use of a different type of voucher, which will help simplify eventual auditing procedures.

Cash Payments: Cash payments made at the front desk to reduce a guest’s net outstanding balance are posted as credits to the guest or non-guest account, thereby decreasing the balance of the account. The front office may use a cash voucher to support such transactions. When cash is paid for goods or services at a location other than the front desk, no entry will appear on the account folio. The account for this transaction is created, increased, settled and closed at the point-of-sale, thereby eliminating the need for front office documentation or posting.

Charge Purchase: Charge purchase represent deferred payment transactions. In a deferred payment transaction the guest receives goods and services from the hotel, but does not pay for them at the time they are provided. A charge purchase transaction (Debit) increases the outstanding balance of a folio. In non-automated and semi-automated properties the transactions in revenue centers are communicated to the front office for posting by means of account receivable vouchers.

Account Correction: An account correction transaction resolves a posting error on a folio. By definition an account correction is made on the same day the error is made, before the close of business. An account correction can either increase or decrease an account balance, depending on the error. A correction voucher is used to document an account correction transaction.

Account Allowance: Account allowance involves two types of transactions. One type of account allowance is as decrease in folio balance for such purpose as compensation for poor service or rebates for coupon discounts. Another type of account allowance corrects a posting error detected after the close of business. Such an error will be separately entered into accounting records of the appropriate revenue centers, thereby also correcting their accounting records. An account allowance is documented by the use of an allowance voucher which normally requires management approval.

Account Transfer: Account transfer involves two different accounts and then to have offsetting impacts on subsequent account balance. For example when one guest offers to pay a charge posted to another guest folio the charge will need to be transferred from the first account to the second account. A transfer voucher supports an account transfer. Am account transfer may also occur when a departing guest uses a credit card to settle his/her account. The guest outstanding balance is transferred from guest account to a non-guest account through the use of transfer voucher.

Cash advance/ Visitors Paid Out (VPO): Cash advances differ from other transactions in that they reflect cash flow out of the hotel, either directly to or on behalf of a guest. Cash advance transactions are similar to debit transactions and increase a folio balance. Cash advances are supported by cash advance vouchers (format). Cash disbursed by the hotel on behalf of the guest and charged to the guest’s account as a cash advance is typically called a paid-out. Such expenses are usually taxi charges, porter charges, emergency medical expenses, ticket confirmation charges, floral delivery etc. For example, a guest who orders a floral delivery, may request that the front desk agent accept the order and pay for the flowers. This payment for flowers is a cash advance on the guest’s behalf. The front office pays for the delivery on the assumption that the guest will reimburse the hotel. Hotel policy will dictate how cash advances are to be handled. Usually, prior confirmation needs to be taken from the guest before any payment is made on his behalf. These payments are made from the cash bank received at the beginning of the shift by the cashier. Paid outs are only made in local currency.

Procedure for handling paid-outs:

· Confirm the name, room no. and identity of the guest

· Find out details for which the paid-out is being made

· Fill in details into the paid-out voucher. Every voucher is numbered to maintain control.

· Get voucher authorized by the lobby manager.

· The guest signs in acknowledgement.

· Make the payment in cash to the guest or service provider- taxi or florist, etc.

· Fill in the details in the paid-out column of the front office cashier’s report.

Points of Sale

· Points of sale are the physical locations at which goods or services are purchased.

· Any hotel department or area that collects revenues is a point of sale.

· Large hotels typically support many points of sale: restaurants, lounges, room service, dry cleaning, valet service, parking garage, telephone service, fitness centers, athletic facilities, spas, and retail shops.

· Some hotels offer guest-operated devices that function as self-service points of sale (in-room movie systems, Internet-access devices, in-room vending systems

· The volume of goods and services purchased at scattered points of sale within the hotel requires a complex internal accounting system.

· An automated point-of-sale (POS) system enables remote terminals at the point of purchase to communicate directly with the front office system.

· Automated POS systems significantly reduce the amount of time needed to post charges to guest folios, minimize the number of times transactional data must be handled, and virtually eliminate after-departure (late) charges.

· POS information includes transaction number, charge amount, name of POS outlet, guestroom number, name of the guest, and a brief description of the charge.

Charge Privileges

· To establish charge privileges, a guest may be required to present a valid payment card or a direct billing authorization at the time of registration; an automated system will allow credit to be established at the time a reservation record is created.

· Typically, the hotel obtains the number and expiration date of the guest’s payment card and electronically requests an amount guarantee from the card company.

· Once a line of credit has been approved, guests can make charge purchases at hotel points of sale.

· Guests who use cash to pay for accommodations are typically not extended charge privileges; these guests are called paid-in- advance or PIA guests.

