Pearson New International Edition International pcl tp indd 1

NIGHT AUDIT AND REPORT MANAGEMENT
568

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Occupancy levels. Most FOMs apply more liberal credit policies during times
of reduced occupancies and use more stringent policies during times of high
demand for rooms.
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Guest’s history. Some credit managers treat first-time guests differently than
repeat guests. Guest histories are maintained in the PMS and can be reviewed
easily. Frequent guests are often less of a credit risk than guests who have not
stayed at the hotel.
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Guest affiliation. If the guest is a business traveler, the creditworthiness of the
guest’s employer might be considered. For example, if the guest is associated
with a government agency or well-known nonprofit group or association, the
financial strength of those organizations may be known and may affect the
credit extension decision.
FOMs may not make credit extension or denial decisions based only on a guest’s
gender, race, disability, ethnic background, religion, or any other factor deemed dis-
criminatory by federal or, in some cases, local laws. Regardless of the hotel’s specific
policies, the night auditor must identify guests who are at or over their credit limits,
take the appropriate action, and report results to the FOM.