Front Office Services: Second Quarter
Front Office Services: Second Quarter
Front Office Services: Second Quarter
FRONT OFFICE
SERVICES
Second Quarter
Prepared by:
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Hospitality–consists of a broad category of fields within the service industry that includes lodging, restaurants, event
planning, theme parks, transportation, cruise line, and additional fields within the tourism industry.
Hotel–a commercial establishment providing lodging, meals, and other guests services.
HOTEL LOCATION
1. Downtown–apply to hotels located in dense urban areas.
2. Resort
2 main criteria:
● A resort can be located nearby some sort of special attraction that attracts guests for a reason other
than the hotel itself.
● Hotels that can create their own special attraction such as health spas, private golf and/or tennis
facilities, expansive pool areas and other unique signature attractions.
3. Airport Hotel–a hotel near the airport. The hotel does not have to be connected to the airport (although
some are) or even adjacent to it; it could be located up to five miles away. Most airport hotels have a shuttle
to and from the terminals.
4. Sub-Urban–most common, generally considered being those that do not fit into the three-location type.
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Room Types– based on the intended numbers of occupants.
Common room categories in the United States, the Caribbean, Canada, and Mexico:
● STANDARD (std): This category usually means the most basic room type offered by the hotel. It has basic,
standard amenities and furnishings.
● MODERATE (mod): Usually a slightly better than standard, but still not deluxe.
● SUPERIOR (sup): This category is always subject to interpretation. It's supposed to mean superior to a
standard room in both size and furnishings, but it often refers to just the view. Some hotels have only
superior room; the categories then are defined by the view and location of the room.
● DELUXE (dlx): These rooms are supposed to be deluxe in every way: View, location, furnishings, and size.
Usually more spacious and more sophisticated and elegant.
● JUNIOR SUITE (jrste): A "junior" suite is typically a larger room with a separate seating area. Sometimes
it's got a small divider between the part of the room that bed is in and the seating area, but it is not two
separate rooms.
● SUITE (ste): A suite is usually two or more rooms clearly defined; a bedroom and a living or sitting room,
with a door that closes between them. Many hotels use the word "suite" to define any room with a sofa in it
so be sure to check thoroughly if what you really want are two or more separate rooms.
● STUDIO (stu): This is usually configured like a Junior Suite, but has the added advantage of a
"kitchenette," or cooking facilities.
Room Views:
● Partial Ocean View
● Ocean View
● Ocean Front
● Beach Front
● City View
● Mountain View
● Water View
● Island View
● Pool View
● Garden View
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4. Studio room–a room with a studio bed – a couch that can be converted into a bed. May also have an
additional bed.
5. Triple rooms–with three single beds.
6. Quadruple room–a room for four fitted with four single beds.
7. Family room–a room with at least 1 double bed with 1 or more single beds
8. King room– has a king size bed, occupied by 1 or 2 people.
9. Connecting rooms–have two or more rooms with an entrance door from the outside and a door between them
where guests can get through each bedroom without going out of their rooms.
Activity 1
Complete the table below by providing five room types, and their respective number and types of bed used.
Example:
1.
2.
3.
4.
5.
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Room Configuration
–characterize the physical makeup of a guest room, therefore looking at differences in guest rooms within a hotel.
1. Standard configuration is defined as the room configuration that makes up most of the sleeping rooms at a
particular hotel.
● Some hotels refer to their standard configuration as the run of house (ROH).
*understood to be the greatest number of available rooms
2. Enhanced configuration is the next level up from the standard configuration.
● It is understood to include more amenities and services than the standard configuration.
● Sometimes called a "concierge" or "business level" room, these rooms carry a higher room rate than
the standard configuration.
3. Suite Configuration involves a larger room (in terms of square footage).
Examples:
● "Jr" Suite–the smallest room in the suite configuration. It is often marginally larger than the standard
room.
● Corner Suite–a suite that is located in the corner of the hotel building itself. This suite often takes up
the same area that two standard rooms would.
● "Bi-level" Suite–also takes up more square footage than the standard rooms.
● Hospitality Suite–intended to entertain groups of people. They may include a kitchen and/or bar area
and large tables conducive for small group meals or meetings.
