Front Office accounting Fundamentals

FRONT OFFICE ACCOUNTING FUNDAMENTALS

An effective guest accounting system consists of task performed during each stage of guest cycle. During the pre-arrival stage, a guest accounting system captures data related to the type of reservation guarantee and tracks prepayments and advance deposits. When a guest arrives at the front desk the guest accounting system documents the application of room rate and tax at the registration. During stay a guest accounting system tracks authorized guest purchases. Finally, a guest accounting system ensures payment for outstanding goods and services at the time of check-out.

In brief, a front office accounting system:

·        Creates and maintains an accurate accounting record for each guest or non-guest account

·        Tracks financial transaction throughout the guest cycle

·        Ensures internal control over cash and non-cash transactions

·        Records settlement for all goods and services provided

Given below is a brief review of some general concepts of front office accounting:

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 the results of various business transactions. The increases and decreases in an account are calculated and the resulting monetary amount is the account balance. Any financial transaction that occurs in a hotel may affect several accounts.

In its simplest form, an account resembles the letter T and therefore this system is known as T- form of accounting .Charges are increases in the account balance and are entered on the left side of the T which is known as the debit side. Payments are decreases in the account balance which is entered on the right side of the T and is known as the credit side.

Guest Accounts : A guest account is a record of financial transactions which occur between a guest and the hotel. Guest accounts are created when guests guarantee their reservations or when they register at the front desk. The front office usually seeks payment for any outstanding guest account balances during the settlement stage of the guest cycle.

Non-Guest Accounts: A hotel may extend charge privileges to local businesses or agencies as a means of promotion, or to groups conducting meetings, conferences at the hotel. The front office creates non-guest accounts to track these transactions. These accounts may also be called house accounts or city accounts.

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 of Zero. All transactions which increase (debits) or decrease (credits) the balance of the 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 credit card or bill to company account.

The process of recording transactions on a folio is called posting.

There are basically four types of folio:

1)     Guest Folio: Accounts assigned to individual persons  staying in the hotel.

2)     Master Folio: Accounts assigned to more than one person or guest room, usually reserved for group accounts.

3)     Non-guest Folio: Accounts assigned to non-guest businesses or agencies with charge purchase privileges.

4)     Employee Folio: Accounts assigned to employees with charge purchase privileges.

Additional types of folios are frequently created by front office management to accommodate special circumstances or requests. For example, a business guest may request that his charges be split between two separate folios, one to record all Room charges, F & B charges and Laundry expenses and another one to record rest of the expenses. Main folio is usually called ‘A’ folio and the second one is called incidental folio.

Every folio should have a unique serial number. First, they serve as unique identification numbers for control purpose and they are also used for indexing purpose.

Vouchers       

A voucher details a transaction to be posted to a front office account..This document lists detailed transaction information gathered at the source of transaction, such as the hotel coffee shop or Bar. The front desk cashier is required to present supporting documents of all the financial transactions recorded in the guest folio. A voucher-which entitles the bearer to certain goods, services, or discounts upon presentation- is a documentary evidence of a financial transaction. For every purchase, the point of sale presents the bill to the guest, receives cash from the guest, and gives a cash receipt to the guest. In case a charge purchase is made , the guest signs the bill and the same is sent to the front desk for posting it into the guest account; the same is given to the guest at the time of check-out.

The types of vouchers commonly used in hotels are as follows :

·        Charge Voucher

·        Visitor’s paid out

·        Cash receipt voucher

·        Allowance/ Correction voucher

·        Transfer Voucher

·        Travel agent voucher

·        Miscellaneous charge voucher

                                       

                                                   

Creation and Maintenance of Accounts

The task of accurately and correctly recording all transactions that affect guest ledger accounts is the responsibility of the front office. Guest folios are created during the reservation process or at the time of registration.  To prepare a folio for use, information from the guest’s reservation or registration record must be transferred to the folio.  Non automated systems commonly used pre-numbered folios for internal control purposes.  Manually posted guest folio cards are stored in a front desk folio tray which is also referred as a bucket. 

In a fully automated system, guest information is automatically transferred from an electronic reservation record or captured at registration and entered into an electronic folio.  One of the major advantages of electronic data processing is that captured data need only be handled once.  By only having to handle data once, an automated system can significantly reduce errors caused by repetitive data handling. 

Charge Privileges:     To establish an in-house line of credit, a guest may be required to present an acceptable credit card or a direct billing authorization at the time of registration.  Charge privilege implies that a guest is allowed credit facility in the hotel.  This may also happen when guest is regular in the hotel or source of reservation is reliable.  Guests with charge privilege are authorized to make charge purchases and these transactions are communicated manually by vouchers or electronically from remote POS locations to the front desk.  Guest who are not extended charge privileges need to pay an advance deposit for accommodations and they are typically called paid-in-advance or PIA guests.  In a fully automated front office accounting system, such accounts are set to a NO POST status.  This means that revenue center cashiers will not be able to post charges to a guest whose account has a no post status.  In a non automated system, a PIA list is manually distributed to all revenue centers. 

Credit Monitoring:     The front office must monitor guest accounts to ensure they remain within acceptable credit limits.  Generally hotels decide an internal credit limit for all guests to whom charge privileges are extended.  Hotel’s internal limit of credit is known as House Limit.

