Chapter 9 CheckOut and Account Settlement

1
Chapter 9 Check-Out and Account Settlement

• Identify functions and procedures relating to the
  check-out and settlement process
• Describe methods of settlement for guest accounts
• Explain why hotels may charge late check-out fees
• Describe express check-out and self check-out
  procedures
• Explain elements of an effective billing and
  collection process
• Explain how managers use guest history files

2
Chapter 9 Check Out and Account Settlement

• Check out and settlement is occurs at which stage
  of the Guest Cycle?
• Why is this phase considered one of the most
  stressful stages of the actual hotel stay?
• Which three important functions are performed
  during the check out process?
• Resolving of guest account balances
• Updating room status information
• Creating guest history records
• Why is it in the best interest of the hotel to
  settle a guests account balance while they are
  still present?
• What is pre-settlement verification, and how does
  it expedite the check out process?

3
Room status and guest history files

• What happens to the room status once final
  settlement occurs in a hotel using fully
  automated computer systems? Check out and
  settlement also involves the creation of the
  guest history record, which will become a part of
  the ______________________?
• Departure Procedures include
• Inquiring about additional recent charges
• Posting outstanding charges
• Verifying account information
• Presenting the guest folio for revision purposes
• Verifying the method of payment
• Processing the account payment
• Checking for mail, messages and faxes
• Checking for safe deposit or in-room keys
• Securing the room keys
• Inquiring about the guests stay and experiences

4
Method of Settlement

• What are the different ways guest can bring their
  accounts to a Zero Balance?
• Cash
• Credit Card Transfer
• Combined Settlement Methods
• Check out and account settlement is an excellent
  time for agents to let guests know that the hotel
  cares about the quality if the guests experience
  during their stay.
• What are some parting salutations which can be
  used for this purpose?
• What can the front desk do to minimize late
  check-outs?
• Why should the front desk properly communicate
  and tactfully enforce check-out times?

5
Check-out Options

• Express Check-Out options (see ex 1 on pg 313)
• Self Check-Out Terminals(see ex 2 on pg 314)
• In-Room Folio Review and Check-Out options (see
  ex 3 on pg 315)
• Unpaid Account Balances
• What do unpaid account balances represent?
• What are late charges?
• How should hotels go about preventing late
  charges?
• Why must front desk agents be sure that the
  credit card company will accept additional
  charges before positing charges to a voucher a
  guest has already signed?

6
Account Collection

• When late charges are billed to departing guest
  they should be classified as un-collectible
  until the front office and back office have
  exhausted all billing and collection procedures.
• Why are procedures for billing late charges
  different for guest who settle by cash and for
  those who settle by credit card?
• What are some examples of city ledger or
  Outstanding Accounts? (see page 318)
• True or false The sooner the collection process
  is started the sooner the hotel is likely to
  receive payment on unpaid account balances?Both
  the front office and accounting departments must
  establish effective procedures for billing
  departed guests with over-due balances. This
  would include determining (see ex 4 pg 319 for
  billing chart)
• When outstanding account balances are payable
• The number of days between billings
• How to contact departed guest whose accounts are
  overdue

7
Account Aging

• What is Account Aging?
• An account age analysis sheet identifies which
  accounts receivables are 30, 60,90, or 120 days
  old. (Look at exhibit 5 on page 321)
• Generally accounts which are less than 30 days
  are considered? 60, 90 and 120 days?
• Front Office Records
• What is normally used as the front office record
  after the guest has departed?
• Guest Histories are used for what specific
  purposes?

8
Recap topics discussed in chapter 9

• Identify functions and procedures relating to the
  check-out and settlement process
• Describe methods of settlement for guest accounts
• Explain why hotels may charge late check-out fees
• Describe express check-out and self check-out
  procedures
• Explain elements of an effective billing and
  collection process
• Explain how managers use guest history files

9
Chapter 9 Assignments

• Read case Study
• Accounts Receivable At the Montrose Hotel and
  answer questions 1 2 and 3 on page 328 for
  submission to learning coach.