Sister in Law

Advanced
Diploma in
Hotel Management
Assignments for
Module One
Managing Front Office
Operations
Prepared by Thant Zin Htut

Table of Contents
Table of Contents ----------------------------------------------------------- 2
1 . Classification of Hotels by Target Market ------------------- ---------- 3
2. Organization Chart of Front Office Department ----------------------------- 6
3. Guest Cycle ----------------------------------------------------------- 8
4. Sales Process of the reservations agent ------------------------------ 14
5. Activities of the preregistration and

the advantages of preregistering guests ------------------------------- 16
6. Front Office Communicates with other

departments in a hotel -------------------------------------- 19
7. Common Security Procedures for staff --------------------------------------- 21
8. The procedures for opening, preparing and

maintain front office accounts ---------------------------------------- 23
9. The process of check – out and settlement ----------------------------------------- 27
10. The process of front office audit ------------------------------------------- 28
11. The seven functions of the management process--------------------------------- 29
Thant Zin Htut (Mr) Managing Front Office Operation Assignments Page 2
1. Classification of Hotels by Target Market
The hospitality Industry is part of a larger enterprise known as the travel and tourism industry.
The travel and tourism industry is a vast group of business with one common goal; providing
necessary or desired products and services to travelers.
Just an example as: the lodging industry grew with travel, as people needed places for shelter
and food along the route they travelled, whether by land, water or air. The hotel industry is,
therefore, one of the oldest lodging endeavors in the world.
With so many properties offering so many services in such a huge industry, it is easy to
understand how people might get confused about the different between hotels, motels, inns
and other lodging establishments. The fact is that the distinctions are not always clear.
That’s reason behind; there are many ways to classify hotels. Such as
1. Hotel Size
2. Target Markets
3. Level of service
4. Ownership and
5. Affiliation
It is important to note, however, that some properties defy easy classification, and particular
property may fit into several categories.
Amongst above mentioned, I would like to present about target markets in this regards.
If I sated as target markets then two of the most important marketing challenges in this
hospitality property encounters are;
Who stay at our property?

Who else can we attract?
Target markets
All organizations break down the entire possible market into 'groups of desirable prospective
clients' or target markets.
Why; the hotel seeks to retain or attract as guests. A popular trend in the hospitality industry is
to define or identify smaller, distinct groups or “segments” within larger target markets, and to
develop product and service aimed specifically at satisfying these segments. This process of
market segmentation has contributed to substantial growth, particularly within hotel chains.
However, identifying target markets make us so many benefits to run smoothly. I divided into
two as follows.
Importance of identifying target markets
 What is a market?
 What is market segmentation?
 Why do organizations identify target markets?
Benefits of identifying target markets

 Being better able to meet identified need
 Increased, faster and more profitable sales
 More satisfied customers
 Ability to become established as a specialist organisation
 Enhanced levels of repeat and referral business
 Being able to get to know target market better
 Reducing the likelihood of competitors
Hotels target many markets and can be classified according to the markets they attempt to
attract and serve. The most common types of properties base on target markets include
commercial, airport, suite, extended-stay, residential, resort, lifestyle, bed-and-breakfast,
vocation ownership/condominium, casino, conference center, and convention hotels.
As for me, target market definition covers four questions to comply with above mentioned
concern as follows.
 What product or service type?

 To meet what customer need?
 For whom – which customer types?
 For where – which geographic area?
Because of Activities associated with identifying target markets by doing so. As of

 Identifying target markets
 Identifying points of differentiation
 Describing why the established target markets were chosen
 Explaining how the host enterprise tailors its tourism products or services
 Identifying relevant tourism products or services
 Analysing market research
Today, the traveler has transformed with the fast-changing world. We have to plan in advance
for future as of follows unless we or my property could be left behind.
Identify changes in customer preferences, needs, wants and expectations
 Why is this important?
 What impacts on changes?
 How can you identify the changes?
We all have to study well for integrat

ntegration in the market concern and methods to identify changes
in customer preferences, needs, wants and expectations
expectations.
Align with the business as usual in this hotel industry wise.
 Undertaking market research activities

 Engaging the services of an external market research company
 Tracking trends and changes in internal sales patterns
 Initiating
ating customer focus groups or similar
 Participating in industry-wide
wide surveys
 Obtaining, reading and understanding research on changes in customer preferences
Figure 1: Market Segmentation
2. Organization Chart of Front Office Department
Room Division
Manager
Housekee
ping Front Office
Manager Manager
Assistant
FOM
Duty
Manager
Supervisor Supervisor
Front Desk Bell
Busines Service
Guest s Reserv
Receptio Night Operat Concier
Cashier Relatio Center ation
nist Auditor or ge
n Office Secreta Agent
ry
Transportat
Doorm Valet
Bellboy Courier ion
an Parking
Personnel
Fig 2: Sample Organization Chart of the Front Office
Rooms Division
The rooms division comprises departments and personnel essential to providing the lodging
services guests expect during a hotel stay. In most hotel rooms division generates more
revenue than all other divisions combined.
The front office is one department within the rooms division.
Front Office
The front office is the most visible department in a hotel. Front office personnel have more
contact with guests who than do staff in most other departments.
The front desk is usually the focal point of activity for the front office and is prominently located
in the hotel’s lobby.
The functions of the front office are to:
 Sell guestrooms, register guests, and assign guestrooms.