Front office must keep a track of all accounts approaching the house limit.  Such accounts are known as High Balance accounts.  Guests with high balance accounts must be requested to make a partial payment to reduce the outstanding account balance.  In larger hotels, there may be a full time credit manager to review high balance accounts.  In small hotels this responsibility is given either to the front desk manager or to the accounting division. 

Account Maintenance:          A folio is used to record transactions which affect a front office account balance.  Guest folios must be accurate, complete and properly filed since guests may inquire about their account balance or checkout of the hotel with little or no advance notice.  Transaction postings adhere to a basic front office accounting formula.  The accounting formula is :

Previous balance + debits – credits = net outstanding balance

Tracking Transactions

A transaction initiates activity within the front office accounting system.  From an accounting perspective, nothing happens until a transaction occurs. Each type of transaction will have a different effect on the front office accounting system.  Each transaction is communicated to the front office through the use of different types of vouchers.   A transaction can be classified as

1. Cash payment:  Cash payments made at the front desk to reduce a guest’s net outstanding balance are posted as credits, thereby decreasing the balance of the account.  The front office uses a cash voucher/ cash receipt to support such transactions. 
2. Charge purchase:  Charge purchase represent deferred payment transactions.  The guest receives goods and services from the hotel but does not pay for them at the time they are provided.  A charge purchase increases the outstanding balance of a folio.  A charge voucher also known as account receivable voucher is prepared to document charge transactions.  Charge purchase is basically a credit purchase by the guest and charge vouchers are handed over to the guest at the time of check out.
3. Account correction:  It resolves a posting error on the folio.  By definition, correction is made on the same day the error is made, that is, before night audit.  Account correction can either increase or decrease the balance, depending on the error.  A correction voucher is used to document an account correction. 
4. Account allowance:  It involves two types of transactions.  One type of transaction is when an error in posting is detected after the night audit.  Another type is a decrease in a folio balance for such purposes as compensation for poor service or discounts given for dissatisfactory product or service.  An allowance is prepared which usually requires management approval.
5. Account Transfer:  It tends to involve two different accounts and have an off-setting impact on subsequent account balances.  For eg. when one guest offers to pay a charge posted to another guest’s folio, the charge will need to be transferred from the first account to a second account.  A transfer voucher supports this transaction.
6. Paid out:  The difference between a paid out and other types of transactions are that, paid out reflects cash flow out of the hotel, either directly or on behalf of the guest.  These transactions are considered debit transactions, since they increase a folio’s outstanding balance.  For eg, a guest may request the delivery of flowers and the front office at the time of accepting the delivery pay for the flowers as the guest most likely will not leave the money at the front desk for this purpose.  Payment by the front office constitutes a cash advance on the guest’s behalf.  The front office may pay for the delivery on the presumption that the guest will reimburse the front office.  

Internal control

Internal control in the front office involves:

§  Tracking transaction documentation

§  Verifying account entries and balances

§  Identifying vulnerabilities in the accounting system

Auditing is the process of verifying front office accounting records for accuracy and completeness. Each financial interaction produces paperwork which documents the nature and amount of the transaction. For example, consider the transaction that occurs when a guest charges a meal to his individual folio. This transaction will likely be supported by the restaurant’s guest check, cash register recording, and charge voucher. The charge voucher is prepared at POS and sent to the front office as notification of transaction. In a semi-automated front office a front desk agent, in turn, retrieves the guest’s folio , posts the charge purchase transaction, refiles the  guest folio , and files the charge voucher. Later that day, the front office auditor ensures that all vouchers sent to the front office have been properly posted to the correct accounts. In the case of  this example , the auditor will match the front office total of charges from the dining room to the total reported by the dining room. Discrepancies  in accounting procedures are easy to resolve when complete documentation is readily available to substantiate account entries.

Front office cash sheet

The front office is responsible for a variety of cash transactions which may affect both guest and non-guest accounts. Proper cash handling procedures and controls must be established, implemented and enforced.

Most non-automated or semi-automated operations require front office cashiers to complete a front office cash sheet that lists each receipt or disbursement of cash. The information contained on a front office cash sheet is used to reconcile cash on hand at the end of a cashier shift with the documented transaction which occurred during the shift. A front office cash sheet provides separate columns to record transactions affecting guest accounts, non-guest accounts , and miscellaneous transactions.

The most common entry on a front office cash sheet is the money collected from departing guests during check-out. When guests pay on their accounts , the cashier typically records the amount paid ,the room number ,and the folio number on the front office cash sheet.

The front office cash sheet also provides space for itemizing cash disbursements or paid outs. These are the transactions when front office pays on behalf of the guest. Since the amount of cash on hand at the front desk will be lowered by the amount paid to the recipient , the front office accounting system must be capable of tracking this type of transaction.

Audit Controls:  

A number of front office audit controls ensure that front office staff  properly handle cash, guest accounts, and non- guest accounts. Publicly held lodging companies are required to have their accounting records audited yearly by independent certified public accounts. In addition, companies may have their own internal auditors for control purpose. In both the cases a report is prepared for ownership and management.