● Presidential Suite–best room in the hotel, the largest room typically has all the best amenities and
services to offer.
4. Disabled access configurations include rooms that are equipped to make the overnight stay of disabled
guest more pleasant and may include:
● Raised beds
● Wider doorways
● Telecommunication Devices
● Voice activated dialing
● Clocks with larger, brighter numbers
● Closed caption televisions
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Room Designations– Smoking or Non-Smoking Room
Room Type (Single, Double, Triple, Quad)
+
Room Configuration (Standard, Enhanced, Suite, Disabled Access)
+
Room Designation (Smoking or Non-Smoking)
=
Room Preferences
*Room type, configuration and designation all come together to create the specific room a hotel guest may seek.
11. Group rates– are given to group bookings. The rates are lower than the transient booking if they are
booking in advance.
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12. Per Person rate– charges are based on the number of people in a room. Hotels charge a pre-set amount for
rooms with a single occupancy, double occupancy (for 2 persons) and triple occupancy (for 3 persons). Any
extra person who shares any of this room will pay an extra charge.
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Activity 2
Identify the rate designation being asked in the statements below. Write your answer on the space before the number.
__________1. This type of rate is given to corporate accounts as incentive for their patronage.
__________4. This rate is usually applied for bookings done by events, convention, or seminar organizers.
__________6. A rate designed for a short time or for a half day conference.
__________7. This rate is given when there is a guaranteed number of room nights within the specific time frame.
__________10. This is for associations or group of professionals or industry practitioners to show professional
courtesy.
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A PMS summary-posting report of all the posting activities conducted during business at the front desk is
verified against individual bank outs and then included into night and audit report.
● Credit Card Transaction Report- this report is conducted so that accounts receivable can verify the
allowances and revenue due from each credit card company on the city ledger.
● Arrival/Departure Report- an analysis of the number and names of guests who came and went during
the day.
● No-show Report- this report is also run for the benefit of the accounts receivable department. The
verification of who had a guaranteed reservation and did not show up will assist in determining who
needs to be billed.
● Credit Limit Report- this report is run to verify that guests within the hotel have not exceeded their
credit card limits or cash balance on hand. The information from this report should be shared with
accounts receivable and the front office manager.
● Comp room Report- the night auditors must verify each room that has no rate posted to it. This
report will include a reason for the complimentary status.
● Out of Order Rooms Report- any room that cannot be sold must be listed. The reason for the OOO
status should be listed and an indication of action taken should accompany it.
● Message Report- this report prints out all the reports that were delivered via the PMS message
system in the day. It is a backup document that serves as a permanent record.
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Assessment
I. Choose the letter that corresponds to the following statements. Write your answer in the space provided.
__________1. It is a commercial establishment providing lodging, meals, and other guests services.
__________5. This is generally considered being those that do not fit into the three-location type.
A. Sub-urban B. Downtown C. Urban
________6. It is based on the intended number of occupants.
A. Room types B. Room status C. Room designation
_______7. These rooms are usually more spacious and more sophisticated and elegant.
A. Studio B. Moderate C. Deluxe
______8. This is usually configured like a Junior Suite, but has the added advantage of a "kitchenette," or cooking
facilities.
A. Studio B. Junior Suite C. Standard
______9. Usually a slightly better than standard, but still not deluxe.
A. Suite B. Moderate C. Superior
_______10. It is usually two or more rooms clearly defined; a bedroom and a living or sitting room, with a door that
closes between them.
A. Deluxe B. Studio C. Suite
________11. This category usually means the most basic room type offered by the hotel.
________12. It characterizes the physical makeup of a guest room, therefore looking at differences in guest rooms
within a hotel.
A. Room Configuration B. Disabled Access C. Junior suite
______13. This includes rooms that are equipped to make the overnight stay of disabled guest more pleasant.
______14. The room configuration that makes up most of the sleeping rooms at a particular hotel.
A. Presidential Suite B. Standard configuration C. Suite configuration
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_______15. Sometimes called a "concierge" or "business level" room, these rooms carry a higher room rate than the
standard configuration.