 Process future room reservations, when there is no reservation department or when the
reservations department is closed.
 Coordinate guest services.
 Provide information about the hotel, the surrounding community, and many attractions
or events of interest to guests.
 Maintain accurate room status information.
 Maintain guest accounts and monitor credit limits.
 Procedure guest account statements and complete proper financial settlement.
3. The Guest Cycle and Related Front Office Function
The Guest Cycle
The financial transactions a guest makes while staying at a hotel determine the flow of business through
the property.
Traditional, the flow of business can be divided into a four-stage guest cycle. See as follow:
Fig 3 The Guest Cycle
Pre-
Arrival
Depart Arrival
ure
Occupa
ny
Fig 4 The Guest Cycle
The guest cycle as mentioned is not an inflexible standard. Since activities and functions tend to overlap
between stages, some properties have revised this traditional guest cycle into a sequence of pre-sale,
point-of-sale, and post-sale events.
For automated properties, this revised sequence significantly improves coordination among hotel
operating departments. Regardless of the number of stages, the guest cycle identifies a logical sequence
of hotel-guest interactions.
Front office employees need to be aware of guest services and guest accounting activities at all stages of
the guest stay. Front office employees can serve guest needs when they clearly understand the flow of
business through the hotel.
See sample below, picture indicates which front office personnel are most likely to serve the guest
during each stage of the guest cycle. The guest cycle also suggest a systematic approach to mamaging
front office operations.
Fig 5: The Front Office Activities
Front office activities
1. Pre-Arrival Activities
2. Arrival Activities
3. Occupancy Activities
4. Departure Activities
Front office recordkeeping in an automated property management system (PMS) is mostly the result of
programmed routines. Computer systems designed for use in the hospitality industry at first were not
considered functionally viable or generally affordable. These initial systems tended to be expensive,
making them attractive to only the largest hotel properties.
1. Pre-Arrival Activities
The reservation software of a property management system usually interfaces with a central
reservation system or other distribution network and may automatically quote rates and reserve
rooms according to booking engine protocol.
{Some other hotel has not central reservation system, and then reservation team has been sending
on daily with 14 days booking on hand. Then Front office staff needs to fill in their own system
whichever it uses. Fill in the reservation system according to the main reservation office’s email
files.}
From there take it as following day as of pre-arrival steps.
The reservations software may also automatically generate e-mail confirmations, procedure
requests for guest deposits, handle pre-registration activities, and establish the credit status of
traveler if a credit card, debit card, or smart card number is provided as part of the reservation
record.
Electronic folios can be used to track pre-registration transactions for guests with confirmed
reservations. A reservations software package may also generate an excepted arrivals list,
occupancy and revenue forecast reports, and variety of auxiliary report.
Fig 6: A Sample of an electronic Folio
2. Arrival Activities
Guest information collected during the reservation process is automatically transferred as a