Cash bank: 

Cash bank is also known as float or imprest.  It is an amount of cash assigned to a cashier so that he can handle the transactions that occur during a particular work- shift.  Good control procedure generally require that cashiers sign for their bank at the beginning of their work-shift  and that only the person who signed for the bank have access to it during the shift.  At the end of a shift, each front office cashier is solely responsible for depositing all cash [including foreign currency] and all negotiable instruments [such as paid out vouchers] in a specially designed front office cash envelope.  The cashier normally records the contents of the front office cash envelope on the outside of the envelope before dropping it into the vault.  From an internal control perspective, at least one other employee should witness this procedure and both of the employees should sign a log attesting the drop was actually done and stating the time of the drop.

Monitory differences between the money placed in the front office cash envelope and the cashier’s net cash receipts should be noted on the envelope as overages, shortages or due banks [ also known as due backs].

An overage occurs when after the initial bank is removed, the total of cash and negotiable instruments in the drawer is greater than the net cash received.  A shortage occurs when the total of the contents of the drawer is less than the cash receipts.  A due-bank occurs when a cashier pays out more than his bank and he does not have enough cash in the drawer for the cash drop.  They are generally unusual in the front office. 

Bank is restored to its original value at a fixed time during the day by the general accounts department. 

Check-Out Options

Changes in technology and guest needs have prompted front offices to develop alternatives to standard check out and account settlement procedures.  These options combine advances in technology with special guest services to expedite departure activities. 

Express Check out:                 Guests may encounter long lines at the front desk when trying to check out during prime check out period.  To ease front desk volume some front offices initiate check out activities before the guest is actually ready to leave.  A common pre departure activity involves producing and distributing guest folios to the guest expected to check out.  Front office staff may quietly slip printed folios under the guest room doors of expected check outs, making sure that the guest’s folio cannot be seen or reached from outside the room.  In this process, guest must an express check out form at the time of registration or during his stay.  Express check out is possible only if the guest is settling is his bill using his credit card.  By completing an express check out form, guest authorizes the front office to transfer his outstanding folio balance to his credit card account/credit card charge slip which was created during registration.  Such guests after verifying their folio may just sign it and leave it at the front desk before departing from the hotel.  After the guest has left, the front office completes the guest’s check out by transferring the outstanding guest folio balance to a previously authorized method of settlement.  Any additional charges the guest makes before leaving the hotel will be added to his folio.  Due to these possible late charges, the amount on guest folio may not equal the amount charged to the guest on his credit card account.  This possibility should be clearly stated on the express check out form to minimize later confusion. 

Self Check Out:   In some hotels, guests can check themselves out of the hotel by accessing self check out terminals in the lobby area or by using an in-room system.  Self check out terminals or in-room systems are connected with the front office computer and are intended to reduce check out time and front desk traffic.  Self check out terminals vary in design.  Some resemble ATM machines, while others possess video and audio qualities. 

To use a self check out terminal the guest accesses the proper folio and reviews its contents.  Guests may be required to enter a credit card number by using a keypad or by swiping the credit card through a magnetic strip reader attached to the terminal.  Settlement can be automatically assigned to an acceptable credit card and a zero balance folio gets printed out.  A self check out system should then automatically communicate updated room status information to the front office department.  The front office system, in turn, relays room status information to the house keeping department and initiates action to create a guest history record. 

In-room folio review and check out usually relies on the television set provided in the room with a remote control.  The guest can confirm a previously approved method of settlement to the in-room television which is connected via computer to the front office.  The front office computer directs the self check out process.  Guests can pick up a printed folio copy at the front desk on their way out.  Another advantage of this system is that guests can look at their folios at any time during their stay without having to stop by the front desk.  

Computer application in Front Office

Computer application in Front Office

Points to consider while selecting a PMS

• Budget: Budget must be a consideration while selecting a Property Management System for your hotel. A small hotel may want to opt for a local, lesser known brand for the cost constraints while bigger hotels may opt for well known brands as they can afford it.
• Brand: Well known PMS brands are considered reliable which may help bigger hotels to decide upon selecting hotel management software based on their brand image.
• Cost of Operation:  The hardware (computer, printer, back-up discs etc) used by the PMS should be replaceable at a reasonable cost.  Costs for operating supplies, such as paper and cartridges should also be reasonable.  Systems that require such hardware part which cannot be obtained economically, readily and locally should be avoided. 
• Ease of Installation:  Hotel’s operate 24hrs a day and 7 days a week, so any disruption in the continuous operation of its PMS can affect the hotel and its guests.  Before selecting a new PMS, the FOM should thoroughly investigate the amount of time required in the installation of the new system.  Installation time and its actual cost must be a common consideration in the selection of a new PMS.
• Ease of Use:  New Front Office employees must learn how to use the PMS.  The ease with which they can learn the system is a factor in reducing training costs and increasing the pace at which new employees become comfortable operating the system.
• Ease of Interface Integration:  Information needed by FOMs to professionally manage Front Office comes from a variety of sources.  Hotels use many automatic systems like card-key machines, telephone systems which must interface with the PMS for operational utility and efficiency.
• Maintenance Requirements:  Like any other hotel equipment, the PMS must be properly maintained to operate efficiently.  The cost of effective preventive maintenance may vary from one PMS to another. The FOM must determine and understand the time and money required to minimize down time and to maximize system efficiency by providing routine, ongoing maintenance.
• Ease and Frequency of Upgrading:  Technology advances at a fast pace.  Hardware and software upgrades are routinely issued by manufacturers, and most of these significantly improve the operational effectiveness of a PMS.  FOMs should anticipate significant increases in demand for up gradation, memory, and speed and should provide for the same at the time of procurement. 
• Quality and Availability of Support Services:  A PMS is a computerized system and is vulnerable to hardware malfunctioning, software glitches, and potentially damaging intrusive viruses.  Support services personnel, preferably via a toll free telephone number must be accessible on a 24 hrs and 7 days basis.

