hotel credit management training

(c) Drs. Agustinus Agus Purwanto, MM

L’Anmien – Mui Ne Resort & Spa

By: Drs. Agustinus Agus Purwanto, MM

E-mail: [email protected]


Training objective

To ensure Credit Section in Pilgrimage Village a Boutique Resort & Spa extremely understand to a Standard Operating Procedure of Pilgrimage Village a Boutique Resort & Spa, which is to regulate any “Credit” be granted in relation to maximize the hotel sales. This policy must be implement from time to time in order to minimize credit risk and to prevent for un-collectable hotel account receivable.In order to maintain consistent treatment in this Standard Operating Procedure any negligent person should refer to this procedure and will be regulated further into the Pilgrimage Village a Boutique Resort & Spa House Rule.At the end of this training can improve the capability of Credit Process especially for Credit Section and to create multi skill for accounting staff to do cross section within accounting department


Credit Control (Section C)

1.1. RESERVATIONSRESERVATIONS2.2. REGISTRATION / CHECK – INREGISTRATION / CHECK – IN3.3. GUEST IN – HOUSEGUEST IN – HOUSE4.4. CASH PAID OUTCASH PAID OUT5.5. SKIPPERSSKIPPERS6.6. LATES CHARGESLATES CHARGES7.7. DISPUTE CHARGESDISPUTE CHARGES8.8. CHECK – OUT PAYMENTCHECK – OUT PAYMENT9.9. CHARGE TO CITY LEDGERCHARGE TO CITY LEDGER10.10. F&B CHARGE TO CITY LEDGERF&B CHARGE TO CITY LEDGER11.11. BILLING AND COLLECTION PROCEDURESBILLING AND COLLECTION PROCEDURES


1. Reservations Reservation Information:Reservation Information:

Reservations may be received by Letter, Facsimile, Reservations may be received by Letter, Facsimile, Telephone, and Travel Agency Voucher or through Telephone, and Travel Agency Voucher or through personal contact. The following information is required personal contact. The following information is required for a reservation:for a reservation:

Guest Full NameGuest Full NameCompany AffiliationCompany AffiliationArrival and Departure DatesArrival and Departure DatesType of accommodation and special requirementsType of accommodation and special requirementsAgreed Room RateAgreed Room RateMethod of PaymentMethod of PaymentWhether the reservation is to be guaranteed for late or non-Whether the reservation is to be guaranteed for late or non-arrivalarrivalForm of guarantee for guaranteed reservationsForm of guarantee for guaranteed reservationsName, title, address and telephone / fax number of the person Name, title, address and telephone / fax number of the person making the reservationmaking the reservation


Reservation ~ continued…..

1.1. Established Company AccountsEstablished Company Accounts

2.2. New AccountsNew Accounts

3.3. Credit not RequestedCredit not Requested

4.4. Telephone ReservationsTelephone Reservations

5.5. Voucher Reservations – Established Voucher Reservations – Established Travel AgentsTravel Agents

6.6. Voucher Reservation – New Travel Voucher Reservation – New Travel AgentsAgents


2. 2. REGISTRATION / CHECK - IN:REGISTRATION / CHECK - IN:Proper Check – In Procedures:Proper Check – In Procedures:

Credit risks will occur when Front Office Clerks accept Credit risks will occur when Front Office Clerks accept incomplete Registration Cards. This lack of information incomplete Registration Cards. This lack of information reduces the ability to collect amounts due from late reduces the ability to collect amounts due from late charges or “skippers”. Such un-collectable accounts will charges or “skippers”. Such un-collectable accounts will become the responsibility of the negligent clerk.become the responsibility of the negligent clerk.

The Front Office Clerk’s primary responsibility at The Front Office Clerk’s primary responsibility at registration / check – in is therefore to ensure that the registration / check – in is therefore to ensure that the guest’s full name, complete address, length of stay, guest’s full name, complete address, length of stay, method of payment, passport number (or other method of payment, passport number (or other acceptable identification cards) have been noted and that acceptable identification cards) have been noted and that the guest signs the card. This also applies for return the guest signs the card. This also applies for return guests.guests.

