Front Office Notes

Classification of Hotels
Grouping hotels based on various criteria is known as classification.

Hotel classification serves the following purpose:

 Lends uniformity in services and sets general standards of a hotel

 Provide an idea regarding the range and type of hotels available within a geographical location

 Acts as a measure of control over hotels with respect to the quality of services offered in each category.

 Helps tourist select a hotel that meets their requirement.

CLASSIFICATION ON THE BASIS OF

1. Size 4. Ownership basis

2. Location and clientele 5. Degree of service offered
3. Star

ACCORDING TO SIZE
 SMALL SIZED HOTEL: less then 100 rooms
 VERY LARGE HOTEL: between 600 to 999
 MEDIUM SIZED HOTEL: between 100 to 299 rooms
rooms
 MEGA: more than 1000 rooms
 LARGE SIZED HOTEL: between 300 to 599
rooms

ACCORDING TO LOCATION AND CLIENTELE

1. DOWNTOWN OR COMMERCIAL HOTEL

Location: heart of the city / commercial area or busy business area

Clientele: mostly business man

Facility: modern facilities like 24 hr coffee shop, room service, business centre, travel desk

Avg. duration of stay: 3 to 7 days

2. TRANSIT HOTEL

Location: near the port of entry like bus stand, railway station, airport, sea port

Clientele: mostly people who are traveling, layover passengers, tourist, misconnection passengers

Facility: moderate to modern facilities

Avg. duration of stay: few hours too few days

 3. RESORT HOTEL

Location: places with natural beauty like hill station, sea beach, forest etc.

Clientele: mostly holiday makers and tourist

Facility: moderate to modern

Avg. duration of stay: a week too few months

4. MOTEL OR MOTOR HOTEL OR FREEWAY HOTEL

Location: on highways

Clientele: motorist, tourist travelling by road

Facility: moderate to modern facilities

Special features: parking space against each room, Refuelling station, Garage facility, Swimming pool

Avg. duration of stay: mostly over night

5. SUB- URBAN HOTEL

Location: outskirts of the city or suburb

Clientele: who have to stay for a longer duration, away from the hustle and bustle of the city

Facility: moderate, budgeted

Avg. duration of stay: longer duration, months

6. FLOATEL

Location: lodging properties that float on the surface of water.

ACCORDING TO STAR CLASSIFICATION/ STANDARD CLASSIFICATION

The Star denotes the standards of the hotel. Department of tourism, govt. of India is responsible for the star
gradation. An autonomous body (a committee) is responsible for star gradation of hotels known as Hotel and
Restaurant Approval Classification Committee (HRACC), formed by the Ministry of Tourism, Govt. of India.

After receiving the application form from hotel HRACC visits the hotel, check the standards and grade the
hotel. The Department of Tourism prescribes the facilities which are to be provided in various star category hotels.
The term for Star Gradation is for two years.

The six grades of star are 5*Deluxe, 5*, 4*, 3*, 2* and 1*. The categories of various star hotels have some
criteria or facilities, which are called E N D.

E – Essentials (have to have)

N – Necessities (should have)
D – Desirables (may or may not have)
Following are the members of HRACC:

1. Secretary Tourism, Govt. Of India

2. Regional Director of Tourism, Govt. Of India
3. One representative from Federation of Hotels and Restaurants Association of India (FHRAI), who is generally
the Secretary of the respective zone (of the four zones).
4. One representative of the Travel Agents Association of India (TAAI), who is generally the Secretary of the
concerned region.
5. Director of Tourism of the state concerned
6. Principal of the regional Hotel Management Institute.

(If any of the six members is absent on the day of visit, they are permitted to send their own representatives)

HOTEL STAR RATING GUIDE

 ONE STAR
Typically, small hotels, located near affordable attractions, with basic facilities, with a family atmosphere.
Limited range and simple facilities and meals. Acceptable standards of maintenance, cleanliness and comfort

 TWO STAR
Economy hotel, small to medium size hotel, located near moderately priced attraction. Guest can expect
little more than a one star, like comfortable well-equipped room with attached bath, professional staff.

 THREE STAR
Moderate hotel, spacious accommodation, well equipped room and decorated lobbies, located near
business areas, moderate to high price attractions, usually have medium size restaurant that serves
breakfast through dinner. Facilities such as direct dial phone, toiletries, Room service, and pool are often
provided.