A. Enhanced configuration B. Hospitality suite C. Suite configuration
_____16. An analysis of the number, and names of guests who came and went during the day.
A. Arrival/Departure Report
B. Credit Card Transaction Report
C. No-show report
______17. This report is about any room that cannot be sold must be listed.
A. Arrival/Departure Report
B. Message report
C. Out of Order Rooms Report
____18. This report is conducted so that accounts receivable can verify the allowances and revenue due from each
credit card company on the city ledger.
A. No-show Report
B. Arrival/Departure Report
C. Credit Card Transaction Report
_____19. This report prints out all the reports that were delivered via the PMS message system in the day.
A. Out of Order Rooms Report
B. Message report
C. Credit Card Transaction Report
______20. This report is about the verification of who had a guaranteed reservation and did not show up will assist in
determining who needs to be billed.
A. No-show Report
B. Arrival/Departure Report
C. Out of Order Rooms Report
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Task: (10 points)
Write a paragraph about the Tourism and Hospitality Industry and their contribution in terms of Employment and
Economic Status in our country.
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Objective:
Large hotels now operate a computerized booking and reservation system and no longer use a Room Status
Rack because all room bookings, cancellations, amendments, and changes in room status are directly encoded in a
computerized room status bulletin/file. The system then generates a room status report at any time, showing the
updated status of all rooms--out of order, reserved, vacant, occupied and by whom, etc.
If the system operates with a network, the housekeeper and Front Office staff can directly enter all changes
(like vacant to reserved, vacant ready to out of order, etc.) in the computer and this can be accessed by all concerned
persons without having to refer to a hard copy of room status or to any room status rack.
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● Guest’s names
● Number of room nights
● Mode of payment
● Type of reservation
● Arrival and departure
● Advance deposits or payments etc.
2. Registration Menu
Contains guest list and details of their registration. It also has data on Guest Folio (consumption and charges
balance). This menu prints the registration card, makes Front Desk reports, does the room blocking and updates the
room status. It also has a guest message center.
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4. Housekeeping Menu
Incorporates data on the room status that is consistently updated every after-room check; guest information
based on registration record, room blockings and various housekeeping reports. Like other menus, it also has a guest
message center.
Sophisticated software usually creates an interface that will enable the PMS to communicate with various computer
systems. For example, the reservations system provides the PMS with data on arrivals. The PMS processes this
information and create a guest account that could be accessed by the Front Office and Accounting. Similarly, the
POS may also be interfaced. Charges are automatically posted or "passed along" by all profit centers (laundry, food
and bar outlets, etc.) to the PMS. This is accessed by the Front Office Clerk or Cashier when updating the guest folio.
Reservations
Internet
Reservation
PMS
POS
Restaurants
Lounges
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With a Web browser built into the PMS, the different systems can use the Web as the communication avenue.
This, in a sense, uses the Web as the intermediary between desperate systems. Reservations, POS and other systems
would have a much easier time "communicating" with PMS. A web-enabled PMS will also create easier data sharing
between individual hotels in a chain. These individual PMS databases at the hotel level can be combined into a much
larger data warehouse. This would create immense marketing efficiencies across the chain.
Activity:
I. Write five advantages of using Property Management System (PMS) in the hotel industry.
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II. List down the details of each menu available on the computer system.
2. Registration Menu
4. Housekeeping Menu
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Objectives:
At the end of the lesson, the students are expected to:
● Determine the elements of both procedural and personal dimension of elements.
CUSTOMER RELATIONS
Customers are the life and blood of the food service business. To ensure continuous patronage, their satisfaction
must be sustained. They always deserve preferential, prompt, and consistent attention.
To maximize customer satisfaction, it is therefore important for service staff to satisfy both the procedural
(technical) and the personal dimension of service.
Elements:
● Timeliness of Service
This refers to the amount of waiting time for service staff to respond to customers for their order, their
request or concern.
● Convenience of Service
Customer's comfort is as valuable as the quality of food.
● Organized and smooth flow of service
Proper coordination among the staff is needed to avoid customer complaints.
● Anticipation
The ability of the food outlet to anticipate what the customer wants and what needs must be met will enable
service personnel to respond favorably to customers and ensure their satisfaction.
● Monitoring of Service
Consistent monitoring of production and delivery of service against standard and performance targets.