reservation record to the property management system’s front software.
{Some semi –auto system uses hotel, need to provide with manual generated registration card when
any of guests are checking in them let them fill up as per requirements of hotel side. Then signature
for the room assigned guest for future billing concern. Likewise, email address, signature, and so
forth. Keep it that into separate file as of back up. In case of anything hotel/guest needs to rectify.}
A front desk agent enters similar guest information for walk-in guests into the front office system.
The agent may then present a computer generated registration card to the guest for verification and
signature.
Fig 7: A Sample of Manual Folio
3. Occupancy Activities
During their in house period, whatever they consumed all the outlets then we have to transfer from
outlets’ individual bills to him/her room, according to the verify by signature and name along with
bill. After that we posted in the room as per him/her written room numbers and signature.
It can be vary in semi-auto system, what if policy is not establish as of gift shop is far and can sign
policy then guest has been checked out and purchase. Follow by sign and written the room number.
What if we missed out sometime to call at front office then it will be suffered by staffs.
So that, sometime, we have to establish cash basic for safe and secure concern in some part of
outlet sales.
Nevertheless, electronic system helps us a lot. A hotel property management system typically
includes work stations and related devices located throughout the hotel facility. These devices may
include point-of-sale (POS) terminals, data workstations, smart identification tags, handheld units,
pagers, and other formats.
As guests charge purchases at revenue outlets, the charged amounts are electronically transferred
to the property management system, and the appropriate guest account is automatically updated.
Most automated devices are capable of supporting two-way (duplex) interfaces, so the status of
each guest is verified before the system accepts the charge for positing.
Like I mentioned on the top and herewith sample example between semi-auto and system between
differs.
If a guest checks out of the hotel and then attempts to purchase a gift shop item and charge it to his
or her room account, the point-of-sale terminal notifies the gift shop clerk that item cannot be
charged to the guest’s account because the account has already been settled and closed.
Instantaneous postings, simultaneous guest account and departmental entries and continuous trial
balances free front office staff to spend time reviewing, rather than focusing on data entry and
balancing guest accounts.
Fig 8: A Sample of an Electronic
Posting
4. Departure Activities
An electronic or printed folio presented at check-out or e-mailed helps assure the guest that the
statement of account is complete and accurate. Depending on the method of settlement, the
system may automatically post the transactions to appropriate back office accounts.
For a guest account that requires third-party billing, the system is capable of producing a bill to be
sent to the sponsor or credit-granting agency.
Once the guest’s account is settled and the postings are considered complete, departed-guest
information may be used to create an electronic record in the hotels’ guest history file.
Fig 9: A Sample of Guest Invoice
4. Sales Process of the reservations agent
Most hotels have specific sales procedures for reservations agents to use when taking a reservation
from a caller. Common components of the reservations agents’ sales process include the following.
1. Greet the caller
A warm greeting always sets the proper tone for the conversation. E.g “Thank you for calling the
Bagan Thande Hotel. This is Thant Zin speaking. How may I help you?” is always more favorably
accepted than a curt greeting such as, “Reservations.”
2. Identify the caller’s needs.
It is appropriate to ask the caller about arrival and departure dates, the number of guests, bed
preference (double, king, twin, etc.), group or corporate affiliation, and other information that helps
define the caller’s needs. For example, if a caller states that he or she is traveling with children, the
reservation agent should attempt to identify the number of children and their ages. (Point to Upsell
in this time, based on caller’s needs in hand.)
3. Provide an overview of the hotel’s features and benefits, based on the caller’s needs.
Reservations agents should listen closely to what the caller has said in step 2. Based on that
discussion, the agent should highlight the hotel features and benefits that align with the caller’s
needs.
For example, mentioning a year-round swimming pool might be a feature welcomed by families, but
they probably would not be interested in the hotel’s business center. On the other hand, the
business center may be an attractive feature to business travelers.
4. Propose a room recommendation, and adjust it according to the caller’s response.
This step comes after the image of property has been established (Step 3) and reassures the caller
that the reservations agent has truly been listening. If the callers says the recommended room is too
expensive or doesn’t meet his or her needs, the agent should revise the recommendation as
necessary (Suggestive Selling steps are needed.)
5. Close the sale.
Ask for the reservation; don’t wait for the caller to make a decision. Such questions as “Mr. Smith,
would you like me to reserve that room for you now?” may be appropriate after Mr. Smith’s needs
have been addressed.
6. Gather the reservation information.
Record all the reservation information necessary, according to hotel procedures. This process
typically involves repeating the guest’s name, arrival date, departure date, room type and rate and
special requests to the caller to confirm the information. This is also the time to secure the
reservation guarantee and provide a reservation confirmation number.
7. Thank the caller.
Closing a call as warmly as opening it leaves callers with a sense of confidence that they have
selected the right hotel.
5. Activities of the preregistration and the advantages of preregistering guests
On-site registration begins when the front desk agent extends a sincere welcome to the
arriving hotel guest. The front desk agent moves the guest into the registration process
after determining the guest’s reservation status.
To a great degree registration relies on the information recorded in the guest’s reservation
record. Front office personnel will find registration simpler and smoother when accurate
and complete information has been captured during the reservations process.
The Registration Process
The registration process consists of seven steps:
 Preregistration activities
 Creating the registration record
 Assigning the guestroom and room rate
 Establishing the guest’s method of payment
