Pearson New International Edition International pcl tp indd 1

FRONT OFFICE SEMANTICS
Credit limit report:
Comparison of a guest’s folio balance to the amount of credit established for that
guest. Sometimes referred to as a 
high-balance report.
Night auditors are responsible for posting guest charges. Therefore, they must evaluate
the possibility that the guest for whom a charge is posted will not, or cannot, eventu-
ally pay. In the case of Ms. Bardello, the $200 hold placed on her card at check-in was
sufficient to establish an appropriate initial level of creditworthiness. With her request
to extend her stay, however, and in keeping with the hotel’s policy, the credit limit that
now must be established is $600 ($200 per night 
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3 nights 
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$600). If the night
auditor can increase the hold on Ms. Bardello’s card by authorizing an additional $400,
the guest’s credit limit will not have been exceeded. If the card cannot be authorized for
the additional amount, Ms. Bardello would have exceeded the hotels’ allowable credit
limit. Then Ms. Bardello’s name, room number, and folio balance will appear on the
hotel’s credit limit report.
Credit limit reports identify guests who are near, at, or over the allowable credit
limit established for them. These reports are sometimes called high-balance reports
because they can, if the FOM desires, include information about guests from whom
payment should be received even if they have not actually exceeded their allowable
credit limit. For example, guests in an extended-stay property may occupy a room for
months or longer. They may owe the hotel significant amounts of money, and pay-
ment at agreed-on intervals is a typical policy.
There are other reasons why a guest may have a high outstanding balance.
Sometimes the guest has made significant food and beverage or other purchases