Pearson New International Edition International pcl tp indd 1

Credit Balance Management
One of the most important tasks of the night auditor is to monitor guests’ credit bal-
ances. When guests check into a hotel they are usually extended credit immediately.
Creditworthiness may be established by presenting a valid payment card, by the
presence of a direct bill account, or by a cash deposit. With the extension of credit,
however, comes the risks that are associated with guests who ultimately cannot, or
will not, pay their legitimate bills. Night auditors help FOMs to identify and prop-
erly control those risks.
To illustrate, Katie Bardello checks in to the Altoona Hotel and, at registration,
she presents a valid Visa card to establish credit. Ms. Bardello’s room costs $100 per
night and she plans to stay one night. In keeping with the hotel’s credit policy, her
card is authorized at check-in for $200, which is two times her estimated expendi-
tures 
The next morning, Ms. Bardello tells the front desk agent that she wants to stay
two more nights. Usually, assuming the hotel has rooms available, her request would
be welcome. In other cases, however, significant difficulties could now be encoun-
tered. FOMs must carefully monitor all account balances and properly react to
potential problems. Night auditors play a critical role in this process and alert FOMs
about potentially sensitive issues brought on by requests such as the one made by Ms.
Bardello. They do so by generating a daily credit limit report.