IMPORTANCE OF USING COMPUTER APPLICATIONS IN FRONT OFFICE

• Reduces paper work
• Environment friendly
• Saves time
• Increases efficiency
• Reduces error
• Increases speed and guest satisfaction
• Improves co-ordination among different hotel departments

Reservation Module includes the following features:

§  It provides room status records when the date of arrival, date of departure and type of guest rooms are entered in the system.

§  It can check the reservation status of a guest quickly.

§  It displays room availability status by simply selecting a date.

§  It can attach guest messages to relevant reservations, to be delivered at the time of arrival.

§  It can automatically calculate rates.

§  It can create group blocks etc

Front Desk Module includes the following features:

• It can access guest information easily and quickly for viewing, modification or check-in.
• It displays a graphical room layout with the room status information.
• It tracks all guest activities for the length of their stay.
• It prints registration cards.
• It updates the system in case of a guest room change etc.

Cashier Module includes the following features:

• It manages all aspects of the guest folio including debits, credits, adjustments, transfers and allowances.
• It allows the viewing or printing of folio details and summary information.
• It consolidates all transactions and produces and accurate bill, enabling a speedy checkout.

Reporting Module includes the following features:

The reporting module has various formats which allow the management to retrieve operating or financial information at any point of time.  With this module, the management can quickly access information such as the availability of rooms on a particular day, the number of guests arriving on a specific day, listing of guest’s folio balances, outstanding balance reports etc.

DIFFERENT PROPERTY MANAGEMENT SYSTEM

There are several companies that provide the PMS software to hotels, with their own unique features to suit the different requirements of various hotels.  Some of the companies providing PMS software are Micros, Amadeus, IDS Fortune, and Shaw Man. 

AMADEUS 

Amadeus property management system can be integrated with Front Office, sales and marketing, and financial management functions.  It allows the user to move faster in all core aspects of guest experience management. 

FRONT OFFICE MODULE:  This module offers full availability, reservation, billing, and yield functionalities, which in turn generate useful performance statistics.  It provides data on performance indicators such as sales, accounts, source, and segment activity, which is monitored to analyze business efficiency and used to generate management reports. 

SALES AND MARKETING MODULE:        This module aids the sales and marketing professions to target potential guests and effectively manage customer relationships. 

CONFERENCE AND BANQUETING MODULE:      Event planning is a feature that helps generate revenue for hotels.  The key features of the conference management system include real time conference/ meeting room availability and equipment management.

FINANCIAL MANAGEMENT:  It is designed for liquidity planning and control along with comprehensive accounting, financial reporting and analysis

FIDELIO

Fidelio hotel management software is a completely integrated system package.  Fidelio headquarter is in Munich, Germany.  This EMS maximizes the efficiency of the hotel.  It is a highly flexible system.  Its uniform and user friendly programme means that the hotel employees can learn this system quickly.  Fidelio has pulled down menus which help and assist the user at every step and only short term training to staff is required. 

1. Fidelio promotes smooth functioning of all the departments.
2. It reduces paper work and helps in saving money on extra stationery.
3. It eliminates communication gap between departments.
4. It helps in providing quality service to the guest thereby, up-keeping the hotel’s goodwill.
5. It is a highly flexible programme and has facilities like screen painter, report generator, user definable report menus and night audit etc.
6. It has the ability to create extensive guest history.
7. It has extensive modules for various hotel management operations like reservation module, front desk module, cashier module, night audit module, material management system etc.

One disadvantage of Fidelio may be that it is very expensive and any under utilization will be expensive.  Its maintenance is also costly compared to other systems.  Another disadvantage may that during night audit terminals are shut down, thus check-ins and check-outs during the period cannot be taken during the period.

Safety and Security in Hotels

SAFETY AND SECURITY

Introduction

Lodging 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 been to protect guests from any harm to his life or property. Although interpretations of protection may vary from country to country, every legal jurisdiction imposes some form of security obligations on hotels. Security regulations go beyond the innkeeper-guest relationship to include hotel employees and others on the properties who are not guests. Therefore, providing security in a hotel is the broad task of protecting people, be it the guests, employees, and others and assets. It must be stated, however, that each lodging property is different and has different security needs.

  

Developing the Security Program

Lodging property security efforts may involve such areas of concern as guestroom and security, key control, locks, access control, perimeter control, alarm systems, communication systems, lightning, closed circuit televisions, safe deposit boxes, inventory control, credit and billing procedures, computer security, Staffing, pre-employment screening, employee training, responsible service of alcoholic beverages, emergency procedures, safety procedures, record keeping, and more.

The industry’s concern with the security has increased greatly since the terrorist attacks of September 11, 2001 in USA. Hotels, because they are so open to the public, are potential targets for terrorist activities. For example, immediately after the tragic events of 9/11, hotels in New York and Washington, D.C., received dozens of bomb threats, including threats to use poisonous gas and other types of destructive devices. More recently, two prominent hotels were among the targets of the terrorist attacks in Mumbai, on 26/11/2008.