· In an automated front office system, PIA accounts are usually set to a “no-post” status.

· In addition to guests, local businesses or residents may apply to the hotel for charge privileges.

Credit Monitoring

· Front office staff must monitor guest and non-guest accounts to ensure they remain within acceptable credit limits.

· Guests using a payment card may be extended a line of credit equal to the floor limit authorized by the card company; guests and non-guests with other credit arrangements are subject to credit limitations (house limits) set by the front office.

· Accounts approaching their floor or house limit are called high-risk or high-balance accounts and must be carefully monitored by management.

· For high-risk accounts, front office managers may ask the payment card company to authorize additional credit, or request that guests make a partial payment.

Cash Banks

· A cash bank is the amount of cash assigned to a cashier to handle the various transactions that occur during a work shift.

· The hotel may issue cash banks with a specific amount of money to each cashier.

· The bank limit is the starting amount the bank should have when it is issued at the start of the shift.

· Cashiers typically sign for their banks at the beginning of their shifts and are the only people with access to their particular bank. At the end of the shift, the cashier deposits all cash, checks, and other negotiable instruments into the hotel safe (or other designated location).

· After the deposit is made, the bank should be back to its original bank limit. In hotels that do not assign individual banks, cashiers usually pass the banks to the next shift after making their deposits and verifying the balance of the banks at the end of their shifts; the cashiers receiving the banks should also verify that the banks have the proper amount of cash in them.

· When a cashier makes a deposit, another employee should witness the deposit and both employees should sign a log.

Net cash receipts: Net cash receipts are the amount of cash, checks, and other negotiable items in the cashier’s drawer, minus the amount of the initial cash bank, plus any paid-outs.

Overages: An overage occurs when, after the initial bank is removed, the total of the cash, checks, gift certificates, and paid-outs is greater than the net cash receipts.

Shortages: A shortage occurs when the total of the contents of the cash drawer is less than the net cash receipts.

Due backs: A due back occurs when a cashier pays out more than he or she receives; in other words, there is not enough cash in the drawer to restore the initial bank.

FRONT OFFICE ACCOUNTING FUNDAMENTALS

An effective guest accounting system consists of task performed during each stage of guest cycle. During the pre-arrival stage, a guest accounting system captures data related to the type of reservation guarantee and tracks prepayments and advance deposits. When a guest arrives at the front desk the guest accounting system documents the application of room rate and tax at the registration. During stay a guest accounting system tracks authorized guest purchases. Finally, a guest accounting system ensures payment for outstanding goods and services at the time of check-out.

In brief, a front office accounting system:

· Creates and maintains an accurate accounting record for each guest or non-guest account

· Tracks financial transaction throughout the guest cycle

· Ensures internal control over cash and non-cash transactions

· Records settlement for all goods and services provided

Given below is a brief review of some general concepts of front office accounting:

Accounts

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

In its simplest form, an account resembles the letter T and therefore this system is known as T- form of accounting .Charges are increases in the account balance and are entered on the left side of the T which is known as the debit side. Payments are decreases in the account balance which is entered on the right side of the T and is known as the credit side.

Guest Accounts: A guest account is a record of financial transactions which occur between a guest and the hotel. Guest accounts are created when guests guarantee their reservations or when they register at the front desk. The front office usually seeks payment for any outstanding guest account balances during the settlement stage of the guest cycle.

Non-Guest Accounts: A hotel may extend charge privileges to local businesses or agencies as a means of promotion, or to groups conducting meetings, conferences at the hotel. The front office creates non-guest accounts to track these transactions. These accounts may also be called house accounts or city accounts.

Folios

Front office transactions are typically charted on account statements called folios. A folio is a statement of all transactions (debits and credits) affecting the balance of a single account. When an account is created, it is assigned a folio with a starting balance of Zero. All transactions which increase (debits) or decrease (credits) the balance of the account is recorded on the folio. At settlement, a guest folio should be returned to a zero balance by cash payment or by transfer to an approved credit card or bill to company account.

The process of recording transactions on a folio is called posting.

There are basically four types of folio:

1) Guest Folio: Accounts assigned to individual persons staying in the hotel.

2) Master Folio: Accounts assigned to more than one person or guest room, usually reserved for group accounts.

3) Non-guest Folio: Accounts assigned to non-guest businesses or agencies with charge purchase privileges.

4) Employee Folio: Accounts assigned to employees with charge purchase privileges.

Additional types of folios are frequently created by front office management to accommodate special circumstances or requests. For example, a business guest may request that his charges be split between two separate folios, one to record all Room charges, F & B charges and Laundry expenses and another one to record rest of the expenses. Main folio is usually called ‘A’ folio and the second one is called incidental folio.