 Verifying the guest’s identity
 Issuing the room key or access code
 Responding to special requests
Preregistration Activities
Preregistration activities (registration activities that occur before the guest arrives at the property) help
accelerate the registration process. Guests can be preregistered using the information collected during
the reservations process.
Typically, preregistered guests need only verify information already entered onto a registration record
and provide a valid signature in the appropriate place on a registration form or card.
Preregistration normally involves more than merely producing a registration document in advance of
guest arrival. Room and rate assignment, creation of a guest folio, and other functions may also be part
of the preregistration process.
However, some front office managers may be reluctant to assign a specific room to a guest in advance
of check-in, since reservations are sometimes canceled or modified. Special rooms assignments often
become jumbled when last-minutes change in reservation status are made. In addition, assigning a large
percentage of vacant rooms in advance of arrival may limit the number of rooms available to guests who
are not preregistered. This imbalance can slow down the registration process and create a negative
impression of the hotel. Hotels will tend to develop preregistration policies based on operational
experience.
In some front office operations, preregistration services may be limited to specially designate or VIP
guests or groups. However, most experiences front office managers prefer to pre-register guests with
reservation records because it shortens the check-in process and also helps them identify what rooms
are available for those guests who do not have reservations when they arrive. Since data recorded
during the reservations process serve as the basis for preregistration, front office systems will reformat
data contained in a reservation record into a registration record.
A sample system-generated preregistration card is shown in below photo. Although a hotel may have to
void some pre-arrival room assignments due to last-minute changes, the registration time saved by
guests who register without complications usually compensates for the inconvenience caused by the
small percentage of cancellations.
Preregistration helps managers plan for the special requirements of guests as well as of the hotel. For
example, frequent guests may have a special room they enjoy at the hotel, and guests with disabilities
may need rooms outfitted to their special needs.
By pre registering these guests, the front desk agent can be sure to satisfy them or can notify the
department responsible for the request. For example, once a room has been assigned to a family, the
front desk can notify the housekeeping department of the room assignment so that a crib can be
delivered in advance.
In addition, preregistration helps managers when they know that the hotel will beat fully occupancy
over the next several days. In order to allocate guestrooms properly, it may be necessary to apply
reservation management software that enables guest reservations of one or two nights to be
preregistered into rooms that have been specially blocked for one or two nights in the future. In this
way, rooms that are blocked will be available when the guests check in. In some hotels, this process may
be closely tracked several days in advance to be sure that the required rooms
are available.
Preregistration lends itself to innovative registration options. For instance, a hotel courtesy van might
pick up a guest arriving at the airport who has a hotel reservation. The driver of the van, equipped with
appropriate information and forms, could request the guest’s signature on a pre-printed registration
card, imprint the guest’s credit card, and give the guest a pre-assigned room key—all before the guest
arrives at the hotel.
Another variation on preregistration for air travelers involves actual services at the airport. Some luxury
hotels have arrangements with nearby airports to provide guests with convenient check-in services. The
guest may swipe or tap a major payment card at remote kiosk interfaced to the hotel’s property
management system.
This arrangement allows the front office to approve the guest credit, prepare guest registration records,
prepare room keys, and print any waiting massages. When the guest arrives at the hotel front desk, the
guest will experience an abbreviated check-in process.
A more sophisticated approach to preregistration involves registration guests designated for VIP service
in a hotel area other than the front desk-for example, at concierge desk.
Some hotels arrange for VIP guests to be pre-processed and escorted directly tom their guestrooms,
thereby avoiding possible delays encountered at front desk.
A hotel may take care to pre-register guests who are members of the hotel’s frequent traveler program,
are part of an arriving group, or are traveler’s Proforma preferred corporate account. Preregistration
ensures that these guests receive appropriate accommodations based on their level of loyalty or
business affiliation.
Some hotels do not make special provisions for reservations from e-commerce websites as these
reservations may be sold on a run of the house, meaning that the guest will be assigned whatever room
is available at check-in time. Generally, a run-of-the-house guest does not benefit from preregistration
activities.
Some hotel companies have centralized guest history systems. Guest reservations can be compared to
the guest history system, either manually or through advanced automation techniques. Guest
preferences are captured and can be acted on as part of the guest preregistration activity. For example,
Wyndham Hotels &Resorts has a guest-loyalty program called “Wyndham By Request.” Members of
Wyndham By Request can enter certain personal preferences to create a guest profile or guest history
file. This file contains such items as the type of pillow the guest prefers, or whether he or she would like
complimentary bottled water in their guestroom when they arrive. Through the preregistration process,
the front office can notify housekeeping or room vice about guest profile/history requests and
preferences.
Fig 10: A Sample of Guest
Registration Form
6. Front Office Communicates with other departments in a hotel
Effective Communication is vital to front office operations, because nearly everything that happens
in a hotel affects the front office, and vice versa. All functions of the front office rely in part on clear
communication. Front office staff must communicate effect effectively
ively with one another, with personnel
in other departments and divisions, and with guests.
Effective communication is a prerequisite to an efficient front office.
Interdepartmental Communications
Many services in a hotel require coordination between the ffront