In the case of VIP check – ins, the Front Office Clerk can In the case of VIP check – ins, the Front Office Clerk can pre-register the guest. The guest will still be required to pre-register the guest. The guest will still be required to sign the registration card, at which time the method of sign the registration card, at which time the method of payment should be confirmed.payment should be confirmed.


Check-in ~ continued…..

1.1. Company PaymentCompany Payment

2.2. Credit Card PaymentCredit Card Payment

3.3. Cash Payment – w/ ReservationCash Payment – w/ Reservation

4.4. Cash Payment – w/o ReservationCash Payment – w/o Reservation

5.5. Check PaymentCheck Payment

6.6. Airlines LayoversAirlines Layovers


3. GUEST IN - HOUSE

During the guest’s stay in our hotel, the Front During the guest’s stay in our hotel, the Front Office Manager will follow up on credit checks Office Manager will follow up on credit checks with the aid of the Daily High Balance Report with the aid of the Daily High Balance Report which is produced as part of the Night Audit which is produced as part of the Night Audit procedures from HOMIS System.procedures from HOMIS System.

The High Balance Report lists all guests whose The High Balance Report lists all guests whose account balance exceeds US $ 150 credit limit. account balance exceeds US $ 150 credit limit. Copies of the report should be distributed to the Copies of the report should be distributed to the General Manager and Financial Controller.General Manager and Financial Controller.

The Front Office Manager will follow – up all The Front Office Manager will follow – up all accounts over the established credit limits to accounts over the established credit limits to ensure that the appropriate credit procedures ensure that the appropriate credit procedures are complied with are complied with


Guest In House ~ continued…..

1.1. Company PaymentCompany Payment

2.2. Credit Card PaymentCredit Card Payment

3.3. Cash PaymentCash Payment

4.4. Check PaymentCheck Payment

5.5. Traveler Check PaymentTraveler Check Payment


4. 4. CASH PAID OUTCASH PAID OUT

All Paid – out vouchers must bear the All Paid – out vouchers must bear the appropriate approval signature appropriate approval signature indicating prior authorization of the indicating prior authorization of the payment in addition to the guest’s payment in addition to the guest’s signature and the Front Office Clerk / signature and the Front Office Clerk / Reception initials. The guest must be Reception initials. The guest must be charged on extra 5% of paid – out charged on extra 5% of paid – out amount. The fee and net Paid – out must amount. The fee and net Paid – out must be shown separately on the Paid – out be shown separately on the Paid – out voucher and posted individually to the voucher and posted individually to the guest’s folioguest’s folio


Cash Paid Out ~ continued…..

1.1. Guest’s DisbursementGuest’s Disbursement

2.2. Guest’s AdvanceGuest’s Advance

3.3. Credit Card Paid OutCredit Card Paid Out


5. 5. SKIPPERSSKIPPERSThe trend of would – be skippers are normally The trend of would – be skippers are normally those paying by cash and can be observed by those paying by cash and can be observed by the following:the following:

1.1. Unusually high Food & Beverage chargesUnusually high Food & Beverage charges

2.2. Excessive overseas Telephone CallsExcessive overseas Telephone Calls

3.3. Excessive Paid – outsExcessive Paid – outs

4.4. ““Slip Out” or “DND” on the Housekeeping ReportSlip Out” or “DND” on the Housekeeping Report