Every folio should have a unique serial number. First, they serve as unique identification numbers for control purpose and they are also used for indexing purpose.

Vouchers

A voucher details a transaction to be posted to a front office account..This document lists detailed transaction information gathered at the source of transaction, such as the hotel coffee shop or Bar. The front desk cashier is required to present supporting documents of all the financial transactions recorded in the guest folio. A voucher-which entitles the bearer to certain goods, services, or discounts upon presentation- is a documentary evidence of a financial transaction. For every purchase, the point of sale presents the bill to the guest, receives cash from the guest, and gives a cash receipt to the guest. In case a charge purchase is made , the guest signs the bill and the same is sent to the front desk for posting it into the guest account; the same is given to the guest at the time of check-out.

The types of vouchers commonly used in hotels are as follows :

· Charge Voucher

· Visitor’s paid out

· Cash receipt voucher

· Allowance/ Correction voucher

· Transfer Voucher

· Travel agent voucher

· Miscellaneous charge voucher

Creation and Maintenance of Accounts

The task of accurately and correctly recording all transactions that affect guest ledger accounts is the responsibility of the front office. Guest folios are created during the reservation process or at the time of registration. To prepare a folio for use, information from the guest’s reservation or registration record must be transferred to the folio. Non automated systems commonly used pre-numbered folios for internal control purposes. Manually posted guest folio cards are stored in a front desk folio tray which is also referred as a bucket.

In a fully automated system, guest information is automatically transferred from an electronic reservation record or captured at registration and entered into an electronic folio. One of the major advantages of electronic data processing is that captured data need only be handled once. By only having to handle data once, an automated system can significantly reduce errors caused by repetitive data handling.

Charge Privileges:

To establish an in-house line of credit, a guest may be required to present an acceptable credit card or a direct billing authorization at the time of registration. Charge privilege implies that a guest is allowed credit facility in the hotel. This may also happen when guest is regular in the hotel or source of reservation is reliable. Guests with charge privilege are authorized to make charge purchases and these transactions are communicated manually by vouchers or electronically from remote POS locations to the front desk. Guest who are not extended charge privileges need to pay an advance deposit for accommodations and they are typically called paid-in-advance or PIA guests. In a fully automated front office accounting system, such accounts are set to a NO POST status. This means that revenue center cashiers will not be able to post charges to a guest whose account has a no post status. In a non automated system, a PIA list is manually distributed to all revenue centers.

Credit Monitoring:

The front office must monitor guest accounts to ensure they remain within acceptable credit limits. Generally hotels decide an internal credit limit for all guests to whom charge privileges are extended. Hotel’s internal limit of credit is known as House Limit.

Front office must keep a track of all accounts approaching the house limit. Such accounts are known as High Balance accounts. Guests with high balance accounts must be requested to make a partial payment to reduce the outstanding account balance. In larger hotels, there may be a full time credit manager to review high balance accounts. In small hotels this responsibility is given either to the front desk manager or to the accounting division.

Account Maintenance:

A folio is used to record transactions which affect a front office account balance. Guest folios must be accurate, complete and properly filed since guests may inquire about their account balance or checkout of the hotel with little or no advance notice. Transaction postings adhere to a basic front office accounting formula. The accounting formula is :

Previous balance + debits – credits = net outstanding balance

Tracking Transactions

A transaction initiates activity within the front office accounting system. From an accounting perspective, nothing happens until a transaction occurs. Each type of transaction will have a different effect on the front office accounting system. Each transaction is communicated to the front office through the use of different types of vouchers. A transaction can be classified as

1. Cash payment: Cash payments made at the front desk to reduce a guest’s net outstanding balance are posted as credits, thereby decreasing the balance of the account. The front office uses a cash voucher/ cash receipt to support such transactions.

2. Charge purchase: Charge purchase represent deferred payment transactions. The guest receives goods and services from the hotel but does not pay for them at the time they are provided. A charge purchase increases the outstanding balance of a folio. A charge voucher also known as account receivable voucher is prepared to document charge transactions. Charge purchase is basically a credit purchase by the guest and charge vouchers are handed over to the guest at the time of check out.

3. Account correction: It resolves a posting error on the folio. By definition, correction is made on the same day the error is made, that is, before night audit. Account correction can either increase or decrease the balance, depending on the error. A correction voucher is used to document an account correction.

4. Account allowance: It involves two types of transactions. One type of transaction is when an error in posting is detected after the night audit. Another type is a decrease in a folio balance for such purposes as compensation for poor service or discounts given for dissatisfactory product or service. An allowance is prepared which usually requires management approval.