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 crime has been committed. Certain security actions and procedures may help to prevent or discourage incidents.

Each property should continually review its security procedures and update them to meet changing security levels. The following list indicates general areas that might be part of a property’s security programme:

• o   Doors, locks, key control, and access control
• o   Guestroom security
• o   Control of persons on premises
• o   Perimeter and grounds control
• o   Protection of assets
• o   Emergency procedures
• o   Communications
• o   Security records
• o   Staff security procedures

  

Security for Guests –

•       Doors, locks, key control, and access control

During a grand opening, a hotel traditionally throws out the keys to the front door. This symbolizes that everyone is welcome. Yet the symbolism doesn’t preclude the need to provide access control to all parts of the building and grounds. When most people think of access control, they first think of guestroom access, but there are hotels areas that require security control, including offices, pool and fitness centre, meeting rooms and lockers, and other areas, for example, locking hotel storerooms help prevent hotel employees from unauthorized entry and from stealing hotel property, whether it is food, linen, or other supplies.

Locking fitness centre and pools helps prevent guests, visitors and employees from using the facilities when they cannot be properly supervised.

Guestroom access security is the most common security need. Electronic guestroom locks have greater flexibility compared to manual systems. Different systems can record every authorized and every unauthorized entry attempt. If a guest reports a robbery, the person responsible for hotel security can query the guestroom lock and identify the keys that were in the last 10, 20, 30 or 50 entries. For guests, security is enhanced because new key codes are issued each time a guest check in. keys are issued during check in. keys are issued during the check in process, and usually will work only for a limited time period-for example, the issued key is good until noon on the scheduled date of departure. If the guest decides to extend the stay, the key must be recorded. Similarly, the guest departs a day early; the key can be rendered invalid by checking in another guest in the room.

For employees, guestroom keys are coded by department, and also have time limits on them. For eg, hotel maintenance employee may be given a temporary guestroom key to fix a problem in a guestroom. The key may be good for a specific time period, such as between 10 A.M and 11 A.M. If more time is needed, the key must be recorded.

Guestroom doors locks also may include chains or other backup locks on the inside of the door, so that they provide guests with good security. Balcony and patio locks may include not only the lock on the door, but also an extra lock that is controlled from the inside of the room. When connecting rooms are not needed, it is important that the connecting door be closed and locked. Only hotel employees should have the keys to open those doors.

Most hotels have multiple key-security levels. The lowest level is the individual guestroom, office, store room, or meeting room. The next level is often called a “section master” key. Section master keys are generally used in housekeeping when a room attendant is assigned a specific group of rooms to clean or inspect; he or she can carry one section master key instead of carrying many separate guestroom keys. A floor master key is generally the next level up; it provides access to an entire floor. There can be several buildings master keys. One building master can cover the guestroom section of the building, including all storage closets in that part of the building. Another building master can cover all public areas, such as dining and meetings rooms. A grand master key gives access to all doors locks in the building. An emergency key or “E-key” is an emergency override key that allows access to all rooms, even if they have been locked from the inside.

All the lodging property’s keys, no matter what level they are, should have controls on them. Guestroom keys are recorded every time new guests checks in or change their departure date. Other keys do not need to be changed as often, but still need to be controlled. Section master keys and floor master keys should be issued at every shift. If a key is lost or stolen; it must be reported immediately and appropriate actions taken to invalidate that key.

To ensure the safety and security of guest belongings, the Front Office must keep the room keys in safe custody.  It is important for the front desk to exercise a strict control on room keys for the following reasons:

a.       It prevents unauthorized access to the guest room.

b.      It can be established who all entered the guest room.

c.       It ensure security of the guest and the guest’s belongings

d.      It prevents intrusion in the guest’s privacy.

Hotels may use conventional hard keys or electronic card keys for securing the guest rooms.  In case the hotels use the conventional keys, the following security measures can be followed:

§  Request guests to deposit the room keys at the reception while leaving the hotel premises.

§  Discourage guests to carry room keys with them while going out by putting heavy and large key tags.

§  In the event of loss of key, the lock should be replaced immediately.

An electronic key system is an investment in guest safety and security.  For each new guest registering in a hotel, a fresh plastic key is encoded every time through a master console.  If a guest carries away a electronic key with him, it will not pose any security threat. 

Key control sheets are maintained by Front desk employees at night.  The relevant details are entered in the appropriate columns of the key control sheet.  

B. Guestroom Security

The guestroom security extends beyond the guestrooms door locks. Another security device found on guestroom doors is the peephole. Peepholes usually contain a fish-eye lens that allows guests to see to the left and right when looking out. Peepholes are usually placed conveniently in the door for guests of average height. In rooms that are specially designed for differently able people , a second peephole is provided for guest in wheelchairs to see all areas of the hall.

Telephones are also an important part of guestroom security, as they allow guest to call for help whenever necessary. Clear instructions, such as “Dial 0 for emergencies,” should be on or near every guestroom telephone.

3. Safe Deposit –

Though hotel is not responsible for the guest valuables, the rule to this effect is written in the guest registration card and also notified in the in guest room but a hotel offers a free safe deposit facility for his valuables.