ront office staff and staff in other
departments or divisions. The front office staff generally exchanges most of its information with
personnel in the housekeeping, engineering, and maintenance departments.
Communication
• Front Office • Engeneering
• Houskeeping &
Maintenance
Communication Communication
Fig 11: Interdepartmental Communication Patter

Pattern
“Our hospitality organization need and require internal communication in effectively for all our
guests’ want.”
The housekeeping department staff and the front office staff must keep each other informed of
changes in guestroom status to ensure that guest
guestss are roomed efficiently and without complication.
The more familiar the front office staff is with housekeeping procedure, and vice versa, the
smoother relationship will be between two departments.
Housekeeping personnel must know the status of every room, along with any guests’ requests.
The front office manager and housekeeping manager should meet frequently to review upcoming
hotel activities.
For example, if the hotel is expecting a large check-out and check-in on the same day, the front
office manager and housekeeping should discuss what priorities should be set for arriving guests
and stay over.
Special requests, like rooms for VIP guests, are very important, since the hotel does not want to
inconvenience VIPs or make a bad impression on them.
Engineering and Maintenance
Engineering: One of the most important functions of HK is the maintenance aspect of the hotel for
the purpose of keeping furniture, fixtures & facilities in working order, contemporary & safe for
guests. Hence a close co-ordination is necessary with Engineering, which actually carries out the task
of fixing furniture and fixtures. As HK personnel are constantly spread throughout the entire hotel,
checking on various things, they originate maintenance orders for the Engineering Department.
The maintenance order could cover a no. of duties such as fused bulbs, broken furniture & fixtures,
plumbing not functioning in guests or in public rest rooms, a/c not working, etc. To be able to ‘clear’
a room for sale to the Front Office, it is necessary that all malfunctioning items in guestrooms are
attended to promptly by Engineering. Rooms are also handed over to Engineering. For major repairs
or renovations, different tasks carried out by Engineering are:
1. Electrical
2. Painting
3. A/C repairing
4. Mason
5. Carpenter
The front office log serves as an excellent reference for the hotel’s engineering and maintenance
staff. Many hotels use a multi-part work order form, or real-time data entry, to report maintenance
problems. When the work is completed, the engineering and maintenance problem renders a room
unsalable, housekeeping staff must be informed immediately when the problem is resolved so the
room can be readied and placed back in the available rooms’ inventory.
Immediate notification of changes in room status helps minimize lost room revenue. To enhance
hotel operations a hotel may employ engineering and maintenance staff around the clock.
7. Common Security Procedures for staff
Loading property managers have many responsibilities, one of which is security. From the earliest
days of the hospitality industry, one of the most important duties of an innkeeper has to protect
guests from harm while on the property.
Developing the Security Program
A lodging property’s security program should stress the prevention of security problems. It is far
more desirable to keep security incidents from occurring than to catch a criminal after a crime has
been committed. Certain security actions and procedures may help to prevent or discourage
incidents. Nonetheless, it must be recognized that not all crime is preventable.
Each property should continually review its security procedures and update them to meet changing
security needs. The following list indicates general areas that might be part of a property’s security
program:
 Doors, locks, key control, and access control