5. Account Transfer: It tends to involve two different accounts and have an off-setting impact on subsequent account balances. For eg. when one guest offers to pay a charge posted to another guest’s folio, the charge will need to be transferred from the first account to a second account. A transfer voucher supports this transaction.

6. Paid out: The difference between a paid out and other types of transactions are that, paid out reflects cash flow out of the hotel, either directly or on behalf of the guest. These transactions are considered debit transactions, since they increase a folio’s outstanding balance. For eg, a guest may request the delivery of flowers and the front office at the time of accepting the delivery pay for the flowers as the guest most likely will not leave the money at the front desk for this purpose. Payment by the front office constitutes a cash advance on the guest’s behalf. The front office may pay for the delivery on the presumption that the guest will reimburse the front office.

Internal control

Internal control in the front office involves:

· Tracking transaction documentation

· Verifying account entries and balances

· Identifying vulnerabilities in the accounting system

Auditing is the process of verifying front office accounting records for accuracy and completeness. Each financial interaction produces paperwork which documents the nature and amount of the transaction. For example, consider the transaction that occurs when a guest charges a meal to his individual folio. This transaction will likely be supported by the restaurant’s guest check, cash register recording, and charge voucher. The charge voucher is prepared at POS and sent to the front office as notification of transaction. In a semi-automated front office a front desk agent, in turn, retrieves the guest’s folio , posts the charge purchase transaction, refiles the guest folio , and files the charge voucher. Later that day, the front office auditor ensures that all vouchers sent to the front office have been properly posted to the correct accounts. In the case of this example , the auditor will match the front office total of charges from the dining room to the total reported by the dining room. Discrepancies in accounting procedures are easy to resolve when complete documentation is readily available to substantiate account entries.

Front office cash sheet

The front office is responsible for a variety of cash transactions which may affect both guest and non-guest accounts. Proper cash handling procedures and controls must be established, implemented and enforced.

Most non-automated or semi-automated operations require front office cashiers to complete a front office cash sheet that lists each receipt or disbursement of cash. The information contained on a front office cash sheet is used to reconcile cash on hand at the end of a cashier shift with the documented transaction which occurred during the shift. A front office cash sheet provides separate columns to record transactions affecting guest accounts, non-guest accounts , and miscellaneous transactions.

The most common entry on a front office cash sheet is the money collected from departing guests during check-out. When guests pay on their accounts , the cashier typically records the amount paid ,the room number ,and the folio number on the front office cash sheet.

The front office cash sheet also provides space for itemizing cash disbursements or paid outs. These are the transactions when front office pays on behalf of the guest. Since the amount of cash on hand at the front desk will be lowered by the amount paid to the recipient , the front office accounting system must be capable of tracking this type of transaction.

Audit Controls:

A number of front office audit controls ensure that front office staff properly handle cash, guest accounts, and non- guest accounts. Publicly held lodging companies are required to have their accounting records audited yearly by independent certified public accounts. In addition, companies may have their own internal auditors for control purpose. In both the cases a report is prepared for ownership and management.

Cash bank:

Cash bank is also known as float or imprest. It is an amount of cash assigned to a cashier so that he can handle the transactions that occur during a particular work- shift. Good control procedure generally require that cashiers sign for their bank at the beginning of their work-shift and that only the person who signed for the bank have access to it during the shift. At the end of a shift, each front office cashier is solely responsible for depositing all cash [including foreign currency] and all negotiable instruments [such as paid out vouchers] in a specially designed front office cash envelope. The cashier normally records the contents of the front office cash envelope on the outside of the envelope before dropping it into the vault. From an internal control perspective, at least one other employee should witness this procedure and both of the employees should sign a log attesting the drop was actually done and stating the time of the drop.

Monitory differences between the money placed in the front office cash envelope and the cashier’s net cash receipts should be noted on the envelope as overages, shortages or due banks [ also known as due backs].

An overage occurs when after the initial bank is removed, the total of cash and negotiable instruments in the drawer is greater than the net cash received. A shortage occurs when the total of the contents of the drawer is less than the cash receipts. A due-bank occurs when a cashier pays out more than his bank and he does not have enough cash in the drawer for the cash drop. They are generally unusual in the front office.

Bank is restored to its original value at a fixed time during the day by the general accounts department.

Check-Out Options

Changes in technology and guest needs have prompted front offices to develop alternatives to standard check out and account settlement procedures. These options combine advances in technology with special guest services to expedite departure activities.