 FOUR STAR
First class hotel, large formal hotel, located near major attractions, above average service levels, more than
one restaurant, 24 hrs room service, laundry, valet parking, travel desk, wellness centre, pool, high class
room décor.

 FIVE STAR
Superior hotel, high level of accommodation and service, large property, hotel lobby and rooms with stylish
furnishing and linen, all modern and high-end facilities and amenities, at least three restaurant, 24 hrs room
service, concierge to assist you 24 hrs.

 FIVE STAR DELUXE

Highest level of accommodation and service, this hotel provide all 5-star facilities like ultimate decor and
high degree of personal service like butler service.

HERITAGE HOTELS

A recent addition to the hotel industry in the country, heritage hotels are properties set in small forts,
palaces or havelis. In a heritage hotel, a visitor is offered rooms that have their own history, is served traditional
cuisine, is entertained by folk artistes, get a glimpse into the heritage of the region. According to the ministry of
tourism, the heritage hotels are further subdivided as follows:

1. Heritage – built between 1935 and 1950

2. Heritage classic - built between 1920 and 1935
3. Heritage grand - built prior to 1920
OWNERSHIP BASIS

1. PROPRIETARY OWNERSHIP / INDEPENDENT HOTEL: owners’ hotel

Proprietary ownership is the direct ownership of one or more properties by a person or company. Small
lodging properties are owned by family and large properties are owned by major international hotel
companies. No affiliations or contract with other property, No tie up with other hotels. Owner has
independent control

Profit goes to the owner. Quickly respond to market changes. Work with limited finances

2. MANAGEMENT CONTRACTED HOTELS: management by others

Properties owned by individuals or partners, operated by external professional organization for

management fee.

Adv. – international recognition, operating systems, training program, marketing, international expertise,
profitable operations, advertisement, reservation system, staff.

3. CHAIN HOTEL: a group of hotels that are owned or managed by one company is called chain hotel.

Advantage: Large central organization providing central reservation system, management aids, financial
strength, expertise, manpower, specialties, promotions

4. FRANCHISE HOTELS/ AFFILIATED:

It is the authorization given by a company to another company or individual to sell its unique products and
services and use its trademark according to the guidelines given by the former, for a specified time and at a
specified place.

Franchise owner (franchisor) grant another hotel (franchise) the right uses its methods & system, technical
services, marketing trademark, signs etc. for fees.

Advantage:

 Opening assistance- architectural,  Financial assistance

interior designs  Advertising and global marketing
 Systems and procedure  Central reservation
 Staff training  Central purchase

5. REFERRAL CHAIN:

A referral chain is made up of independently owned and operated hotel and provides shared advertisement,
joint reservation system and standardized quality. Virtually there is no shared management or financial
functions

6. TIME SHARE / VACATION OWNERSHIP/ HOLIDAY OWNERSHIP:

Each room is owned by several people for different time period. Each owner gets a stay of specific period for
a number of years.

One time purchase is made by paying purchase price & payment of a yearly maintenance fee.

Generally located at dream sites like beaches, hill, waterfall etc.

 Adv.- long term accommodation, comfort homes, economical, good location, international exchange
possible.

7. CONDOMINIUM:

Joint ownership of a complex.

Type of accommodation where owner of a room or an apartment in a complex, of several such

accommodations, furnishes it and informs the management of the times when he will be using it. He permits
to rent out the apartments at other times and the rent goes to the owner. The owner pays the monthly
maintenance fee.

DEGREE OF SERVICE OFFERED

1. UPMARKET/ LUXURY/ WORLD CLASS SERVICE HOTELS

Targeting the affluent segment of society, hotels in the up-market category offer world class products with
personalized service of the highest standards. The emphasis is on excellence and class. These hotels provide
upscale restaurant and lounges, exquisite décor, concierge service, abundant amenities.

2. MID MARKET/ MID SEGMENT SERVICE HOTELS

These hotels offer modest services without the frill and personalized attention of luxury hotels, and appeal
to the largest segment of travellers. They offer services such as room service, round the clock coffee shop,
pick up drop, multi cuisine restaurant and bar.