 Guestroom security
 Control of persons on premises
 Perimeter and grounds control
 Protection of assets (money on hand, guests’ assets, equipment, inventories)
 Emergency procedures
 Communications
 Security records
 Staff Security Procedures
I will present in brief about Staff security procedures.
Investing in security technology and equipment is a good idea, but a property trained hotel staff is still
the best way to provide security in a hotel. Although every hotel differs, certain common security
procedures should be standard practice. Some examples include:
 Never say a guest’s room number out loud at the front desk. If someone asks what room a guest
is in, he or she should be directed to a house telephone; the hotel operator can then connect
the person to the appropriate room without mentioning the number. This also means not saying
the room number when issuing a key to a newly arrived guest at the front desk. Room numbers
and directions to guestrooms should be written down for guests or given to guests via pre-
printed materials.
 Front desk agents should require identification from anyone who comes to the front desk and
asks for a key. If photo identification is not available, the person asking for the key should
provide some personal information that can be verified in the hotel computer system, such as
his or her home address, telephone number, or company affiliation.
 Room attendants should not allow anyone in a guestroom without a key. People asking to have
a guestroom door opened should be directed to the front desk; if the situation warrants it, hotel
security should be called.
 Valet parking should use a numbered three-part form to control cars. The first part goes to the
guest as a receipt. The second and third parts stay with the vehicle keys. When the guest claims
the car, the second part stays with the valet office as an official record; the third part goes with
the keys and should be matched to the guest’s receipt before the car is released. Some hotels
use a four-part form.
 Hotels should provide standard guest safety information in their guestrooms. In here in
Myanmar we should post or place in guestrooms for guests as of “Traveler Safety Tips or Dos
and Don’ts “information.
 Hotel guests should be asked for a room key or other proof of occupancy when they ask to
change purchase to their room.
 Employees should immediately report possible security issues. For example, burned-out light
bulbs in guest corridors should be reported and replaced right away. Open emergency doors,
unlocked gates, and other security issues should be addressed with the highest priority.
Security procedures are also important with regards to acceptance of payment cards for payment
and the protection of sensitive information that, in the wrong hands, could facilitate identify theft.
Throughout the guest cycle, hotels frequently receive payment for various transactions via payment
cards. Due to the sensitive information that is found in payment cards, hotels must be extremely
careful in keeping card data secure.
Fig 12.1: A View from CCTV Fig 12.2: A Control room in Security Department
8. The procedures for opening, preparing and maintain front office accounts
While front office accounting may seem intimidating at first, it is actually grounded in
straightforward logic and requires only basic math skills.
A front office accounting system monitors and charts the transactions of guests and business,
agencies, and other non-guests are using the hotel’s services and facilities.
The manner will directly affect the hotel’s ability to collect revenue against outstanding balances.
An effective front office accounting system captures and records guest cycle. During the pre-arrival
stage, a front office accounting system captures data related to the type of reservation guarantee
and tracks prepayments and advance deposit.
When a guest arrives at the front desk, the front office accounting system documents the
application of room rate and tax at registration.
During the occupancy, the system tracks authorized guest purchases at the hotel’s revenue centers.
Finally, the system helps ensure payment for outstanding goods and services at the time of check
out.
The financial transactions of non-guests may also be processed within the parameters of front office
accounting. By following authorized non-guest transaction, a hotel can promote its services and
facilities to local businesses, or track transactions related to conference business.
The area of non-guest accounts may also include the accounts of former guests that were not
properly settled at check out. The responsibility for collecting non-guest account balances shifts
from the front office to the back office accounting division.
In brief, a front office accounting system:
 Creates and maintains an accurate accounting record for each guest or non-guest account
 Tracks financial transactions throughout the guest cycle.
 Ensure internal control over cash and non-cash transactions.
 Records settlement for all goods and services provided.
While there are generally accepted accounting principles for the lodging industry, front office
accounting procedures are often uniquely tailored to each hotel operation.
Accounting terminology and report formats often differ among hotels as well as between hotel
chains.
Accounts
An account is a form on which financial data are accumulated and summarized. An account may be
imagined as a bin or container that stores results or various business transactions. The increase and
decrease in an account are calculated and resulting monetary amount is the account balance.
Any financial transaction that occurs in a hotel may affect several accounts. Front office accounts are
recordkeeping devices to store information about guest and non-guest financial transactions.
In its simplest written form, an account resembles the letter T:
Account Name
Charges Payments
The form of recording is called a T-account. Front office accounts, charges are increases in the
account balance and entered on the right side of the T.
The account balance is calculated by subtracting the T-account right-side total from the left-side
total.
In accounting terminology, the left side of an account is called the debit side (abbreviated dr) and
the right side is called the credit side (abbreviated cr).
Despite their prominence in other branches of hospitality accounting, debits and credits play a
relatively small role in front office accounting. Debits and credits do not simply anything good or bad
about an account. The value of debits and credits results from the use of double-entry bookkeeping,
which is the basis for accounting in most modern business.
In double-entry bookkeeping every transaction creates entries that effects that affect at least two
accounts. The sum of the debit entries is created by transaction. This fact forms the basis for an
accounting process called the night audit or simply termed “the audit”.
Front office accounting documents typically use a journal form. In a non-automated or semi-
automated recordkeeping system, a journal form might contain the following information:
Description of Account Charges Payments Balance
Similar to a T-account, increases in the account balance are entered undercharge, while decrease in
the account balance entered underpayments. In a fully automated system, charges and payments
may be listed in a single column with the accounts of payments placed with minus signs to indicate
their effect (a decrease) on the account balance.
Guest Accounts
A guest account is a record of financial transactions that occur between a guest and the hotel. Guest
accounts are created when guests guarantee their reservations or when they register at the front
desk. During occupancy, the front office is responsible for and records all transactions affecting the
balance of a guest account. The front office staff usually seeks payments for any outstanding guest
account balance during the settlement stage of the guest cycle.
Certain circumstances may require the guest to make a partial or full payment at other times during
the guest cycle. For example, if the front office is to enforce the hotel’s house limit, guests who
exceed that limit may ask to settle part or all the outstanding balance. When there is a house limit,
account settlement action is initiated when the account balance exceeds a predetermined limit, not
at the time of check-out.
Non-Guest Accounts
A hotel may extend in-house charge privileges to local businesses or agencies as a way to promote
sales. Management may also offer in-house charge privilege to groups sponsoring meetings at the
hotel. In each of these cases, the front office staff will create a non-guest account to track deferred
transactions.
Non-guest accounts set up for local businesses and agencies are usually called house accounts or
city accounts. Such accounts set up for groups are termed master accounts.
A non-guest account can also be created when a guest fails to settle his or her account at the time of
departure. Whenever a guest’s status changes from in-house to non-guest, the responsibility for
account settlement is to shift correspondingly from the front office to the back office accounting
division. The hotel’s accounting department normally bills non-guest accounts on a weekly or
monthly basis, unlike guest accounts, which the front office staff complies daily.
Folios
Front office transactions are typically charted on account statements called folios. A folio is a
statement of all transactions (debits and credits) affecting the balance of a single account. When an
account is created, it is assigned a folio with a starting balance zero.
All transactions that increase (debits) or decrease (credits) the balance of account are recorded on
the folio. At settlement, a guest folio should be returned to a zero balance by cash payment or by
transfer to an approved payment card or direct billing account.
The process of recording transactions on a folio is called posting. A transaction is posted when it has
been recorded on the proper folio in the proper location, and a new balance has been determined.
 Non-automated system
 Semi-automated system
 PMS
Regardless of the posting technical or system used, the basic accounting information recorded on a
folio remains the same.
There are basically five types of folios used in front office accounting.
 Guest folios : account assigned to individual persons or guestrooms

