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Hotel Credit Facilities

February 11, 2013

Although the Credit Department is the main concerned department for controlling hotel credit limit, but the Front Office Cashiers are also directly involved with the matter and regarding all credit matters they report to Credit Manager. The credit limit of a hotel depends on the policy of the management. Credit policy of a hotel is very important in making business and also to collect the credit amount.

For in-house hotel guest accounts, there is a certain amount of credit limit fixed as per the management policy. As and when the amount of guest A/C exceeds the credit limit that is termed as over-due balance. The guest accounts exceeding the credit limit have to be listed down in a formatted paper sheet, which is called over-due list and that has to be produced to the credit manager’s desk for his necessary action. Normally this has to be done by the credit department personnel. If the hotel is computerized – you can take an over-due list printout from the computer. Now, the credit manager considering the guest’s position sends a reminding letter to the guest requesting him to settle the bill with very courteous languages.

hotel credit facilitiesSo, to be in the safe position, the following rules should be strictly adhered to:

  • A certain amount of credit limit should be fixed for hotel guest, exceeding which a remainder can be given politely for settlement of the bill.
  • While accepting any credit card, be alert to maintain all the formalities, don’t, exceed the floor limit and get the authorization code as and when necessary.
  • If any bank cheque is given on behalf of a hotel guest by a 2nd party that should not be accepted. If the guest insists on it-call the sift duty manager to handle the matter.
  • All the outlet of the hotel should send the guest charge bill immediately to the front office cashier.
  • On checking out, any guest may wish to change the bill to his company without any prior intimation. This is not all acceptable and should immediately be referred to shift duty manager or credit manager.
  • Post dated cheques are not acceptable.
  • Cheques with alteration or re-writing are not acceptable.
  • Personal cheques are not acceptable without credit manager’s decision.
  • If any cheque is not understood, refer it to the credit manager.
  • If it is a suspicious cheque, contact with the bank if possible.
  • Remember that fake cheque holders are active during off banking hours and holidays.
  • Don’t be in a hurry while accepting a cheque because fake cheque holders always try to work fast and go out.

Credit facilities to non-resident guest: five star hotels also provide some facilities to non-resident guest for example-to local clients of the city. The outside local clients are also big revenue earning source of hotel.

Hotel issues Health Club Membership card to local guest of the city. In order to obtain a health club membership card, the guest has to fill in a certain prescribed form, two copies of P.P. size photographs have to be affixed with the form and a certain amount of money has to be deposited. Thus, obtaining a health club membership card guest can use all the facilities of health club, such as gym, sauna, massage, tennis court, squash court, beauty shop, barter shop, swimming pool etc. after availing any of the above services, guests do not have to pay bill on the spot—guest simply signs the bill on credit basis. At the end of month or a fortnight all these charge bills are to be forwarded to guest address in a form of an invoice for settlement, Credit Department maintains all the credit accounts and collects the outstanding dues.

{ 2 comments… read them below or add one }

1 jack paulus October 26, 2016 at 3:56 pm

interest with this matter, thank you

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2 Chioma June 30, 2016 at 2:32 pm

This has been really helpful. Just what I wanted to know. Gratitude.

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