3. BUDGET OR ECONOMY HOTELS OR LIMITED SERVICE

Focus on meeting the most basic needs if guests by providing clean, comfortable and inexpensive rooms.
Hotels have clean and comfortable guest rooms, coffee shop, a multi cuisine restaurant, in room telephone
and channelled music and movies, swimming pool, health club.

CLASSIFICATION ON THE BASIS OF CLIENTELE:

1. BUSINESS OR COMMERCIAL HOTEL: cater to the business traveller, generally situated in the city Centre.

2. TRANSIENT HOTEL: cater to the needs of people who are on the move and need a stopover en-route their
journey, situated in close proximity of ports of entry.

3. RESIDENTIAL HOTEL: cater to the guest who stays for a long duration.

4. CASINO HOTEL: casino hotel provides gambling facilities.

5. CONFERENCE HOTEL: hotel cater and organize conference

6. CONVENTION HOTEL: who organize convention and cater to the guest who comes to attend the convention.

7. SANATORIA: hotel which has health club and spa, and caters to the people who came to these spas for
treatment.
CLASSIFICATION ON THE BASIS OF DURATION OF GUEST STAY:

1. COMMERCIAL HOTEL: duration of stay is short, usually 1-7 days

2. TRANSIENT HOTEL: duration of stay from few hours to 1 day

3. SEMI RESIDENTIAL HOTEL: duration of stay ranges from few weeks to some months

4. RESIDENTIAL / APARTMENT HOTEL: duration of stay ranges from months to few years

5. EXTENDED STAY HOTEL: duration of stay few days to weeks.

Function areas under the Front Office Organization

Reception/Registration Section
This section is located in the lobby. It also allocates the room and established the rates for different types of guests.
The person of the section is called Receptionist. GSA (Guest Service Officer) has direct contact guests. The functions
of this section are:

 Warmly received all arrival guests.

 Complete registration formalities and perform guest check-in. Perform pre-registration formalities for a
group, VIPs, and disable guests.

 Co-ordinate closely with the house-keeping department for clearance of department room, room change,
and UR (Under Repaired) rooms.

 Issue VIP amenities voucher to the food and beverage service.

 Co-ordinate closely with the bell desk for luggage handling and room keys.

Information
It is located at a front desk and responsible for handling mail and messages with room keys. It also provides
information regarding outside and inside of the hotel’s rules and regulations, facilities, services. It also handles the e-
mail, fax, xerox machine, cable through the business centre.

Cashier
It is also located at the front desk and handle by the front cashier. The main functions of a cashier are as follows:

 The secure payment from the guest’s arrival.

 To change foreign currency as per rules and regulation of the hotel,

 To manage the safety deposit locker.

 To settle the guest accounts while check-out.

 To balance cash at the close of shift.

 To complete the guest check-out procedure.

Reservation
The term reservation means booking in advance. It basically blocks/reserve the room as per the requester specifies
data. The main functions are as follows:

 Handle all cancellations and revisit as a reservation made by the guest from different sources and modes.

 Keep out reservation correspondence complete and systematic.

 Process and confirm the reservation request.

 Forecast future room reservation status.

 Update the room availability chart.

Telephone Section
This section is handled by telephone operators and it is located at the back of the office. Its main function is to
handle incoming and outgoing calls. It is also responsible for managing wake up calls as requested by the guest and
preparation of telephone bills made by guests and staff.

Lobby
It is an area which is located at the entrance of a hotel building with a sitting arrangement for guest’s visitors to
meet and wait. It is synonymous with the word “Foyer” which means a wide passage or large hall just inside the
entrance of a public building. The dimension and design of this area rely upon the size and design of the building.
Basically, lobby area must be furnished with all the necessary things. Example: Lobby desk, Bell desk, GRE/GRO,
Reception desk, Cash counter, Restroom, Business centre, Safety lockers, etc

Bell Desk
It is located at either side of the lobby entrance headed by the bell captain and followed by bell boys. This desk is
responsible for handling the guest luggage during arrival and departure. The bell desk section also handles the
paying, deliver guest mail and messages to the concerned guest room.

Business Centre
The person who handles the business centre is known as Business Centre attended and the main function of this
section is to provide communication facilities and services like STD, ISD, E-mail, internet, fax, xerox, etc.

Travel Desk
This section of the front office is responsible for arranging the packages, tickets, etc for the guest as per their
request.