 Master folios : accounts assigned to more than one person or guestrooms; usually reserved
for group accounts
 Non-guest or semi-permanent folios : accounts assigned to non-guest business or agencies
with charge privileges at the hotel
 Employee folios : accounts assigned to employees with charge privileges
 Permanent folios : accounts assigned to firms or agencies with which the hotel has an
ongoing relationship (e.g., credit and debit card companies)
Additional types of folios may be frequently created by front office management to

accommodate special circumstances or requests.
Two folios for one guest, the room and tax is posted to the room folio. Food, beverage, and
other charges are posted to a second incidental folio.
Room charges will be created folio A and incidental charge for folio B.
Every folio should have a unique identifier. ( i.e., a serial number or code number).
Most hotels restrict the use of employee folios to those individuals who have been granted
charge privileges for business reasons. For example, a sale manager may have charge privileges
in the hotel’s dining room to entertain clients.
Methods of payment
Guests can settle their accounts in a variety of ways, namely:
 Cash
 Cheque
 Europcheque
 Foreign currency
 Travellers’cheque
 Credit card
 “Switch” card
 Travel Agent Voucher
 Transfers to ledger account
A front office accounting system monitors and charts the transactions of guests and businesses,
agencies, and other non-guests are using the hotel’s services and facilities. The front office’s
ability to perform accounting tasks in an accurate and complete manner will directly affect the
hotel’s ability to collect outstanding balances.
A front office accounting system is uniquely tailored to each hotel operation. Accounting system
terminology and report formats often differ from hotel to hotel.
9. The process of check – out and settlement
Check-out and settlement are part of the final stage of the guest cycle. The services and
activities of departure stage are performed primarily by a member of the front office staff.
Before departing the hotel, guest will generally stop at front desk to review their folio, settle any
outstanding account balance, review the receipt of the account statement, and return their
room key.
Two of the most stressful times for hotel guests occur during check-in and check-out.
Do you know why?
Guest may forget the previous courtesy and hospitality exhibited by the hotel staff if check-out
and account settlement are not professional, accurate, friendly, and efficient.
The Check-Out and Settlement Process
Front office staff performs at least three important functions during the check-out and account
settlement process:
 Resolution of outstanding guest account balance

 Updating of room status information
 Creating of a guest history record
Guest account settlement depends on an effective front office accounting system that maintains
accurate procedures related to guest folios, verifies and authorizes a method of account
settlement, and helps and resolve discrepancies in account balances.
Generally, the front office staff finds it most effective to settle a guest’s account while the guest
is still on the hotel premises. A guest can settle an account by paying cash, changing the balance
to a payment card, deferring payment to approved direct billing entity, applying a gift card, or
using a combination of payment methods and so on and on.
Front office policy usually requires guests to specify an anticipate method of eventual account
settlement at the time they check in. This procedure enables front office staff to verify or
confirm the status of the guest’s payment card or direct billing information in advance of check-
out time and significantion. Normally here in Myanmar pre-paid bookings system and only the
other charges are paying by the end of the check-out whether their preferences. Depend on the
hotel’s policy for accepting different cards concept as well.
Settle as Guest VD and Green

Inform
Check out per guest History Cleaning, light for
preferred H/K
Recording restock next
methods giuest
Fig 13: Room Status Cycle
10. The process of front office audit
Since hotels operate twenty-four hours a day, seven days a week, front office management must
regularly monitor the accuracy and completeness of guest and non-guest accounting records.
A front office audit is a daily comparison of guest account transactions recorded in the front office
system or at the front desk against revenue center transactions. This routine helps guarantee the
accuracy, reliability and thoroughness of front office accounting.
The front office audit also may include action non-guest accounts. A successful audit will result in
balanced guest and non-guest accounts, accurate account statements, appropriate account credit
monitoring, and timely reports to management.
An effective front office audit also increase the likelihood of correct guest and non-guest account
settlement.
The front office audit, sometimes referred to as the night audit, is general performed during the late
evening hours.
The best times, late evening and early morning hours, when front office auditors could work with
minimal interruption.
Functions of the Front Office Audit
 Verifying posted entries to guest and non-guest accounts

 Balancing all front office accounts
 Resolving room status and rate discrepancies
 Reviewing guest credit transaction against establishment limits
 Generating operational and managerial reports
It is important to understand that the front office audit is concerned only with front office activities.
The audit of food, beverage, in-room refreshment centers, banquets, and other revenue outlets is
usually the responsibility of the hotel accounting department and may occur the day after the
revenue center outlet closes.
Hotel management requires extensive auditing of food, beverage, and other revenue-producing
departments. In some small hotels, the front office auditor may perform several parts of a complete
audit in addition to the front office audit, since there may be fewer revenue outlets in the hotel.
Like us, one person we assigned for twice a week for checking all. Not mentioned date as when
auditing will be happening and spot check is ongoing.
11. The seven functions of the management process
Management Functions
The process of front office management can be divided into specific management activities.
Please see below illustrate how management functions fit into the overall front office
management tasks vary among hotels, fundamental management functions remain similar in
scope.
Fig 14: Management Functions
1. Planning
2. Organizing
3. Coordinating
4. Staffing
5. Leading
6. Controlling
7. Evaluating
1. Planning
Planning is probably the most important management function in any business yet managers
may fail to the attention it requires, and may overlook it entirely.
Proper Plans Prevent Poor Performance. A front office manager’s first step in planning should
involve determining the department’s goals.
Managers should identify both near-term goals and long-term goals and develop a plan for
achieving them. Planning also includes determining the strategies and tactics the department
will use to attain the objectives.
An important component of planning is communication, which is essential for success. An

effective front office manager will communicate the plans under development with supervisors
to ensure that departmental activities are consistent with overall hotel planning.
At the same time, it is a good idea to share tentative or preliminary plans with department
members likely to be affected by the plan and seek their input and feedback. Communication is
most effective in written form so that ideas are documented and clearly illustrated for
reviewers.
Several Benefits
 Staff members can contribute to planning process. “Idea generating concepts”