● Professionalism
Procedures must be designed to conformed professional standards, consonant to what is considered
acceptable to the industry and responsive to customer's satisfaction.
● Communication
Miscommunication and the lack of proper communication are often the root causes of misunderstanding and
complaints.
Personal Dimension– brings the personal touch that makes the guest feel highly valued, accepted, and
appreciated.
Elements:
● Personalized service
● Enthusiasm
● Respect
● Smiling body language
● Open-mindedness
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● Need satisfaction
● Attentiveness
Task:
Choose two key elements under customer relations. Explain why it is important to abide these elements.
Example:
(Now your turn, create your own explanation after choosing two elements.)
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Objective:
At the end of the lesson, the students are expected to:
● Demonstrate the ways on resolving or handling guests’ complaints.
● Identify the elements in providing accommodation reception services.
Receptionist– person who works at the front desk of a hotel, greeting and assisting guests.
Reception:
● Reception deals with daily arrival and departure of guests.
● Blocking of rooms for expected arrivals in advance.
● To fill up all the necessary details in the guest registration card for confirmed reservations.
● Receiving and welcoming guests.
● To check all the reservation correspondence.
● To coordinate with the housekeeping department for cleaning of rooms.
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● Advice of additional services they may be entitled to, such as complimentary breakfast, or want
information about the location of the restaurant, pool, bar, etc.
7. Allot the accommodation.
8. Fill the arrival register.
9. Make the information slips and send them to telephones, room service and housekeeping.
10. Open guest folio.
11. In case of VIP, inform the departments.
12. Lastly, inform the bellboys to carry the luggage and escort the guest to the room and wish the guest a comfortable
stay in the hotel.
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Handling Guest Complaints
H-E-A-T-F L-A-S-T
Take action and be responsible for the complain Thank the guest for raising up the complain
Follow up
Additional Hints:
1. Approach and greet the guest with eye contact and introduce yourself in a caring and concerned manner.
2. Listen carefully to the guest's explanation. Do not interrupt the guest.
3. Apologize immediately to the guest.
4. Confirm with the guest if your proposed action is acceptable.
5. Never offer excuses nor blame another person or team.
6. Check with the guest whether he/she was satisfied with the way the complaint was handled.
7. Thank the guest for raising the complaint. It allowed you the opportunity to correct the situation.
HOW WILL RECEPTION ENSURE THAT THE GUEST'S EXPERIENCE STARTS OFF
SATISFACTORILY?
The employees can achieve this by displaying good personal skills, good verbal and non-verbal communications
ensuring that a welcoming smile is always a part of the service.
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Departure Activities:
This is the final stage of the cycle of service and involves.
● Organizing the guest’s departure.
● Processing guest’s departure, including account settlement.
● Offering additional departure services.
● Seeking guest feedback.
● Updating the room status.
Check-out procedure
The efficiency of the front desk clerk is tested in the check-out procedures used when the guest leaves the
hotel. The impression on the type of service rendered to a guest ends with the experience one has within the area.
The following are the basic steps when checking-out a guest:
● Guest calls the front office informing the desk clerk of his intention to check-out.
● Bellman goes to the guestroom to assist the guest with his luggage.
● As the guest approaches the front desk, the clerk greets the guest.
● Determine guest name and verify that name corresponds to room number.
● Secure registration card (and guest folio) from “pit.”
● Recover key(s) from the guest.
● The desk clerk calls the restaurant for meal chits and housekeeping to check the room for mini bar
consumptions, if there are any, proper charges are immediately relayed to the front office for posting.
● Determine whether the guest had a pleasant stay.
● If the guest did not have a pleasant stay, apologize for any minor complaints, and log them immediately or
call a manager and make any necessary adjustments.
● Total the folio and present it to the guest with a pen for verification and signature.
● If the guest disputes charges, make a deduction if authorized or else call a manager to investigate further.
● After the receipt of the approved folio, make sure that it has been signed.
● Determined settlement method.
● Settle the account using the correct procedures and close the folio.
● Present completed folio and possible vouchers folded (or envelope) to the guest for their personal life.
● Issue departure/ clearance slip.
● Assist guest cleaning safety box if availed of.
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● Determine and note any further reservation. Offer assistance if a guest wants to make a reservation in the
future.