Front Office Department

The front office or reception is an area where visitors arrive and first encounter a staff at a place of business. Front
office staff will deal with whatever question the visitor has and put them in contact with a relevant person at the
company.

The staff of this department is very visible to the guests. The front office staff handles the transactions between the
hotel and its guests. Receives the guests, handles their requests, and strikes the first impression about the hotel into
their minds.

FRONT OFFICE OPERATIONS

There are two categories of Front Office Operations:

 1. Front-House Operations
These operations are visible to the guests of the hotel. The guests can interact and see these operations,
hence, the name Front-House operations. Few of these operations include:

 Interacting with the guests to handle the accommodation requests.

 Checking accommodation availability and assigning it to the guest.

 Guest registration and collecting required information.

 Creating a guest’s account with the FO accounting system.

 Issuing accommodation keys to the guest.

 Settling guest payment at the time of check-out.

2. Back-House Operations
Front Office staff conducts these operations in the absence of the guests or when the guest’s
involvement is not required. These operations involve activities:

 Determining the type of guest (fresh/repeat) by checking the database.

 Ensuring the preferences of the guest to give a personal touch to the service.

 Maintaining guest’s account with the accounting system.

 Preparing the guest’s bill.

 Collecting the balance amount of guest bills.

 Auditing and generating reports.

Overview of responsibilities of the different staff of front office department:

1. Front Office Manager
 All administrative tasks
 Hiring staff
 Training
 Giving appraisals
 Ensure smooth functioning of the department
 Make departments budget
 Forecast sales
 Monitor reservation systems to maximize occupancy, sales, and revenue
 Conduct department meetings
 Check arrivals, departures, and review all reports of the FO department.

2. Assistant Front Office Manager

 Supervise and coordinate day to day activities
 Assign duties
 Check daily reports, arrival lists, departure lists, VIP arrival, group arrivals
 Update FO manager about the happenings
 Coordinating with other departments like HK, sales, F&B
3. Lobby/ Duty Manager
 To ensure smooth check-in and check-out
 Handle guest complaints
 Coordinating with travel counter and airlines
 Coordinates with the security department and ensure the safety and security of the hotel
 Ensure smooth functioning of the lobby
 Handle keys

4. Guest Relation Executive

 Take feedback from guests
 Maintain guest feedback forms
 Maintain guest comment cards
 Handle VIP arrivals
 Ensure that guests leave with a positive image of the hotel
 Check any complaints and inform the department

5. Reservation Assistants
 Receive and process reservation inquiry of guests
 Maintain the reservation records
 Share the information with other departments like sales F&B
 To prepare the expected arrival list, departure list for the day
 To fill registration cards, guest history card
 To give the information to the receptionist
 To prepare guest folder having reservation documents, emails and messages

6. Receptionist
 Greet the guests on arrival
 Confirm the identity of guests
 Fill the registration form
 Assign room
 Prepare room status report and check discrepancy with housekeeping
 Process request for check out
 Inform late checkout, early check out to HK department
 Give information about the hotel, facilities and the city to the guest

7. Cashier
 Prepare guests’ bills
 Update guest transactions daily
 Exchange foreign currency
 Make closing balance account at end of shift
 Maintain house bank

8. Telephone Operator
 Answer the calls directly
 Direct incoming calls to the extension number, department, etc
 Answer the queries about the hotel and its services
 Log all wake-up calls
 Handling guest messages
  Handling outgoing calls
 Handling calls from the rooms/guests

9. Bell Boys
 Handle guest luggage
 Transport the luggage to the room on arrival/guest check-in
 Put luggage tag on bags and luggage on arrival
 Escort guest to the room and tell them about the room, service directory and function of equipment in
the room
 Deliver mail, message and package to the rooms

FRONT OFFICE RESPONSIBILITIES

 Directs and coordinates the activities of the FO department.
 Ensuring guests’ satisfaction.
 Creating guests’ database.
 Perform the function of a link between the management and front office employees.
 Perform budgeting function.
 Planning present and future needs for the resources.
 Schedule the tasks of the front office employees.
 Resolve guest problems quickly, efficiently, and courteously.
 Reviews all the reports generated by all the sections include night auditors report.
 Coordinate with the sales and marketing team to ensure maximum sales and profit.
 The front office staff handles the transactions between the hotel and its guests.
 Creating a great first impression in guests’ minds.