Express Check out:

Guests may encounter long lines at the front desk when trying to check out during prime check out period. To ease front desk volume some front offices initiate check out activities before the guest is actually ready to leave. A common pre departure activity involves producing and distributing guest folios to the guest expected to check out. Front office staff may quietly slip printed folios under the guest room doors of expected check outs, making sure that the guest’s folio cannot be seen or reached from outside the room. In this process, guest must an express check out form at the time of registration or during his stay. Express check out is possible only if the guest is settling is his bill using his credit card. By completing an express check out form, guest authorizes the front office to transfer his outstanding folio balance to his credit card account/credit card charge slip which was created during registration. Such guests after verifying their folio may just sign it and leave it at the front desk before departing from the hotel. After the guest has left, the front office completes the guest’s check out by transferring the outstanding guest folio balance to a previously authorized method of settlement. Any additional charges the guest makes before leaving the hotel will be added to his folio. Due to these possible late charges, the amount on guest folio may not equal the amount charged to the guest on his credit card account. This possibility should be clearly stated on the express check out form to minimize later confusion.

Self Check Out:

In some hotels, guests can check themselves out of the hotel by accessing self check out terminals in the lobby area or by using an in-room system. Self check out terminals or in-room systems are connected with the front office computer and are intended to reduce check out time and front desk traffic. Self check out terminals vary in design. Some resemble ATM machines, while others possess video and audio qualities.

To use a self check out terminal the guest accesses the proper folio and reviews its contents. Guests may be required to enter a credit card number by using a keypad or by swiping the credit card through a magnetic strip reader attached to the terminal. Settlement can be automatically assigned to an acceptable credit card and a zero balance folio gets printed out. A self check out system should then automatically communicate updated room status information to the front office department. The front office system, in turn, relays room status information to the house keeping department and initiates action to create a guest history record.

In-room folio review and check out usually relies on the television set provided in the room with a remote control. The guest can confirm a previously approved method of settlement to the in-room television which is connected via computer to the front office. The front office computer directs the self check out process. Guests can pick up a printed folio copy at the front desk on their way out. Another advantage of this system is that guests can look at their folios at any time during their stay without having to stop by the front desk.

Accounting System’s in Front Office Department

I. NON-AUTOMATED:

In this operating mode all the phases involved in accounting process are carried out by the staff manually. This system is useful for small hotels only where the workload is not much. The entire system is prone to omission and computation error. Another drawback is handling and re-handling of numerous data. Guest folios in a non-automated or manual system contain a series of columns for listing individual debit (charge) and credit (payment) entries accumulated during occupancy.

II. SEMI AUTOMATED:

This system is used by hotels which are medium-sized or large but yet don’t have fully automatic machines like computers. Usually they use a combination of office machines, clerical equipments and manpower to operate these systems. Various machines are used. This system is also prone to errors.

III. FULLY AUTOMATED:

This system primarily comprises of computers and other electronic devices located at every P.O.S and interfaced with the main cashier. All phases that is creation of vouchers, and other documents, posting of the transaction made by the guest at various point of sales, transaction for posting, checking of accuracy, auditing, finding and correction of errors and making of bills, etc. are done through computers. All other documents such as sales journal, accounts receivable and payable are also done by automatic machines. This system is very fast and hence there is no chance of errors. This system takes approximately 1/10 time as compared to manual system and the same time needs limited staff. Point of sale transactions may be automatically posted to an electronic folio when a printed copy of a folio is needed, debits (charges) and credits (payments) may appear in a single column with payments distinguished by parentheses or a minus sign.

Importance of Accounting in hotel front office

1. Being familiar with company procedures and accounting needs and being able to identify customer needs facilitates efficient work practices and promotes guest satisfaction.

2. When proper, clear information is provided to guests, it prevents the occurrence of unpleasant surprises to guests in the form of unexpected charges, etc. that are sure to disturb them and cause unnecessary arguments and delays, especially at check out.

3. Also, guest accounts must be updated regularly with charges and adjustments because this impacts on company profits in the following ways:

a) Accounts are kept up to date with the minimum of effort. This impact positively on productivity and efficiency.

b) To minimise the chances of the guest departing before all charges have been posted.

c) This would save on costs of contacting the guest and losing out on payments especially with foreign guests.

d) To reassure guests that their accounts are being managed accurately and efficiently. A satisfied guest implies repeat business.

4. Security purposes: to prevent unauthorized access and the tampering of accounts, such as, the creation of false revenue and fraudulent charges and adjustments to guest accounts.

5. Inaccurate transactions: The presence of unauthorised persons in one’s work area increases the risk of inaccurate transactions. Not only will the company suffer from account imbalances and profit losses, but the guest may be upset at having incorrect charges etc. This affects guest satisfaction, which in turn affects repeat business.