Hotels have bank type of lockers installed at the front office cash. A locker is allotted to guest that can be opened by using two keys .The master key is with the front office cashier and other key is issued to the guest. A contract is also signed in between the guest and the hotel. Whenever a guest wants to open his locker it has to be entered into the locker operating register. Signatures are always verified with the specimen .Head cashier inserts his key then a guest inserts his own   key, and then only a lock can be opened. Guest is left alone to operate his locker. If the key is lost by the guest, then the locker will be drilled open in presence of the guest and can be charged for the replacement of the locker.

These days some hotels have installed electronic safe deposit boxes in each guest room .this safety box can be operated by using an electronic number. Guest can use any number to open the lock. The number selected by the guest becomes the locker’s code number .The guests are advised to keep their valuables in the electronic safety box. Though hotel is not responsible for any lost item .But hotels take this issue as prestige issue so an inquiry is done on the hotel security level.

Manually operated Safe Lockers : A key concern for guest is the safety of their belongings, especially valuables like cash, jewellery, and important documents.  Hotels provide safe deposit lockers for the same.  Some hotels may also provide in-room safe deposit lockers which are electronically locked and operated through a password.

Manually operated lockers, usually found in the back office of Front Office department, are opened by the simultaneous use of two keys.  One key is issued to the guest and the other is with the front office.  Whenever a guest wishes to operate the locker, the front office assistant and the guest use their respective keys to open the lock.  The hotel may provide this facility for a nominal charge or no charge depending upon the house policy.  Guests who wish to use this facility have to sign in the safe deposit locker register to get the keys of the safe deposit box. 

PROCEDURE FOR USING MANUALLY OPERATED SAFE DEPOSIT LOCKER

Every hotel has its own operating procedure for the allotment of safe deposit lockers.  The standard procedure has two stages

1. Issue of locker
2. Surrender of locker.

Issue of Locker:  Following procedure is used for issue of lockers

a.       An empty safe deposit locker is allocated to the guest with the locker number. 

b.      A safe deposit registration card is handed over to the guest and the guest is requested to fill the necessary information. 

c.       The locker is assigned and the locker key is handed over to the guest.

d.      The guest keeps his valuables and documents in the locker, locks the box and carries the key.

e.       The guest can use the safe deposit box as and when required.  He is required to make an entry in the locker register for each use.

Surrender of Locker:  Following procedure is used for surrender of lockers

a.       The guest is requested to withdraw the articles placed in the locker.

b.      The guest is requested to sign an acknowledgement that he has taken all his belongings that had been placed in the safe deposit box.

c.       The guest surrenders the locker key to the Front Office assistant.

Security of hotels

(a)   Control of Persons on Premises

Controlling people on the premises is one of the most difficult issues for hotel managers and security personnel. Hotels are private property, so people can be excluded if they have no specific reason for being on the premises. It is in these situations where training the hotel staff in security issues is so important. Surveillance systems use video cameras, motion detectors, and other security devices to monitor hotel areas. Cameras are usually connected to monitor in the security offices, Front desk, telephone dept., or other areas where there is generally someone to watch them. Motion detectors and other forms of passive security can set off alarms. Some hotels have signs posted stating that they are private property.

(b)   Perimeter and Grounds Control

Perimeter and grounds control can take many forms. Surveillance systems are very useful in providing security monitoring of such outdoors areas as parking lots, pools, tennis courts, and other areas. Parking lots should be well-lit; guests and employees feel safer in well-lighted parking lots or structures. Parking facilities may also have gates to control traffic; sometimes these gates are staffed for extra protection. Fences are often needed, especially in high risk areas. The hotels management should train valet parking attendants, landscape staff members, maintenance staff members, and other to watch for unauthorized people on the grounds.

(c)    Protection of Assets

The physical and intellectual assets of the hotel must be protected as well. Important devices for securing the assets of guests are hotel safe deposit boxes and, for those hotels that offer them, in room safes. Hotels provide some sort of safe deposit box facility for guests at no charge. Guests must be noticed of the availability of these boxes, usually through notices in guestrooms.

There may be more than one safe for hotel use. When a deposit is made into the safe, the amount, the date, time, revenue outlet, and name require someone other than the person responsible for the drop was actually envelopes found in the safe as the first step in ensuring that the contents are accurate. Both general hotel safes and drop safes are fire-rated to protect the contents from fire.

Hotels must also protect the assets of employees. Employee changing and locker rooms should be secure and safe. Many hotels provide locks for employees. When uniformed employees arrive for work, they each require a uniform and a lock for the locker they store their personal valuables in. other hotels use a more flexible system, involving a lockable bag that holds employee clothing and other items. The bag is turned in to a secure area after it is filled, and it is claimed at the employee’s shift.

Emergency Procedures

Sooner or later, every hotel will have some sort of emergency to deal with. Injuries, robberies, destruction of assets, fires, or other emergency situations will require extraordinary action on the part of the hotel staff.  The hotel should have well documented procedures for all emergencies that can be anticipated. These procedures should be included in the initial and ongoing employee training program. Front desk employees must know what to do during a robbery or when a guest calls asking for medical assistance. Hotel staff members working at hotels located in earth quake, hurricane or flood-prone areas needs to know what to do when these emergencies occur.