QUALITIES OF FRONT OFFICE STAFF

 Pleasing personality
 Smiling face
 Positive attitude
 Punctual
 Hard-working
 Good Personal hygiene
 Honest
 Good communication skills
 Calm, courteous
 Salesmanship
 Good memory

Duties & Responsibility of Front Office Staff

Personality Traits:
The most common answer to the question “Why did you decide to become a receptionist?” is, because you wanted
to meet people.

Now, to be successful in any human relationship you must reflect these characteristics: –
 A warm personality, and smart appearances.
 A keen interest in people, and polite and courteous nature
 Poise under pressure, keeping his cool and problem solver.
 A desire to be helpful, but also diplomatic and tactful.
  The ability to listen, hard-working, and punctual.
 A willingness to reflect management policy should be able to make quick decisions, The ability to get along
with co-workers, and a pleasant approach and a good motivator and coordinator.
 A desire to be liked, with good public relation qualities.
 The ability to help another employee without resenting it or showing imitation. You should be confident,
analytical, intelligent and a good salesman.
 Neat personal habits.
 Good memory (should be able to remember names of regular guests)
 Knowledge of languages.
 Numerical ability.
 Reference point.
 Image Builder.

Standing behind the front desk and meeting any of the dozens of problems that arise in a hotel requires a reserve of
energy. Keep your reserve built up by common-sense rules of living:
 Get plenty of sleep.
 Don’t drink. If you must, be moderate.
 Don’t smoke, at least not on the job.
 Be positive.

As a Front Office Personnel, you will be the first person who meets the guest in a hotel. The first impression forms a
lasting impression. So, make sure that the guest gets a positive impression from the moment he walks in.

Some points to remember:

 Avoid all controversial questions. You can afford to win arguments, but not in the hotel business.
 Be oblivious to guests’ mistakes. Say “I’m sorry, I didn’t make it clear”. Don’t say. “You are wrong” or “You
misunderstood me”. Instead say, “Sorry sir, I could not make myself clear.”
 Do not criticize competing hotels. This never helps anyone, including yourself.
 Cancel all “Yeah’s”, “Okays” and “Noes” from your vocabulary, i.e., don’t use slangs.
 Speak positively. Every negative reply can be rephrased: “One moment. muse” is a great improvement over
“Wait a minute”.
 Refer to men guests as gentlemen, females as ladies.
 Immediate attention to the traveller is a form of respect to which he is entitled.
 Last but not least the sincere smile is and has been a tradition of the hotel business.

Types of Rooms in a Hotel

1. Adjoining Room: An adjoining room shares a wall with another hotel room and is connected by a door.

2. Adjacent room: An adjacent room is very close to another room but does not share a common wall with it.

3. Cabana: A cabana is suited away from the main hotel building, in the vicinity of a swimming pool or sea
beach. It does not have beds and is generally used as a changing room and not as a bedroom.
4. Duplex: A duplex comprises two-room situated on different floors, which are connected by an internal
staircase. The suite is generally used by a business guest who wishes to use the lower level as an office and
meeting place and the upper-level room as a bedroom. This type of room is quite expensive.

5. Double Room: A double room has one double bed for double occupancy. The size of a double bed is 4.5 feet
to 6 feet.

6. Double-Double Room: A double-double room has two double beds and is normally preferred by a family or
group as it can accommodate four persons together.

7. Efficiency Room: An efficiency room has an attached kitchenette for guests preferring a longer duration of
stay. Generally, this type of room is found in holidays and health resorts where the guest stays for a longer
time.

8. Hollywood Twin Room: It has 2 single beds with a common headboard. This type of room is generally
occupied by two guests.

9. Hospitality Rooms: A hospitality room is designed for hotel guests who would want to entertain their own
guests outside their allotted rooms. Such rooms are generally charged on an hourly basis.

10. Interconnecting Rooms: Interconnected rooms have a common wall and a door that connects the two
rooms. This allows the guest to access any of the two rooms without passing through a public area. This type
of room is a deal for families and crew members.