● Thank the guest for staying in the property.
● Bellman accompanies the guest to the car. After the pieces of luggage have been accounted for, bellman bids
the guest goodbye.
Type of reports
● In-house guest lists.
● Back up lists.
● Key check reports.
● No-show reports.
● Overstays and under stays.
● End of day projection.
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Activity:
Below are some common complaints by hotel guests. If you were to be one of the hotel’s staff to receive these
complaints how will you handle these? Write at least 2-3 sentences explaining the following situations.
2. “I have a problem with your hotel service. The two consecutive meals they served in my room are cold
already, and it’s not appetizing.”
3. “The guests from the opposite room are too loud; I can’t take a good rest.”
5. “The staff is rude; I won’t recommend this hotel to anyone. Poor service!”
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Task:
In providing accommodation reception services, the five elements mentioned should be followed.
Why is it important to follow those elements, and how do you think it will affect the services if one of those
elements is disregarded.
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Assessment (for lessons 2, 3, 4)
_____1. The bellboy is the person who works at the front desk of a hotel, greeting and assisting guests.
_____2. In handling the guest’s complaint, it is okay to interrupt the guest while he/she is explaining his/her concern.
_____3. If the guest is asking for assistance, even if you’re busy, you must recognize when the guest is trying to get
your attention.
_____4. The first step in providing accommodation and reception services is preparing the reception area for guest
arrival.
_____6. It is an important part of the guest registration procedure to check if the guest has a reservation.
_____7. The information slips must be kept in the reception only instead of sending them to the other departments.
_____9. Miscommunication and the lack of proper attention are often the root causes of misunderstandings and
complaints.
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4. In handling guest complaints, the abbreviation L-A-S-T means
__________________________________________.
5. In handling guest complaints, the abbreviation H-E-A-T-F means
__________________________________________.
6-10. Enumerate the four menus created by the computer system in the Front Office.
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Night Audit
● Reconciling (Balancing) a hotel’s daily activities and transactions.
● Night Audit compiles a series of reports and data into a report called the night audit report for management
review.
● The night audit requires attention to accounting detail, procedural controls, and guest credit restrictions.
● In this sense, the night auditor tracks room revenues, occupancy percentages, and other standard operating
statistics.
● He/she, also, prepares a daily summary of cash, checks, and credit card activities that occurred in the front
office department daily.
● The end of the day is simply that time defined by hotel management which is considered the end of an
accounting (hotel or business) day.
● This does not necessary coincide with the beginning of a new calendar day, as often it will be established as
either the closing time of food and beverage outlets or the last guest arrivals.
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● Where the hotel has a 24-hour catering operation, the closure of most catering outlets will normally indicate
the close of the business day.
● Typically, the business day ends when the night audit begins.
● From the moment the night audit commences and until it is finished, any transactions that occur (including
telephone charges, food, and beverage charges etc.) are charged on the following business day.
● The period when the night audit is taking place is referred to as audit work time.
Operating Mode
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Night Audit Deployment
The night audit team will vary in makeup and composition depending on the hotel. Generally, the night audit
will consist of:
Two to five auditors (depending on the size of the hotel and the number of ancillary operations).
Activity:
Roles Functions
1.
2.
3.
4.
5.
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Objective:
● Determine the important things to remember in providing porter/concierge services.
● Get a complete description of the bag, the type, size, color markings, luggage tag, etc.
● Look in the bell closet.
● If you can't find the bag in the bell closet, let the guest look searching for the bag will help the guest feel
better than just standing around waiting.
● Check overflow areas for the bag, find out if a large group checked out today, and whether their bags were
stored somewhere other than the bell closet.
● Coordinate with the transportation dispatcher. They may help you find out if the luggage was accidentally
sent with one of their vehicles. Check also with your colleagues.
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Get the phone number of the guest, if the guest is traveling, find out where he/she will be staying so you can send
the luggage once it is found.
Activity 1:
As a hotel’s porter or concierge, enumerate two things to be remembered for the following statements.
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8. King room– has a king size bed, occupied by 1 or 2 people.
9. Studio room–a room with a studio bed – a couch that can be converted into a bed. May also have an
additional bed.