5.5. No charges other than room charges for several No charges other than room charges for several days.days.


Long Distance Telephone calls, Mini Bar Charges Long Distance Telephone calls, Mini Bar Charges and other charges form the bulk of late / after and other charges form the bulk of late / after departure charges. Now the era of IT was not full departure charges. Now the era of IT was not full interfacing, so always the problem was on Mini Bar, interfacing, so always the problem was on Mini Bar, so any guest check – out the Front Office Clerk / so any guest check – out the Front Office Clerk / Reception must to inform to Housekeeping to Reception must to inform to Housekeeping to checking the Mini Bar consumed of the relevant checking the Mini Bar consumed of the relevant guest, but also possible late charges will happen guest, but also possible late charges will happen for Restaurant & Bar Charges as result negligent of for Restaurant & Bar Charges as result negligent of Outlet Cashier in this case an outlet cashier must Outlet Cashier in this case an outlet cashier must be responsible to pay.be responsible to pay.

In special case for late charges, can be solved by In special case for late charges, can be solved by Sign on File (SOF) when the guest paid their bill by Sign on File (SOF) when the guest paid their bill by his / her credit card, every SOF made by the hotel his / her credit card, every SOF made by the hotel the guest must be informed by mail or e-mailthe guest must be informed by mail or e-mail

6. 6. LATE CHAGESLATE CHAGES


7. 7. DISPUTE CHAGESDISPUTE CHAGESThe Front Office Manager or Duty Manager is The Front Office Manager or Duty Manager is allowed to rebate from the guest’s account allowed to rebate from the guest’s account charges disputed for amount under US$ 10 - charges disputed for amount under US$ 10 - without prior approval from General Manager.without prior approval from General Manager.

However, a rebate voucher must be prepared However, a rebate voucher must be prepared with all relevant information for subsequent with all relevant information for subsequent approval of General Manager or Financial approval of General Manager or Financial Controller. All amount over than US$ 10 - will Controller. All amount over than US$ 10 - will need prior approval from General Manager or need prior approval from General Manager or Financial Controller before writing off the Financial Controller before writing off the guest’s accountguest’s account


Upon check – in, guests without credit Upon check – in, guests without credit facilities will have indicated that they facilities will have indicated that they wish to settle their accounts by one of wish to settle their accounts by one of the following methods:the following methods:

CashCash

Travelers CheckTravelers Check

Personal / Company CheckPersonal / Company Check

Credit Card Credit Card

8. 8. GUEST CHECKE - OUTGUEST CHECKE - OUT


9. CHARGE TO CITY LEDGER

Accounts billed to the City Ledger Accounts billed to the City Ledger are classified into the following are classified into the following categories:categories:

Current / Transient (Company / Current / Transient (Company / Individuals)Individuals)

Functions / Meeting / BanquetsFunctions / Meeting / Banquets

Travel Agents / Tour Groups / Airlines Travel Agents / Tour Groups / Airlines


10. F& B CHARGE TO CITY LEDGER

1.1. Established Company Established Company AccountAccount

2.2. New AccountNew Account


11. BILLING & COLLECTING PROCEDURES

Billing:Billing:All invoices will be sent to the guest’s All invoices will be sent to the guest’s billing address within three days of billing address within three days of departures unless alternate departures unless alternate arrangements have been made. arrangements have been made. Statements of Account will be sent no Statements of Account will be sent no later than eight days following the end later than eight days following the end of the month. The Pilgrimage Village a of the month. The Pilgrimage Village a Boutique Resort & Spa will always Boutique Resort & Spa will always retain the original letter of retain the original letter of authorizationauthorization


Collection Reminders:Collection Reminders:

1. First Reminder

2. Second Reminder

3. Third Reminder

4. Fourth Reminder

5.5. Legal ActionsLegal Actions

11. BILLING & COLLECTING PROCEDURES ~

Continued….


CREDIT APPLICATION FORM

To secure hotel credit, the information must be searching by using Credit Application Forms.

Any reason for not accepted must be informed to CEO.

Try to give 2 weeks credit for New Key Accounts


THANK YOU

hotel credit management training

Documents

agustinus agus purwanto

credit section

payment charge

credit risks

method of c payment

proper check

capability of credit

room rate method of