One of the most important emergency procedures is to assist guests with disabilities during an emergency. Most hotels computer systems have special codes in them for identifying where guests with disabilities have been roomed. If a hotel is being evacuated, employees must go to these guestrooms to assist the disabled guest.

Regulation requires guests to be notified in their guestrooms of emergency exits and procedures. Most service hotels have bell attendants provide a brief emergency orientation while escorting guests to their rooms. Evacuation routes are generally posted in guestrooms, often on the back of the main guestroom door.

                 

Emergency procedures & situation handling:-

(a)   Lost and found – This is a term used in hotel parlance to refer to any item which is left by the guest or temporarily misplaced by the guest but traced later by the hotel staff. Such articles to be handed over to the housekeeping department which maintained a special locker for this purpose .if the item belongs to the guest who has already checked out, then a letter has to be sent to the forwarding address left by the guest while checkout or which is there in the registration card .If no reply is received by the hotel within certain time limit, that may be auctioned to the hotel employees as per the hotel rules.

If the lost belongings are found in the public areas and the guest is still residing in the hotel then housekeeping department keeps those items with them till any complain is made at the front office or in the lobby, in this case guest is required to give a description of the article which is lost ,before that item is shown to him .

(b)Fire in the hotel –

As soon the fire is detected and intimated to the front desk ,the first thing to do is to inform the telephone department .inmost hotels the telephone department the telephone department plays a pivotal role of alarming the hotel .in smaller hotel which have telephone department is merged with the front office ,there the first job is to call the fire department of that city for the help .the front office should alert all guest and inform them to use the staircase and not the elevator .the telephone exchange should always be manned during fire to communicate from one point to another .if the front office staff have to get actively involved in the procedure then they should search each room thoroughly ,specially under bed or in closets or bathrooms to ensure that no guest is left behind .they must guide the guest through the fire exit map .and help in extinguishing the fire by the use of appropriate fire extinguishers i.e. Foam for electrical fires and oil fires, water for the general fires and so on.

(c) Death-

The front office should inform the General Manager, the security officer and call for the hotel doctor, no alarm is raised and none of the guest to be informed .The General Manager may decide to call the police .The room to be sealed till police formalities are over. People known to that person are to be contacted through the addresses entered in the registration card.

(d) Accidents –

The house doctor should be called immediately on phone and informed about the nature of the accident and guest’s condition .The doctor’s instructions must be followed immediately .Bleeding must be stopped by swabbing wounds with cotton wool and applying antiseptic or any lotion .If a fracture is suspected the guest is not moved till the doctor arrives .Burns are to be treated with creams meant for the purpose .Water is never poured over the burns as this will surely leads to the blisters .Hotel should train staff for this purpose .

(e) Vandalism –

The front office staff must call the hotel security and order the main door to be locked. If thing get out of the hand police must be called.

(f) Damage to property by the resident guest –

The front office cashier is instructed to raise a charge for the value of the damages to property, a responsible guest will never argue but if he does the subject to be referred to the general manager.

(g) Drunken guest –

It is prudent to never argue with drunken guest .He must be politely led away from the public areas either into an office or in his room. If he is behaving unruly the security may be called.

(h) Theft –

Hotels often adopt certain precautions to avoid thefts, they include

·        Self locking room doors.

·        Safety deposit boxes for guest valuables

·        Watching guests with light baggage who could become potential skippers.

·        Watching a walk-in who can be a thief.

·        Avoiding giving room numbers to visitors or guest names to telephone callers.

·        Install CCTV devices in all corridors.

·        Strictly controlling the master key.

·        Posting security personals on floor.

·        Keeping all entrances, corridors and staircases well illuminated.

·        Reporting immediately any suspicious characters.

(i)                 Bomb threats –

With the increase in terrorism in the country and world ,the bomb threats are not so uncommon these days .This may be a genuine threat with explosive planted some where  in the hotel or it may be a hoax which ever the case may be such threats are always taken seriously and the proper action taken .

Mostly bomb threats are made on phone are attended by either the telephone operator or the receptionist of the hotel in this following steps to be followed—

·        Signal the colleague to also listen in the call and try to find out the location through exchange.

·        Listen the caller carefully and make it prolong and get all the information carefully- place where planted, time of explosion and strength of explosives.

·        If possible this call may be taped and note the back noise and try to catch information from accent and police to be informed.

·        Immediately after disconnection the G M and security officer has to be informed.

·        If the location is identified the department head should be also informed

·        People from that suspected area have to be evacuated from that particular location.

·        After “all clear” signal from the police the normal process of hotel can be continued.

Role Play I : Handling guest illness in hotel

As a hotel is a home away from home we must ensures that attention and proper care by staff and medical treatment by hotel prescribed doctors can be provided.

Situation handling role plays by 4 students (one as a guest another student as a receptionist one as a doctor another one as bell boy).

(Guest approaches reception counter)

Receptionist- Good evening sir. How may I assist you?

Guest-Madam I am having f ever and headache since afternoon.

Receptionist-Oh, I am extremely sorry sir .Can you wait for a minute.

Receptionist. Meanwhile she gets the thermometer to check the temperature.

Receptionist-Sir you are having 102 degree fever.  I think we may call a Doctor to assist you.

Guest- Yes , sure. You can call the doctor.

(Receptionist makes call to the hotel doctor to attend to the guest immediately.)