10. Connecting rooms–have two or more rooms with an entrance door from the outside and a door between
them where guests can get through each bedroom without going out of their rooms.
Types of Beds
1. Single Bed–a bed approximately 36" × 75" in size.
2. Double Bed–a bed that can accommodate a couple or two individuals. It is approximately 54"×75" in size.
3. Queen Bed–an extra-long extra wide, about 60"×80” in size.
4. King Bed–an extra-long extra wide bed, about 78"×80” in size.
5. Roll-away bed– a portable bed.
6. Pull-out bed– a bed that is inserted into a bed and pulled out when used.
7. Sofa-bed– is a couch that is converted into bed.
Activity 2:
Directions: Determine the following.
__________1. A much larger room with superior amenities and facilities.
__________2. A bed approximately 36" × 75" in size.
__________3. A couch that is converted into bed.
__________4. A room designed for economical rate, usually short of standard facilities like air condition, television,
and other amenities.
__________5. A room with a studio bed – a couch that can be converted into a bed. May also have an additional bed.
__________6. A room with two double beds or two queen beds, occupied by two away bed or two single beds and a
roll away bed.
__________7. A suite usually located on the top floor if the property.
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__________8. It has two or more rooms with an entrance door from the outside and a door between them where
guests can get through each bedroom without going out of their rooms.
__________9. It is usually more spacious and more elegant in design than the standard room and is provided with
more amenities that are more sophisticated or elegant.
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Room Status Report
One of the responsibilities of a desk clerk is to see to it that the status of each room is continuously updated so
that all clerks will be properly guided in making room allocation. Housekeeping will likewise be alerted in making
priorities for room make up. Room status may take the form of various codes indicated on the next page.
VR Vacant Ready Vacant room already made up and ready for occupancy.
VC Vacant Clean Cleaned room, not yet inspected. All sleeping rooms are cleaned by
a housekeeper and then inspected by a supervisor/manager to ensure
it is ready for sale.
VM Vacant Maintenance Room has been taken out of inventory for some reason. This is the
code assigned to out-of-order rooms.
VD Vacant Dirty Vacated but not ready for occupancy since it is still dirty or still
being made up. It is also termed as ON-CHANGE.
OD Occupied Dirty Guest currently occupies the room, the night has passed, but room
has not yet been serviced by housekeeping.
OC Occupied Clean Guest currently occupied the room, and room has been serviced by
housekeeping. Typically, there is no inspection for rooms cleaned
during the length of an individual guest’s stay.
OOD Out of Order Room Room is under renovation or not fit for occupancy since it requires
repair or maintenance work.
BLO Blocked Reserved for a guest who is expected to arrive within the day.
NS No Show Room is reserved but the expected guest did not arrive.
SO Slept Out Guest is assigned a room but did not sleep on his bed.
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Objective:
● Distinguish the steps for the proper check out procedures.
● Explain the modes of bill settlement.
Example:
"Mr. Gonen, do you have a plan of coming back?
Thank the guest for staying in the hotel and invite him/her to come back. As he/she leaves the desk area, wish him a
safe and pleasant journey.
Example:
"Thank you very much Mr. Gonen for choosing our hotel for your accommodation. We hope to see you again. Have
a pleasant and safe journey."
9. Take out the room registration form and place notations "check out." Inform the Housekeeping Supervisor for him
to send a room attendant to do the checking of possible losses or damage in the guest's room.
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10. Record check out in the Departure Record.
11. File check out registration cards alphabetically in the Check-out Registration Cars box.
If extension is granted and the hotel is not full. Guest may stay free of charge till 18:00 only. Beyond 18:00
half or full rate applies (discretionary to Management). Other arrangements maybe made upon approval of Duty
Manager.
Activity 1
Directions: Arrange the following check out procedures. Write numbers 1-10 to put them in order.
CASHIERING PROCESS
Billing Procedures
Upon check-in, each guest is asked politely how his account will be settled. Payment information is then
noted on the registration card in the space provided for. It is imperative for the Desk Clerk to request for the passport
of any foreigner or residence certificate number of residents. He should see to it that the registration card is properly
and legibly filled out and that it contains all required information.
As general rule, guests are required to immediately settle room charges and other bills—meals, room service,
laundry, etc. however, they could be allowed to sign for charges if any of the following is presented.