11. King Room: A king room has a king-size bed. The size of the bed is 6 feet by 6 feet.

12. Lanai: A lanai has a veranda or roofed patio, and is often furnished and used as a living room. It has a view of
a garden, sea-beach or waterfall.

13. Murphy Bedded Room: Murphy bedded room is a room where the bed is hinged at the base of the
headboard and swing up into the wall for storage. During the day room can be used in a sitting /living room
and at night the bed can be laid for the guest to sleep.

14. Parlour: A parlour has a living room without bed and may have a sofa and chain for sittings. It is generally not
used as a bedroom. European term for this is Salon.

15. Penthouse: A penthouse is generally located on the topmost floor of the hotel and has an attached open
terrace or open sky space. It has very opulent decor and furnishings and is among the costliest rooms in the
hotels, preferred by celebrities and major political personalities.

16. Quad: A quad room has four separate single beds and can accommodate four persons together in the same
room.

17. Queen room: A queen room has a queen-size bed. The size of the bed is 5 feet by 6 feet.

18. Studio: A studio room is a small apartment which combines living room, bedroom, and kitchenette into a
single room.

19. Suite: A suite comprises more than one room, occasionally, it can also be a single large room with clearly
defined sleeping and sitting areas. The decor of such units is of very high standards, aimed to please the
affluent guest who can afford the high tariffs of the room category.

20. Single room: A single room has one single bed for single occupancy. The size of the bed is normally 3 feet by
6 feet.
 21. Twin Room: A twin room has two single beds for double occupancy.

22. Triple: A triple room has three separate single beds and can be occupied by three guests. This type of room is
suitable for groups and delegates of meetings and conferences.

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.

There are two types of accounts maintained by front office department with front office accounting system:

1. Guest Account
A guest account in front office accounting system is to record of financial transaction between a 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.

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

FOLIOS
Front office transactions are charted on account statements called folios. A folio is a statement of all transactions
(debits and credits) affecting the balance of a single account.
There are basically five types of folios used in front office accounting and maintained with front office accounting
system:

1. Guest Folios – Accounts assigned to individual guests or guestrooms.

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

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

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

5. 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.

VOUCHERS
A voucher details a transaction to be posted to a front office account. There are several types of vouchers used in
front office accounting system:

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

2. Charge Voucher – A voucher used to support a charge purchase transaction that takes place somewhere
other than the front office.
 3. Allowance Voucher – A voucher used to support an account allowance.

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

5. 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.

6. Credit Card Voucher – A form designated by the credit card company to be used for imprinting the credit
card and recording the amount charged.

7. Paid-Out Voucher – A voucher used to support the cash disbursed by the hotel on behalf of a guest.

8. 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.

9. 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.

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.

LEDGERS
A ledger is a summary grouping 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:

1. Guest Ledger – It refers to the set of accounts related to the registered hotel guests. It is also known as
Transient ledger, Front Office ledger or Rooms ledger.

2. City Ledger – Also called the non-guest ledger, it is the collection of non-guest accounts. It can contain credit
card payment accounts, direct billing accounts, and accounts of past guests due for collection by the hotel.

ACCOUNTING SYSTEMS
Non-Automated: Guest folios in a manual system contain a series of columns for listing debit and credit entries
accumulated during occupancy. At the end of the business day, each column is totalled and the closing balance is
carried forward as the opening balance of the next day.

 Semi-Automated – In this system, transactions are printed to a machine-posted folio.

 Fully Automated – Computerized systems in which POS transactions are automatically updated in the front
office accounts.

CREDIT MONITORING
The front office accounting system must monitor guest and non-guest accounts to ensure that they remain within
acceptable credit limits.
  Guests who present an acceptable credit card at registration may be extended credit facility equal to the
floor limit authorized by the issuing credit card company.

 Guest and non-guest accounts with other approved credit arrangements are subject to limitations
established by the front office called house limit.

 The night auditor is mainly responsible for identifying accounts which have reached or exceeded the fixed
credit limits. Such accounts are called high risk or high balance accounts. The front office may deny
additional charge purchase privileges to such accounts.

 This situation may be resolved by requesting the guest to make a partial payment or requesting the credit
card company to authorize additional credit.