Receptionist- Sir, I have informed about your health problem, our hotel doctor will visit you in the room. May I order hot coffee for you.

Guest-That will be fine. You can send the coffee to my room.

(Receptionist calls room service saying that room no 124 guest Mr.Suresh should be served with a cup of coffee immediately as he is not well.)

Doctor- (Visit the guest analyse the health problem) don’t you worry. It is just a viral fever. I am giving some medicine for you for three days and you will be perfectly fine.

Doctor-To the receptionist you make arrangements to get these medicines from the medical store.

Receptionist- Calls the bell boy to go out and get the medicine for the guest.

Receptionist-Calls the guest over phone saying that-sir i have sent our hotel staff to get the medicine for you and i hope the coffee is served to you.

(Bell boy comes to the receptionist with medicines and doctors prescription.)

Receptionist-You hand over the medicine to guest Mr.Suresh room no 124.

(Bellboy knocks the door gently by announcing ‘bell boy sir’.)

(Guest- Opens the door. The bell boy handover the medicine along with doctor’s prescription.)

Bell boy-Get well soon sir and he leave the room.

Receptionist-(after an hour she calls the guest) Sir, how are you feeling now?

Guest-   Much better. I am thankful for your prompt response. I really appreciate your work.

Receptionist-Most welcome sir; in fact it is our honor to serve you. Have a good day sir.

Role Play II Worksheet: Bomb Threat

Bomb threats are usually received orally on telephone by hotel’s telephone operator. It should be handled in the following way:

Telephone operator: “Good evening! Hotel Moon. How may I help you?”

caller: “A bomb has been planted in your hotel.”

Telephone operator: “May I know to whom I am speaking?”

(she indicates the other employee to record it )

Caller: “You won’t be able to know it. The bomb planted in your hotel will blast in 4 hours from now. If you want your hotel and the people over there to be safe, you will have to fulfill our demands.”

(The employee should remain observant and calm. He/she is hearing sound bells of temple in the background. He/ She should try listening to the person more and ask questions to keep him connected.)

Telephone operator: “Where is the bomb located?”

(Recognizing his voice as of a south Indian)

Person: “You and your people will never find out.”

Telephone operator: “What is your reason for planting this bomb?”

Person: “Because we want our needs to be fulfilled. Do not dare to inform the police because they will also be of no help.”

Telephone Operator: “Where are you calling from?”

Person: “You will not find this also. Wait for my next call and I will tell you all my demands. You better fulfill them or the results will be disastrous.”

( Call gets disconnected)

o   After the call gets disconnected, the Front Office Manager should be informed.

o   All the department heads and General Manager should gather at one place and discuss the matter.

o   The Police should be informed and they should investigate the threat.

o   If the telephone operator has heard anything during the call that can be of any help, it should be informed to the police. All details such as the voice of the person, background noise etc. should be told.

o   One staff member should guide the police and other teams to the hotel for searching the bomb.

o   If a suspicious object is found, the hotel should be evacuated and make sure all doors and windows are open.

Role Play III Worksheet: Handling a drunk guest

Handling a drunken guest in the hotel seems to be a very easy task in listening but in itself is a very difficult task and handling a guest who is drunk and completely out of his senses is very tough.

Certain attributes you have to possess:

·        Act politely

·        Never argue

·        Talk softly and lead him away from the public area

·        If the drunken guest is behaving rudely then the last option should be to call the security officer but try and handle the situation very calmly.

The conversation below will give the fair idea of handling this kind of situation which may be very common in hotels.

Receptionist: “Good evening sir, how may I assist you?”

Guest: “I want my room to be changed and should be on the other floor.”

Receptionist: “sir, please may I know the reason for your room change.”

Guest:  “there is no specific reason but I am just ordering you to change my room as you are here for my assistance.”

Receptionist: “I am very sorry to say so but sir without any specific reason our room cannot be changed and right now we also don’t have any room available because we are running on 100% occupancy. My sincere apologies to you sir.”

Guest: “How dare you talk to me like that, just call your manager I will talk to him. You bloody don’t know who I am. I will surely change the room and you all are here for me only just do as I say.

NOTE: here the duty manager or the immediate supervisor should take the drunken guest away from the reception/front desk area and make the guest realize that this is not the right way to talk and then acting very calmly and talking very politely with him the supervisor can escort him to his room or he can indulge the guest in some other thoughts and just keep the guest calm and as soon as possible send him back to his room.

Role Play IV Worksheet: Handling a drunk guest (b)

Scene: A GUEST AT 11:30 P.M. AT FRONT OFFICE

GUEST:  Hello good evening. I want a martini right now.

F.O.A (LADY): Good evening sir, the bar is closed, I will request to the F&B service. Please go to your room sir, your drink will be sent to your room.

GUEST: No, I will have it in this lobby, I like this lobby and “you as well”

F.O.A (LADY): Sorry sir , you are crossing your limits. Please go to your room.

(The guest was constantly insisting on remaining there, FOA calls up a male colleague for help)

F.O.A (MALE): Excuse me sir, let me escort you to your room, the other guests are getting uncomfortable.

GUEST : To hell with others , I have paid , I am paying , I will pay  , I am “The guest”

(Finally the security officer is called, guest attacks him, the situation gets uncontrolled and later police was called up by security)