● Credit Card- that is valid, in the name of the guest and has not expired or cancelled.
● Letter of Authorization from companies, group or individuals with approved credit line and in good credit
standing.
● Membership card which extends signing privilege to members (applies to Country Clubs or resorts that
extend signing and discount privilege to its members). The cardholder must however be in a good credit
standing and his membership or signing privilege is not suspended nor cancelled.
1. Walk-ins/Cash Clients
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2. Private individuals (Non-cardholders)
3. Airline and Travel Agency Accounts
4. Commercial Accounts with Credit Line
FORMS OF PAYMENT
Different hotels have varying policies as to the type of payment allowed for guest’s bills. Some of the
methods of bill settlement include:
1. Cash-local currency
This is the most advantageous method since it involves no risk fraud. Guests who are not utilizing a credit card
are required to pay upon check-in. Usually the full room rate is required, covering the estimated cost of rooms and
other services, plus taxes. This is called the “anticipated usage amount.”
2. Credit Cards
Two major credit cards are used in the Philippines—Visa and Master Card. The credit card company advances
the payment for the card holder and charges shall be billed to his account.
Hotels are usually equipped with a computer system that will be able to check whether the card is valid and that
enough credit is available.
4. Cheques
Check payment is certainly very risky especially if it is issued by guests who are strangers and not known to the
hotel officers. In some countries, the check payment is covered by guarantee cards. These cards guarantee payment
of checks but only up to a certain amount.
5. Traveler’s Cheque
This is issued by major banks and travel agents in fixed denominations. The customer buys them in their own
currency or in the currency of the country being visited. However, a service charge is imposed as insurance for
possible loss. Once the customer loses his cheque, the issuing company pays him back 24 hours. Many travelers use
this mode of payment as it provides them greater security.
6. Foreign Cheques
Some large hotels accept foreign cheques especially those drawn in Europe which is written in sterling. The use
of Euro cheque and Euro cards is commonly used in Europe.
7. Debit cards
There are hotels that have a facility to debit guest from his bank account and transfer is done through electronic
point system (POS). A transaction report is given to the guest after the debit.
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8. Direct Billing
The goods and services are paid later after the use of hotel services. The hotel sends a bill to the company or
individual who has been given a credit line and allowed to book on charges.
The credit approval process must be strictly enforced. The hotel has the option to choose what companies or
groups it will extend credit. If a credit line is granted, the hotel will allow the guests of account holders to sign for
charges. To minimize or avoid credit risks, a thorough credit investigation is usually conducted to determine the
credit standing and the paying capacity of applicants for a credit line.
Organizations or companies who wish to avail of a credit line have to fill up a credit application form. The data
needed for approval include:
● Company/Organization Profile
⮚ Ownership
⮚ Size
⮚ History
⮚ Address
⮚ Years in existence
⮚ Company officers
⮚ Contact number, etc.
● Financial Standing
⮚ Bank account history
⮚ Account balance
⮚ Copy of financial statement for the past 2-3 years
⮚ Creditors
⮚ Suppliers etc.
● References
⮚ Hotels
⮚ Suppliers
⮚ And other who have extended credit to this applicant
● Independent Reference
⮚ Companies
⮚ Individuals
⮚ And others who can vouch for such applicant, particularly their reputation and credit standing
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Activity 2
A. Different hotels have various type of payment. For your activity, select four methods of bill settlement and
write a brief definition for each.
B. Then, in your own opinion, what is the safest and easiest mode of bill settlement and why?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
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(1) (2)
NS
(3) (4) Vacant room already made up and ready for occupancy.
(5) (6)
Occupied Clean
(7) (8)
OOD
(9) (10) Cleaned room, not yet inspected. All sleeping rooms are
cleaned by a housekeeper and then inspected by a
supervisor/manager to ensure it is ready for sale.
(11) (12)
HU
(13)
BLO Blocked
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(14) (15)
Vacant Maintenance
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II. Define the following.
1. Connecting rooms-
2. Quadruple room-
3. Suite-
4. Roll-away bed-
5. Hospitality bed-
6. Single room-
7. Queen bed-
8. Sofa bed-
9. Deluxe-
10. Executive-
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