6. Personal accountability: Front desk staffs that handle and process guest accounts are responsible and accountable for computer transactions and for the filing and storage of account documentation while on duty.

7. All guest information is confidential: this includes account information, and unauthorised persons must not be allowed access to such information.

Front Office Accounting Cycle

An important function of the FOAS is to maintain of accurate and up-to-date record of all the financial transactions between the hotel and each guests. The front office accounting cycle ha three distinct phases as follows:

1. Creation of accounts

2. Maintenance of accounts

3. Settlement of accounts

A. Creation of accounts:

A guest account is created when the first financial transaction between the hotel and guests takes place. It may take place at:

· The time of reservation, if guests make an advance payment.

· At the time of registration.

B. Maintenance of accounts

Once the guest account is opened for the guest the next phase is, keeping track of and recording all financial transactions during the stay of a guest. It includes all purchases and the use of chargeable goods & services offered by the hotel.

C. Settlement of accounts

Preparing and presenting the final bill, and collecting the payment from the guest. This is generally done at the time of guest checkout from the hotel.

Principles of Accounting

Accountancy requires a set of principle for recording, classification, summarisation and interpretation of business transaction. This principle must be acceptable to the business audits, government agencies basically IT department, stock exchanges etc. The need of Generally Accepted Accounting Principle (GAAP) is spent for 2 reasons for bringing uniformity in the established practices, for bringing consistency and establish recording of transactions.

Principles need a guiding rule. The subject of accounting has certain convention, standard language and terminology to enable parties to understand in the same sense as called GAAP. This can be discussed under two headings:

1. Concept of accounting

2. Convention of accounting

1.) Concept of accounting

a. Concept of separate entity:

This concept state from accounting point of view, business is always treated as separate entity apart from owner.

b. Concept of going concern:

This is also known as concept of continuity a/c. To this concept, it is assumed that the business will be carried on for long period.

A company is supposed to be an artificial person having a perpetual life.

c. Concept of dual aspect:

This concept suggests that all business transactions must be entered in such a manner that each transaction affects two a/c simultaneously.

For e.g., if goods are purchased for ease, purchased a/c will be debited and cash account will be credited.

d. Concept money measurement:

A/c to this concept only those business transactions are recorded which can be measured in terms of money. The non-monitoring event however important they may be for the business will not be recorded.

For e.g., death of the general manager may be unfortunate for the business but it will not be accountant for.

e. Concept of cost A/c to the concept:

i. As asset is ordinarily recorded in the book at cost, i.e., price paid acquires rate.

ii. This cost become basis for subsequent accounting for the asset.

For e.g., is business buy machinery for Rs. 1 lakh, it would be recorded in the book at Rs. 1 lakh. It will ordinarily continue shown at Rs. 1 lakh (after charging depreciation) even though market price that machinery have filled or gone up in the subsequent year.

f. Concept of accounting period

In this concept, the accounting period suggests that instead of knowing the final profit or less and final financial position of the business like this should be known as accounting period.

In Indian reference, an accounting year may be a calendar year or a financial year.

g. Concept of realisation

A/c to this concept revenue is realised when sell is made. Legally sell is supposed to be made at the time when ownership all property in goods passes from sellers to buyers.

h. Concept of making the revenue and cost

The concept states that income of particular period should be certain by matching or comparing the sell must be considered for the purpose.

i. Concept of verifiability (evidence)

This concept states that all accounting transactions should be supported by necessary document with the help of which the truthfulness of the transaction can be verified.

2.) Convention of accounting

i. Convention of full disclosure:

This convention suggests that accountants should prepare and present the reports disclosing full information regarding financial results and financial positions.

ii. Convention of conservation:

This convention means that there has been a practice of the accountants to follow the policy of playing safe. In other words they follow the rule,” anticipate no profit but provide for all possible loss.”

iii. Convention of consistency:

This convention suggests that a particular practice once adopted for same accounting aspect should be maintained from year to year and should not be charged without any solid ��reason.

iv. Convention of materiality:

It means important. According to this convention, an accountant is expected to disclose all material or important facts and he can ignore the immaterial or unimportant details.

v. Convention of objective:

This convention emphasises that accounting information should be objective i.e. it should be expressed and measured by the standards which are commonly used.

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surendrasinghbhakuni · 5 years ago

Text

Night Auditing in Hotel

NIGHT AUDITING

Night auditing is the process of verifying and providing the accuracy and completeness of guest and non-guest account with departmental activity reports. Night audit is actually the audit process of taking inventory of days work .In other words it is the activity of checking and confirming that whatever transaction have been done during the day are correct and complete. Since the hotel is round the clock business so the auditing is done during the night and hence called night auditing.