 Support and Accept
 Constructive comments by knowing as how the way is planned
 Know-How to achieve their own goals
 Develop a better understanding of compromises
2. Organizing
Using the planned goals as a guide, a front office manager organizes the department by dividing
the work among front office staff. The manager should distribute work so that everyone
participates and the work can be completed in a timely manner
Organizing includes determining the order in which tasks should be performed and establishing
completion deadlines for each group and subgroup of tasks.
3. Coordinating
Coordinating involves bringing together and using available resources to attain planned goals. A
front office manager must be able to coordinate the efforts many individuals to ensure that
work is performed efficiently, effectively, and on time.
Coordinating front office procedures may involve engaging with other departments, such as
sale, housekeeping, food and beverage, and accounting.
Many front office goals depend on other departments for achievement.
“No complaint of the day” such kind of goal involve other departments are must.
4. Staffing
Staffing involves recruiting applicants and selecting those best qualified to fill available
positions. Tom property recruit employees, it is essential to develop job descriptions that
thoroughly describe the position and that clearly identify the skills and qualities applicants must
possess to satisfactory fill it. The front office manager will work with the human resources
department to develop job descriptions for front office positions.
At most hotels, the human resources department are usually involved in the first level of
qualifying and interviewing job applicants. Human resources staff members are also replied
upon to resolve issue that may arise regarding whether a job description properly represents
the position.
The staffing process also involves scheduling employees. Most front office managers develop
staffing guidelines based on formulas for calculating the number of employees required to meet
guest and operational needs under specific conditions.
5. Leading
Leading is a complicated management skill that is exercised in a wide variety of situations, and is
closely related to other management skills such as organization, coordinating, and staffing. For a
front office manager, leadership involves overseeing, motivating, training, discipline, and setting
an example for the front staff. In addition, if the department is behind in getting the work done,
the front office manager shall step in and assists until the workload is under control again.
One of the best ways to lead a department is by example. Hand in hand support when needy.
6. Controlling
Even front office department has a system of internal controls to protect the hotel’s assets.
Likewise, witness’s signature when a cashier makes a cash deposit at the end of the shift. The
front office manager also exercises a control function when keeping front office operations on
course in attaining planned goals.
7. Evaluating
Proper methods of evaluation determine the extent to which planned goals are, in fact,
attained. The task of evaluating is frequently overlooked in many front office operations, or is
performed haphazardly. Evaluating also involves reviewing and, when necessary, revising or
helping to revise front office goals.
It begins by examining three important front office planning functions:
1). Establishing room rates

2). Forecasting room availability
3). Budgeting for operations
It concludes by examining various methods a front office manager may use to evaluate the
effectiveness of front office operations.
Henry Ford of the modern hotel-once said, “The guest is always right.”
To provide service that meets the ever-changing needs and demands of guests.

Sister in Law

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Prepared by Thant Zin Htut

1 . Classification of Hotels by Target Market ------------------- ---------- 3

2. Organization Chart of Front Office Department ----------------------------- 6

3. Guest Cycle ----------------------------------------------------------- 8

4. Sales Process of the reservations agent ------------------------------ 14

5. Activities of the preregistration and

6. Front Office Communicates with other

7. Common Security Procedures for staff --------------------------------------- 21

8. The procedures for opening, preparing and

9. The process of check – out and settlement ----------------------------------------- 27

10. The process of front office audit ------------------------------------------- 28

11. The seven functions of the management process--------------------------------- 29

Who stay at our property?

Importance of identifying target markets

Benefits of identifying target markets

 What product or service type?

Because of Activities associated with identifying target markets by doing so. As of

We all have to study well for integrat

Align with the business as usual in this hotel industry wise.

 Undertaking market research activities

Figure 1: Market Segmentation

The front office is one department within the rooms division.

 Sell guestrooms, register guests, and assign guestrooms.

The Guest Cycle

Fig 3 The Guest Cycle

Fig 4 The Guest Cycle

Fig 5: The Front Office Activities

Front office activities

From there take it as following day as of pre-arrival steps.

Guest information collected during the reservation process is automatically transferred as a

Fig 7: A Sample of Manual Folio

Fig 8: A Sample of an Electronic

Fig 9: A Sample of Guest Invoice

1. Greet the caller

2. Identify the caller’s needs.

4. Propose a room recommendation, and adjust it according to the caller’s response.

5. Close the sale.

7. Thank the caller.

The Registration Process

The registration process consists of seven steps:

Fig 10: A Sample of Guest

Effective communication is a prerequisite to an efficient front office.

Many services in a hotel require coordination between the ffront

Fig 11: Interdepartmental Communication Patter

Engineering and Maintenance

Developing the Security Program

 Doors, locks, key control, and access control

I will present in brief about Staff security procedures.

In brief, a front office accounting system:

In its simplest written form, an account resembles the letter T:

Description of Account Charges Payments Balance

 Guest folios : account assigned to individual persons or guestrooms

Additional types of folios may be frequently created by front office management to

Do you know why?

The Check-Out and Settlement Process

 Resolution of outstanding guest account balance

Settle as Guest VD and Green

Functions of the Front Office Audit

 Verifying posted entries to guest and non-guest accounts

Fig 14: Management Functions

An important component of planning is communication, which is essential for success. An

 Staff members can contribute to planning process. “Idea generating concepts”