FRONT OFFICE ACCOUNTING SYSTEM FORMULA

Transaction postings in the front office conform to a basic accounting formula, which
Previous Balance + Debits – Credits = Net Outstanding Balances

INTERNAL CONTROL IN THE FRONT OFFICE

Internal control in the front office involves:

 Tracking transaction documentation

 Verifying account entries and balances
 Identifying vulnerabilities in the accounting system

Auditing is a process of verifying front office accounting records for accuracy. Certain records are maintained to have
a control in front office cash:

 FRONT OFFICE CASH SHEET – The front office is responsible for a variety of cash transactions affecting both
guest and non-guest accounts. The front office cashiers have to complete a front office cash sheet that lists
each receipt or disbursement of cash.

 CASH BANK – A cash bank is the amount of cash assigned to a cashier so that he/she can handle the various
transactions that occur during a particular work shift. Cashiers should sign for their bank at the beginning of
their shift and only the person who signs should have access to it.

 NET CASH RECEIPTS = Amount of Cash, Checks, Vouchers etc in the Cashier’s
Drawer – [Amount of Initial Cash Bank + Paid Outs]

 OVERAGES – When the total of cash and checks in a cash drawer is greater than the initial cash bank + net
cash receipts

 SHORTAGES – When the total of cash and checks in a cash drawer is less than the initial cash bank + net cash
receipts.

 DUE BACK – A due back occurs when a cashier pays out more than he/she receives i.e. there is not enough
cash in the cash drawer to restore the initial cash bank. This may happen when a cashier accepts many
checks, or encashes large amount of foreign exchange offered by a guest during shifts. These checks and bills
are deposited with other receipts and consequently the front office deposit may be greater than the
cashier’s net cash receipts, with the excess due back to the front office cashier’s bank.

 AUDIT CONTROL – Internal auditors should make unannounced visits to the front office cashier’s desk for
auditing accounting records as well as conducting spot checks of the cash bank of the cashier on duty. A
report should be completed for management and ownership review.
SETTLEMENT OF ACCOUNTS
The collection of payment for outstanding account balances is called account settlement which involves bringing the
account balance to zero. An account can be brought to zero balance as a result of a cash payment in full or a transfer
to an approved direct billing or credit card account. All guest accounts must be settled at the time of check out.

French in Front Office

The Alphabet
In French alphabet there are 26 letters like that of English however the pronunciations are different. There is an
exceptional letter that is œ out of alphabet.

Letter Pronunciation Letter Pronunciation

a ah n en
b bay o oh
c say p pay
d day q koo
e uh r air
f eff s ess
g zheh t tay
h ahsh u ooh
i ee v vay
j zhee w doo-bleh-vay
k ka x eeks
l ell y ee-grek
m em z zed

NUMBERS (nombres)

0 Zéro 11 Onze Onzeième

1 Un / une Premier / Première 12 Douze Douzeième

2 Deux Deuxième 13 Treize Treizième

3 Trois Troisième 14 Quatorze Quatorzième

4 Quatre Quatrième 15 Quinze Quinzième

5 Cinq Cinqième 16 Seiz Seizième

6 Six Sixième 17 Dix-sept Dix-septième

7 Sept Septième 18 Dix-huit Dix-huitième

8 Huit Huitième 19 Dix-neuf Dix-neuvième

9 Neuf / neuve Neuvième 20 Vingt Vingtième

10 Dix Dixième 21 Vingt et un Vingt et unième

22 Vingt-deux Vingt deuxième 80 Quatre-vingts Quatre-vingtième

30 Trente Trentième 90 Quatre-vingts-dix Quatre-vingts- dixième

40 Quarante Quaranteième 91 Quatre-vingts-onze Quatre-vingt- onzeième

50 Cinquante Cinquantième 99 Quatre-vingts-dix-neuf Quatre-vingt-dix-neuvième

60 Soixante Soixantième 100 Cent Centième

70 Soixante-dix Soixantième 1000 Mille Millième

DAYS OF THE WEEK (JOURS DE LA SEMAINE)

lundi (Monday), mardi (Tuesday), mercredi (Wednesday), jeudi (Thursday),

vendredi (Friday), samedi (Saturday), dimanche (Sunday).

MONTHS OF THE YEAR (MOIS DE L’AN)

janvier (January), février (February), mars (March), avril (April), mai (May), juin (June),

juillet (July), août (August), septembre (September), octobre (October),

novembre(November), décembre (December).