® It is the control process whereby the financial activity of guests’ accounts is maintained and balanced.

® The basic function of night auditor is the responsibility of overall operations of the hotel as per policy and procedures laid down, also the closing and balancing of the front office and accounts recoverable.

® Any mistake made during the day of transaction posting and the guest accounts such as rooms, food and beverage, phones and others are corrected and account balanced.

® In hotels, operating manually or mechanically the best suited time for the process is midnight as the activities are minimum during this time

® It is mainly to inform the management about the total amount of revenue generated on a day, and how much the hotel is owed by the guests both in house and checked out, and producing operational and management reports.

® Night audit process increases the probability of correct account settlement and avoids disputes with the checking out guests.

® Night auditing verifies entries to non guest accounts also, monitors guest credit limit, balances all front office accounts and sorts out any room status discrepancies.

Duties & Responsibilities of the night auditor:

Apart from the basic audit activities listed above, the night auditor carries out the following responsibilities:

1. Taking over from the last shift.

2. Checking-in or checking-out the guests after 11:00 pm at night.

3. Registering the guests.

4. Allocating accommodations to the newly checked-in guests.

5. Settling transactions in the newly created guest accounts.

6. Verifying guest folios.

7. Verifying room status report.

8. Balancing all paperwork with the accounts in the PMS.

9. Remaining liable for security of the premises.

10. Processing reservations

11. Posting all pending entries

12. Balancing and totaling of all accounts.

13. Preparing Reports for the management e.g. Occupancy reports

14. Verify no shows.

15. Handling guest accommodation

16. Taking backup of the PMS generated reports.

17. Preparing lists of expected guest arrivals for the next day.

18. Closing financial activities for a day.

19. Starting financial activities for the next day

20. Receiving and recording bank deposits.

21. Performing the duties of security guard

22. Monitoring fire safety systems

23. Acting as manager on duty

24. Summary of cash, check, credit card.

25. Verifying correctness of entries.

26. Monitors guest credit limit.

OPERATING MODES OF NIGHT AUDIT PROCEDURES

I. NON AUTOMATED

· It means that the front office accounts are audited manually by the night auditor to find out the discrepancies.

· In this system four audit forms:

i. Daily and Supplementary transcripts

ii. Guest and non guest folio

iii. Front office cash sheet

iv. Audit recapitulation voucher produced by hotels revenue centre are sent to front desk.

· The auditor manually checks all guest and non guest accounts.

· It involves a lot of time and is practically not possible to physically check each and every voucher.

· The night auditor checks at random some vouchers but he checks all totals both horizontally and vertically.

II. SEMI – AUTOMATED

· Electro mechanical posting machines and their improvement such as fully electronic posting machines are used for front office accounts posting.

· These machines are only capable of producing a limited number of departmental totals.

· They don’t interface with POS systems and don’t retain folio balances.

· Though some new electronic systems are capable.

· In this semi automated system, simultaneous to the postings of accounts folio , the voucher used to indicate the posting is imprinted with the same information posted to accounts folio, and also same information is printed to a paper tape to save as a permanent journal records, and also as a part of hotels internal audit trial.

· Amount of each posted charge charge is added to the running departmental for department originating the posting.

· Departmental totals are helpful in end of work shift end of day reporting.

Forms produced in semi automated systems are;

a) Front office cash report

b) Night auditor summary report (D card)-

This card shows the opening balance of the system provides a running record of all charges and credit postings through the machine and shows a final balance.

III. FULLY – AUTOMATED

· It is a simple, quick and very accurate system in which automatic posting to the guest and non guest folios can be done.

· It is very fast and various audit functions can be performed.

· It can be interfaced with POS equipment, telephone switches , and call accounting systems for automatic posting from these devices directly to guest and non guest folios.

· Monitoring account balances and verifying posting is done simply by comparing guest and non guest ledger audit data to front office daily report for balancing.

· This system offers immediate reach to information, and hence management can more effectively manage operation.

NIGHT AUDIT PROCESS

The night audit process focuses on two areas:

1. Discovery and correction of front office accounting errors through the cross-Referencing process.

2. Creation of accounting and managerial reports (ex. Average Rate, Revenue Per Available Room (RevPAR), Occupancy Percentage, usage of package plans and other marketing programs, and the number of group rooms and complimentary rooms occupied).

The main steps of the night audit process are:

1. Establishing an End of Day

2. Complete outstanding posting

3. Reconcile room status discrepancies

4. Verify room rates

5. Balance all departmental accounts

6. Verify no-show reservations

7. Post room rates and taxes

8. Prepare reports

9. Prepare cash receipts for deposit

10. Clear or back up the system

11. Distribute reports

1. Establishing an End of Day:

Each hotel must decide what time will be considered the end of its accounting (or hotel) day. This time is refered to as the End of the Day which is an arbitrary stopping point for the business day. Theoritically, it is the time when all Points of Sales are closed. If this is not possible, it should be the time when all Points of Sales no longer have frequent activities.

