Pearson New International Edition International pcl tp indd 1

MODERN FRONT OFFICE ISSUES AND TACTICS
Hotel Revenues from Guestroom Telephone Use Decrease
Many hotel guests now use their cell phones rather than guestroom phones because the
cost to do so is often much less. This change yields bad news for the accounting depart-
ment: Telephone revenues per available room dropped to approximately $530 per room in
2003, about 20 percent less than revenues the previous year. Front desk agents, however,
may experience an advantage from decreased in-room phone use: a reduction in com-
plaints about telephone charges erroneously posted to guest folios.
Some companies such as Marriott offer electronic packages. For example, Marriott’s
“Wired for Business” program charges guests $9.95 per day (24 hours) for high-speed
Internet access and unlimited domestic and long-distance phone calls. In 2005, the Microtel
chain (part of U.S. Franchise System), began offering complimentary high-speed Internet
access and unlimited domestic and long-distance calls to all guests.
Adapted from Taylor, A. 2004. Travelers increasing use of cell phones pinches hotel’s profit. Retrieved
March 1, 2004, from http://www.hotel-online.com/News/PR2004_1st/Mar04_CellHotel.html
•
Guest billing problems. Many problems related to guest charges are addressed
before or at check-out. Guests are typically given the opportunity to review
their bill at the front desk, on an in-room television, or at lobby kiosk as part
of the check-out process. However, problems arise with guests who have never
visited the hotel. Persons who have guaranteed their reservation with a pay-
ment card but who no-show in violation of the property’s cancellation policies
will generally be charged for, at least, the first night’s stay. Some of these guests
may protest and contact their payment card company directly; others may first
contact the hotel. Regardless of the source of the inquiry (i.e., the merchant
services provider or the guest), the accounting department becomes involved to
determine whether the reservation cancellation was properly made. If it was,
there should be a cancellation number for that reservation in the PMS system.
Although accounting personnel have access to PMS data, they frequently
interact with the front office staff about extenuating circumstances or other
issues to resolve the disputed charge.
•
Policy development and change. A wide range of financial concerns are addressed
by policies in every hotel, for example, processing payment cards, reconciling
guestroom revenues, requiring advanced deposits for lodging services, accom-
modating cash-paying guests, and managing petty cash funds. Interactions
between the FOM and accounting manager suggest recommendations to the
general manager as policies and procedures are established.
•
Cash bank replenishment. At the beginning of each shift, cashier banks at the
front desk must have a specified amount of currency in specific denominations
(e.g., $1, $5, and $10 bills) to expedite the change-making process for guests
who pay in cash. The currency in these beginning banks is obtained by cashiers
from the accounting department in small properties, or cash banks are assem-
bled by accounting department staff in larger properties.
•
Currency exchange. Hotels that serve a large number of international travelers
frequently provide currency exchange services for guests. It is the responsibility
of accounting department personnel to provide front office agents with current
exchange rates and to maintain cash banks for required currencies at the front