2. Complete Outstanding Posting:

The Night Auditor must confirm that all transactions have been posted before starting the audit routine.

3. Reconcile Room Status Discrepancies:

The Night Auditor must review Front Office (Occupancy) and Housekeeping Room Status Reports to reconcile and finalize the occupancy status of all rooms for a given night.

4. Verify Room Rates:

The Night Auditor shall compare Registration Records with system-generated room report. If room’s rack and actual rates do not match, the Night Auditor shall consider the following issues:

· If the room is occupied by a member of a group or by a corporate-rate customer, is the discounted rate correct ?

· If the room is occupied by a guest with a package rate or on a special discount offered through the hotel’s reservation distribution channels, is the dicounted rate correct ?

· If there is only one guest in a room and the actual rate is approximately half the rack rate, is the guest part of a shared reservation ? If he / she is, did the second guest register ?

· If the room is complimentary, is there appropriate supporting evidence for the rate (for example, a complimentary room authorization form).

5. Balance all Departmental Accounts:

It is more efficient for a Night Auditor to balance all departmental accounts first and then look for individual posting errors within an out-of-balance department. In this respect, the Night Auditor shall compare vouchers received at the front desk and other documents with revenue center summaries (Z Reports). This process of balancing all Revenue Center Accounts is called Trial Balance. Night Auditors may prefer to conduct Trial Balance before posting day’s room and tax charges. This way, if the trial balance was correct, and the final balance turned to be wrong, the Night Auditor can deduce that the error is coming from room and tax posting.

6. Verify No-Show Reservations:

The Night Auditor is responsible for:

· Clearing Reservation Files

· Posting Charges to No-Show Accounts (Guaranteed Reservations)

While doing so, the Night Auditor shall pay attention to the folowing points:

· Duplicate reservations

· Misspelling of Guest Name and / or Surname or reversing them

· Front Office or system entry errors

· Front Office foregetting to cancel properly a reservation

7. Post Room Rates and Taxes:

Posting room rates and taxes takes place typically at the end of the day. The advantages of posting room rates and taxes automatically by the fully automated system are:

· Room Rates and Taxes posting to appropriate electronic folios can be done in minutes.

· Posting is reliable, accurate with no pickup, tax calculation, or posting errors.

8. Prepare Reports:

The Night Auditor shall prepare reports that indicate the status of front office activities and operations. Some of the reports prepared by Night Auditor are:

a) 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.

b) Night Audit Counter Report − It gives details on cash and credit card receipts and withdrawals.

c) 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.

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

e) 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.

f) 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 no-shows, and so on.

g) 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.

h) High Balance Report − This is a detailed report about the guests who have exceeded the credit limit set by the hotel management.

i) Ledger Balance Summary Report − It displays the opening and closing balances for the Advance Deposit Ledger, Guest Ledger, and City Ledger.

j) 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

9. Prepare Cash Receipts for Deposit:

The Night Auditor should prepare a Cash Deposit Voucher as part of the Audit Process. If cash Receipts have not yet been deposited in the bank, the Night Auditor should compare the postings of Cash Payments and Paid-outs with Actual Cash on hand. In some hotels, Front Desk Cashiers might be called to deposit cash at the end of their shifts without knowing how much in cash receipts that the system has recorded for them. This process is called Blind Drop. Under this practice, Night Auditors shall compare system totals per cashier with the actual cashier drop document. Had any discrepencies occur, the Night Auditor shall report this to General Cashier, Front Office Manager or Controller.

10. Updating the System:

At least 2 Guest Lists must be printed for back up and emergency use: one for the Front Desk staff and the other for Switchboard Operator. Moreover, a printed Room Status Report shall be prepared to enable front desk agents to identify vacant and ready rooms, should the front office system become inoperable. In addition to that, a Guest Ledger Report shall be prepared which contains the opening and closing account balances for all registered guests shall be generated. Last but not least, a front Office Activity Report is generated to include expected arrival, stayover and departure in formation for several days.

The system-generated front office information shall be copied (backed up) onto magnetic tape, optical tape, or other media.

*Switchboard operators handle all external and internal calls for a company. They answer the phone and route the calls to the correct destinations within the company. They also handle internal calls that need to be directed within the company.

11. Distribute Reports:

Due to the sensitive and confidential nature of front office information, the Night Auditor must promptly deliver appropriate reports to authorized individuals.

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